Mumbai, Nov 13: Eighty-five per cent of Indian businesses – the highest among surveyed markets – see Saudi Arabia as a more attractive destination for trade and investment amidst global uncertainties, a report showed on Thursday.
Moreover, 78 per cent of Indian businesses are planning to increase investments in Saudi Arabia in the next six months – representing the highest level of commitment among any market outside the Middle East, according to an HSBC report.
Indian business leaders are showing a strong intent to increasing trade and investment with Saudi Arabia. This aligns with the Kingdom’s Vision 2030 plan, which aims to build a resilient, stable economy with attractive growth opportunities.
“Our research indicates increased confidence from international businesses in Saudi Arabia’s economic transformation and highlights the Kingdom’s unique ability to combine heightened growth prospects with economic stability,” said Selim Kervanci, Chief Executive Officer, Middle East North Africa and Türkiye (MENAT), HSBC Bank Middle East.
The report surveyed 4,000 business decision makers with international operations, each generating annual revenues of $50 million to $500 million, uncovering insights into the evolving trade and investment links between Saudi Arabia and eight major global markets.
Bilateral trade ties between India and Saudi Arabia have steadily grown over the years. India is the second largest trade partner of Saudi Arabia while Saudi Arabia is the fifth largest trading partner of India. In FY 2024-25, bilateral trade stood at $41.88 billion, with Indian exports at $11.76 billion and imports at $30.12 billion.
Survey respondents from India highlight Saudi Arabia’s growing economy (60 per cent), economic stability (56 per cent), and business-friendly policies (51 per cent) as top reasons to do business in the Kingdom.
The strategic alignment between Saudi Arabia’s Vision 2030 and India’s Viksit Bharat agenda opens up synergistic opportunities for trade and investment, fostering sustainable growth and shared prosperity, said Ajay Sharma, Head of Banking, HSBC India.
Indian IT and tech firms are contributing to Saudi Arabia’s digital transformation, while interest is also growing in areas like healthcare, logistics, mining, and startups. Indian businesses already investing in the Kingdom rank foreign ownership restrictions (35 per cent) and market competition (35 per cent) as equal top barriers to increasing their investments.
–IANS