As per the Emiri Decree the landlord can increase the rent by 10%. In your case the rent increase is from 16K to 17K which is less than the stipulated rise. There is no workaround for this.

He cannot evict you as long as you pay the extra 10% either to him or the court.

As for the deposit and extra two weeks you should use your judgement. i wouldnt pay a single Riyal which is unjustified. I would ask him to go to court for that. I doubt any landlord is willing to go to court for such small claims. He is just bullying you.

The rent scenario is a real nigtmare now. I dread when my contract comes up for renewal.

All the Best!