Geithner: Expect a Gradual Recovery

Saudi Arabia, the Arab world's largest economy and OPEC's de facto leader, recycles significant petrodollars into U.S. Treasury bonds. And government-run investment funds in the United Arab Emirates -- Geithner's second Arab stop -- have poured billions of dollars into U.S. banks and other companies.

As a group, the six-nation Gulf Cooperation Council -- which includes Saudi Arabia, the UAE, Kuwait, Qatar, Bahrain and Oman -- is now the U.S.'s second biggest creditor after China.

Tarik Yousef, dean of the Harvard-affiliated Dubai School of Government, said the United States views the region as an important source of funding and as a balancing force in the world's financial system.

"A reinforcing message about their role in the global economy ... is an important message to convey," he said.

Geithner, who is expected to hold talks with King Abdullah and his top financial advisers later Tuesday, said the meetings in Saudi aim to highlight the importance of the two countries working together to resolve the economic global crisis.

He laid out a four-point strategy that he said is essential for economic recovery. It includes stabilizing and repairing the U.S. financial system, helping offset the dramatic contraction in demand, working with the major economies of the world on a coordinated program of macroeconomic stimulus and financial stabilization and focus on the future by building a stronger and more productive economy.

"In the United States, we need to make sure that as we rebuild, we build a stronger and more productive economy, less prone to crisis, with the gains of growth more broadly shared," he said, adding that the government was determined to work to bringing the deficit down once officials were sure the global crisis was over.