Saudi Arabia's state investments are in low-risk portfolios with no direct investments in banks, a senior central bank official said.

"We rely on low-risk portfolios that are easy to liquidate ... even if the returns were low," Vice Governor Muhammed al-Jasser told Al Arabiya television.

"It is well known that Saudi investments are invested in a very conservative manner ... now I hope those who used to criticise this policy would be couragous to admit that this is the right way," he added.

"We do not go and buy a five percent stake in this or that bank," he added of the top oil exporter's state investment policy.

He said deposits of Saudis in domestic banks were at no risk due to the global financial crisis. - Reuters