India Inc Rides West Asia’s Trillion Dollar Transformation
Indian firms across industries are weaving themselves into the region’s attempt to reinvent itself beyond oil.
The Gist
Indian firms are increasingly establishing a presence in West Asia, reflecting a shift from traditional oil dependency to diversified economic opportunities.
- L&T's orders show that nearly 40% come from West Asia, highlighting the region's growing importance.
- Countries like Saudi Arabia and UAE are investing heavily in infrastructure and sustainable projects, attracting Indian businesses.
- This expansion spans various sectors, including IT, consumer goods, and legal services, indicating a broader trend of Indian corporate growth in the region.
Consider this — for every Rs 100 worth of orders that engineering giant Larsen & Toubro (L&T) booked in the first quarter of FY2025-26, nearly Rs 40 came from West Asia.
It’s a statistic that tells a bigger story. L&T is not an exception. Indian firms across industries are weaving themselves into the region’s attempt to reinvent itself beyond oil.
From tech firms, consumer giants to jewellery brands, Indian firms are increasingly setting up shop in West Asia.
For years, India’s ties with the countries in the region has been dominated by oil imports and migrant Indian labour. But now things are changing.
Flush with wealth and eager to diversify, countries like Saudi Arabia, the United Arab Emirates (UAE) and Qatar are setting up cities in the desert, and opening up their economies to foreign firms.
For Indian firms, it's both a massive opportunity and a competitive space.
Indian business’ interest in West Asia can be viewed in two baskets – the initial move-ins by core sector companies to tap the region’s infrastructure, energy and real estate boom, and later those from the consumer, start-up and finance economy, lured by a growing consumption market and regulatory ease.
The Gulf’s Big Bet
The scale of ambition is staggering. Saudi Arabia’s Vision 2030 blueprint. The NEOM city alone — being built in Tabuk Province in Saudi Arabia — whic...
Consider this — for every Rs 100 worth of orders that engineering giant Larsen & Toubro (L&T) booked in the first quarter of FY2025-26, nearly Rs 40 came from West Asia.
It’s a statistic that tells a bigger story. L&T is not an exception. Indian firms across industries are weaving themselves into the region’s attempt to reinvent itself beyond oil.
From tech firms, consumer giants to jewellery brands, Indian firms are increasingly setting up shop in West Asia.
For years, India’s ties with the countries in the region has been dominated by oil imports and migrant Indian labour. But now things are changing.
Flush with wealth and eager to diversify, countries like Saudi Arabia, the United Arab Emirates (UAE) and Qatar are setting up cities in the desert, and opening up their economies to foreign firms.
For Indian firms, it's both a massive opportunity and a competitive space.
Indian business’ interest in West Asia can be viewed in two baskets – the initial move-ins by core sector companies to tap the region’s infrastructure, energy and real estate boom, and later those from the consumer, start-up and finance economy, lured by a growing consumption market and regulatory ease.
The Gulf’s Big Bet
The scale of ambition is staggering. Saudi Arabia’s Vision 2030 blueprint. The NEOM city alone — being built in Tabuk Province in Saudi Arabia — which is supposed to be high tech and sustainable and aimed to be entirely powered by green energy, has a budget of $500 billion.
The state oil producer Aramco is spending another $100 billion in developing its Jafurah gas project. In its immediate neighbourhood, liquified natural gas (LNG) company Qatar Energy is spending multi-billion dollars to double its LNG prospects. UAE plans to spend more than $150 billion by 2050 to expand clean energy sources, while Oman has its own multi-decadal vision plans of development.
Gains Back Home
For Indian companies, this spending spree has translated into contracts. L&T, India’s infrastructure and capital expenditure bellwether, has seen 37% of its Rs 6 trillion plus order book come from West Asia. This is second only to India’s own contribution of 54% to the total order book.
“The UAE remains the top market in the region, accounting for over 42 percent of India’s engineering exports to WANA in 2024-25, which is a clear sign of the positive impact of the India-UAE CEPA (Comprehensive Economic Partnership Agreement),” said Pankaj Chadha, chairman EEPC India, told The core.
The larger macro numbers are telling too. India’s engineering exports to the West Asia and North Africa (WANA) region have grown 23.7% CAGR from 2020-21 to 2024-25.
Chadha said that strong demand strengthened by large-scale infrastructure developments and industrial diversification has made Saudi Arabia into a major destination for India’s export, with its share rising to nearly 29% in 2024-25 from 20% in 2020-21.
