well friends, its better to be more worried about your own issues rather than sticking your head in unnecessarily things which have nothing to concern you, and that too when it is not in your living country.
its their country and its their right to elect any law which they feel is for the wellfare of the people. and as some one said above 'yes, saudi is a kingdom, and they have the total right for anything in that country'

and as far as i think about this, i feel its right. because i have seen all this myself that too over here in doha.. especially in the ramada complex, i've seen it many times that young punks roam around with pets and use them as a part of their flirting or attracting weapon for ladies.

and lastly, what do we know about the circumstances on which the saudi govt. must have issued this rule! may be things are not the same there as here in doha..

Peace be upon you.