Saudi Arabia and Thailand Forge Strong Economic Partnership Expansion

16 Jul, 2024

Saudi Arabia and Thailand Forge Strong Economic Partnership Expansion

Saudi Arabia and Thailand are bolstering their economic ties with the establishment of Thailand’s inaugural Board of Investment (BOI) office in Riyadh, marking a significant milestone in their bilateral relations. The move aims to enhance private sector cooperation and foster new investment opportunities between the two nations. Minister of Investment Khalid Al-Falih emphasized the growing economic partnership, highlighting a substantial increase in bilateral trade, which reached $8.8 billion in 2023.

This surge underscores the flourishing business relations since the restoration of diplomatic ties in 2022, representing a robust 22 percent of Thailand’s total trade with the Middle East. The Thailand BOI office in Riyadh will oversee operations across 13 Middle Eastern countries, supporting investment in sectors such as agriculture, renewable energy, healthcare, and automotive, particularly electric vehicles.

Both countries are set to benefit from their complementary economic strategies Thailand’s National Strategy 2037 and Saudi Arabia’s Vision 2030 especially in the energy sector and food processing industries. Saudi Arabia’s demand for agricultural products is projected to exceed $130 billion by 2030, aligning with Thailand’s robust export capabilities in this sector.

The bilateral forum witnessed the signing of multiple memoranda of understanding between Saudi and Thai companies, covering cooperation in energy, infrastructure, engineering, agriculture, and more. These initiatives are poised to strengthen ties further, facilitating mutual growth and enhancing regional economic stability.