Saudi Arabia has no evidence that Osama bin Laden's three wives and and reportedly 11 children deported from Pakistan have been involved in terrorism, officials said yesterday in an apparent indication that they will allow the group to remain in the kingdom.

A rocket fired from Egypt's Sinai desert hit a southern Israeli resort city, police said, raising new concerns about militant activity in the mountainous peninsula. Prime Minister Benjamin Netanyahu warned the Sinai was becoming a “terror zone.”

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Gunmen have snatched two female American tourists and their Egyptian guide near in the Sinai.

Each week, we invite three companies to offer us their best deal for a specific holiday. Today: a week-long diving holiday in the Red Sea resorts of Egypt in early February. Prices are per person, based on two sharing, and include flights from London and all-inclusive accommodation.

Israel intensified a high-security alert along its border with Egypt yesterday after a warning that there might be a second wave of attacks by a militant cell of infiltrators.

At least five Saudi women have been taken into custody accused of defying the men-only driving rule, an activist said yesterday.

Iran has sent submarines to the Red Sea, the semi-official Fars news agency has reported, in a move that could anger Israel.

1. Italian Adriatic: Seven nights in a Maxi Tent, sleeping up to six, at Camping Residence Village with Canvas Holidays (canvasholidays. co.uk) costs £134 in total, including return ferry crossings.