Prince Turki Al-Faisal, a senior member of the Saudi royal family, reaffirmed on Friday that Saudi Arabia's price for normalising relations with Israel is the creation of a sovereign Palestinian state with Jerusalem as its capital.

The deal raised speculation that other US-backed Gulf Arab countries might follow UAE's footsteps but Prince Turki said Saudi Arabia, the biggest Gulf Arab power which has traditionally guided policy towards Israel, expected a higher return from Israel.

"Any Arab state that is considering following the UAE should demand in return a price, and it should be an expensive price," he wrote in the Saudi newspaper Asharq al-Awsat.

"The Kingdom of Saudi Arabia has set a price for concluding peace between Israel and the Arabs - it is the creation of a sovereign Palestinian state with Jerusalem as capital, as provided for by the initiative of the late King Abdullah."

Prince Turki also voiced understanding for the UAE's decision, noting Riyadh's close ally had secured a key condition - a halt to Israeli annexation plans.

In the first Saudi reaction to the UAE-Israeli deal, Foreign Minister Faisal bin Farhan said on Wednesday Riyadh remained committed to the Arab peace initiative.

Prince Turki, a former ambassador to Washington and ex-intelligence chief, holds no government office now but remains influential as current chairman of the King Faisal Center for Research and Islamic Studies.