The Spanish federation (RFEF) agreed a three-year deal worth a reported 120 million euros with the Saudi sports authority in 2019 to expand the Spanish Super Cup and host the competition in the Middle Eastern nation.
The move was criticised by human rights groups and was met with backlash from Spanish fans but Tebas said the tournament had helped promote Spanish football.
"To begin with, it had some criticism but now it is perfectly assimilated and I think it has been very good for Spanish football," Tebas told Arab News in an interview published on Wednesday.
"A competition of that level transferred to Saudi Arabia, a country with an impressive desire to grow in football - it is much better to go places where they want to grow like Saudi, than the other places. It is a matter of much promotion."
Tebas said the cooperation between the federations would help develop the next generation of talent.
"We are already collaborating with the Saudi Ministry of Sports to develop players under 18 years old, as they are the future," he added.
Real Madrid won the latest edition of the Cup in January, beating Barcelona 4-1 in Riyadh.
Saudi Arabia has invested heavily in sports like Formula 1, golf and soccer over the last few years, with the likes of Cristiano Ronaldo and Karim Benzema among a slew of big names signing lucrative deals to play in the Saudi Pro League.
However, critics have accused the country of using sport to distract from its record on human rights and equality issues. Saudi Arabia denies accusations of human rights abuses and says it protects its national security through its laws.