Nope Dr. Awwad, India does not enjoy a high regard in Mid-East, atleast not in Saudi Arabia. They are by 'compulsion' aligned with their 'brother' Pakistan. Reason-Religion. No matter India has a much higher number of muslims, what matters is the 'Islamic state' and related law systems; they despise the democracy you mention.
Indians in Saudi Arabia are considered third class, many of them in bonded labour. They are paid much lower (if at all) than most other peers on the basis of nationality. They have no equal rights, freedom of expression, access to justice, cannot own land, houses or businesses. Sponsors take a cut of their pay, overwork them, abuse them like the fuedal lords of ancient times. Saudi students are taught that foreigners come to their land merely to destroy them and take away their wealth. I know this, I have directly witnessed this, having lived there.
The OIC thwarted Indian efforts at membership. Arafat and Palestine were given foremost recognition but they voted against us on Kashmir.
Yes, both sides have gained a lot from intermarriage and trade in the middle ages and oil in modern times but the mistrust on the Arab side is irrational.