AJK President Muhammad Anwar Khan, Prime Minister Sikandar Hayat and Minister for Kashmir Affairs Faisal Saleh Hayat and officials received them at Neelum Valley Stadium when they arrived here by helicopter.
Saudi Ambassador Ali Saeed Awadh Al Asseri also accompanied the Prime Minister and Prince Waleed.
The Prime Minister and Saudi Prince visited different affected areas of Muzaffarabad city and appreciated the relief and rehabilitation work being carried out by Pakistan Army to normalise life here.
They also visited Abbas Institute of Medical Sciences to inquire about the health of the injured patients here.
The Prime Minister distributed cash compensation among the patients and also handed over some cheques of Rs 100,000 among the legal heirs of those who lost lives due to the earthquake.
On this occasion, Prince Waleed, who is one of the five richest persons in the world, announced one million dollars help for Pakistan to continue relief efforts for the victims.
He also announced to construct 20 schools in Muzaffarabad.
The donation of one million dollars is personal contribution of Prince Al-Waleed, and he has already announced $7 million for the quake victims of AJK and NWFP.
The Prince, talking to newsmen at Muzaffarabad, said that Saudi Arabia and Pakistan are very close friends and assured that Saudi Arabia would extend full help and co-operation to Pakistan in this need of hour.
He said he came here personally to visit the quake affected areas and express his deep sense of condolence and sympathies on this tragic loss due to devastated quake.
He appreciated the efforts of Pakistan Army and international organisations and other friendly countries for their help and contribution in the affected areas.
Earlier, he attended a briefing at the Army headquarters where he was informed that Pakistan Army had started rescue and relief operations immediately after October 8 earthquake.
Prince Al-Waleed said, "It's a battle zone, and Pakistan's Army has done a marvellous job."