Yeah “KSA allows it” is not a great slogan for anything really. You’re giving an annectodal example. What passport and other visas were held by the transiting passenger? KSA could have transit visa exceptions. And even for the example you quoted... unless they’ve changed it recently you need a KSA visa if you are going to transit JED for >12 hours even if it’s all airside.

What if there was a gate change/flight cancellation/any other IROPS and the passenger had to go from INT to DOM! It’s not at all good policy esp. not for India. It’s like a call to all criminals, terrorists and visa avoiders.