RIYADH -- The Saudi interior minister Saturday demanded evidence from the United States that Saudi citizen Wael Hamza Julaidan was involved in funding terror and disputed Washingtons claim to have backed up the allegation.

"We (the government) heard what you heard. This issue concerns us. We began contacts" with the Americans, Prince Nayef bin Abdul Aziz told the official SPA agency.

"Those who say this (about Julaidan) should provide the evidence they have to convince us. We do not accept that a Saudi citizen did any action against his religion and country, but we depend on facts", he said.

The Saudi intelligence chief voiced "surprise" after the United States on Friday declared Julaidan an associate of terror leader Osama bin Laden and froze his assets.

"I hope the report is untrue because it would be unfortunate if a Saudi businessman was assisting and funding terrorism," Prince Nawaf bin Abdul Aziz told *****Okaz**** newspaper.

"It's very, very unfortunate," the intelligence chief said following the announcement from Washington that Julaidan's name had been added to a list of sponsors of terrorism.

"Today the United States and Saudi Arabia jointly designated Wael Hamza Julaidan, an associate of Osama bin Laden and a supporter of Al-Qaeda terror," the U.S. Treasury Department announced Friday.

Julaidan has run the Rabita Trust, an Islamic charity and a major political and fund-raising body based in Mecca, since February 2000.

The Treasury Department declared that Saudi Arabia itself had forwarded his name to the United Nations to be added to the list of individuals and organizations that sponsor terrorism.

"There is a UN resolution that any suspect (of funding terror) must have his assets frozen. We want to participate in this issue so that no single country takes individual actions", Prince Nayef said.

Just days after the September 11, 2001, attacks for which Bin Laden has claimed responsibility, Rabita was added to the list of terrorist financiers and its assets were frozen.

Officials did not specify why Julaidan's name was not added until nearly a year later.

However he was included in a trillion-dollar civil suit filed recently in the United States by more than 1,000 relatives of people killed in the attacks.

A source at the world Muslim league, which runs the Rabita Trust, said Saturday that Julaidan had parted ways with Bin Laden several years ago, and well before the September 11 attacks, after a "dispute".

Speaking on condition of anonymity, he told AFP Julaidan was still working with the World Muslim League. "He has been with the league for the last 10 to 12 years," said the source.

Julaidan is a businessman from a well-connected family based in Islam's holy city of Medina.