Saudi investments to India have jumped 60x in a decade

By Admin

23 Apr, 2025

An Evolving Partnership

In recent years, India and Saudi Arabia have strengthened their bilateral relations, not just diplomatically but also economically. Prime Minister Narendra Modi’s ongoing two-day official visit to Saudi Arabia—his third in the last ten years—highlights the growing significance of this partnership. While trade between the two countries has remained stable at around $45 billion since 2014, Saudi Arabia’s foreign direct investment (FDI) into India has seen a phenomenal 60-fold increase, signaling a deepening economic bond.

From Modest Beginnings to a Billion-Dollar Surge

Back in 2014, Saudi Arabia’s investments in India stood at a modest $51 million, ranking 47th among all FDI-contributing countries. Fast forward to 2019, this figure had grown to $316 million, elevating the kingdom to 39th position. However, the real leap came in 2020, when investments from Middle Eastern countries surged tenfold. Saudi Arabia alone contributed $3.13 billion, accounting for 0.6% of India’s total FDI inflows that year.

Post-Pandemic Slowdown

Despite the explosive growth in 2020, the momentum has slightly waned in the post-pandemic era. Saudi Arabia’s share in India’s total FDI inflows declined to 0.45% by 2024, with only $113 million worth of new investments recorded since the pandemic. Consequently, Saudi Arabia has dropped three positions, ranking 20th among countries that have invested in India since 2000.

The Road Ahead

Prime Minister Modi’s recent statement underlines the importance of this strategic alliance: “India values our historic relations with Saudi Arabia. Bilateral ties have gained significant momentum in the last decade.” His current visit is expected to focus on revitalizing trade and drawing renewed investment interest from the oil-rich nation.

Looking Forward

As India continues to open its doors to global investors, Saudi Arabia remains a key partner in its growth story. The remarkable 60x jump in investments over the past decade is not just a statistic—it’s a testament to the trust and potential that both nations see in each other. With renewed diplomatic efforts and high-level engagements, this partnership is poised to explore new economic frontiers.