Naif Hazazi skied a decent chance well over the bar from the edge of the area, before Vitaliy Denisov brought the striker to ground inside the area.
A harsh penalty was awarded, with Al Sahlawi finding the bottom corner, despite the Uzbek keeper diving the right way.
In Canberra, DPR Korea was also hopeful of salvaging something from their match, with Jong forcing Wang Dalei into a good save from 20 yards out.
Eventually, their positive attitude paid dividends. Jong's shot cannoned off Gao and in for an own goal, as the underdogs halved the deficit and ensured an exciting finale.
Jong was wreaking havoc for DPR Korea and nearly inspired an equalizing goal. He headed over with the goal at his mercy, before Ryang Yong-Gi shot over from distance.
Substitute So Hyon-Uk then cannoned a shot against the crossbar, as DPR Korea desperately came again.
But, despite their flurry of late chances, they couldn't find a levelling goal and ended the tournament without a point, as China's winning run continued.
There was also late drama in Melbourne, as Uzbekistan ensured they would not live to rue that earlier error from Australian referee Ben Williams.
Second-half substitute Shodiev came to Uzbekistan's rescue, powerfully heading home from Shavkat Jon Mulladjanov's pinpoint cross to reclaim the lead.
With Saudi Arabia pushing men forward in the knowledge that a draw would guarantee progression, Uzbekistan broke forward and doubled their lead.
Jasur Khasanov led the counter attack, before squaring for Rashidov in space. The winger took one touch and buried his shot into the bottom corner to the glee of the vocal Uzbek supporters.
"As we expected, it was a very tough game. Both teams wanted to qualify," Uzbekistan manager Mirjalol Kasimov told reporters after the match. However, he would not be drawn on the contentious refereeing decision.
"I did not see the penalty decision," he said. "I will make my final decision when I see the video.
"I saw that the Saudis kept asking for a penalty, so maybe it was the mistake of the referee, but I don't know.
"Many times, the Saudi Arabian players dived and they should have had yellow cards. When they dived, they pressured the referee and the referee started to play for them."
Rashidov's second goal would prove enough, as Uzbekistan booked a quarterfinal clash with South Korea in Melbourne, while Saudi Arabia bowed out.
"It's not a tragedy," Saudi Arabian manager Cosmin Olaroiu said after the match. "It's disappointing, but it's not a tragedy.
"People have to see and judge the situation to start to make changes and build something very solid. Many clubs from Saudi Arabia have improved and I hope, in the future, (the country) finds the players they deserve."
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