UPDATE 1-Saudi Arabia says two killed, including a soldier, in Shi'ite area

RIYADH, Aug 4 (Reuters) - A Saudi soldier was shot dead

patrolling an area populated by minority Shi'ite Muslims late on

Friday, the Interior Ministry said, and one of the gunmen was

killed in the ensuing shoot-out.

The deaths bring to 11 the number of people killed in the

Qatif area since November in protests by members of Saudi

Arabia's Shi'ite minority over what they see as entrenched

discrimination.

"A security patrol was exposed to heavy fire from four armed

rioters on motorbikes when pausing at a street intersection in

Qatif," state news agency SPA reported, quoting Interior

Ministry spokesman Mansour Turki.

Turki said the gunmen had been arrested after an exchange of

fire in which one of them was killed, and said another man

suffering a bullet injury had been arrested at the hospital.

He added that the incident, which happened at 11 pm on

Friday evening, had led to the death of one soldier, named as

Hussein Bawah Ali Zabani, and the wounding of another, named as

Saad Miteb Mohammed al-Shammari, whom he said was taken to

hospital.

Saudi Shi'ites mostly live in the Eastern Province, also

home to the kingdom's oil industry, and complain they lack

access to government jobs, education and full rights of worship,

charges the government denies.

The world's top oil exporter follows the conservative

Wahhabi school of Islam, which regards Shi'ism as heretical.

Protests broke out in Qatif last year when Saudi troops were

invited by the government of neighbouring Bahrain to help its

Sunni royal family quash a popular uprising by the Shi'ite

majority.

Last month a new round of protests ended with three deaths

after police arrested and injured a firebrand Shi'ite cleric,

Nimr al-Nimr, who had preached sermons urging demonstrations

against the government.

Ten of the 11 people to have died in Qatif demonstrations

since late last year were young Shi'ite men, killed in what

Saudi Arabia said were exchanges of fire, but which local

activists described as peaceful protests.

Saudi Arabia and Bahrain have both accused Shi'ite regional

power Iran of fomenting the unrest among members of the sect in

both countries, which Tehran denies.

The Interior Ministry in January issued a list of 23

residents of the area who it said were responsible for attacks

on security forces, acting at the behest of "a foreign power",

widely understood to mean Iran.

Shi'ites in Qatif, who often raise the Bahraini flag in

shows of solidarity with their co-religionists in the tiny Gulf

Arab country, have repeatedly said the protests are not

organised by Iran.