Speaking at the first-ever Arab Economic Summit, the Saudi monarch said that no matter how vital economic issues were, they could not equate life and dignity.
"In the past few days, we have witnessed images that are so repulsive, bloody and painful, massacres committed in full view of the world by criminal hoodlums whose hearts know no mercy," he said.
While granting the donation for the Gaza reconstruction fund proposed by the summit, King Abdullah said he realised that "one drop of Palestinian blood is dearer than all riches of the earth".
The Amir of Kuwait Sheikh Sabah Al-Ahmad Al-Sabah, who chaired the two-day summit, had earlier led the barrage of condemnation by the Arab leaders against Israeli aggression on Gaza.
He said Kuwait would donate US$34 million to enable UN Relief and Works Agency's (UNRWA) honour the urgent needs of the Palestinian people, and would also contribute to international efforts of the donor countries.
He described the Israeli invasion as a "war crime and a crime against humanity".
More than 1,300 Palestinians were killed and 5,300 injured while some 4,000 residential buildings were reduced to rubble after Israel launched the attacks on Dec 27.
Israel declared a unilateral ceasefire Sunday followed later by Hamas, which gave the regime a week to pull out its troops from the impoverished strip.
The Israeli war machine had also bombarded UN facilities in the besieged Gaza Strip, derailing the work of the UN staff in the strip.
Speaking after the Kuwaiti leader, Syrian President Bashar Al-Assad called on the Arab states to adopt the term "terrorism entity" to describe the Jewish state.
Al-Assad, who is the current chairman of the Arab round, said although the ceasefire had been secured, this was in no way an indication of the end of violence as the Israeli forces remained in Gaza.
Egyptian President Hosni Mubarak said his country showed clear and strong support for the Gaza Strip since the first day of Israeli aggression on it.
He said Israel should put in mind that achieving peace in the Middle East was an urgent need and that the regime should consider the Arab peace initiative more seriously.
Palestinian President Mahmoud Abbas, meanwhile, called on Palestinian factions to overcome their differences and meet under Egyptian sponsorship.
He said the Palestinians were invited to meet in Egypt to reach an agreement after hours of discussion.
"If the bloodshed in Gaza is not enough for us to agree, then when will the time come?" asked Abbas.
He said should an agreement be reached, what was needed then was a unity government that worked to end Israeli violence, lift the siege on Gaza and open its crossings and hold elections.
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