Saudi Arabia and India have agreed to enhance their energy partnership and expand collaboration in areas such as tourism and technology, aiming to strengthen bilateral ties amid global economic uncertainty. According to India’s Ambassador to Saudi Arabia, Suhel Ajaz Khan, both nations have agreed to set up two oil refineries in India through a joint venture, though specific details were not disclosed.

This agreement follows a meeting in Jeddah between Saudi Crown Prince Mohammed bin Salman and Indian Prime Minister Narendra Modi. Modi left shortly after the meeting, cutting short his stay in the wake of a deadly attack on civilians in India’s Jammu and Kashmir region. The talks come as both countries navigate economic challenges, including U.S. tariff policies that could hinder growth. India is currently experiencing its slowest economic growth in four years, while Saudi Arabia faces ongoing pressure due to low oil prices.

The strengthened partnership is expected to enhance energy security and economic stability for both nations, building on years of dialogue between the G-20 members across sectors such as oil, agriculture, and tech. In 2019, Crown Prince Mohammed bin Salman pledged $100 billion in investments in India, but only around $10 billion has materialized so far. Saudi Aramco, the state-owned oil giant, has long aimed to enter India’s refining market, but has faced obstacles. A proposed mega complex in western India was stalled due to land issues, and a potential investment in Reliance Industries' refinery in Gujarat did not proceed over valuation disagreements.

It remains uncertain whether Aramco will be involved in the new refinery projects mentioned by the Indian ambassador. Saudi Arabia, once India’s top oil supplier, has lost market share to Russia and Iraq. Before his trip, Modi stated that both nations are considering joint projects in the refinery and petrochemical sectors, as reported by Arab News.