Zog - I can't give advice but I?ll give you my perspective.
I have worked in Pakistan, Algeria, India and Dubai, plus have many friends who have worked in Saudi Arabia. I've been a target of Muslim extremist kidnappers in Pakistan and watched anti-American flag burning demonstrations from my taxi in Karachi.
I made some money, but not enough to cover missing my son's home runs, my daughter's dance recitals and Thanksgivings with the family. (I was not on an extended assignment, so I didn't get much additional pay.) But I learned a lot, met a lot of wonderful people from other cultures and learned a lot about myself and others. For many reasons, I won't do it again.
Ten years ago I would say go for it. Now, with our US reputation and unrest in the Middle East, I would think very hard about the opportunity. My Canadian and British friends working in the Mid East have few problems. My US friends in the Mid East pretend to be Canadian. Most of the people I know working in Saudi or Iraq or Algeria are divorced or in a family relationship where they would get divorced if they spent any more than 2 months straight with their wives.
Most of the Americans I know are going to Dubai and leaving Saudi Arabia and Iraq to the British engineers. (Dubai is the best assignment, it is a different world.)
The internet was a life saver for me. Being able to blog and talk daily with friends and family kept me sane. It is much easier now to stay in contact. But it is very hard on the family to not see you everyday. Family status is no longer a safe option like it was 15-20 years ago.
You could bring your family to meet you in Europe on a roll out and learn from the international experience. Some people send their kids to school in Switzerland on the company's ticket.
Good luck making the decision. As others have said, money isn't everything. The company wouldn't be offering such a great compensation package unless there was something less attractive about the position. At least in Saudi Arabia, you are not going to get malaria or have other health issues. The political unrest in Saudi Arabia is somewhat under control. It is better than working in Iraq.
It could be a wonderful experience, or it could destroy your family.
I know people who went into international work to make the $$ needed to retire. They are all still working, addicted to the lifestyle or the money.
Best wishes on your decision. If you go, make sure you have plenty of friends and family to help the wife and kids back home.