Athira Sethu
Kochi, 5 March 2026
Several large Indian engineering companies that operate in the Middle East are taking a “wait and see” approach in light of the ongoing conflict between Iran and Israel. Several Gulf nations such as Saudi Arabia, UAE, Qatar, and Bahrain are affected by the ongoing war between Iran and Israel.
Several Indian companies such as Larsen & Toubro (L&T), KEC International, and Kalpataru Projects have been expanding their businesses in these nations, particularly in Saudi Arabia and UAE. However, the situation is critical as Iran is launching airstrikes against oil and construction sites in Saudi Arabia and UAE.
The stocks of these companies have been affected as their stocks have dipped. L&T and KPIL stocks have dipped by 5%. Afcons Infrastructure’s stocks have also dipped by 2.7% on Wednesday. However, stocks have recovered on Thursday trade.
KEC International is keeping a close eye on the situation in light of the fact that 20-25% of their business is done in the Middle East. They have businesses in Saudi Arabia, UAE, and other Gulf nations. They are keeping a close eye on the situation and ensuring the safety of their employees.
Saudi Arabia and the UAE have many big projects in the field of energy and infrastructure, in which Indian companies are involved. Saudi Aramco has given big contracts to Indian companies for the drilling of oil wells. Saudi Arabia and the UAE have also started investing in the field of renewable energy, in which Indian companies are involved. Indian companies have also started working on big projects such as the Saudi Arabia Neom city, in which the construction of infrastructure and green energy projects is involved.
L&T has confirmed that all the employees of the company in the region are safe. Similarly, KPIL has also confirmed that all the employees of the company in the region are not affected by the war.
Experts have opined that despite the war, the Middle East region will continue to be an important market for Indian engineering companies in the long run, as the region has been investing heavily in the field of infrastructure development, which will continue in the future despite the short-term disturbances in the projects.
