Saudi Arabia and India have reached an agreement to deepen their energy ties and enhance cooperation across various sectors, including defense, tourism, and culture. This initiative aims to strengthen their economies amid global uncertainties.

The two countries committed to establishing two oil refineries in India and collaborating on multiple areas, such as petrochemicals, electricity, renewable energy, and climate policy. A joint statement announced that they also plan to finalize negotiations on a bilateral investment treaty “at the earliest.”

These announcements followed a meeting between Saudi Crown Prince Mohammed bin Salman and Indian Prime Minister Narendra Modi in Jeddah. Modi cut his trip short after recent violent attacks in India’s Jammu and Kashmir region. Both leaders condemned terrorism and called for dismantling terror infrastructure.

As both nations face economic challenges, including US tariff policies, they are looking for ways to support their economies. India is currently experiencing its slowest economic growth in four years, while Saudi Arabia anticipates pressure from lower oil prices.

Strengthening ties between Saudi Arabia and India could enhance stability and energy security for both nations. However, the details of specific concrete deals remain vague. In 2019, Crown Prince Mohammed bin Salman had pledged $100 billion in investments in India, of which only about $10 billion has materialized to date.

During their recent discussions, both leaders agreed to increase the frequency of business and trade delegations and to hold trade and investment summits to encourage cross-border economic activity. Although state-owned Saudi Aramco has expressed interest in India’s refining sector, it was not mentioned in the official communications regarding the new refineries.

Additionally, the two countries agreed to enhance cooperation in the supply of crude oil and liquefied petroleum gas, along with collaboration on India’s strategic oil reserve program. Historically, Saudi Arabia was India’s largest oil supplier, but its market share has decreased with rising imports from Russia and Iraq.

Beyond energy, the nations also signed memoranda of understanding related to space activities and healthcare.