Spanish shipbuilder Navantia will deliver five Avante 2200 corvettes for the Royal Saudi Naval Forces (RSNF) under a €2 billion (US$2.4 billion) deal.
Signed during the official visit to Spain of Saudi Arabian Crown Prince Mohammed bin Salman, the framework agreement also includes the establishment of a naval construction centre in Saudi Arabia.
Navantia also announced it has formed a joint venture with state company Saudi Arabian Military Industries (SAMI) for the supply and integration of combat systems for Saudi naval projects.
The joint venture's first engagement will be on the five Avante 2200 corvettes, which will take five years to construct.
The Avante 2200 vessels measure 98.9 metres by 13.6-metres, displace 2,500 tons and have a crew capacity of 92.
With a 5,000-nautical mile range at a cruising speed of 15 knots, they have a top speed of 28 knots and 21-day provisions endurance.
The vessels can accommodate a 10-tonne class helicopter and can deploy two 5.5-metre rigid-hulled inflatable boats (RHIB).