Egypt, currently a non-permanent member of the UN Security Council, expressed that it wished for the UN to "put on hold… the proposal of the United States of America to add ISIS-Saudi Arabia" to the sanctions list.
The UN list of sanctioned groups and individuals had included ISIS affiliates in Saudi Arabia, Yemen, Libya, and Afghanistan-Pakistan be added.
After Egypt’s delegation formally objected to the inclusion of the Saudi ISIS branch the proposed list was scrapped entirely. A second non-permanent member, Senegal, backed the Egyptian objection in May.
The revelation highlights come amid efforts by Saudi Arabia, Egypt , the UAE and Bahrain, to impose a blockade on Qatar for alleged support of "terrorists" - a charge Doha denies.
Madawi al-Rasheed, a visiting professor at the Middle East Centr at LSE, told Middle East Eye that Egypt was executing a "classic" maneuver to keep its ally Riyadh from scrutiny.
"This is a classic case of Saudi Arabia not wanting to draw attention to its own terrorism problems," she said.
"Saudi Arabia announces lists of terrorist groups abroad or associated with other countries. But they are in denial," Rasheed said.
Meanwhile, an investigation by Britain into the foreign funding and support of terrorists groups operating in the country may never be published as it adversely mentions Saudi Arabia.
The inquiry, commissioned by former Prime Minister David Cameron, is thought to focus on British ally Saudi Arabia, which has repeatedly been highlighted by European leaders as a funding source for extremist terrorists, and may prove politically and legally sensitive.
Last December, a leaked intelligence report in Germany suggested that Saudi Arabia supports extremist Wahhabi groups in the European country. Saudi Arabia is widely recognized as the top sponsor of terrorism, and Wahhabism, a twisted Saudi interpretation of Islam which has inspired Takfiri terrorists groups in the world including ISIS, al Qaeda, Taliban, Boko Haram, al Shabab and many others.