Upvote:3
No, You do not need a transit visa for Saudi Arabia with an Indian passport if you just stay in airside.
If traveler intends to pass through immigration, a transit visa may be required. Please confirm with your travel agent or airline to determine if the itinerary is for direct airside transit. A visa is not required for direct airside transit through Saudi Arabia. Traveler must be in possession of a valid passport and onward ticket, and must remain in the airport's transit area.
Upvote:18
TWOV (Transit without visa) via Saudi Arabia:
Passengers transiting through Dammam (DMM), Jeddah (JED) or Riyadh (RUH) with a confirmed onward ticket for a flight to a third country within 12 hours. They must stay in the international transit area of the airport and have documents required for the next destination.
Only one transit stop-over in Saudi Arabia is permitted.
Source: Timatic
If your layover is shorter than 12 hours, you should be good. If it is longer, they will not let you board the plane to Saudi Arabia unless you are eligible for a Visa-On-Arrival.