KUWAIT CITY (AFP) -- Oil powerhouse Saudi Arabia and its tiny Persian Gulf neighbor Qatar have reached a settlement to their years-long dispute following a summit, a Kuwaiti newspaper reported on Monday.

Under the deal, Riyadh will send its envoy back to Doha by the end of the year and would also allow the Qatar-based Al-Jazeera television to open an office in the Saudi capital, Al-Jarida said, quoting Arab and Qatari sources.
In return, Qatar has agreed to a Saudi demand that Al-Jazeera stop ""undermining"" and ""campaigning"" against the desert kingdom, the daily quoted the sources as saying.
Saudi Arabia recalled its ambassador from Doha in 2002 when Al-Jazeera aired a debate in which participants strongly criticized the Saudi royal family, and the two neighbors often snipe at each other through their respective media.
But in a bid to ease tensions, Qatari Emir Sheikh Hamad bin Khalifa al-Thani held talks with Saudi King Abdullah in the Red Sea city of Jeddah on Saturday during a brief visit.
The move comes three months before Qatar is due to host the annual summit of the pro-Western Persian Gulf Cooperation Council (PGCC) grouping Bahrain, Kuwait, Oman, Saudi Arabia and the United Arab Emirates alongside Qatar.
Abdullah, who boycotted a PGCC summit in Qatar in 2002 when he was crown prince and de facto ruler of Saudi Arabia, will now attend the next summit in December, the Kuwaiti daily said