The status on the BlackBerry Ban in Saudi Arabia is that the ban may be averted due to local phone operators along with Saudi Arabia’s telecom watchdog reaching a preliminary deal with BlackBerry maker Research In Motion.

According to an article on the Wall Street Journal by Summer Said, an official at a Saudi based telecom operator involved with the talks has stated, “A preliminary agreement has already been reached and a formal deal between the parties is in the final stages of negotiations.”

The official was then asked if the deal would involve the instillation of a local server in Saudi Arabia, the official answered, “Yes.”

Chief economist at Banue Saudi Fransi-Credit Agaricole in Riuadh, John Sfakianakis has said, “A compromise shows resilience and understanding by RIM that Saudi Arabia and the region as a whole is a fast growing market and that regional governments are seeking for equal treatment provided by RIM to other, Western governments for national security purposes.”

RIM spokespersons could not be reached to comment on the matter and neither could officials from Saudi Arabia’s Communications and Information Technology Commission.

So does this mean that Research In Motion have caved in over government monitoring of BlackBerry devices?