Eh, Fox News.
Don't equate Saudi-Arabian law with Islam. The Shariah is only partially based on the Koran, and often differs from region to region, according to the prevalent political views. In a lot of Islamic countries, the Shariah has little influence on law (Turkey, Tunesia, ...). Saudi-Arabia is one of the countries that enforces the Shariah very strictly. But who cares if a country executes people based on sexuality, as long as they make good allies.
It's not even clear to me from the article if the sentence was the correct one, according to Saudi-Arabian law.
http://www.al-fatiha.org/ (International organization for lesbian, gay, bisexual, and transgender Muslims)