The deal involves the two firms jointly undertaking a development on Nakheel’s Waterfront project in Dubai. It is the first such venture between the two companies.
The Saudi firm recently launched its Ajmakan residential project in Riyadh.
The SR9bn ($2.4bn) development will include commercial buildings, villas and a five-star hotel.
Japanese architectural firm Nikken Sekkei carried out the detailed design of the project.