Indian Prime Minister Narendra Modi and Saudi King Salman agreed in Riyadh yesterday to strengthen their cooperation in fighting "terrorism".

"The two leaders expressed strong condemnation of the phenomenon of terrorism in all its forms," said an Indian foreign ministry statement after their talks.

They "agreed to enhance cooperation in counterterrorism operations" and cyber-security, "including prevention of use of cyber space for terrorism, radicalisation and for disturbing social harmony," it added.

The two countries signed a memorandum of understanding on cooperation in intelligence-sharing on money laundry and terrorism financing, said a statement on the official Saudi Press Agency (SPA).

Just days ahead of Modi's two-day visit to Riyadh, Saudi Arabia and the US Treasury announced joint sanctions on four individuals and two organisations with alleged links to al-Qaeda, the Taliban and Lashkar-e-Taiba (LeT) -which India blames for the 2008 Mumbai attacks that killed 166 people.

"We affirm the importance of continued cooperation

and coordination with your country's government in the field of fighting terrorism," King Salman told Modi, according to SPA.

Modi arrived in the world's largest crude exporter on Saturday and has held talks with top Saudi officials, his country's community in the Muslim kingdom, as well as Indian workers and local businessmen.

They also discussed regional and international developments, including the security situation in West Asia, the Middle East and South Asia, and agreed to bolster defence cooperation and diversify trade.

Their investment authorities meanwhile signed a framework agreement to facilitate investments by the private sectors in the two countries.

Saudi Arabia is home to 2.96 million Indian expatriates who send home over $10 billion in remittances every year, according to India’s foreign ministry.