Comments from Riyadh indicates it is "siding with terrorism", the cabinet said in a statement issued by Prime Minister Nuri al-Maliki's office.
"We strongly condemn this stance," the statement read.
"We hold it (Saudi Arabia) responsible for what these groups are receiving in terms of financial and moral support."
It continued: "The Saudi government should be held responsible for the dangerous crimes committed by these terrorist groups."
The statement came just days after Saudi Arabia and Qatar blamed "sectarian" policies by Iraq's Shia-led government against the Sunni Arab minority for the unrest that has swept the country.
The unrest "could not have taken place if it was not for the sectarian and exclusionary policies implemented in Iraq over the past years that threatened its stability and sovereignty," the Saudi government said in a statement.
In March, Maliki accused both Saudi Arabia and Qatar of supporting terrorism in Iraq.
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@anshul: Please stop minimalizing serious problems and suffering as a 'game'. Forget Iran, it is Iraq and other Shia Muslims stuck elsewhere (like Pakistan). The US didn't ask the Wahhabi Saudi regime to keep their own people backward...they do that of their own accord. If Iran had an issue in asking for US help, Rouhani would not have made the request public - it tells us he is trying to improve overall relations - but the US is reluctant out of old prejudices and opposing allies. People of ME are not mere victims, when a good deal of ideological radicalization and radical extremists are from there, and have allowed foreign extremists to come in, some of whom are now being arrested on their return to Europe. Its time to stop being victimized and take ownership of this crisis.
@salman: Al Maliki seems to have omitted Israel's name too...do you think he, of all people under pressure from sectarian violence and history of accusing other nations (the US and Syria, years back), is being biased and nefarious as well on this regards since he has already named 2 US allies (he even accused Turkey a few years back, but then relations improved, but now ruined again)? Maybe its time to realize that such ridiculous conspiracies obsessed with Israel are irrelevant and unfounded and the blame lies elsewhere and closer.
Saudis have an habit of biting more than they can chew
There is an official UN Report that says the same thing........but then saying it is one thing, doing something about it, is another.
Tell us Pakistanis about it...Gulf financing for their ideological extremist groups continues...
Saudi Arabia. Root of all evil. They say sectarian policies. What about their policies? persecuting Shia minority in their own country.