The Indian told investigators that he acted in self defence when the victim, in his twenties, threated to kill him with a pistol at his rest house on Riyadh-Dammam highway.
Security officials, informed by the Indian's sponsor, found the victim bleeding inside the house with two severe stabs to his chest, Arab News reported.
The Indian, who suffered head injuries, said he was sleeping in the house when a person knocked at the door.
He said the visitor was carrying a pistol and threatened to shoot him. The man took the money in possession of the Indian and hit him on his head with the back of the pistol.
Officials found both the pistol and the knife.
The Indian has been admitted to a hospital for treatment, after which he will be sent to police custody for further investigation.