Investment Plans in Saudi Arabia

The Kingdom of Saudi Arabia is among the most stable economies in the middle east. While historically, the oil and gas industry has been the main driver of growth in the country, there are currently ample growth opportunities in other key sectors such as real estate, technology and tourism. Moreover, NRIs in Saudi Arabia also have to option to diversify their investment by making investments in India. This geographical diversification can help NRIs optimise returns and minimise overall investment risk. Below are some of the top investment plans in Saudi Arabia for NRIs.

1- Equity instruments: NRIs in Saudi Arabia can directly invest in the equities (stocks) through a portfolio investment scheme under the RBI. While such equity investments have the potential to provide high long-term returns, they also come with the typical risks associated with equity investments. To equity investments in Indian stock markets, NRIs in Saudi Arabia need to mandatorily have a PIS (Portfolio Investment Scheme) account, an NRO/NRE account, a Demat account, and a trading account.
Such NRIs also have the option to invest in Saudi Arabian stock markets and benefit from the growth potential of the oil-rich Middle Eastern nation. One however needs to check the rules and regulations that govern such NRI investments plans in Saudi Arabia.

2-  Mutual funds: NRIs in Saudi Arabia are allowed to invest in Indian mutual funds directly. MFs offer a wide range of investment options across different asset classes like equity, debt, gold, real estate, etc. However, before investing you must gain knowledge about mutual funds as they involve high risk. To start investing, NRIs need an NRO and NRE account as you can only invest in Indian rupees.  
NRIs in Saudi Arabia are also allowed to opt for local mutual funds as an investment option in Saudi Arabia. However, such investments are subject to local rules regarding investment limits, eligibility and taxation of returns.

3- Real Estate: NRIs in Saudi Arabia can invest in residential or commercial real estate in India, but as per current rules, they cannot invest in agricultural land and plantations in India. Historically, real estate in India has been a popular investment option among NRIs residing all over the world including Saudi Arabia,
As of 2025, NRIs in Saudi Arabia are not allowed to invest in real estate in Saudi Arabia, as such investment is currently restricted to Saudi citizens only. However, as per a recently report, foreign nationals including NRIs in Saudi Arabia will be allowed to invest in real estate located in specific regions of the Kingdom of Saudi Arabia such as Riyadh and Jeddah from 2026 onwards.

4- National Pension System: NPS, the Government of India recognised and PFRDA governed pension scheme, invests in a mix of equity, government bonds, corporate debt, and alternative investment funds. NRIs in Saudi Arabia, between the age group of 18 and 60 years can open an NPS account with a valid PAN card and Aadhaar card. NPS accounts offer tax benefits on income earned in India to individuals who opt for the old tax regime. This investment option for NRIs in Saudi Arabia can help them benefit from the potential growth of Indian stock and bond markets at a relatively low cost.

5- Fixed deposit: FDs are considered as one of the safest investment options, which is not only popular among resident Indians but also among non-resident Indians. NRIs in Saudi Arabia can start FD through their NRO, NRE, and FCNR accounts. The interest rate ensures assured returns however, the actual rate of interest depends on the bank, the deposit amount, and the duration of the investment.

Fixed deposit in the NRO accounts

• NRIs can invest in Indian currency in NRO.
• The rate of interest offered depends on various factors such as duration of the deposit, amount deposited, etc.
• Offers repatriation of interest earned but with certain restrictions.

Fixed deposit in the NRE account

• The interest rate offered varies based on multiple factors such as investment tenure
• Interest is taxable but funds can be utilised for local expenses.
• You can transfer a maximum amount of $1 million from your NRO account upon submission of relevant documents.

Fixed deposit in the FCNR account

• FCNR account can be opened in various currencies
• It has a tenure of one to five years.
• Interest earned is exempt from tax.
• Foreign exchange fluctuation has no impact on the deposit in FCNR since the deposit is made in a foreign currency

6- Unit-linked insurance plans: ULIP plans offered by life insurance companies in India offer the dual benefit of life insurance cover and appreciation of investment. This means, that the premium you pay for a ULIP is split into two parts – a portion being allocated to provide life cover and the remainder being invested for capital appreciation in a variety of financial instruments such as equity and debt. ULIPs have a lock-in period of 5 years. Also, it provides tax benefits, making it a good choice for NRIs in Saudi Arabia looking for long-term wealth creation through investments made in India.

7- Retirement Plan: Retirement plans in India are a popular investment option for NRI living in Saudi Arabia as they can help secure their post-retirement years. These plans are designed to be long-term investment that can be customised in terms of funds and investment strategy as per the individual’s financial goals and risk appetite. The corpus created at the end of the retirement plan tenure is used for the purchase of annuities that provide regular income post-retirement. Retirement plans are an excellent investment option in Saudi Arabia for NRIs who are planning to secure their own financial future during post-retirement years.

8- Child plan: A child plan in India is designed to safeguard the future financial requirements of the investor's children, including planned expenses such as higher education and marriage. Non-resident Indians (NRIs) have the opportunity to invest in child plans that offer either a lump sum payment or regular disbursement when the child reaches a specific age. Additionally, these plans offer life insurance coverage to guarantee the child's financial stability in the event of any unforeseen circumstances. NRIs can select the duration of the policy and the premium amount according to their child's future aspirations.

The Kingdom of Saudi Arabia, is a nation that is deeply rooted in Islamic tradition, with Shariah-compliant investments being a popular option among the local populace. Sharia-compliant investments adhere to Islamic principles and values, ensuring they are ethical and consistent with Islamic law. Shariah-compliant investments follow Islamic law, which sets clear rules and restrictions on permissible financial activities.

