Saudi King returns home after three-month medical absence, unveils benefits for Saudis in bid to insulate country from protest wave

Saudi King Abdullah returned home on Wednesday after a three-month medical absence and unveiled benefits for Saudis worth some $37 billion in what appeared to be a bid to insulate the world's top oil exporter from an Arab protest wave.

Crown Prince Sultan bin Abdul Aziz, Interior Minister Prince Nayef bin Abdul Aziz and Bahraini King Hamad bin Issa al-Khalifa were among a string of officials and royals who turned out to greet the 86-year-old monarch, who was seated in a black chair set up just outside the plane's door.

Saudi Arabia has declared Saturday a public holiday to mark King Abdullah's safe return home, following back surgery in New York and a recuperation period in Morocco.

Before Abdullah arrived, state media announced an action plan to help lower- and middle-income people among the 18 million Saudi nationals. It includes pay rises to offset inflation, unemployment benefits and affordable family housing.

According to the official Saudi Press Agency, the King ordered the implementation of a 15 percent pay rise for state employees as well as an increase in the cash available for Saudi housing loans. King Abdullah also granted pardon to some prisoners indicted in financial crimes and announced plans to tackle unemployment.

Meanwhile, hundreds of people have reportedly backed a Facebook call for a Saudi "day of rage" on March 11 to demand an elected ruler, greater freedom for women and the release of political prisoners.

According to Reuters news agency, Saudi analysts said the king might soon reshuffle his cabinet to inject fresh blood and revive stalled reforms.