The Sun says the Saudi Arabians accepted the Black Cats' offer to take the former Rennes star until the end of the season.
Sunderland will pay a six-figure loan fee subject to the 29-year-old passing a medical.
O'Neill said: "Kader's a player we have made inquiries about loaning until the end of the season. Whether it's with a view to a permanent deal would be dependent on performances.
"In terms of centre-half, we're a bit short."