Leos are a good tank. While its different from the M1A1 its differences are somewhat complientary.If they order their Leos with L55 guns, the situation isn't all that different. At least, if they want to get the maximum out of the gun.
I don't think Germany or Israel are particularly worried about the Saudis compared the region. Iran is a far bigger threat as is regional instability. Theres more of a chance of the Saudis using the tanks against there own people than against Israel.