In a statement on Monday, US weapons company Lockheed Martin announced that agreements have been signed for Saudi Arabian firms to manufacture parts for its Terminal High Altitude Area Defense (THAAD) system - which would develop local manufacturing capabilities and transfer expertise to fortify the country’s defense industry.

According to Saudi Arabia's state news agency, state-owned Saudi Arabian Military Industries (SAMI) signed 11 agreements at the Saudi defense show in the city of Riyadh, coinciding with the time at which shipping firms are suspending Red Sea transits to avoid the unfolding crisis in the strategic maritime route.

Lockheed added that the main partners of the deal that will receive sub-contracts include Middle East Propulsion Company (MEPC) and Arabian International Company (AIC) for Steel.

Boeing Saudi Arabia and Bahri Logistics, a unit of the country's national shipping company, signed a separate strategic memorandum of understanding to enhance supply chain activities and simultaneously enhance Bahri's support for services and defense-related products.

Read more: Yemenis sue US arms producers for 'aiding in war crimes'

A ceasefire for a deal

It is worth noting that last year, Lockheed Martin signed an agreement with Israeli Rafael Advanced Defense Systems to work on a joint project to produce a new high-energy laser weapon system (HELWS) that works as an anti-air system.

Haaretz said it is expected that within three years, a functional system will be deployed on the border of the Gaza Strip.

This also comes days after Saudi Ambassador to Washington, Reema bint Bandar Al Saud, stated on Thursday that her country is unable to pursue discussions regarding a potential normalization agreement with the Israeli occupation before a ceasefire in Gaza, comes into force.

"While there is violence on the ground and the killing persists, we cannot talk about the next day," she said at the World Economic Forum in Davos.

It is worth noting that the Biden administration has been exerting pressure on Saudi Arabia to push for a normalization deal. On his part, Saudi Crown Prince Mohammed bin Salman is granted conditions for its completion, including "obtaining security guarantees from Washington and assistance in developing a civilian nuclear program."