though I don't actually know the reasoning of the powers the be in Saudi Arabia, a few things come to mind:
it could be a case as simple as someone involved in the production being well connected with certain government offices where things can get done
governments of nations with bad reputations, especially bad human rights reputations, sometimes use public relations tactics to improve their images in the world community. backing Wadjda would be a way for the Saudi leaders to say, "see? we're not so bad after all."
Wadjda is a co-production of Saudi Arabia and Germany. it's more difficult for a government to suppress a movie that has financial ties to other countries (see Miloš Forman's Firemen's Ball). the German production company may have had a lot to do with Wadjda being submitted to the Academy and distributed internationally
finally, few groups of people, governments included, are homogenous. behind a unified public image there are people who differ, disagree, and buy into public policy to varying degrees. sometimes it just takes a moderate person in the right position at the right time to make unusual things happen. I seem to recall there being a Soviet or Eastern Bloc instance where some Culture Minister's kid liked a movie, so it wasn't banned after all...vague recollection here
2014 Screenings: http://www.imdb.com/list/ls054830628/
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