UPDATE 1-Yemen offers reward to catch killers of Saudi diplomat

* Saudi diplomat gunned down in Sanaa on Wednesday

* Yemeni authorities blame al Qaeda

(Adds kidnapped police officer)

SANAA, Nov 29 (Reuters) - Yemen offered a $25,000 reward on

Thursday for help in catching the killers of a Saudi Arabian

diplomat, a day after he was gunned down in an attack that

security authorities blamed on al Qaeda.

The killing on Wednesday of Khaled al-Enizi, a military

attache at the Saudi embassy, and his Yemeni bodyguard

underscored the challenges facing the U.S.-allied state since an

uprising last year that ousted president Ali Abdullah Saleh.

A Yemeni security committee offered a reward of 5 million

rials ($25,000) for any information leading to the killers,

state news agency Saba said.

Dressed as security officers, the attackers blocked a car

carrying Enizi, an aide to the Saudi military attache, and

opened fire, the security committee said in a statement. The

diplomat and his guard died instantly.

No one has claimed responsibility for the attack which took

place near the diplomat's house in the capital but a Yemeni

security official said on Wednesday authorities were "assuming

that al Qaeda was behind it".

In a separate incident, armed men seized Nameeri al-Awadi,

head of traffic police in al-Kotn town in Hadramout province, on

his way back home after the dawn prayer, a local official said.

No one has claimed responsibility for the kidnapping but the

official said he believed al Qaeda militants were behind it.

Yemen-based Al Qaeda in the Arabian Peninsula (AQAP),

regarded as al Qaeda's strongest regional wing, has mounted

operations in Saudi Arabia and tried to launch attacks against

the United States.

Restoring stability in Yemen is a priority for Washington

and its Gulf allies because of its strategic position next to

top oil exporter Saudi Arabia and major shipping lanes.

"The threats are always there and they usually come from al

Qaeda in Yemen," Saudi Arabia's ambassador to Yemen Ali

al-Hamdan told the Saudi-owned Asharq al-Awsat newspaper.

The Saudis are a major donor to their poor neighbour and

hosted the signing of a power transfer deal under which

President Abd-Rabbu Mansour Hadi took over as head of state in

February after Saleh stepped down.

Islamists linked to al Qaeda kidnapped a Saudi deputy consul

in the southern city of Aden in March and are still holding him.

They have demanded a ransom and the release of women prisoners,

believed to be relatives of al Qaeda fighters.

(Reporting by Mohammed Ghobari in Sanaa, Mohammed Mukhashaf in

Aden and Mirna Sleiman in Dubai; Writing by Rania El Gamal;

Editing by Alison Williams)