Saudi Arabia has set up a military base near its border with Jordan for training militants to conduct terrorist activities in war-weary Iraq, informed sources say.
The sources, speaking on condition of anonymity, said the terrorists were receiving training from ranking Saudi army officers.
Leak intelligence documents embarrassed Saudi officials in May when Iraq's Buratha news agency revealed that Riyadh has been transferring large sums of money to al-Qaeda terrorists in neighboring Iraq.
The new agency later said up to 37 people had been arrested in connection with the leak, after Saudi Arabia's King Abdullah bin Abdul Aziz ordered a special committee to investigate the disclosure.
According to the sources, Riyadh is also supporting the Mujahedin Khalq Organization (MKO) -- an anti-Iran listed terrorist group listed as a terrorist organization by much of the international community.
They said Saudi Arabia is providing MKO terrorists with equipment free of charge.
Aside from conducting numerous acts of terror in Iran, the MKO is also known to have aided Iraq's notorious dictator Saddam Hussein in suppressing the 1991 Shia uprisings in southern Iraq and the massacre of Iraqi Kurds.