The World Economic Forum (WEF) kicked off its annual meeting on the Middle East at the Egyptian Red Sea resort of Sharm el-Sheikh today.

Egyptian President Hosni Mubarak inaugurated the meeting by giving a keynote speech at the opening session of the three-day event, which was attended by some 14 heads of state and government including US President George W Bush.

With the theme of 'Learning from the Future,' the event will focus on a series of futuristic scenarios that explore the impact of long-term global trends on the Middle East.

Some hot topics, such as regional tourism, water resources, sustainable development in the region, soaring food prices and the consequences of global inflation on Mideast, will also be high on the agenda of the international meeting.

Inaugurating the event, Mubarak said Arab states would not support a peace deal that does not meet the demands of the Palestinians.

'Anyone who believes that cover will be provided for an agreement that does not fulfill the demands of (the Palestinians) is mistaken,' Mubarak said.

Bush sought to reassure sceptical Arabs that he is committed to securing a deal on Palestinian statehood before he leaves office, despite his outspoken support for Israel.

Bush was looking to ease Palestinian dismay over his visit to Israel, where he lavished the Jewish state with praise, hailing it as a 'homeland for the chosen people'.

Bush used a speech to the mostly Arab audience at the World Economic Forum to insist he 'firmly believes' a Middle East peace agreement can be reached this year -- a deadline widely viewed as unrealistic.

'We must stand with the Palestinian people, who have suffered for decades and earned the right to a homeland of their own,' Bush said.