This is the Wikepedia entry on that particular story:
"A Saudi government website initially stated that Jews would not be granted tourist visas to enter the country [5][6] It has since removed this statement, and apologized for posting "erroneous information""
Which references these links:
http://www.house.gov/apps/list/press/ny09_weiner/022604Saudi.html
http://news.bbc.co.uk/2/hi/middle_east/3493448.stm
It should be noted that this was in relation to the issuing of tourist visas (which had not been issued to any non-Muslims prior to 2004). Visas had previously been issued for business purposes.