Saudi Arabia has signed a co-operation deal with German companies Siemens and SAP to play an important role in furthering the kingdom's "digital transformation", said a report, citing senior company officials.

Siemens signed a framework agreement with the Saudi National Industrial Clusters Development Program (NICDP) which the German group said could lead to equipping infrastructure projects worth at least a billion euros, reported Reuters.

The agreement was signed by top executives at the engineering conglomerate and the business software company who were travelling with Merkel, it stated.

Saudi Arabia is pushing a long-term economic transformation dubbed "Vision 2030" to reduce the country's reliance on oil, attract investment and improve the lives of its citizens, the report added.