In fact, while the Saudis may have agreed to drop their boycott of Israel, it is more restrictive than ever:Saudi Arabia dropped its boycott of Israel when it joined the WTO in 2005.
Reuters really ought to catch up with the news.A review of US Commerce Department data conducted by the Post found that the number of boycott-related and restrictive trade-practice requests received by American companies from Saudi Arabia has increased in each of the past two years, rising from 42 in 2006 to 65 in 2007 to 74 in 2008, signifying a jump of more than 76 percent. The bulk of these requests were related to the companies' or products' relationship to Israel. Typically, Saudi officials ask foreign suppliers to affirm that any goods exported to the desert kingdom are not manufactured in Israel and do not contain any Israeli-made components... The Commerce Department figures reflect only those requests that have been officially reported to the US government.