Prime Minister Narendra Modi’s recent visit to Saudi Arabia signifies a pivotal moment in the bilateral relationship between India and one of the Middle East’s most influential powers. The two-day visit, held from April 22 to 23, 2025, underscores India’s commitment to deepening ties with Saudi Arabia, particularly as the Kingdom looks to diversify its economy beyond oil and explore new avenues for collaboration, including green energy and artificial intelligence (AI).
The Prime Minister’s third trip to Saudi Arabia since assuming office, following his 2016 and 2019 visits, highlights the growing importance of this relationship. It also reflects Saudi Arabia’s strategic move to position itself as a key player in global economic shifts. With Crown Prince Mohammed bin Salman at the helm of this transformation, Saudi Arabia is rapidly evolving into a modern economy, seeking partnerships that align with its Vision 2030 objectives.
Building Bridges Through People-to-People Ties
While much of the global conversation around India-Saudi relations has historically revolved around oil, the connection between the two countries is rooted in people-to-people exchanges. With approximately 2.7 million Indians living and working in Saudi Arabia, their contributions are indispensable to the Kingdom’s economic development. This demographic has played an essential role in both the growth of Saudi infrastructure and its labor market.
The people-to-people bond between India and Saudi Arabia stands in stark contrast to India’s other regional relationships, which are often defined by shared historical legacies. In Saudi Arabia, however, the relationship has blossomed into a modern partnership. Indian workers, professionals, and entrepreneurs have helped shape the Kingdom’s ambitious vision for the future.
PM Modi’s visit is seen as an opportunity to build on this strong foundation and explore deeper collaboration in fields that are crucial for the future, including green energy and technological innovation. Through these areas, both nations aim to expand their economic exchanges beyond traditional industries and work together on global challenges such as climate change and digital transformation.
The Green Energy Shift: Opportunities for India and Saudi Arabia
Saudi Arabia’s Vision 2030 has placed significant emphasis on reducing the Kingdom’s dependency on oil. The country is looking to diversify its energy portfolio by investing heavily in renewable energy sources such as solar and wind power. For India, a leader in the renewable energy sector, this shift presents an opportunity for collaboration that could benefit both nations.
India’s progress in solar power, along with its large-scale renewable projects, has positioned the country as a major player in the global green energy landscape. Saudi Arabia, with its vast deserts and abundant sunlight, offers a prime location for large-scale solar installations. Together, the two nations could work to advance renewable energy solutions, while also addressing energy security concerns that have become increasingly pressing in the face of global climate change.
Through the India-Middle East-Europe Economic Corridor (IMEEC), there is potential for deeper collaboration in renewable energy. This trade and infrastructure initiative, which is designed to improve connectivity across India, the Middle East, and Europe, could serve as a launchpad for joint ventures in green energy projects. With India’s technological expertise and Saudi Arabia’s investment capabilities, the possibilities for such partnerships are vast.
Artificial Intelligence: A New Frontier for Collaboration
Artificial intelligence is another key area where India and Saudi Arabia are keen to strengthen ties. India has established itself as a global leader in AI innovation, with its vibrant tech ecosystem, a vast pool of talent, and a growing number of AI-driven startups. On the other hand, Saudi Arabia has recognized the need to leverage AI as a central element of its economic diversification strategy. The Kingdom’s National AI Strategy aims to make it one of the leading countries in AI by 2030.
During PM Modi’s visit, discussions are expected to focus on how India’s AI expertise can support Saudi Arabia’s ambitions to integrate this technology into sectors such as healthcare, logistics, education, and smart cities. By collaborating on AI research, development, and implementation, both nations could unlock new efficiencies and innovations that can propel their economies forward in the digital age.
One area of particular interest is the use of AI in the development of smart cities. Saudi Arabia has ambitious plans for the creation of futuristic cities, such as the NEOM project, which is expected to become a global hub for technological innovation. India’s experience in AI and technology could prove to be invaluable in shaping the infrastructure and services of these new urban developments.
Strengthening Strategic Ties: Beyond Economics
While the economic and technological aspects of the India-Saudi relationship are paramount, the strategic importance of their alliance cannot be overlooked. Both countries share a common interest in regional stability, counterterrorism efforts, and securing trade routes. Saudi Arabia, a key partner for India in the Gulf region, is also a significant player in global energy markets.
With growing geopolitical shifts in the Middle East and Asia, India has increasingly looked to strengthen its ties with Saudi Arabia to secure its strategic interests. The partnership between the two countries provides India with greater access to energy supplies, while also supporting Saudi Arabia’s role in ensuring regional security.
Additionally, the two nations share common values when it comes to promoting peace and combating extremism. Their collaborative efforts in multilateral forums such as the United Nations and the G20 contribute to global efforts aimed at promoting peace and economic prosperity.
Looking Ahead: A Future Built on Shared Interests
As Prime Minister Modi’s visit draws to a close, the future of India-Saudi Arabia relations appears bright. With a focus on green energy, AI, and strategic cooperation, the relationship is entering a new phase that looks beyond oil and seeks to address global challenges. The India-Saudi partnership has the potential to set a model for how two countries from different regions can work together to shape the future of the global economy.
The visit is not just a diplomatic milestone; it is a reflection of the changing dynamics in international relations, where the traditional focus on oil is giving way to a broader, more diversified agenda. With both nations committed to deepening their ties, the coming years are likely to see even greater cooperation in areas that will define the global landscape for decades to come.
