Last month the oil-rich Gulf state halted the programme in protest against Hezbollah, the Shiite militant group fighting in support of Syria's regime -- which Saudi bitterly opposes.
"We didn't stop the contract. It's just going to Saudi Arabia, not to Hezbollah," Saudi Foreign Minister Adel al-Jubeir said at a news conference in Paris.
"We have a situation where Lebanon's decisions have been hijacked by Hezbollah. The contracts will be completed but the clients will be the Saudi military."
Gulf monarchies had already sanctioned Hezbollah in 2013 in reprisal for its armed intervention in Syria.
Last week Riyadh upped measures against the group, freezing assets and prohibiting dealings with three Lebanese nationals and four companies.
