Fellow Shareowners:

This June 23rd marked Amana Income Fund's 21st anniversary, at the end of the best year of its history. Amana Income Fund provided a stellar 24.31% return for the fiscal year ended May 31, 2007, attracting thousands of new investors. Total assets more than tripled to $234 million, and Amana Income is now a true "grown up."

Younger but bigger "little brother" Amana Growth Fund's total return was also robust, at 21.54%. It was, of course, a good year for the markets, as the S&P 500 Index returned 22.79% and the Dow Jones Islamic Market US Index returned 22.09% [dividends omitted] for the same period.

Mutual fund rating services, such as Lipper and Morningstar, focus on returns over the last 3, 5 and 10 years rather than just one year. Please refer to the next page for the awards earned by Amana Income and Saturna Capital in this past year for excellent longer-term performance results.

Helped by new investors plus market appreciation, total Trust assets grew dramatically: 158% to $748 million at May 31. This compares with 205% and 65% in each of the two previous fiscal years. Please find details of each Fund's operations and May 31 investment portfolios on the following pages.

Higher assets benefit shareowners as fixed expenses are spread over more accounts. The Income Fund's operating expense ratio declined to 1.37%, and the larger Growth Fund's expense ratio dropped to 1.36%. Effective this August, new "breakpoint" provisions in the Funds' advisory contracts will help lower expense ratios further as assets grow.

Remember that all mutual fund total returns are after their operating expenses. Payments to third-party intermediaries increased sharply, as investors took advantage of their services. The low portfolio turnover ratios and the waiver of all portfolio brokerage commissions continue, to the benefit of fund performance.

The higher assets allowed the Funds to increase their investments in many solid companies as well as pursue greater portfolio diversification. Both Funds favor companies with strong financial histories and robust outlooks for the future. This year, companies in the Energy, Mining, Steel, Technology, and Health industries favored by the Funds all did well.

The Funds also diversify globally with approximately 23% of each portfolio invested in non-USA equities. The international exposure benefited both Funds during the year, but does add an element of risk from currency fluctuations.

Stock markets worldwide performed very well for the last 5 years, and many indices are in record territory. This makes us nervous, and investors need to ask if the markets are overpriced. In general, we think prices will still advance. Price-multiples are about equal to the average since the 1930's, and while dividends are slightly below historical means the amounts continue to be broadly increased as profit levels remain high. There are storm clouds in every forecast, of course, and the slide in both housing prices and the US dollar could derail the economy.

While garnering awards and accolades brings with it a sense of accomplishment and pride, Fund management's primary focus remains long-term, value investing. The Amana Funds benefited this year by adhering to this approach. However, shareowners are cautioned that these exceptional results may not continue in the future. The Funds discourage speculation with a 30-day early redemption fee. It is crucial for investors to understand that long-term growth comes with risk and volatility.

We welcome your questions, and invite you to visit www.amanafunds.com or call 1-888/73-AMANA.

Respectfully,

(Graphic omitted) Nicholas Kaiser,
President & Portfolio Manager

(Graphic omitted) Talat Othman,
Independent Board Chairman

Graphics omitted

(unaudited)

Fund Ratings & Awards:

The last year provided much excitement for Amana's shareowners. Between the Income Fund's Lipper Fund Award¹ and Best U.S. Equity Fund 2006 Failaka Award², Saturna Capital's Failaka Award and so much press even we could hardly believe it, we still found time to remain Sharia compliant and provide solid returns.

As of May 31, 2007, the U.S. mutual fund rating service, Morningstar, honored Amana by awarding both Funds their highest rating: * * * * * Overall. The strong performance history of both Funds is also illustrated in their high "% Rank in category" standings. Here are the details³:

Amana continued to garner high marks with Lipper Inc. (A Reuters Company). We are especially pleased that the Amana Income Fund received the 2007 Lipper Fund Award in the Equity Income category for its 3 year performance:

(unaudited)

Management's Discussion of Fund Performance:

The performance of each Fund is determined by its investments as well as general market conditions. Islamic restrictions impact the types of investments available to the Funds, as do the objectives of capital preservation and current income (Amana Income) and long-term capital growth (Amana Growth). The Funds do not receive interest on cash balances. Neither do the Funds invest in businesses that have material earnings from interest (such as financial institutions) or other prohibited activities. The Funds tend to "buy and hold" portfolio securities, in part because rapid trading could be seen as gambling.

Amana Income Fund:

For the year ended May 31, 2007, Amana Income Fund's total return was +24.31% (versus +21.17% the year before). Two income dividends totaling 19.7¢ per share and two capital gain distributions totalling 40.7¢ per share were paid during the year. Higher assets reduced the operating expense ratio to 1.37% from 1.49%.

