Several Saudi police officers have been killed in operations

The state department says in its annual terrorism report that two attacks in 2003 had galvanised Riyadh's efforts.

Saudi Arabia has launched an unprecedented campaign to track down terrorists, uncover plots and cut off funding, the report says.

The findings contrast the 2001 and 2002 state department reports, which offered only faint praise to Saudi Arabia.

The report says the Middle East continues to be the region of greatest concern in the "global war against terrorism".

Senior Saudi Government and religious officials espouse a consistent message of moderation and tolerance, explaining that Islam and terrorism are incompatible State department report

But there had been a "particularly strong shift" in Saudi counter-terrorism efforts following the May and November 2003 suicide bombings in Riyadh, that claimed 51 lives.

The report praises "the unprecedented level of co-operation" Saudi Arabia has offered the US in counter-terrorism.

The authorities had also launched "a sustained crackdown against al-Qaeda's presence in the Kingdom", the report says.

Senior government and religious officials had adopted "a consistent message of moderation and tolerance" to explain that Islam and terrorism are incompatible.

Unique position

The report says Saudi Arabia has arrested more than 600 people in counter-terrorism operations since May and issued lists of wanted suspects to publicise their efforts.

Prince Saud said if Saudis were responsible for Bin Laden, so was the US

"Using its unique position in the Muslim world, Saudi Arabia also initiated an ideological campaign against Islamic terrorist organisations with the objective of denying extremists the use of Islam to justify terrorism," the report says.

The state department report's headline is that there were fewer terrorist attacks worldwide in 2003 than in any year since 1969.

However, it also warns there is every indication that al-Qaeda is planning attacks involving mass casualties against Americans and other targets.

On Tuesday, Saudi Arabia's foreign minister complained in a speech in New York that criticism in the US was harming the kingdom's efforts to fight terror.

Prince Saud al-Faisal blamed parts of the US media for demonising Saudi Arabia, citing several recent books which said it nurtured extremism.