SunEdison's deal with the Saudi government and the Saudi Arabian Investment Co. calls for the drafting of a feasibility study for a solar photovoltaic, or PV, manufacturing complex in the country.
The California company said the project is worth an estimated $6.4 billion and production of solar power components should begin in 2017.
The Saudi Arabia Solar Industry Association said in a January statement the country is working to develop a "large-scale" solar power program to cope with increasing energy demands.
Ahmad Chatila, chief executive officer at SunEdison, said in a statement the country was on the way to becoming a world-class leader in solar energy technology.
"We anticipate substantial growth of solar PV within the kingdom and the region," he said in a statement Tuesday. "We will bring our downstream solar PV development expertise to the region, and will partner with the kingdom to build a large and dynamic solar energy industry."