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The Fahd Plan was significant in several ways.
First, it showed that the Kingdom of Saudi Arabia was prepared to take the initiative in trying to solve the intractable problems posed by Israel.
Secondly, it indicated the type of approach King Fahd would take to international diplomacy. From an Arab point of view, the proposal was bold in that, implicitly, it accepted the existence of Israel and its right to live in peace in the region, subject to the other provisions of the Plan. (It has to be remembered, as noted above, that Israel was founded by displacing and dispossessing hundreds of thousands of Arab Palestinians who were and are still living in refugee camps around the Middle East, hoping for justice under international law.) The Fahd Plan recognized the reality of the situation. The provisions of the Plan gave Israel a guarantee of security within agreed borders, a guarantee that would of course be enforced by the United States if the United Nations were to prove ineffectual. At the same time, the Plan sought justice for the Palestinian Arabs or as much justice as was pragmatically possible. This combination of boldness in taking initiatives, combined with pragmatism, all undertaken through quiet diplomacy, has been the hallmark of King Fahd’s approach to international affairs.
Third it showed King Fahd’s commitment to the Holy Places of Islam (in this instance, Jerusalem) and his respect for the Holy Places of the other People of the Book (Christians and Jews) and their right to worship.