Ok, Contrary to popular belief KSA and Iran are not completely theocratic. They take "secular" laws from here and there.
An Islamic state would be one completely goverened by Sharia.
KSA, while most Islamic scholars in it are Salafists, the government itself is the anti of salafist. They apply a little shariah here and there so the religous peoples don't get too mad, while maintaining their wretched corrupt lifestyles.
The same can be said about Iran, but from other aspects.
An unknown fact about Iran is that it has the highest number of "public" apostates in any Islamic land. The city of Isfahan, which at it's peak generated so much Islamic scholars is now full of ex-muslims. The government only apply the laws when they see it's fitting them. Both ruling systems are corrupt.
Just look at how KSA treats Ismail'is in Najran. Or how they're bombing civilians in Yemen. KSA is not that much different from USA in their foreign policy, except they still haven't amassed enough prowess to start invading other lands.
And look at how Iran treats minorities, like the Baha'is. Not allowed to work in the public sector, anything related to education, and not allowed to enter universities.
And the list goes on and on. There hasn't been an actual good Islamic state for a couple centuries now.