These regulations forbid practices that include Riba (interest), Gharar (excessive uncertainty), and Haram (forbidden) activities such as gambling and alcohol. Consequently, investors are required to ensure that their funds exclusively support businesses and activities that are in accordance with Islamic values. Sharia-compliant investments thus cannot invest in companies that indulge in any of the

Shariah-compliant funds can only invest in companies that are in compliance with Sharia Law. They allow Muslim investors to participate in the market to achieve profitable returns on their investments while adhering to the principles of Shariah law. One of the primary requirements of a Shariah-compliant funds is that these funds cannot not invest in companies or securities whose earnings are derived from selling alcohol, tobacco, pork, explicit content, betting, charging interest on loans, etc.

Keeping this in mind, the Axis Max Life Pure Growth Fund is a Sharia-compliant investment that does not invest in companies that draw their income from sectors like entertainment, banking & financial services, specific types of animal produce, alcoholic beverages, and tobacco products. Hence, Axis Max Life Pure Growth fund, a market-linked investment option, is ideal for faith-conscious investors seeking to grow wealth without compromising on religious values.

Axis Max Life Insurance provides multiple investment and savings options in Saudi Arabia to NRIs. These savings cum life insurance policies provide NRIs with the dual benefit of protection for your family residing in India or Saudi Arabia along with the opportunity to grow your wealth over time.

1- Smart Fixed-return Digital Plan: Axis Max Life Smart Fixed-return Digital Plan can be suitable for NRI in Saudi Arabia who is looking to build a saving corpus through guaranteed returns while simultaneously ensuring financial protection of our loved ones. At maturity the plan provides a lump sum payout based on the rate of return locked-in at the time of inception irrespective of changing market conditions. This product also features a life cover benefit that ensures financial security for your family in case of the life insured’s demise during the policy term.

2- Axis Max Life Smart Wealth Plan: Smart Wealth Plan is a life insurance saving plan that offers guaranteed returns that can help build a corpus over time. Also, it offers life cover benefit that can provide a lump sum payout to the nominee/beneficiary in the case of the life insured’s demise during the policy term. Other key beneficial features of this savings plan include flexible payout options, guaranteed additions and option to enhance protection through addition of riders.

3- Axis Max Life Flexi Wealth Advantage Plan: Flexi Wealth Advantage Plan is a Unit Linked Insurance Plan that combines the benefit of life coverage with market-linked growth of investment. This investment plan in Saudi Arabia provide NRIs with access to key features and benefits like return of charges, loyalty additions, auto debit booster, smart withdrawal option, whole life cover, unlimited free switches, etc. Additionally, NRIs in Saudi Arabia can also customise this investment by choosing from five unique investment strategies and multiple funds to suit their investment style.

4- Axis Max Life Platinum Wealth Plan: NRIs residing in Saudi Arabia can also opt for the Platinum Wealth Plan from Axis Max Life to achieve long-term financial goals and secure their family’s future. This plan offers maturity benefits, guaranteed loyalty additions, guaranteed wealth boosters, and flexibility in choosing from multiple premium payment options are some top benefits and features of PWP. Apart from wealth creation, this plan also offers life cover benefit that can enhance the protection for your loved ones.

In order to compare and choose between various investment options in Saudi Arabia for NRI involves key factors like:

• Compare the short-term, medium-term and long-term historical returns of different investments.
• Select the plan or investment strategy that matches your risk tolerance
• Compare the cost of making the investment versus potential returns
• Factor in the taxation applicable on returns you may earn from the investment
• Consider the impact of the new investment on the asset allocation applicable to your portfolio

In case you are unsure of which investment option in Saudi Arabia is suitable for you, consult a financial advisor and select an investment plan that optimises overall returns while minimising overall risk of the investment

Selecting the most suitable investment plan requires evaluating various factors and matching them with the characteristics of the investment options available.

1- Identify your goals: First, identify your financial objectives—whether they are short-term, medium-term, or long-term. For short-term objectives, you may prefer low-risk, liquid investments, such as Fixed Deposits or Debt Funds such as Money Market Funds, Ultra Short Duration Funds, etc. Conversely, for long-term financial objectives, investment options such as Equity Mutual Funds or Unit Linked Insurance Plans might be more appropriate.

2- Assess risk tolerance: Next, evaluate your risk tolerance. If you are able to handle short-term market fluctuations, equity-based plans may be suitable; however, if you favor stability, consider choosing debt instruments or government-backed plans.

3- Determine your investment horizon: Your investment horizon plays a vital role: the longer your investment period, the greater the potential returns from riskier alternatives.

4- Compare premiums: It is important to compare the fees linked to each investment, as higher charges can diminish your returns over time.

5- Invest in tax-efficient products: Gaining insight into the tax advantages of each plan will assist in making investments in a tax-efficient manner. This can also play a key role in managing overall returns.

If you are a NRI who is seeking investment plans in Saudi Arabia, below are some key documents that you may need to provide:

• Completely filled proposal form
• Age proof
• Income proof
• Valid proof of being an NRI
• NRO or NRE account
• Valid Visa for Saudi Arabia and Indian passport
• PAN Card

Note: The above list of documents is illustrative and you need to provide additional documents as per the internal policies of the insurance/investment provider.

The Double Taxation Avoidance Agreement (DTAA) between India and Saudi Arabia came into effect in November, 2006. It was introduced to serve as a crucial tool that promotes economic collaboration, eliminates double taxation, and offers tax certainty for both NRI individuals and businesses operating in both these countries. With its extensive provisions and mechanisms, this agreement designed to not only ease cross-border investments and trade but also helps in preventing tax evasion.