India’s working community in Saudi Arabia grew by 200,000 in 2023-24

The number of Indian workers in Saudi Arabia increased by 200,000 during 2023-24 while the number of registered Indian firms operating in the West Asian country has grown to 3,000, propelled by a boom in sectors such as construction, infrastructure and services.

The nearly 10% increase in the number of workers in the last fiscal has taken the strength of the Indian community in Saudi Arabia to 2.65 million – one of the largest concentrations of expatriates in West Asia – and Indian officials are expecting similarly robust numbers in the current fiscal.

“The Indian community in Saudi Arabia is a living bridge between the two countries and the diaspora’s contribution to the economic development of Saudi Arabia is widely recognised,” India’s ambassador to Riyadh, Suhel Ajaz Khan, told HT.

As the Saudi government moves towards enhancing non-oil revenues under its Vision 2030 programme for increased diversification economically and culturally, the focus is on hiring more professionals, including foreigners, especially in sectors such as manufacturing, tourism and green energy.

Since 2022, India’s National Skill Development Corporation (NSDC) has helped train and certify Indian workers under a skill verification agreement with Saudi Arabia’s Takamol Holding, a state-run company that services prominent labour segments.

From 10 professions in the initial period, the two sides have expanded the skill verification programme to 65 professions. “There is a constant increase in hiring though the focus now is on skilled manpower,” Khan said.

Alongside the shift to more skilled professionals, the Saudi authorities have taken steps to streamline the process of hiring foreign workers and to improve their living conditions. On Saudi Arabia’s ‘Qiwa’ platform, employers upload contract information for employees, while employees can verify the accuracy of their contract data and approve, reject or seek modifications through the platform. Violations can result in penalties for employers.

The number of registered Indian firms in Saudi Arabia has grown from 400 in 2019 to about 3,000, with total investments worth about $3 billion by August 2023. These investments are in sectors such as management and consultancy services, financial services, construction projects, telecommunications, IT, and pharmaceuticals.

Bilateral trade in 2023-24 was worth $43.3 billion, with Indian exports increasing during this period by 7.8% to almost $12 billion. India is currently Saudi Arabia’s the second largest trade partner, and also plays a key role in West Asian country’s food security, with rice exports alone worth about $1 billion annually.

Despite India’s increased purchases of discounted Russian oil, Saudi Arabia remained the country’s third largest source of crude during 2023-24. India imported 26.5MT of crude oil during this period from Saudi Arabia, which accounted for 14% of the country’s total imports. Saudi Arabia was also one of the largest suppliers of fertilisers, including the second largest source of diammonium phosphate (DAP) fertiliser.