High-Growth Opportunities for Indian Businesses in Saudi Arabia

From infrastructure to tech, Indian companies are scaling in Saudi Arabia. Explore key sectors and opportunities for business setup.

The Indian corporate presence in Saudi Arabia continues to expand, spanning everything from mega infrastructure projects to cutting-edge technology ventures. Currently, over 3,000 Indian companies operate in the Kingdom across the IT, energy, infrastructure, and telecom sectors.

The ever-growing India–Saudi economic corridor is witnessing unprecedented growth, driven by strategic initiatives such as the “India–Saudi Arabia Investment Connect” and billions of dollars in bilateral agreements.

In this piece, we explore the top investment opportunities awaiting Indian companies in the Kingdom and outline the essential steps to set up a foreign business in Saudi Arabia.

Infrastructure and Construction Drive India's Largest Investments in Saudi Arabia

Indian engineering and construction companies are at the forefront of Saudi Arabia's infrastructure boom, with firms like Larsen & Toubro (L&T) securing transformative contracts across the Kingdom.

In a landmark achievement, L&T recently won a major contract for the Riyadh Metro extension from the Royal Commission of Riyadh City. The scope encompasses the design and turnkey construction of an 8.4-kilometer metro line comprising both elevated and underground sections, along with five metro stations.

Beyond transportation infrastructure, Indian companies are playing pivotal roles in Saudi Arabia's most prestigious developments. Major Indian conglomerates, including Tata Group and Oberoi Group, have entered strategic agreements to invest in the $63.2 billion Diriyah Gate Giga Project. Also, the India-based Taj Hotels is preparing to launch a 200-room luxury property in Diriyah, marking a significant entry into Saudi Arabia's rapidly expanding hospitality sector.

These infrastructure investments align perfectly with Vision 2030's ambitious targets, creating long-term opportunities for Indian construction, engineering, and project management firms seeking to establish operations in the Kingdom.

Moreover, the Kingdom’s commitment to becoming a global leader in renewable energy infrastructure is creating unprecedented opportunities for Indian companies, particularly in solar energy development and green hydrogen initiatives.

Among these is Larsen & Toubro (L&T), which has already secured substantial renewable energy contracts, including a 3,200-megawatt solar project in Saudi Arabia. This project contributes directly to Saudi Arabia's target of generating 50% of its electricity from renewable sources by 2030. The company has also made substantial investments in green hydrogen production, as evidenced by the MoU signed with ACWA Power to develop renewable energy infrastructure for the Yanbu Green project.

Mining and Manufacturing Strengthen India-Saudi Industrial Cooperation

Indian companies are making strategic inroads into Saudi Arabia's rapidly developing mining and manufacturing sectors, supported by the Kingdom's drive toward industrial diversification and self-sufficiency.

Vedanta Ltd., a global mining giant, is working on three strategic projects in Saudi Arabia with combined potential investments exceeding $2 billion. Vedanta's Saudi Arabia strategy includes establishing a copper smelter and precious metals refinery, alongside developing a copper rod plant in Ras Al-Khair with an annual production capacity of 130,000 tons, with commercial production expected to begin in September 2026.

Vedanta’s compatriot, Man Industries, is also expanding its manufacturing footprint in Saudi Arabia, having inked a five-year memorandum of understanding with Aramco Asia India. The company plans to complete its Saudi facility by FY26, strengthening the local supply chain for specialized steel products and supporting the Kingdom's drive toward manufacturing self-sufficiency.

These investments demonstrate how Saudi Arabia's National Industrial Strategy is creating opportunities for Indian manufacturing companies to establish local production facilities, benefiting from proximity to one of the world's largest markets for industrial products.

Technology and Innovation Create New Opportunities for Indian Startups

Beyond traditional sectors, Indian technology companies and startups are finding fertile ground in Saudi Arabia's rapidly digitalizing economy. A notable example is Zoho Corporation. The Chennai-based software company announced a $133 million (SAR 500 million) investment in digital infrastructure, including the construction of two data centers in Jeddah and Riyadh.

Adding to this, Zoho has committed SAR 100 million annually in wallet credits over the next decade as part of a long-term strategy developed in collaboration with the Ministry of Communications and Information Technology (MCIT).

These credits can be used to access any of its 55+ cloud-based applications under the Zoho brand, as well as related training programs. Through this initiative, the partnership aims to accelerate digital adoption among SMEs in Saudi Arabia and support the digital upskilling of local businesses.

Indian IT companies are favoring Saudi Arabia as their prime location for RHQ initiatives. LTIMindtree has established its presence in Saudi by opening an RHQ in Riyadh and acquiring a 51% stake in a joint venture with Global Digital, a subsidiary of Saudi Aramco.

Similarly, Tata Consultancy Services (TCS) established its RHQ in Saudi Arabia in January 2026 with an investment of SAR 1.65 million. The company also launched a Pace Studio in Riyadh, designed to harness collective intelligence by uniting an ecosystem of partners—including startups, developers, design thinkers, and academia—to help shape and refine customers’ innovation strategies.

The positive momentum is evident in the venture capital landscape. India Accelerator (IA) is set to launch a $15 million fund-backed program in Saudi Arabia in partnership with the National Technology Development Program. This initiative will support 8–10 Indian startups to accelerate their market entry and business setup process in Saudi, creating a vital bridge between India’s dynamic startup ecosystem and Saudi Arabia’s growing innovation landscape.