Thai Foreign Minister Maris Sangiampongsa said that relations between Thailand and Saudi Arabia go beyond bilateral cooperation to regional and international collaboration, focusing on three key areas for which the two countries can make use of the expertise and complementarities of the two economies and the compatibilities of the Saudi Vision 2030 and Ignite Thailand policies; namely Food Security, Energy Security and Human Security.
Sangiampongsa also told Asharq Al-Awsat in an interview that renewable energy, green hydrogen and Small Modular Reactors (SMRs), as well as collaboration in the automotive industry, especially electric vehicles (EVs) are potential areas of cooperation that both countries should explore further.
Here is the full text of the interview.
1. What were the main objectives of your visit to Saudi Arabia?
First and foremost, I visited Saudi Arabia at the invitation of the Secretary General of the Thailand Board of Investment of Thailand (BOI), to preside over the opening ceremony of the BOI’s Office in Riyadh. It is the BOI's 17th overseas office, and more importantly – the first Office of Overseas Investment Economics in the Middle East, which will cover a total of 13 countries in the Middle East region. The initiative reflects the importance with which Thailand attaches to Saudi Arabia, and aims to realize and fulfil the ample trade and investment opportunities that exist between our two countries by attracting investment in target industries into Thailand and supporting and facilitating Thai entrepreneurs interested in investing in the Middle East.
Secondly, I also presided over the Opening Ceremony of the Second "Thai - Saudi Investment Forum" with His Excellency Mr. Khalid bin Abdulaziz Al-Falih, Minister of Investment of the Kingdom of Saudi Arabia. The Forum witnessed the signing of 11 memorandums of understanding (MOUs) between Thailand and Saudi Arabia companies, and enabled executives and high-level representatives from government agencies, financial institutions, the Thai Chamber of Commerce, the Federation of Thai Industries, and Thai private sector to have fruitful business matchings with their Saudi counterparts.
Furthermore, I had highly constructive meetings with high-level representatives of Saudi Arabia, namely; His Excellency Mr. Khalid bin Abdulaziz Al-Falih, Minister of Investment of the Kingdom of Saudi Arabia, His Excellency Mr. Fahd bin Abdurrahman bin Dashes Al-Jalajel, Minister of Health of the Kingdom of Saudi Arabia, and His Excellency Eng. Abdulrahman bin Abdulmohsen Al-Fadhli, Minister of Environment, Water, and Agriculture of the Kingdom of Saudi Arabia, to explore ways and means to further enhance the bilateral relations between our two countries particularly in the field of agriculture, food processing, public health and tourism. I also met with representatives from leading Saudi private sectors such as SALIC, Ceer Motors, BUPA Arabia, Al-Baik, among others to show our commitment and reaffirm our priorities in boosting trade and investment.
2. What is the significance of the Second "Thai-Saudi Investment Forum"?
It is the second such Forum, following the first one held in May 2022 in Riyadh soon after the full normalization of our diplomatic relations, thereby showing a sense of continuity and a strong will on both sides to deepen the cooperation, especially in terms of trade and investment. Furthermore, the number and the level of the participants representing the business sectors of both countries gives us confidence that this event will bear fruitful results and will be remembered as an important step in the development of economic and investment cooperation between Thailand and Saudi Arabia.
This Forum also builds upon the success of last year's Thailand International Mega Fair, led by the Thai Chamber of Commerce, which saw over 30 Thai business sectors showcasing more than 1,000 products from 200 brands, marking a significant achievement in promoting Thailand in Saudi Arabia. These events and initiatives show that there remain untapped opportunities and potentials for our two countries, and the two sides need to work together even more diligently to realize these potentials and ensure concrete and tangible results. We are thus pleased to announce the International Mega Fair 2024-Riyadh, scheduled for November 2024, which will focus on promoting trade in an array of high-potential sectors, and will showcase Thailand’s diverse and innovative industries, from everything ranging from construction materials, hospitality, to defense technology.
3. What are the most important areas of cooperation between the two countries?
Ties between Thailand and Saudi Arabia have been developing rapidly following the normalization of diplomatic relations in 2022. Since then, the two sides have witnessed more than 10 High-level bilateral visits and accelerated cooperation through various mechanisms.
The Saudi-Thai Coordination Council (STCC) will be an important driving force in propelling our relations forward across five encompassing pillars of cooperation from trade and investment to political and consular cooperation to socio-cultural and military and security cooperation.
On the economic front, it is worth noting that last year alone, bilateral trade between Thailand and Saudi Arabia stood at USD8.8 Billion consisting of nearly 22% of Thailand’s total trade with the Middle East. These impressive numbers will certainly be boosted even further by the recent bilateral Memorandum of Understanding (MoU) between Thailand’s Ministry of Commerce and the General Authority of Foreign Trade of Saudi Arabia, as well as our commitment towards exploring the possibility of a regional Free Trade Agreement (FTA) with the Gulf Cooperation Council (GCC).
