RIYADH (Saudi Arabia) - US TREASURY Secretary Timothy Geithner looked on Tuesday to allay Gulf nations concerns over the American economy's strength, offering assurances about the safety of their investments in a high profile trip reflecting the region's growing financial muscle.

Mr Geithner, in his first official visit to the Middle East, told Saudi business leaders in the commercial hub of Jiddah that the Obama administration is committed to preserving the openness of the US economy. He said the US realises it has 'a special responsibility to play' when it comes to protecting the value of the dollar.

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

The meetings aim to build on President Barack Obama's trip to the region and serve to underscore his 'commitment to strengthening our relationship; to review progress in our coordinated strategy to restore global growth; to examine the risks and challenges still ahead of us; and to move the G-20 reform agenda forward,' said Mr Geithner.

Mr Geithner's comments were meant to reflect the growing financial clout of a region long associated largely with crude oil. Saudi Arabia, the Arab world's largest economy and Opec's de facto leader, recycles significant petrodollars into US Treasury bonds. And government-run investment funds in the United Arab Emirates - Mr Geithner's second Arab stop - have poured billions of dollars into US 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 US's second biggest creditor after China. Oil-fed cash surpluses have helped cushion many of the Gulf nations from the worst of the global economic meltdown, with governments adopting a range of stimulus measures to try to prevent the kind of bankruptcies that have reverberated in the US.

Mr Geithner, speaking at the Jiddah Chamber of Commerce, said the global recession is receding, but that repair and recovery 'is going to take considerably more time.'

He laid out a four-point strategy that he said is essential for economic recover. It includes stabilising and repairing the US 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 stabilisation and focus on the future by building a stronger and more productive economy.

Mr Geithner said that since the controversy surrounding the Dubai Ports deal in early 2006, the US has put into place a series of reforms designed to safeguard national security, while providing more clarity, predictability and transparency to investors.

Public furor over the deal ended up blocking the efforts of Dubai-owned DP World to manage six of the largest ports in the United States. 'These reforms have not infringed on our open investment policy,' he said. -- AP