Society's Child
There will be extra funds for housing, studying abroad and social security, according to state television.
King Abdullah has been away from the country for three months, during which time mass protests have changed the political landscape of the Middle East.
There have been few demonstrations in Saudi Arabia.
Hundreds of men in white robes performed a traditional sword dance at Riyadh airport as the king's plane touched down.
He disembarked and queues of people waited to personally greet him.
The streets of the city had already been decorated with welcome banners and national flags.
The 86-year-old left for New York on 22 November and had two operations in New York to repair spinal vertebrae and a herniated disc.
After a period of convalescence at his New York home, the king flew to Morocco on 22 January and had been recuperating there since.
By that time, Tunisia's president Zine al-Abidine Ben Ali had become the first leader in the region to be ousted after weeks of mass protests - and he had fled to Saudi Arabia.
Egypt's President Hosni Mubarak was the next to go.
Health speculation
King Abdullah's health has been the subject of intense speculation, especially since the men tipped to succeed him are also elderly.
His half-brother Crown Prince Sultan - who is in his eighties and has been in poor health - has been in charge in his absence.
The monarch's imminent return was welcomed by the Saudi media.
"The king is the only pillar of stability in the region now," read the editorial in the English-language daily Arab News. "He is the assurance of orderly progress... in the Arab world as a whole."
Saudi television reported that Bahrain's King Hamad was also flying into Riyadh on Wednesday.
The small state on Saudi Arabia's eastern border has seen more than a week of protests and the Bahraini authorities were criticised internationally for their initial crackdown on demonstrators.
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Gene Sharp, 'Clausewitz Of Nonviolent Warfare,' Amazed By Egypt's Youth
He's been called "the man who changed the world," by the editorial board of the Boston Globe, and the Karl Von Clausewitz of nonviolent warfare" by Radio Free Europe/Radio Liberty.
As Morning Edition host Steve Inskeep notes, former Harvard reseacher Gene Sharp has been an inspiration to young revolutionaries in countries such as Serbia and Egypt, where they used his manual From Dictatorship to Democracy and his book The Politics of Nonviolent Action to help guide them through what turned out to be successful — and peaceful — revolts against oppressive regimes.
In a conversation with Morning Edition, Sharp talks with Steve about why dictators can't stand up to a determined, organized, non-violent resistance.
"It's wise," he says of nonviolent resistance. "Nonviolence is a kind of people power — a people mobilizing power ... [and something that dictators] are not equipped to deal with effectively."
Violence, on the other hand, is a dictator's "best weapon," Sharp says, and something that such a regime is well equipped to handle.
Steve asks Sharp, who's now 83, if he learned anything from the young protesters in Egypt who ultimately led to the collapse of President Hosni Mubarak's regime.
"I was amazed when I saw, very early on in the Egyptian struggle, this testimony — 'we're not afraid anymore, we've lost our fear,' " Sharp says. "That is something Gandhi always advocated. He said 'cast off your fear.'
"Once a regime is no longer able to frighten people — to terrorize them into passive submission — then that regime is in big trouble."
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A facebook group called K.S.A Revolution is already calling for demonstrations on March 20th
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