The decision aims to facilitate greater capital flows into India by allowing Saudi Arabia’s Public Investment Fund (PIF) and its affiliated entities to invest more flexibly in Indian equities. Current Indian regulations cap total investment from sovereign-related entities at 10% in a single company—regardless of whether investments come from separate arms of the same fund.

“This restriction has previously limited the PIF’s ability to channel capital into India’s high-growth sectors,” said one of the sources, who requested anonymity due to the sensitivity of the matter.

The exemption, which comes after Indian Prime Minister Narendra Modi’s high-profile visit to the Gulf nation in April, is seen as a strategic step to unlock Saudi capital. The two nations have been working to strengthen cooperation in critical sectors such as energy, infrastructure, and pharmaceuticals. During the visit, both sides reaffirmed their commitment to finalizing a bilateral investment treaty (BIT) and enhancing cross-border economic engagement.

Saudi Arabia’s PIF—one of the world’s largest sovereign wealth funds with assets estimated at $925 billion—currently holds $1.5 billion in India’s Jio Platforms and $1.3 billion in Reliance Retail. Analysts believe the exemption will pave the way for broader and deeper investments across India’s fast-growing sectors.

India, the third-largest oil importer globally, has been actively courting long-term capital from Gulf states to fund its infrastructure push. Simultaneously, Saudi Arabia has been seeking strategic investment opportunities in emerging markets as part of its ambitious Vision 2030 diversification strategy.

To this end, the two countries formed a high-level task force in 2024 to accelerate Riyadh’s plan to invest $100 billion in India. Progress on key issues such as taxation has been lauded by both governments as a breakthrough.

“The progress made by this Task Force in areas such as taxation was also a major breakthrough for greater cooperation in the future,” a joint statement issued in April said.

Recent media reports suggest India is also considering tax relief measures for the PIF to further incentivize investment in infrastructure and energy projects.

As global capital increasingly seeks secure and high-return markets, the India-Saudi relationship appears poised to become a cornerstone of Gulf-Asia financial cooperation.

The statement, issued from the General Secretariat in Makkah, reaffirmed the MWL’s unwavering stance—shared by the broader Islamic world—against all forms of violence and terrorism. It categorically rejected any justification for such acts and strongly opposed the exploitation of religion or culture to legitimize terrorism.

In its message, the MWL emphasized that terrorism has no place in any faith or tradition, and it should not be associated with any race, religion, or community. “Violent extremism must be condemned unequivocally, regardless of its form or manifestation,” the statement declared.

The timing of the statement was significant, coming shortly after a high-profile meeting between MWL Secretary General Dr. Mohammed bin Abdulkarim Al-Issa and Indian Prime Minister Narendra Modi in Jeddah on Tuesday. The meeting highlighted shared concerns around global terrorism and deepened the dialogue between India and the Islamic world on peacebuilding and counter-extremism efforts.

The MWL’s remarks also referenced a recent joint statement issued during PM Modi’s visit to Saudi Arabia, where both nations reinforced their commitment to combat terrorism and its financing. The MWL praised the “pivotal Saudi-Indian cooperation” and called for dismantling the cross-border terror infrastructure and bringing its perpetrators to justice.

Headquartered in Makkah, the MWL is one of the most prominent Islamic non-governmental organizations, with a global presence aimed at promoting peace, interfaith dialogue, and humanitarian outreach. Under the leadership of Dr. Mohammed Al-Issa, the MWL has taken a progressive stance against extremism, earning international respect for its efforts to build bridges across faiths and cultures.

India’s connection with the MWL has grown in recent years, especially under Prime Minister Modi’s outreach to the Muslim world. Dr. Al-Issa’s public condemnation of terrorism reflects a growing strategic alignment between India and key Islamic institutions in promoting global peace and fighting radical ideologies.