Performance Summary (as of December 31, 2007):

Performance data quoted in this report represents past performance, is before any taxes payable by shareowners, and is no guarantee of future performance. Current performance may be higher or lower than that stated herein. Performance current to the most recent month-end can be obtained by calling toll-free 888-73/AMANA or visiting www.amanafunds.com. Total returns are historical and include change in share value and reinvestment of dividends and capital gains, if any, and do not include the potential deduction of a 2% redemption fee on shares held less than 30 days. Share price, yield and return will vary and you may have a gain or loss when you sell your shares.

Please consider an investment's objective, risks, charges and expenses carefully before investing. To obtain a free prospectus that contains this and other important information on the Amana Funds, please call toll-free 888-73/AMANA or visit www.amanafunds.com. Please read the prospectus carefully before investing.

¹ By regulation, expense ratios shown in this table are as of the Funds' most recent prospectus - dated Aug. 20, 2007, incorporating results for the May 31, 2007 fiscal year and differ from the 1.30% expense ratios shown elsewhere in this report as they represent different fiscal periods. Also by regulation, the performance in this table represents the most recent quarter-end performance rather than performance through the Funds' most recent fiscal period. Average annual total returns include changes in principal value, reinvested dividends and capital gain distributions, if any.

² Source: Morningstar Dec. 31, 2007. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% in each category receive 5 stars, the next 22.5% 4 stars, the next 35% 3 stars, the next 22.5% 2 stars and the bottom 10% receive 1 star. The Overall Morningstar Rating for a fund is derived from a weighted average of performance figures associated with its 3-, 5- and 10-year (if applicable) Morningstar Rating metrics.

Morningstar calculates total return by taking the change in a fund's NAV, assuming the reinvestment of all income and capital gains distributions (on the actual reinvestment date used by the fund) during the period, and then dividing by the initial NAV. Unless marked as load-adjusted total returns, Morningstar does not adjust total return for sales charges or for redemption fees. (Morningstar Return, Morningstar Risk-Adjusted Ratings, and the load-adjusted returns do incorporate those fees.) Total returns do account for management, administrative, and 12b-1 fees and other costs automatically deducted from fund assets.

% Rank in Category: This is the fund's total-return percentile rank for the specified time period relative to all funds that have the same Morningstar category. The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100. The top-performing fund in a category will always receive a rank of 1. Percentile ranks within categories are most useful in those categories that have a large number of funds.

³ Source: Lipper Inc., A Reuters Company, Dec. 31, 2007. Lipper Inc. is a nationally recognized organization that ranks performance of mutual funds within a universe of funds that have similar investment objectives. Rankings are based on past performance with capital gains and dividends reinvested.

Fellow Shareowners:

Semi-Annual Results

In a troubled market, the Amana Funds continued to appreciate for the six months ending November 30, 2007. The price (net asset value per share) of Amana Income Fund gained 1.97%, and Amana Growth Fund increased 2.85%. For the same six months, the S&P 500 Index dropped 2.30%, and the Dow Jones Islamic Index (U.S.) slipped a similar 2.38%. Total Trust assets increased 35% in the six months.

Excellent Year - 2007

On October 29, 2007, the combined funds of the Amana Mutual Funds Trust passed a major milepost, with assets for the first time exceeding one billion dollars. The majority of our asset growth has come from new investors, but a good part has come the old-fashioned way: Amana Income returned 14.36%, and Amana Growth returned 14.17% for the twelve months ending November 30, 2007. While larger Trust assets are a mark of stature, they also mean that expense ratios improve as fixed costs are spread more broadly. Based on the last six months, the expense ratios for both Funds are now 1.30% (annualized). (Note that focusing exclusively on expense ratios for mutual funds may be inappropriate, as all fund performance numbers are net of expenses.)

Longer Term Results

Knowledgeable investors and mutual fund rating services such as Morningstar and Lipper emphasize long-term returns rather than short-term results. Please refer to the opposite page for Amana's superlative long-term calendar-year performance data. Based upon a combination of their 3, 5 and 10 year results, both Funds continue to be ranked as "5 star" funds by Morningstar — being in the top 10% of their respective categories. And we are especially pleased to note that as of December 31, 2007, Amana Income Fund — FOR THE SECOND CONSECUTIVE YEAR — is the NUMBER ONE FUND (out of 204 similar funds) in Lipper's Equity-Income 3-year performance category.

Investments

The last six months have been rough for America's financial services companies, which Amana's Islamic investment restrictions conveniently force us to avoid. The Amana Funds continue to favor companies with strong financial histories and robust outlooks for the future. For Amana Income, our favored sectors of utilities, telecommunications, mining, and energy produced solid results. Amana Growth favors the medical and technology sectors. Our largest holdings — Apple, Potash Corp. of Saskatchewan, and Rio Tinto — all did well in 2007.

