A radical Muslim preacher who once claimed that "Every Muslim should be a terrorist" has received one of Saudi Arabia's most illustrious awards for "Service to Islam".

Dr Zakir Naik, an Indian public speaker, televangelist and president of Islamic Research Foundation, was given the award at the annual King Faisal International Prize ceremony at Riyadh's Al Faisaliah Hotel. Recipients are considered to be "dedicated men and women whose contributions make a positive difference" and are given $200,000 in prize money.

"Islam is the only religion that can bring peace to the whole of humanity," Naik said in a video aired at the ceremony.

However, despite this apparent commitment to peace, Naik was banned from entering the UK in 2010. Home Secretary Theresa May said: "Numerous comments made by Dr Naik are evidence to me of his unacceptable behaviour.

"Coming to the UK is a privilege, not a right and I am not willing to allow those who might not be conducive to the public good to enter the UK."

Naik has in the past praised Osama Bin Laden, branded 9/11 an "inside job" and once said on his television channel Peace TV: "If he [Osama Bin Laden] is fighting the enemies of Islam, I am for him. If he is terrorizing the terrorists, if he is terrorizing America the terrorist, the biggest terrorist, I am with him. Every Muslim should be a terrorist."

He has also apparently declared that "homosexuality is forbidden in Islam and the punishment for homosexuality is death".

A booklet authored by the preacher caused concern when it was handed out to students at an event organised by the Islamic Society at Keele University in 2013.

It included statements such as: "If Islamic Shariah is implemented in any part of the world, whether it is America or Europe, society will breathe easier" and "Every Muslim should be a terrorist... every Muslim should be a terrorist for the antisocial elements of society, such as thieves, dacoits [bandits] and rapists".

Islam is the state religion of Saudi Arabia. The legal system is based on Shariah law, and courts regularly impose severe physical punishments, including the death penalty, for murder, armed robbery and apostasy.

A law enacted last year equates atheism with terrorism. The legislation banned "Calling for atheist thought in any form, or calling into question the fundamentals of Islamic religion."

Saudi blogger Raif Badawi was recently sentenced to 1,000 lashes over accusations he insulted Islam. However, it has now emerged that he could be put on trial for apostasy resulting in a death sentence.