From Financialexpress · Anjana PV · · 3m
Saudi Arabia Needs India for Vision 2030
Saudi Arabia's Vision 2030 shift away from oil requires India for investment, tech, and infrastructure growth.
In brief
Saudi Arabia's Vision 2030 shift away from oil requires India for investment, tech, and infrastructure growth. Saudi Arabia and India are building economic ties beyond oil through investment, tech, infrastructure, and mining as Saudi Vision 2030 diversifies its economy. Originally reported by Financialexpress.
India-Saudi economic ties expand
The India-Saudi relationship has shifted from oil to include infrastructure, manufacturing, technology, healthcare, pharmaceuticals, logistics, mining, and financial markets.
Saudi Arabia's Vision 2030 drives change
Saudi Arabia's Vision 2030 aims to reduce hydrocarbon dependence by investing in tourism, advanced manufacturing, technology, logistics, and clean energy.
Oil remains significant but diversifying
India imported 33.14 million metric tonnes of crude oil from Saudi Arabia in FY2024-25, accounting for 13.58% of India's total crude oil imports.
Trade diversification underway
Crude oil accounted for 68% of India's imports from Saudi Arabia during April-July FY2026, declining to 65% during April-July FY2027.
Investment relationship grows
Saudi investment in India, including PIF, Saudi companies, and the Saudi-backed Vision Fund, has reached about $10 billion.
Indian investments in Saudi Arabia
Indian companies have invested approximately $3 billion in Saudi Arabia, covering sectors like consultancy, construction, telecommunications, IT, financial services, and pharmaceuticals.
Bilateral investment framework
The Indian government approved a Bilateral Investment Promotion and Protection Agreement with Saudi Arabia, providing a two-year period for investors to exhaust domestic legal remedies before international arbitration.
Saudi Arabia opens capital markets
Saudi Arabia opened its stock exchange to all foreign investors from February 2026, removing the Qualified Foreign Investor framework.
Real estate reforms for foreign investors
A new Saudi law allowing non-Saudis to own real estate came into effect in January 2026, subject to specified conditions.
Public-private partnerships expand
Saudi Arabia's National Privatization Strategy targets SAR 240 billion in private investment by 2030 through public-private partnerships in healthcare, education, municipal services, and defense.
Mining investment grows
Saudi Arabia aims to increase mining investment to nearly SAR 92 billion during 2025-2030, compared with approximately SAR 45 billion in 2024.
Trade balance shifts
India-Saudi bilateral trade stood at $41.07 billion in FY2025-26, with India's exports at $10.28 billion and imports at $30.79 billion.
Defense and cultural cooperation
India and Saudi Arabia expanded defense cooperation through naval exercises, land force exercises, and signed agreements on space, health, sports, and postal cooperation.
Labor and pilgrimage ties
Around 2.74 million Indians live in Saudi Arabia, with 175,025 Indian Haj pilgrims and 1.5 million Umrah participants annually.
Energy disruptions test ties
Shipping route disruptions caused India's crude imports from Saudi Arabia to fall from $2.8 billion in April 2026 to $0.9 billion in June before recovering to $1.4 billion in July.
Economic outlook for Saudi Arabia
Saudi Arabia's real GDP growth is projected at 1.7% in 2026, down from 4.6% in 2025, with non-oil growth expected at 4.5% in 2027.
The one thing
Saudi Arabia and India are building economic ties beyond oil through investment, tech, infrastructure, and mining as Saudi Vision 2030 diversifies its economy.
