Asharq Al-awsat English Middle-east and International News and Opinion from Asharq Al-awsat Newspaper

Thai Products Expected to Increase Competitiveness in Saudi Market

Thai Products Expected to Increase Competitiveness in Saudi Market

Wednesday, 26 January, 2022 - 09:30
Saudi Arabia's Crown Prince Mohammed bin Salman welcome's Thailand's Prime Minister Prayut Chan-o-cha in Riyadh on Tuesday. (SPA)

Thai Prime Minister and Minister of Defense, General Prayut Chan-o-cha, visited Saudi Arabia on Tuesday as part of the Kingdom's efforts to strengthen mutual relations and build bridges of communication with all world countries.

Following the visit, Saudi investors expect an increase in the competitiveness of rice prices and the expansion of the labor market. It will also lead to additional options and products in the agricultural and mining sectors.

CEO of Mayar Foods Ahmed al-Muhaidib told Asharq Al-Awsat that the Thai prime minister's visit would increase trade exchange between the two countries, which will result in providing more options and products in the agricultural mining sectors.

He said the growing trade exchange would increase competitiveness in several fields, including rice import, which will provide more alternatives at better prices.

Muhaidib explained that the share of Thai rice in the Saudi market is 3.2 percent, equivalent to more than 11 thousand tons of rice, but it is expected to increase and reach a larger number of rice farms.

The CEO also believes that this will be reflected in the volume of rice imports from Thailand to meet the needs of the Saudi market.

Muhaidib stressed that Prayut's visit will help activate and boost the role of attachés and chambers of commerce in the two countries to increase commercial activity between them.

Thailand is famous for its rice farms and boasts a large crop that it exports to several countries.

He explained that due to the significant demand for rice in the Saudi market, local investors would have a greater opportunity to expand in rice import to the country.

Muhaidib acknowledged the discrepancy in the prices of rice crops and the unjustified increase, which may be the most critical challenge facing Saudi investors.

It is important to have regulations and agreements that reduce the disparity in prices to sustain investment and provide crops in the Saudi market at the best prices.

Speaking to Asharq Al-Awsat, Saudi investor Abdullah al-Malehi, said Prayut's visit will result in new agreements and increase the volume of trade exchange between the two countries.

Malehi pointed out that the Gulf trade exchange with Thailand exceeded $5 billion, calling for establishing a study on the possibility of investing in rice cultivation in Thailand.

He expected an increase in commodity, production, and service exchange between Saudi Arabia and Thailand.

Saudi Arabia will acquire the "lion's share" of Thai products among Gulf countries and will become one of Thailand's most important trading partners and a major export destination in the Middle East, according to Malehi.

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