Saudi Arabia has invited companies to bid for a contract to build a security fence along its border with Iraq at cost of up to 4 billion riyals ($1.07 billion).

Saudi Arabia, the world's largest oil exporter, wants to build a double-lined, razor wire fence along the 900-km (560 mile) frontier with its northern neighbour, complete with thermal imaging and radar equipment, officials at five invited companies said.

The companies include Saudi Arabia's Binladin Group, along with Saudi Oger, El-Seif Engineering & Construction, Al-Khodary Sons Co and Al-Arrab Contracting Co, the officials, who did not want to be identified, said.

They have until October 28 to bid.

International defence companies, including Europe's EADS, Boeing Co and Britain's BAE Systems, have also been invited, another report said.

A spokesman at Saudi Arabia's Ministry of Interior confirmed the construction was being put to tender, without giving further details.

Interior Minister Prince Nayef said in November the border fence had become essential to protect security. 'All of Iraq's neighbours are suffering directly from what is happening in Iraq,' he said.

The contract is part of wider project aimed at securing the country's 6,500-km-long borders, local contractors said.

Known as the Ministry of Interior, Kingdom of Saudi Arabia (MIKSA) contract, the scheme includes adding hundreds of radar facilities, coastal detection centres, telecommunications networks and reconnaissance aircraft around the country.

France's Thales had been negotiating for 12 years to carry out the MIKSA contract until the Saudi government decided to launch an international tender last April. - Reuters