Thai firms eye investment deals in Saudi Arabia
Thailand and Saudi Arabia are forging strong economic ties, with several collaboration deals in progress. Sanan Angubolkul, chairman of the Thai Chamber of Commerce, recently visited Saudi Arabia with a Thai delegation led by Foreign Minister Don Pramudwinai. During the visit, it was announced that PTT Oil and Retail Business Plc (OR) plans to establish petrol stations in Saudi Arabia, addressing the lack of convenience in existing petrol stations in the country.
OR is also exploring the possibility of a joint investment in a large-scale green hydrogen project in Thailand, with the ambition of becoming a central supply hub for various industries in the region. In addition, Siam Cement Group aims to open an office in Saudi Arabia by September, with a keen interest in investing in the country’s construction ecosystem to expand its supply chain.
Charoen Pokphand Foods, a leading Thai agro-industrial and food conglomerate, is looking to develop aquaculture and poultry businesses in Saudi Arabia and is in negotiations with Saudi-based Neom Food Company for joint investments. Health and Wellness Management Consulting Co has partnered with Saudi Arabia’s Quality of Life Tourism Co to invest in health and wellness centres in both countries, with a combined investment value of up to 17.5 billion baht.
Sanan revealed that the Saudis are willing to let Thai entrepreneurs use their business incubation centres. If startups from both countries collaborate and exchange work, and there is subsequent investment collaboration between entrepreneurs on both sides, the Saudi incubation centre is prepared to provide additional support in the form of venture capital.
Bilateral trade between Thailand and Saudi Arabia reached a value of US$3.16 billion during the first four months of this year, an increase of 17.5%. Thai exports amounted to $799 million, up 33% and accounting for 0.87% of global trade value, while imports into Thailand rose by 13.1% to $2.36 billion.
In 2022, the total trade value between the two countries reached $9.22 billion, with key Thai exports including tractors, machinery and parts, wood and wood products, charcoal, rubber and rubber products, and processed fish or aquatic animals. Key Thai imports from Saudi Arabia include fuel derived from mineral oils, distilled products, bituminous minerals, fertilisers, plastics and plastic products, and organic chemicals, reports Bangkok Post.
