After flooring Dib with a counter left hook in the second, another left hook in the third saw the Australian shaken but able to stay on his feet.
The 33-year-old had originally been slated to fight on Khan's undercard, but after the British star's original opponent suffered a auto accident, Dib stood in as a replacement.
Dib hit the deck once again before his corner decided it woild be best to throw in the towel.More news: Widespread Manhattan Power Outage Causes Broadway Cancellations and Delays
Khan said: "We want the Manny Pacquiao fight". The fight was pretty much one sided in Khan's favor and in the fourth round, Khan unleashed a flurry of fast punches that sent Dib down to the canvas.
In his post-fight interview, Khan said: "I felt very comfortable in there".
The 32-year-old from Bolton was back in the ring for the first time since his controversial WBO welterweight title defeat to Terence Crawford in April.
Khan arrived in Saudi Arabia on a mission to make a massive statement in his Middle East debut which would lure the eight-time world champion Pacquiao into a fight with him in the desert.More news: Funeral held for ‘Dog the Bounty Hunter’ star Beth Champan
"Hopefully, we come back again at the end of the year and bring Pacquiao here".
"I slowed myself down a little bit instead of rushing all the time", he explained. "I'm sure once they see it and feel the excitement, it will give them a big appetite for it so they can't wait to see the next show", he added. Let's hope he comes to Saudi Arabia.
Pacquiaio, now 40, fights Keith Thurman over the World Boxing Association welterweight title in Las Vegas next weekend.More news: Star Trek actress Stephanie Niznik dead at 52
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