RIYADH - Indian Prime Minister Narendra Modi and Saudi King Salman agreed in Riyadh on Sunday to strengthen their cooperation in fighting "terrorism" and to facilitate investments.

"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 counter-terrorism 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).

"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.

The two countries also signed five agreements, including plans to cooperate in intelligence sharing related to terror financing and money laundering, as well as a labour cooperation agreement and another to promote bilateral investments in the private sector. The two sides agreed on the need to intensify defence cooperation through mutual visits by military experts and joint military exercises. In a joint statement, Salman and Modi said they strongly condemned terrorism and reject any attempts "to link this universal phenomenon to any particular race, religion or culture."

Modi also met Crown Prince and Interior Minister Mohammed bin Nayef and held one-on-one talks with Saudi Foreign Minister Adel al-Jubeir and board chairman of Saudi oil giant Aramco, Abdulaziz al-Faleh, who is also the health minister. Earlier Sunday, he spoke at the Saudi Chamber of Commerce and Industry, met members of India's business community and visited an all-female information technology center run by the Indian Tata Consultancy Services in Riyadh.

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.

India, which imports around 80 percent of its oil needs, is keen to take advantage of low crude prices by signing overseas deals that will help secure supplies to meet its growing demand.

Indian foreign ministry official Shri Mridul Kumar has said ahead of the visit that almost 20 percent of the South Asian country's crude supplies come from Saudi Arabia and that New Delhi wants to ensure this supply continues.

The Indian foreign ministry statement on Sunday said that "the two leaders expressed satisfaction at their growing bilateral trade in the energy sector."

They agreed "to transform the buyer-seller relationship in the energy sector" to focus "on investment and joint ventures in petrochemical complexes, and cooperation in joint exploration in India, Saudi Arabia and in third countries," it added. 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.

A joint statement issued after the talks between Modi and Saudi King Salman bin Abdulaziz said that both countries agreed to forge a deeper partnership in energy sector focusing on investment and joint venture in petrochemical complex.

The two leaders emphasised the importance of expanding trade and investment ties to drive the strategic engagement forward. They directed their finance and trade ministers to work together to find ways and means to substantially increase the flow of bilateral investments and growth of trade ties," the statement said.

There has been a steady increase in bilateral trade, which stood at $39 billion in 2014-15.

Modi gifted King Salman a gold-plated replica of a mosque in Kerala, India that was built by Arab traders in the early 7th Century. For his part, Salman awarded Modi Saudi Arabia's highest civilian honour, the King Abdulaziz Sash. The award is named after Abdulaziz Al Saud, the founder of the modern Saudi state.

Modi was conferred the prestigious award by King Salman bin Abdulaziz at the Royal Court where they held extensive talks on a range of bilateral, regional and international issues.