Some were joint ventures between Israel and foreign companies, and others were set up by Israeli Arabs. The products were agricultural - seeds and fertilizers.
The Saudis allege that some of the products were laundered through other Arab countries, and that Saudi Arabia is reviewing their relationships with them.
The interior minister stressed that the Kingdom will not turn a blind eye on this phenomenon, and will develop the necessary controls to prevent the entry of Israeli products and goods to the land and the Saudi markets.
The interesting part?
Saudi Arabia pledged back in 2005 to end its boycott of Israel as a condition of joining the World Trade Organization.
In the six years since, the Saudis have continued to publicly enforce that boycott - and suffered no consequences in the WTO.
The kingdom even continued to publicly flout its promise after Congress passed aunanimous resolution calling on the Saudis to drop the boycott as they had promised.
And in 2009 members of Congress were again angered to find out that nothing had changed.
So it goes. The WTO will never expel Saudi Arabia for breaking its pledge, the President will not bring the issue up in international bodies (just as his predecessor didn't) and an Arab nation can flout the law with no consequences.