Stormy Weather

The sinkhole that opened up under the U.S. mortgage market is impacting the economic health of the country. Housing prices are declining, and they will continue to do so for months. A recession is no doubt underway, which will last until lower U.S. interest rates influence employment and consumption. Political contests around the world command attention, sometimes by their violence.

The Amana portfolios are conservatively positioned in strong companies for a turbulent year, and have large cash reserves waiting to be invested at lower prices.

The Future

Patient investors who are willing to look around the corner can often find remarkable opportunities as bad news crescendoes and markets decline. While early 2008 promises to be difficult, it should be a foundation on which long-term investors can establish future profits.

Our focus remains value investing. The Amana Funds benefited this year by adhering to this approach. Once again, shareowners are cautioned that the 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.

Saturna Capital now has representatives working from the Washington DC, Chicago, and New York City areas to better serve you. They travel widely to appear at gatherings and financial offices to inform about investing and Islamic finance. Please visit www.amanafunds.com for the presentations schedule and other useful information, or call 1-888/73-AMANA.

Special Incentive for 2008

In an income tax provision scheduled to expire at the end of 2008, most income and capital gains dividends are being taxed at unusually low rates. For "lower bracket" filers - those with less than $65,100 (married filing jointly) or $32,550 (single filers) in income after deductions and exemptions, the tax rate is ZERO. For everyone else, the tax rate is reduced to 15%. Contact Saturna if you would like more information.

Respectfully,

(graphic omitted)
Nicholas Kaiser,
President & Portfolio Manager

(graphic omitted)
Talat Othman,
Independent Board Chairman

Performance Review (as of November 30, 2007):

The Amana Funds performed well for the semi-annual period ended November 30, 2007. While we caution investors that the outstanding performance may not continue, we are pleased to report some of the recognition our performance history has generated.

As of November 30, 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 details¹:

Amana also garnered high marks with Lipper Inc. (A Reuters Company)²:

Performance data quoted herein represents past performance and is no guarantee of future results.

¹ Source: Morningstar™ Nov. 30, 2007. For each fund with at least a three-year history, Morningstar™ calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return™ measure that accounts for variation in a fund's monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% in each category receive 5 stars, the next 22.5% 4 stars, the next 35% 3 stars, the next 22.5% 2 stars and the bottom 10% receive 1 star. The Overall Morningstar Rating™ for a fund is derived from a weighted average of performance figures associated with its 3-, 5- and 10-year (if applicable) Morningstar Rating metrics.

Morningstar™ calculates total return by taking the change in a fund's NAV, assuming the reinvestment of all income and capital gains distributions (on the actual reinvestment date used by the fund) during the period, and then dividing by the initial NAV. Unless marked as load-adjusted total returns, Morningstar™ does not adjust total return for sales charges or for redemption fees. (Morningstar Return™, Morningstar Risk-Adjusted Ratings™, and the load-adjusted returns do incorporate those fees.) Total returns do account for management, administrative, and 12b-1 fees and other costs automatically deducted from fund assets.

% Rank in Category: This is the fund's total-return percentile rank for the specified time period relative to all funds that have the same Morningstar™ category. The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100. The top-performing fund in a category will always receive a rank of 1. Percentile ranks within categories are most useful in those categories that have a large number of funds.

² Source: Lipper Inc., A Reuters Company, Nov. 30, 2007. Lipper Inc. Is a nationally recognized organization that ranks performance of mutual funds within a universe of funds that have similar investment objectives. Quintile Rankings are based on past performance with capital gains and dividends reinvested.

Amana Income Fund: Performance Summary

Growth of $10,000

Past performance does not guarantee future results. 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. ¹ By regulation, the expense ratio for the Fund shown in this table is as of the Fund's most recent prospectus — dated Aug. 20, 2007, incorporating results for the 2007 fiscal year and differs from expense ratios shown elsewhere in this report as they represent different fiscal periods.

Fund Objective

Top Ten Holdings			Industry Allocation
Issue	% of Fund Assets		Industry weightings are shown as a percentage of net assets
Rio Tinto ADS	1.9%
FPL Group	1.9%
E.ON ADR	1.7%
Vodafone GRP ADS	1.7%
Alcoa	1.6%
Freeport-McMoRan Copper & Gold	1.6%
EnCana	1.6%
BHP Billiton ADS	1.6%
Procter & Gamble	1.5%
AT&T	1.5%

Amana Income Fund

Amana Income Fund

Amana Growth Fund: Performance Summary

Growth of $10,000

Past performance does not guarantee future results. 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. ¹ By regulation, the expense ratio for the Fund shown in this table is as of the Fund's most recent prospectus — dated Aug. 20, 2007, incorporating results for the 2007 fiscal year and differs from expense ratios shown elsewhere in this report as they represent different fiscal periods.

Fund Objective