Saudi Arabia to keep spending steady: official

Saudi Arabia, the world's largest oil exporter, will resist pressure to increase spending, as the country aims to keep its fiscal reserves at a "good level," the country's finance minister on Sunday said.

Ibrahim Al Assaf also said that economic indicators suggested on optimistic outlook for the Saudi economy.

But he sounded a note of caution, saying Group of 20 rich nations should not be hasty in withdrawing stimulus packages just yet.

"It could lead to another dip in the world economy," he said, at a conference in the Saudi capital, Riyadh

Saudi Arabia, like other nations, boosted spending on infrastructure, education and healthcare last year seeking to underpin economic growth. The kingdom has repeatedly warned about the need to keep stimulus packages in place and warned against early exit strategies.

"We have been monitoring – and here I mean the G20 nations – the situation, in particular looking at not to withdraw the stimulus packages or to extend them longer than needed."

At the same time, the Saudi central bank has urged G20 nations to stick to banking oversight regulations agreed in the wake of the 2008 financial crisis.

Germany will host a G20 meeting in May to focus efforts on reforming financial regulation in the wake of new US proposals for governing banks, a German finance ministry spokesman said on Saturday.

US President Barack Obama last week proposed new limits on the size and trading practices of big banks.