Lockheed Martin is investing more than $1 billion in manufacturing in Saudi Arabia, Ray Piselli, Lockheed's vice president of international business, said as the kingdom looks to use its influence as a major arms buyer to help diversify its economy away from oil.

The funds will support the efforts of Saudi Arabia's military industry regulator GAMI and state defense company SAMI to develop local industries, he said.

The funds will be made available to support manufacturing, maintenance, repair and operations initiatives across the kingdom by investing in Saudi industry and improving skills, a Lockheed Martin spokesman told Reuters.

Piselli said Lockheed Martin will be investing in opportunities with local companies and government agencies to locate some of its industry in the kingdom.

GAMI said it is working with Lockheed Martin to manufacture some parts for the THAAD missile defense system in Saudi Arabia.

Piselli said he wants to include the kingdom in global supply chains and create an export market. According to him, revenues from the Arab countries of the Persian Gulf in 2020 reached $4 billion.

The American group Raytheon Technologies Corp said it plans to move the production of some parts of its Patriot missiles to Saudi Arabia.