Spain's King Felipe VI met on Sunday with Saudi King Salman, official media said, during a visit coinciding with talks to sell Spanish warships.
Felipe, 48, was guest of honour at a lunch hosted by Salman, 81, who decorated him with the cordon of King Abdul Aziz, the highest Saudi honour for a foreigner, the Saudi Press Agency said.
Later they discussed relations between the two friendly nations and how to further develop them "in various fields", it said. They also reviewed the situation in the Middle East.
Felipe arrived late on Saturday in Riyadh for a three-day stay.
The Spanish foreign ministry said its minister Alfonso Dastis, and Public Works Minister Inigo de la Serna, would accompany Felipe during the visit.
Spanish media have linked this trip to a much anticipated deal to sell Avante 2200 corvettes for an estimated two billion euros ($2.1 billion).
"We can only confirm that negotiations are very advanced to build five warships which would be sold to the Saudi navy," a spokesman for state-owned Spanish ship builder Navantia said.
Spain is the world's seventh largest arms exporter and Riydah is one of the biggest buyers of military gear and is under fire by various international rights groups for its deadly war against Yemen.
The Saudi war on Yemen, which has reportedly killed at least 11,400 Yemenis, was launched in March 2015 in an unsuccessful attempt to reinstate the former government. It has also taken a heavy toll on the country's facilities and infrastructure, destroying many hospitals, schools and factories.
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