UPDATE 1-Saudi sees fair oil at $75-80, demand rising -paper

(Adds quotes)

KUWAIT May 26 (Reuters) - Saudi Arabia thinks $75 to $80 a barrel is a fair price for oil at present and sees signs of increasing demand for oil as the world's economy recovers, King Abdullah said in remarks published on Tuesday.

"We see a fair oil price of $75 a barrel or perhaps $80 a barrel, especially at the moment," he said in an interview in Kuwait's al-Seyyasah daily.

"We are now seeing a quick recovery in the global economy, and we see indications of increasing demand for this material (oil)."

He did not say what signs there were of global recovery but said economists were now less worried about the downturn and that world leaders had taken action.

The monarch, who presides over the world's largest oil exporter, also said he saw room for reviewing the Gulf Cooperation Council monetary union agreement after the United Arab Emirates last week dropped plans to join any single currency.

He said Saudi ties with the UAE would not be affected by the surprise move that the UAE linked to a decision to place the joint central bank that would manage the currency in Riyadh.

"The atmosphere for reviewing the monetary union agreement is open and the UAE has an alert leadership ... We do not doubt they are keen to maintain a strong Gulf (Cooperation) Council," he said referring to the GCC bloc that also include Kuwait, Oman, Bahrain and Qatar.

"The coming review before the implementation would resolve what had been disputed," he added.

The monarch, thought to be 85, said Saudi Arabia had not liquidated any state investments during the downturn.

"There has been no sale of the kingdom's sovereign investments and I want to point out that Saudi money and assets have not been affected by the global economic crisis, which is seeing a gradual recovery," he said.

"Therefore, we are not in need of selling any of our investments."

(Reporting by Eman Goma, Inal Ersan, Andrew Hammond; editing by Thomas Atkins)