AOBG8 leaders have backed global funding of up to $3 billion a year over the coming three years for economic regeneration and improved governance in the Palestinian territories.
The funds would assist in laying the basis for "a viable, democratic Palestinian state living in peace, dignity and prosperity side by side with a secure, universally-recognised Israel".
The global fund is the brainchild of Mr James Wolfensohn, appointed by the "Quartet" of the US, Russia, the EU and the UN as a special envoy for disengagement - the planned withdrawal of Israel from Gaza.
The communique encouraged the Arab states and the Organisation of the Islamic Conference to contribute to the project and "provide substantial additional support". The Palestinian Authority should "re-establish internal law and order, and take effective action to confront terrorism," the communique added.
In a "Statement on Counter-Terrorism", the summit condemned this week's London bombings "in the strongest terms" and expressed "deepest condolences" to the victims and their families.
On economic issues, the leaders were optimistic about the outlook for growth worldwide, which they expected to remain "robust". But they were concerned about the impact of "higher and more volatile oil prices".
The summit "deplored" the forced demolition of buildings in Zimbabwe which it said had left hundreds of thousands without homes or livelihoods. "We call on the Zimbabwean authorities to end this campaign now."
