"Our relations are developing well, the trade turnover is growing though in absolute terms it still looks modest, but considering our good ties, we have good perspectives and a good basis," Putin said as quoted by ITAR-TASS news agency.
The prince voiced hope that he "will be able to convey the king’s thoughts on perspective in economic, political, military and security spheres as well as others."
The two sides signed a military cooperation treaty, news agencies reported.
Relations between Russia and Saudi Arabia have warmed recently after a period of tensions because of accusations by Moscow that Riyadh tolerated Muslim charity groups funding separatist rebels in the southwestern Russian province of Chechnya.
Trade turnover between the two countries grew up to 437 million dollars in 2007, with Russia exporting metals, paper, cartons, wood and cargo trucks.
Russian oil producer Lukoil has been allowed to participate in investigating and equipping gas fields in south-east Saudi Arabia.
Russian RusAl aluminium producer is holding talks with Saudi Arabia on constructing an aluminium factory and a power station.
