Thai Labor Ready to Enter Saudi Market

Thai Minister of Labor Suchart Chomklin during his meeting at the Federation of Saudi Chambers. (Asharq Al-Awsat)
Thai Minister of Labor Suchart Chomklin during his meeting at the Federation of Saudi Chambers. (Asharq Al-Awsat)
TT

Thai Labor Ready to Enter Saudi Market

Thai Minister of Labor Suchart Chomklin during his meeting at the Federation of Saudi Chambers. (Asharq Al-Awsat)
Thai Minister of Labor Suchart Chomklin during his meeting at the Federation of Saudi Chambers. (Asharq Al-Awsat)

The Thai Ministry of Labor established a center specialized in rehabilitating and training workers in all professions, signaling the revival of relations and the entry of Thai labor into the Saudi market.

Thai Minister of Labor Suchart Chomklin stated that many Thai nationals work in Japan, South Korea, Taiwan, and many countries worldwide, given their skills in the health and industrial fields.

Speaking after roundtable talks held at the Federation of Saudi Chambers, Chomklin said his country's workers boast the relevant experience in fields in the Kingdom, especially in the hotel, health, and energy sectors, and that these areas will boost tourism and human development.

Vice President of the Federation of Saudi Chambers Tariq al-Haidari stressed that leaderships in both countries have a serious desire to continue consultation and coordination, especially regarding trade and investment.

Haidari asserted that Riyadh and Bangkok want to enhance cooperation that achieves ambitions and aspirations.

He stressed that the Federation of Saudi Chambers would continue its influential role in serving the private sector and developing relations with Thailand, taking advantage of the investment opportunities and benefits.

The Federation is working hard to overcome all obstacles in establishing joint commercial and industrial projects, believing that Thai companies will contribute to the success of Vision 2030 by expanding commercial and investment projects between the two countries.

Head of al-Shorouk Center for Economic Studies Abdul Rahman Baeshen expected the current discussions by the Thai Minister in Riyadh will contribute to concluding new agreements in the field of workforce in the future.

He explained that the agreements would boost the Thai labor recruitment market, especially for domestic and skilled labor.

Baeshen indicated that Thai labor is characterized by their high skill in various fields, expecting that the coming period will witness the recruitment of large numbers of domestic workers, which will be reflected in the economic, commercial, and investment cooperation between the two countries.

Both leaderships want to move their bilateral relationships forward into strategic partnerships, which will impact the future.



Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
TT

Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)

As Saudi companies start reporting their Q2 financial results, experts are optimistic about the transport and logistics sector. They expect a 10% annual growth, with total net profits reaching around SAR 900 million ($240 million), driven by tourism and an economic corridor project.

In Q1, the seven listed transport and logistics companies in Saudi Arabia showed positive results, with combined profits increasing by 5.8% to SAR 818.7 million ($218 million) compared to the previous year.

Four companies reported profit growth, while three saw declines, including two with losses, according to Arbah Capital.

Al Rajhi Capital projects significant gains for Q2 compared to last year: Lumi Rental’s profits are expected to rise by 31% to SAR 65 million, SAL’s by 76% to SAR 192 million, and Theeb’s by 23% to SAR 37 million.

On the other hand, Aljazira Capital predicts a 13% decrease in Lumi Rental’s net profit to SAR 43 million, despite a 44% rise in revenue. This is due to higher operational costs post-IPO.

SAL’s annual profit is expected to grow by 76% to SAR 191.6 million, driven by a 29% increase in revenue and higher profit margins.

Aljazira Capital also expects a 2.8% drop in the sector’s net profit from Q1 due to lower profits for SAL and Seera, caused by reduced revenue and profit margins.

Mohammad Al Farraj, Head of Asset Management at Arbah Capital, told Asharq Al-Awsat that the sector’s continued profit growth is supported by seasonal factors like summer travel and higher demand for transport services.

He predicts Q2 profits will reach around SAR 900 million ($240 million), up 10% from Q1.

Al Farraj highlighted that the India-Middle East-Europe Economic Corridor (IMEC), linking India with the GCC and Europe, is expected to boost sector growth by improving trade and transport connections.

However, he warned that companies may still face challenges, including rising costs and workforce shortages.