Lebanese Justice Minister Ashraf Rifi has announced his resignation from the Cabinet, saying the militant Hezbollah group is dominating the government.

Rifi has been one of Hezbollah's harshest critics in Lebanon and his resignation on Sunday came two days after Saudi Arabia halted deals worth $4 billion aimed at equipping and supporting Lebanese security forces.

Lebanon has a sectarian divide that reflects the wider regional split between Sunni and Shiite powerhouses Saudi Arabia and Iran, and has long been a battlefield where the region's proxy wars play out.

Pro-Saudi Lebanese politicians said Hezbollah and its allies were to blame for not backing the kingdom in its conflict with Iran.

Rifi said in a statement that "the practices of Hezbollah's statelet and its allies are not acceptable."