Lockheed Martin says it has been awarded a $262.8 million contract from the U.S. Air Force to service Saudi Arabia's F-15 sniper targeting system and radars that allow for day and night low-level navigation.

The deal announced Monday comes as Saudi Arabia leads a war in Yemen and is part of the U.S.-led coalition bombing the Islamic State group in Syria.

It is the first major deal announced at the biennial Dubai Airshow, which will run until Thursday.

Compared with the previous airshow in 2013, which included announcements of $140 billion in Boeing and Airbus orders, this year's show has been largely a chance for major Gulf carriers to showcase their new planes and for international businesses to meet potential aviation and aerospace clients in the region.