Thai private sector seals 40 million baht meal deal with Dubai
Thai private sector, led by Phumtham Wechayachai, signed a significant food export agreement with Dubai, kicking off with an immediate order worth 40 million baht and aiming to exceed 100 million baht by year-end. Efforts to expand into the Middle Eastern market are now underway.
Deputy Prime Minister and Minister of Commerce Phumtham Wechayachai revealed that he witnessed the signing of a Memorandum of Purchase (MOP) between Thai companies and the United Arab Emirates (UAE) yesterday.
This event took place during the THAIFEX-ANUGA ASIA 2024 trade fair in Muang Thong Thani, with representatives from Nesto Hypermarket L.L.C. and Ever Spring Industry Co., Ltd. present.
Phumtham explained that he travelled to the UAE earlier this year to follow up on the 13th Ministerial Conference of the World Trade Organisation.
During the trip, he discussed with Thai entrepreneurs, leading to this purchase agreement with an immediate order of over 40 million baht and an estimated total order of over 100 million baht by year’s end.
He further noted that this initiative marks the beginning of opening the market for Thai private companies with the readiness to sell Thai products across various categories. Although the initial volume is not substantial, it lays the groundwork for future market expansion.
Only the beginning
Following previous negotiations that were temporarily halted, Phumtham’s recent meeting with the UAE Minister has reignited discussions to enhance trade value. Another round of talks is scheduled for June 4.
The UAE market is deemed essential for distributing Thai products throughout the Middle East. Thai goods have the potential to become a major food source for this region, particularly in sectors such as air conditioning units, automotive parts, and food products like fruits and vegetables.
Successfully penetrating this market could also serve as a gateway to the African market.
Data from the Department of International Trade Promotion indicates that four Thai private companies are involved in this sales agreement, providing products such as instant ginger drinks, tea, chilli paste, curry pastes, sauces and coconut beverages.
Said products are destined to be featured on the shelves of Nesto hypermarkets across India and the Gulf Cooperation (GCC) countries, including Saudi Arabia, Kuwait, Oman, UAE, Qatar, and Bahrain.
The retail space covers more than 6 million square feet, serving up to 250,000 customers daily and offers over 600,000 product items, focusing on high-quality goods at affordable prices.
Phumtham emphasised that opening the UAE market for Thai products is a strategic move to enhance trade relations and economic growth. He believes that the potential of Thai products, particularly in the food and beverage sector, will meet the demands of the Middle Eastern market.
The upcoming discussions with UAE officials are expected to further solidify and expand this promising trade relationship, ensuring a steady growth trajectory for Thai exports in the region, reported Khaosod.
