The JV, to be called Tech Mahindra Arabia, will be headquartered in Al Khobar.
Tech Mahindra Arabia will also have presence across other major cities in Saudi and will be functional post the regulatory approvals.
The regional strength of Midad Holding and the global connectivity of Tech Mahindra will combine together in creating a synergic value proposition for customers in Saudi Arabia.
CP Gurnani, Managing Director and CEO, Tech Mahindra Limited said that Saudi Arabia has been a focus market for Tech Mahindra and they are "excited" about the economic growth potential the region has.
"This joint venture will establish the company as a leading player in providing IT and ITeS solutions", he said.
Additionally it will also provide an exciting career opportunity for the talented men and women in Saudi region," Gurnani added.
"Part of Midad Holding's model is to partner with global leaders providing game changing solutions that add value and address the challenges facing Saudi Customers.
"The purpose of the joint venture is to leverage Tech Mahindra's global expertise in Information technology while maximising local content," Mohammed Al Baadi, Managing Director & CEO, Midad Holding, said.
G B Kumar, Vice President and Geo Head, Middle East and North Africa, Tech Mahindra Limited said, "Tech Mahindra Arabia will pave the way for exponential growth by solving the business and technical challenges of customers from Telecom, Public Sector, Oil & Gas, Petrochemicals, Utilities, Manufacturing and BFSI segments.
"Our differentiating strengths in Networking, Mobility, analytics, cloud and security will be of key importance in bringing value to Saudi customers," said Kumar.
Tech Mahindra Arabia will provide a gamut of Information Technology (IT) and IT-enabled services (ITES) to cater to the established and emerging sectors in Kingdom of Saudi Arabia (KSA), the company said.
The solutions would aim to provide services in the areas of consulting, application development and management, network services, integration, engineering, managed services, remote infrastructure management, operational & maintenance services and business process outsourcing.
Tech Mahindra has a significant presence in the KSA region since 2006 wherein it continues to provide solutions to its global and local customer base.