Mumbai, Nov 13 (IANS) A recent report reveals that 85% of Indian businesses view Saudi Arabia as an appealing spot for trade and investment. This percentage is the highest among all countries surveyed, highlighting India’s growing interest in the Saudi market amid global uncertainties.
Interestingly, 78% of these businesses plan to boost their investments in Saudi Arabia over the next six months. This aligns perfectly with Saudi Arabia’s Vision 2030 plan, aimed at creating a robust economy with promising growth avenues.
Selim Kervanci, CEO of HSBC Bank’s Middle East region, noted, “Our research shows increased confidence in Saudi Arabia’s economic transformation. The Kingdom stands out for its ability to offer both growth potential and stability.”
The HSBC study involved 4,000 business leaders from companies earning between $50 million and $500 million yearly. It sketched a clear picture of the evolving trade dynamics between Saudi Arabia and key global markets.
India’s trading relationship with Saudi Arabia has strengthened significantly over the years. Currently, India ranks as Saudi Arabia’s second-largest trade partner, while Saudi Arabia is the fifth for India. In the financial year 2024-25, trade reached $41.88 billion, with Indian exports at $11.76 billion and imports at $30.12 billion.
Respondents cited Saudi Arabia’s growing economy (60%), economic stability (56%), and favorable business policies (51%) as key factors for investing there.
Furthermore, the alignment of Saudi Arabia’s Vision 2030 with India’s Viksit Bharat agenda opens up new opportunities for trade and investment. As Ajay Sharma, Head of Banking at HSBC India, mentioned, this synergy promotes sustainable growth and mutual prosperity.
The participation of Indian IT and tech firms is notable, contributing to Saudi Arabia’s digital transformation. Other sectors gaining traction include healthcare, logistics, mining, and startups. However, firms already investing in Saudi Arabia recognize challenges such as foreign ownership restrictions (35%) and market competition (35%) as significant hurdles to expanding their investments.
Investing in Saudi Arabia is not just about numbers; it’s about forging strong partnerships and navigating a landscape ripe with potential. As global market conditions shift, India’s strategic inclination toward Saudi Arabia might just prove to be a winning bet for both nations.
For further insights, you can explore the full HSBC report.
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Indian businesses, Saudi Arabia, investment destination, firms
