I cannot believe the furor the media is causing over this. If we actually look at this plan we will see that there is nothing new here, rather this is just a restatement of the maximalist Arab position (which does not even satisfy countries like Iraq and Libya), that Israel withdraw to the June 4,1967 border and accept millions of Palestinian refugees. What is the big deal here? In fact, Saudia ARabia has proposed a similar plan in the past. The Fahd plan of 1981 (see www.kingfahdbinabdulaziz.com), named after the unwell Saudi king, states that in exchange for full Israeli withdrawal and "affirmation of the right of return" for Palestinian refugees, "all states" (Israel is not mentioned by name) should live in peace in the region.
However packaged, in reality this plan is a rejection of UN Resolution 242, which calls for the negotiation of "secure boundaries" for Israel, withdrawal from territories, not for a total Israeli withdrawal, and certainly not for Israel to commit national suicide through the "right of return."

The following article sums it up best:
[link|http://www.jpost.com/Editions/2002/03/04/Columns/Columns.44505.html|INTERESTING TIMES: Let Saudi fruit ripen]

"For a public official, the most dreaded question is of the no-win "When did you stop beating your wife?" variety. Middle Eastern dictators have no such fears. Being a Saudi, Syrian or Iranian leader means you can stand up and announce "I've stopped beating my wife!" and be heaped with grateful adulation.
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The Saudis have a plan: give the Palestinians everything they want and we will make peace.
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For the Saudis to declare now that they are for "land for peace" means that until now they were against peace under any circumstances - the diplomatic equivalent of proudly declaring, "I've stopped beating my wife!"
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The "Saudi plan" is essentially a rerun of the absolutist Arab interpretation of UN Security Council Resolution 242 of that year, the famous "land-for-peace" resolution that has formed the basis of the peace process ever since.
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However packaged, in reality this plan is a rejection of UN Resolution 242, which calls for the negotiation of "secure boundaries" for Israel, not for a total Israeli withdrawal, and certainly not for Israel to commit national suicide through the "right of return."

[link|http://www.washingtonpost.com/wp-dyn/articles/A45867-2002Mar6.html|Saudi Peace Sham]

"In 35 years of studying the Middle East, I have rarely seen anything to rival the Saudi "peace plan" for cynicism (of those pushing the plan) and gullibility (of those buying it). If it were not so tragic it would be comic
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A new "peace plan" is then floated whose essence is this: When peace is achieved between the two parties killing each other on the ground, the Saudis will give it their blessing and make peace too."
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Apart from the fact that the plan is an obvious Saudi ploy to blunt American anger at the shockingly deep Saudi role in Sept. 11 by posing as peacemakers, apart from the fact that it gives make-work to U.N., EU and other underemployed diplomats with not an idea in their heads how to stop the violence, the plan has a very specific objective: misdirection. The plan -- a repetition of maximal Arab demands from which they have not budged in two decades -- is a transparent attempt to take world attention away from the source of the violence."