Larger Corporate Push
This phenomenon is not confined to L&T. There is a long list of Indian firms expanding presence in West Asia, with a slew of recent announcements.
Shapoorji Pallonji is developing marquee projects in Dubai, while others such as Afcons Infrastructure have roped in local partners to manage the local environment.
For cement company Shree Cement, the demand growth has been impressive enough to invest AED 110 million to increase its existing cement capacity in UAE. In May this year, Tata Consultancy Services (TCS) announced expansion in the West Asia region with a new facility in Oman in its bid to support the economic and social development goals outlined in Vision Oman 2040.
The interest extends beyond corporate giants – there is a definite trickle down, point out industry watchers.
“The GCC countries, especially UAE and Saudi Arabia have become key business partners for India — both as markets, sources of capital and as key business hubs. The expansion of larger Indian companies has enabled entire ecosystems of suppliers, advisors, investors, IT services, legal firms and consultants to enter these markets,” said Jehil Thakkar, partner at Deloitte India, who points out, for instance, over 12,000 Indian firms registered with Dubai Chamber last year.
Ministry of External Affairs data shows there has been a steady rise in workers headed to West Asia countries in recent years. Between 2021 and 2025, more than 6.5 lakh Indian passports were granted emigration clearance headed to Saudi Arabia, higher from 5.21 lakh between 2016- 2020. Overall, of the 16.06 lakh passports cleared for different countries since 2020, Saudi Arabia has the largest share, with UAE tracking second.
Beyond Cement And Steel
A slew of Indian legal firms are expanding their presence in West Asia for clients present in both geographies.
DSK Legal said in August that it was establishing offices in Dubai, and Abu Dhabi, to support Indian clients with operations in the region, as well as international clients looking to expand in the Indian market.
Gaurav Marya, chairman for Indian Small Business and Franchise Association (ISFA) said sectors such as oil and gas and infrastructure were historically bright spots. However, in the last few years, niche sectors such as smaller IT companies, financial firms, gaming firms have also expanded from India to West Asia.
“A couple of reasons at play are, with a ban on online gaming, geographies like Dubai allow a more viable base, consumer brands are expanding to cater to the growing Indian diaspora there,” he said.
Earlier this year, Reliance Consumer Products launched its beverage brand Campa Cola in the UAE. In November, a news report stated jewellery retail brand Tanishq plans to double its store count in West Asia by the end of 2025.
Competition Edge And Risk
India is not the only country jumping on West Asia’s reinvention bandwagon. Cashing in on this growth also presents considerable challenges from other big, multi-national names, fighting for the same pie. L&T for instance, faces stiff competition from European and South Korea based engineering big-wigs to win its hydro-carbon orders in West Asia.
Indian businesses also have to adapt with the rule of the land, resulting in different payment cycles and not-so-favourable dispute resolution mechanisms.
Senior executives from Afcons Infrastructure have in the past highlighted West Asia projects often involve a 10% cash retention, payable only after all clearances are obtained, which could stretch over 18 months. The company is aiming for projects in KSA particularly, where executives note, “they are more open to the contractor's points.”
A Tariff Driven Plot
US tariffs have also played a role. They have made Indian exporters wary of relying too heavily on America, historically one of their largest markets.
Senior executives at Suzlon, in a recent call with analysts, noted, while they were intending to target the US for exports, at this stage (due to the tariff announcement), the company is concentrating on West Asia and Europe. In terms of engineering exports, the US, the UAE and Saudi Arabia were India’s top three markets.
With tariffs complicating American sales, Indian gems and jewellery are also looking to set up manufacturing facilities in West Asia. For the last financial year, the US was the largest export market for Indian gems and jewellery at $9.3 billion, with UAE as the second largest.
Pipe maker Jindal Saw has already made a move to ensure manufacturing presence in the markets that matter. Senior executives from Jindal Saw in a call with analysts in August defended their recent decision for three new projects in GCC/MENA region, stating, “Majority of India pipes are exported to GCC, MENA region and Persian Gulf region, including UAE, Saudi, Iraq and other countries. In the long term, they want to see the manufacturing sector growing locally. And to remain competitive and be present on these markets, one has to work proactively and align as per their vision statements of these countries.”
While the region is becoming increasingly important for Indian business, speed is key. As more Western and Asian firms crowd into the same market, Indian firms will have to move faster and invest deeper to have an edge.
Marya, offering a word of caution, said, “A key challenge to look out for is, with US tariffs, many Asian countries would like to expand to Middle East markets, Indian companies will need to move fast with investment decisions to maintain an edge."
