UPDATE 1-Iraq looks to more debt waivers after UAE deal

(Adds Saudi officials in paragraphs 8-9)

ABU DHABI, July 7 (Reuters) - Iraq seeks debt forgiveness from other Arab states, including Saudi Arabia, following the waiver by the United Arab Emirates of almost $7 billion in obligations, the Iraqi government spokesman said on Monday.

"I imagine that the Emirati intiatives will be a push for many countries," Ali al-Dabbagh told Reuters. "We want the others, everyone from Saudi Arabia to the others, to take a similar initiative and for those steps to be courageous."

On Sunday, the UAE named an ambassador to Iraq and cancelled almost $7 billion of debt including interest and arrears owed by Baghdad, becoming the first Gulf Arab country to forgive all of Iraq's debt.

Last year, Saudi Arabia pledged to cancel 80 percent of more than $15 billion in Iraqi debt but has yet to follow through. Kuwait, also owed $15 billion, has yet to write off any debts.

Improved stability and security in Iraq should provide a more solid basis for other Arab countries to normalise relations with Iraq after the 2003 U.S.-led invasion, Dabbagh said.

"Saudi Arabia has announced its intention to open an embassy. We are waiting for it to take the practical steps in officially appointing an ambassador," Dabbagh said.

Jordan said last month it would open an embassy in Iraq soon and Iraq said last week that Jordan's King Abdullah is expected to be the first Arab leader to visit since the invasion.

Saudi officials said in private that the UAE and Jordan steps meant it was only a matter of time before Saudi Arabia would following through on the debt and embassy issues.

They said decisions could be announced once the summer holiday period was over.

The United States has pressed Arab governments to support Iraq's recovery by joining Western nations in forgiving their share of Iraqi foreign debts that total up to $80 billion. Washington also wants Arab capitals to establish high-level diplomatic representation in Iraq.

Sunni Arab governments who once funded Iraq's 1980-1988 war against Shi'ite Iran have held back from establishing top-level ties with Baghdad since the U.S.-led war toppled Saddam Hussein, citing poor security and extensive Iranian influence. (Reporting by Lin Noueihed and Andrew Hammond; writing by Thomas Atkins; editing by Richard Williams)