The Fund is concentrated in basic and cyclical industries. Energy (EnCana, Exxon Mobil) and resource (BHP, Rio Tinto) issues performed very well, reflecting higher commodity prices. Steel (Nucor, US Steel) and railroad (Burlington Northern) companies, boosted by continuing world-wide economic expansion, also did well. The largest industry is still utilities, but its percentage of the portfolio (10%) declined as new issues were added. FPL, a large producer of electricity from renewable sources, remains a favorite. Telecommunications (especially foreign companies like Telus and Vodafone) continues to benefit from world economic expansion. The Fund only buys equity securities paying dividends, primarily of larger and more established companies. The rising interest rates of the last three years have not hurt the Fund as much as other income funds because we avoid financial issues like banks and favor low-debt companies in our selections.

Amana Growth Fund:

The Amana Growth Fund's total return was +21.54% (vs. + 20.95% the year before). By policy, the Fund seeks to avoid paying income dividends. Markedly higher assets reduced the operating expense ratio to 1.36% from 1.41%.

Amana Growth's portfolio is weighted towards technology. Medical companies, where R & D is a big part of the business, are our largest industry (Genentech, Amgen, VCA Antech). Prosperous computer companies (especially Apple, but also Hewlett-Packard and IBM) contributed a huge part to our success. We have increased allocation in retailing (Best Buy, American Eagle Outfitters) and food production (Potash Corp. of Saskatchewan, PepsiCo), consistent with our balanced, value approach.

Higher interest rates are cooling sectors of the economy, such as construction, where we remain exposed because of the solid values and expectation that the rate cycle is nearing a peak. Worldwide productivity has kept inflation low for several years, but higher energy prices and labor costs are beginning to impact expectations. Growing corporate earnings and high market liquidity, the foundations of rising stock prices, both foretell long-term stock appreciation.

(unaudited)

Amana Income Fund: Performance Summary

Growth of $10,000

Past performance is no guarantee of future performance. The "Growth of $10,000" graph and "Average Annual Returns" performance table assume the reinvestment of dividends and capital gains. They do not reflect the deduction of taxes that a shareowner might pay on fund distributions or the redemption of fund shares, nor do they reflect the potential deduction of a 2% redemption fee on shares held less than 30 calendar days. The S&P 500 Total Return Index is a widely recognized index of common stock prices, which reflects no deductions for management fees, expenses or taxes.

Fund Objective

The objectives of the Income Fund are current income and preservation of capital, consistent with Islamic principles; current income is its primary objective.

Top Ten Holdings			Industry Allocation
Issue	% of Fund Assets		Industry weightings are shown as a percentage of net assets
FPL Group	2.0%
E.ON AG ADR	2.0%
Honeywell International	1.9%
Procter & Gamble	1.9%
EnCana	1.9%
Kimberly-Clark	1.9%
3M	1.9%
Exxon Mobil	1.8%
AT&T	1.8%
Pfizer	1.8%

(unaudited)

Amana Growth Fund: Performance Summary

Growth of $10,000

Past performance is no guarantee of future performance. The "Growth of $10,000" graph and "Average Annual Returns" performance table assume the reinvestment of dividends and capital gains. They do not reflect the deduction of taxes that a shareowner might pay on fund distributions or the redemption of fund shares, nor do they reflect the potential deduction of a 2% redemption fee on shares held less than 30 calendar days. The Russell 2000 Index® is a widely recognized index of common stock prices of 2000 mid- and small-market capitalization companies which reflects no deductions for managements fees, expenses or taxes.

Fund Objective

The primary objective of the Growth Fund is long-term capital growth consistent with Islamic principles.

Top Ten Holdings			Industry Allocation
Issue	% of Fund Assets		Industry weightings are shown as a percentage of net assets
Apple Inc.	3.5%
Anglo-American plc ADR	2.0%
Rio Tinto plc ADS	1.9%
Potash Corp. of Saskatchewan	1.9%
Manitowoc	1.8%
EnCana	1.8%
Hewlett-Packard	1.8%
American Movil ADS Series L	1.8%
International Business Machines	1.7%
Adobe Systems	1.7%

Income Fund

Schedule of Investments

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Income Fund

Schedule of Investments (continued)

Financial Highlights

Statements of Changes in Net Assets

Income Fund

Growth Fund

Schedule of Investments

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Growth Fund

Schedule of Investments (continued)

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Growth Fund

Financial Highlights