Adam Coogle, Middle East researcher for Human Rights Watch (HRW), was commenting on a two-day UNESCO NGO Forum staged in the Saudi capital.
"To host a prestigious NGO event in Saudi Arabia is a slap in the face to the more than a dozen Saudis languishing in prison merely for trying to set up independent organisations, and an unearned reward to the government officials who put them there," Coogle wrote.
That law has "serious flaws", including a bar on NGOs collaborating with foreign organisations without government approval, said Coogle of the New York-based watchdog.
"And this law appears to provide protection when the Saudi authorities continue to vigorously prosecute and imprison independent human rights activists for setting up 'unlicensed organisations'," he said.
The forum was organised with the MiSK Foundation founded by Deputy Crown Prince Mohammed bin Salman, who is pushing economic and social change in the kingdom.
Aiming to empower youth, it featured speakers from the Arab world and beyond.
In January, a Saudi counter-terrorism court upheld an eight-year prison sentence for Abdulaziz al-Shubaily, a leading member of the Association for Civil and Political Rights which was dissolved by a Saudi court in 2013.
He was the last of the group's founders to be locked up, London-based Amnesty International has said.
Ben Emmerson said he presented the Saudi government with a list of nine "priority cases", individuals who a UN group in 2015 said had been arbitrarily detained for exercising their rights to free speech and peaceful association.
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