On this visit, I have proposed that Thailand and Saudi Arabia focus our cooperation on three key areas for which our two countries can make use of the expertise and complementarities of our two economies and the compatibilities of the Saudi Vision 2030 and Ignite Thailand policies; namely Food Security, Energy Security and Human Security.
For Food Security, we have already identified several investment initiatives on food production and processing between the Saudi Agricultural and Livestock Investment Company (SALIC) and several related Thai companies. We also aim to begin the export of live cattle and livestock from Thailand to Saudi Arabia as the greenlight has recently been given by the Saudi authority. We believe there is strong potential in the area of agriculture and processed food, especially when you consider that Thailand is already a major producer and exporter of halal food.
For Energy Security, renewable energy, green hydrogen and Small Modular Reactors (SMRs), as well as collaboration in the automotive industry, especially electric vehicles (EVs) are potential areas of cooperation that we should explore further.
While in the area of Human Security, we can promote stronger people-to-people contact through medical, biotechnology, health and wellness cooperation, as well as tourism and connectivity, to promote mutual understanding and soft power. Medical tourism is indeed a key area for closer bilateral cooperation, and Thailand’s private hospitals already welcome large numbers of medical tourists from all over the world, including Saudi Arabia and other Middle East countries. Thailand can also play a part in the promotion of wellness industry in Saudi Arabia with our strong expertise in this sector.
Our relations go beyond bilateral cooperation. Saudi Arabia can utilize Thailand’s strength as a bridge builder and facilitator in the global arena. With Thailand assuming the Chairmanship of the Asia Cooperation Dialogue (ACD) in 2025, we are ready to connect ACD with other regional groupings such as the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) that would cover a population of 4 billion people, which could be an important cooperation that would be beneficial for all. It is thus very clear that Thailand and Saudi Arabia have the potential to serve as twin hubs for each other. Thai businesses can benefit from collaboration with Saudi Arabia, the Middle East's economic center, to expand their market to the entire Middle East region, while Saudi Arabia may consider using Thailand as an investment base to expand its business into the ASEAN region and capitalize on the Regional Comprehensive Economic Partnership agreement, the world's largest free trade area. It is also imperative to note that we need to encourage the participation of our private sectors in all these endeavors, as the private sectors are the real players, while the public sectors are the facilitators.
Through my discussion with the Ministers of Investment, Minister of Health and the Minister of Environment, Water, and Agriculture of the Kingdom of Saudi Arab, it is heartening to see that we concur on these issues, and Thailand and Saudi Arabia are on the same page in our effort to realize our potential.
4. What about the size of the Thai economy and its expected growth rate during the year 2024?
Thailand is situated in the heart of ASEAN. We are the second largest economy in Southeast Asia and act as a gateway to major economies such as China and India. Thailand actively expands trade relations through 15 Free Trade Agreements (FTA) with 19 countries and many in the pipeline. With its strategic location, Thailand serves as a hub for multinational corporations seeking to establish a regional headquarters in Asian region due to its strategic location, excellent business ecosystem, robust infrastructure, regional connectivity, competitive costs of doing business, skilled talent pool, and attractive investment incentives. According to the “Ignite Thailand” vision, H.E. Mr. Srettha Thavisin, Prime Minister of Thailand attaches priority to make Thailand the hub of 8 major industries: agriculture and food, medical and wellness, tourism, future mobility, financial, digital economy, logistics, and aviation. The Prime Minister also gives importance to easing the process of doing business in Thailand. Through the “Ignite Thailand” vision, Thailand aims to be the hub of progress and prosperity not only for the benefit of the country, but rather for the benefit of the whole region.
Tourism has been, and continues to be a major driver of economic growth for Thailand. Recently, in order to further boost the country’s tourism sector, Thailand has approved a 60-day visa exemption scheme, allowing travelers from 93 countries, including the Kingdom of Saudi Arabia, to visit Thailand for short-term business engagements as well as leisure travel.
5. Is there a new cooperation project that will be launched in the near future?
H.E. Mr. Srettha Thavisin, Prime Minister of Thailand, who made an official visit to Saudi Arabia a few months ago, directed himself the Board of Investment to open the office in Riyadh as soon as possible. That reflects the importance the Thai government gives to the enhancement of cooperation with Saudi Arabia in all areas, especially trade and investment.
I look forward to co-chairing the first STCC meeting later this year in Bangkok with His
Highness Prince Faisal bin Farhan Al Saud, the Minister of Foreign Affairs of the Kingdom of Saudi Arabia. The STCC is an important mechanism that encompasses 5 pillars of cooperation, covering all aspects of the bilateral relations from political and consular to security and military, from culture and tourism to trade and economic and investment. I am certain that the meeting will not only be a reflection of the two countries shared goodwill and commitment to work together, but will also be successful in pushing forward cooperation and achieve tangible results and elevate the Saudi – Thai cooperation to new heights.
