RIYADH Saudi Arabia and the European Union discussed on Saturday the oil-rich kingdom's efforts to join the World Trade Organization, Reuter quoted Saudi officials as saying.

Finance and National Economy Minister Ibrahim Abdel Aziz al-Assaf detailed Riyadh's position on the WTO to EU Trade Commissioner Pascal Lamy, on a two-day visit to the kingdom.

Saudi Arabia, the world's largest oil exporter and producer, is the only Persian Gulf Arab state that has not joined the WTO.

Riyadh has been striving for years to gain membership to the trade body, which it sees as vital to diversifying its energy-led economy. Saudi Arabia has blamed its delayed entry into the WTO on unclear and inflexible trade rules.

Commerce Minister Osama bin Jaafar Faqih said this week the kingdom had made substantial progress on its WTO bid since January, adding that there were intensive talks "to arrive at a package of obligations which is balanced and beneficial for the economic needs of Saudi Arabia".

The kingdom first applied to join the forerunner of the WTO, the General Agreement on Tariffs and Trade (GATT), in 1993.

Saudi Arabia has taken several steps toward liberalizing its economy, issuing a new investment law that allows foreigners for the first time to own projects and related property.