SAUDI ARABIA and Tunisia have agreed to hold joint naval exercises, Saudi Defence Minister Prince Sultan bin Abdel Aziz announced on Sunday. Prince Sultan said the decision was reached in talks with his visiting Tunisian counterpart, Habib Ben Yahia. But he did not give a date or location. In a sign of improved contacts between the two Arab states, the Tunisian minister arrived for an official visit on Friday. Tunisia was seen as pro-Iraqi during the 1991 Gulf War over Kuwait. But ties between Tunis and Riyadh have since warmed, especially economic and financial links. Prince Sultan visited the North African state in April.