Saudi Arabia’s state-owned defense company has forged a deal with Spanish shipbuilder Navantia for a joint venture to build five warships, state media said Thursday.

The agreement was signed between the state-owned Saudi Arabian Military Industries (SAMI) and Spain’s shipbuilder, Navantia, on Thursday, paving the way for the two sides to set up a joint venture in the kingdom for constructing the five battleships, the Saudi Press Agency (SPA) reported.

The deal is part of a broader framework bilaterally agreed in April — when Saudi Crown Prince Mohammed bin Salman visited Spain — which is estimated to be worth around 1.8 billion euros ($2.2 billion).

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