Saudi Arabia will not cut public spending and sees no need to borrow from local or international markets, press reports quoted the nation's king as saying on Tuesday.
"The volume of spending will not contract and we do not need debt whether local or foreign," King Abdullah Bin-Abd-al-Aziz al-Saud said in an interview with Kuwait's al-Seyasah daily.
The monarch said the Gulf kingdom's economy was strong enough to get over the financial crisis and said a number of infra-structure projects worth billions of dollars were underway, ruling out that the possibility that Saudi Arabia would have to liquidate state investment.
King Abdullah said the current price of $75-80 a barrel is a fair price for oil. "We are now seeing a quick recovery in the global economy and we see indications of increasing demand on this material (oil)."
With regards to the Gulf Arab Monetary Union, the king said Gulf countries would review their deal and would seek to resolve disputes prior to its implementation.
Last week the United Arab Emirates withdrew from the planned union, throwing the project into doubt even though Saudi Arabia, Kuwait, Qatar and Bahrain said they were still committed.
The UAE, the world’s third-largest oil exporter, is the second country to withdraw after Oman dropped out in 2006.
In 2004, the UAE offered to host the eventual central bank of the monetary union but was rejected two weeks ago by the Gulf Cooperation Council, which decided to house it in Saudi Arabia.
King Abdullah said Saudi ties with the UAE would not be affected by the surprise move, which the UAE linked to plans to place the joint central bank that would manage the currency in Riyadh.
"The leaderships of GCC countries could disagree over certain opinions and issues, but these differences quickly go, be it in Gulf summits or bilateral meetings ... The kingdom and Saudi Arabia will remain brotherly," King Abdullah said.