Saudi billionaire Prince Alwaleed bin Talal threw his weight behind Saudi stocks on Wednesday, saying he would invest 1 billion riyals ($267 million) in a market pummeled by Middle East unrest.

Prince Alwaleed, a prominent investor in Citigroup, said at a press conference in the Saudi capital that he had invested more than 500 million riyals in banks, petrochemicals, telecoms, industrial and consumer stocks, and was ready to spend a similar amount in the future.

Saudi stocks hit a 22-month low on March 2, falling nearly 20 percent in a two-week span as fears of domestic unrest in the conservative kingdom triggered panic selling by investors. It has since recovered 14.8 percent to end Wednesday trade at 6,108.67 points.

"The stock market fall is not justified," he told reporters, adding that the Saudi economy was in "very strong shape."

Saudi Arabia's huge oil wealth has provided a high standard of living compared with many of its neighbors, but the rumblings of discontent from the Shiite minority have alarmed Riyadh and investors who once thought that relative prosperity would be insulation against the spreading unrest.