The Saudi prince said countries such as his should "capitalize on this tranquility and stability that they have right now and inject as many as possible reforms on the political, economic and social fronts so they have an immunity from any revolutions or any turmoil."
(Read More: Egypt's Stock Market Soars Despite Army Ultimatum)
OPEC countries also need to consider other options, given the growth of shale oil in countries including the United States.
"The price for oil is a function of the stability of the Middle East to a certain extent," Alwaleed said. But U.S. shale oil production will "put more pressure on the price of oil and gas on the years and decades ahead," he added.
Countries dependent on oil production for their economies "should take an early warning and begin diversifying their economies," he said.
Prince Alwaleed also talked about his dispute with Forbes magazine.
(Read More: Saudi Prince Sues Forbes for Undervaluing His Fortune)
"This has nothing to do with the personal wealth of Alwaleed bin Talal. This has to do with the integrity of Saudi Arabia, the integrity of the stock market in Saudi Arabia, whereby Forbes has defamed both my country and the stock market," he said.
"We are going to sue them in the U.K. whereby we would like them to withdraw all their wrong allegations against Saudi Arabia and against the stock market," he said. "This has nothing to do with my wealth whatsoever."
—By CNBC's Justin Menza. Follow him on Twitter