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Saudi-Thai Roadmap to Boost Partnership in 4 Investment Sectors

High-level public and private participation at the Saudi-Thai Investment Forum (Asharq Al-Awsat)
High-level public and private participation at the Saudi-Thai Investment Forum (Asharq Al-Awsat)
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Saudi-Thai Roadmap to Boost Partnership in 4 Investment Sectors

High-level public and private participation at the Saudi-Thai Investment Forum (Asharq Al-Awsat)
High-level public and private participation at the Saudi-Thai Investment Forum (Asharq Al-Awsat)

Saudi Minister of Investment Khalid al-Falih announced that the developed Saudi-Thai road map would be further boosted by the new investments in tourism, healthcare, industry, and manufacturing operations.

The Ministry of Investment in Riyadh organized the Saudi-Thai Investment Forum, with the participation of the Minister of Investment, the Thai Deputy Prime Minister and Foreign Minister Don Pramudwinai, Foreign Minister Prince Faisal bin Farhan bin Abdullah, and Minister of Industry Bandar al-Khorayef.

It also included a wide range of representatives of government agencies, the Federation of Saudi Chambers, and private sector representatives from the two countries.

Connections

Falih said that the Forum aims to advance economic relations between the two countries to broader horizons, as they enjoy vast investment and trade opportunities and significant human and natural resources.

In light of Vision 2030, he noted that Saudi Arabia has developed the business environment by implementing a large package of reforms that exceeded 500 reforms, including enacting regulations and legislation per international best practices.

He called on investors and leading Thai companies to visit the Kingdom and get acquainted with investment opportunities in all sectors, as the Kingdom has a competitive and attractive environment that provides opportunities with rewarding returns for investors.

Falih said the Forum comes as an extension of relations after the meeting of Crown Prince Mohammed bin Salman with the Thai Prime Minister Prayut Chan-ocha earlier this year.

Roadmap

Addressing the Forum in Riyadh, Falih said the two countries' leaderships agreed in advance to establish a clear roadmap, and that the partnerships have promising opportunities according to the Vision 2030, which includes the most extensive economic package in the history of the Saudi economy.

Last year, the Crown Prince revealed ambitious and bold initiatives through the Kingdom's strategy announced by the Crown Prince last year, said the Minister.

He indicated that the Crown Prince announced that the Kingdom would spend more in the coming years than it did during the past 300 years combined.

Saudi Arabia announced $3.5 trillion in its investments.

Tourism and Hospitality

Falih acknowledged that the ambitious Thai plan allows the state to make a qualitative leap to a high level of development and investment by building value-added industries following Thailand's policy of a circular carbon economy.

He pointed out that tourism covers more than 60 percent of Thailand's GDP.

Saudi Arabia is working on expanding tourism and increasing the flow of tourists annually, noting that the goal is to reach 100 million visitors by 2030.

Falih indicated that Thailand had achieved a massive increase in visitors and investment opportunities for partnerships in various fields, including hotels, hospitality, tourism sectors, events, and related services.

Saudi Arabia will work to facilitate investment opportunities for the two countries, including Ad Diriyah.

Automotive Sector

Falih indicated that the automotive industry, services, and production in Thailand are the 11th internationally in the investment sector.

Saudi Arabia is currently the most prominent car market, without a production volume, but this will change, asserted the Minister, announcing that King Abdullah Economic City will launch the first project of a complex for auto parts and manufacturing in the Kingdom.

By 2025, the Kingdom will be manufacturing many electric cars that will be exported suggesting Thailand's participation in the Saudi car market.

Falih noted that there seem to be substantial investment opportunities in the automotive sector for both countries, especially since Thailand's bold plans with its shipping and production station.

He stressed a Saudi intention to work with Thailand to stimulate this sector to establish frameworks in the Kingdom by assembling and manufacturing auto parts.

Green Energy

The Minister indicated that Saudi Arabia is working to boost its energy and oil sectors, adding that the Kingdom is a pioneer in green energy, especially since it adopted a circular carbon economy during its presidency of the G20.

He explained that the Saudi National Transport Strategy aims to stimulate companies to boost the Kingdom's competitiveness, use energy at a lower cost, link it to market requirements, and increase the level of the workforce and raw materials such as chemicals, aluminum, and other materials that are the backbone of the industry.

Comprehensive Transformation

Chairman of the Council of Saudi Chambers of Commerce and Industry Ajlan al-Ajlan stressed that the global economy is facing challenging times that have caused inflation and impacted global supply chains.

Ajlan noted that the situation also affected the overall economic relations between countries, which requires more cooperation between Saudi Arabia and Thailand.

Trade exchange reached $7.1 billion in 2021, a 29 percent increase from the previous year, but it is not commensurate with the available economic capabilities and opportunities.

He stressed the need to increase joint economic activities and boost trade and investment partnerships between the two countries.

The Forum is part of the two sides' efforts to develop relations between them and explores the prospects for investment and trade opportunities in all fields, as it witnessed remarkable participation of the Saudi and Thai investors and pioneering companies.

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IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
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IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA

The International Monetary Fund (IMF) and the Arab Monetary Fund (AMF) signed a memorandum of understanding (MoU) on the sidelines of the AlUla Conference on Emerging Market Economies (EME) to enhance cooperation between the two institutions.

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki, SPA reported.

The agreement aims to strengthen coordination in economic and financial policy areas, including surveillance and lending activities, data and analytical exchange, capacity building, and the provision of technical assistance, in support of regional financial and economic stability.

Both sides affirmed that the MoU represents an important step toward deepening their strategic partnership and strengthening the regional financial safety net, serving member countries and enhancing their ability to address economic challenges.

Business

Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT
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Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT

The Federation of Saudi Chambers announced the formation of the first joint Saudi-Kuwaiti Business Council for its inaugural term (1447–1451 AH) and the election of Salman bin Hassan Al-Oqayel as its chairman.

Al-Oqayel said the council’s formation marks a pivotal milestone in economic relations between Saudi Arabia and Kuwait, reflecting a practical approach to enabling the business sectors in both countries to capitalize on promising investment opportunities and strengthen bilateral trade and investment partnerships, SPA reported.

He noted that trade between Saudi Arabia and Kuwait reached approximately SAR9.5 billion by the end of November 2025, including SAR8 billion in Saudi exports and SAR1.5 billion in Kuwaiti imports.

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Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
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Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).

Harvard University economics professor Pol Antràs said Saudi Arabia represents an exceptional model in the shifting global trade landscape, differing fundamentally from traditional emerging-market frameworks. He also stressed that globalization has not ended but has instead re-formed into what he describes as fragmented integration.

Speaking to Asharq Al-Awsat on the sidelines of the AlUla Conference for Emerging Market Economies, Antràs said Saudi Arabia’s Vision-driven structural reforms position the Kingdom to benefit from the ongoing phase of fragmented integration, adding that the country’s strategic focus on logistics transformation and artificial intelligence constitutes a key engine for sustainable growth that extends beyond the volatility of global crises.

Antràs, the Robert G. Ory Professor of Economics at Harvard University, is one of the leading contemporary theorists of international trade. His research, which reshaped understanding of global value chains, focuses on how firms organize cross-border production and how regulation and technological change influence global trade flows and corporate decision-making.

He said conventional classifications of economies often obscure important structural differences, noting that the term emerging markets groups together countries with widely divergent industrial bases. Economies that depend heavily on manufacturing exports rely critically on market access and trade integration and therefore face stronger competitive pressures from Chinese exports that are increasingly shifting toward alternative markets.

Saudi Arabia, by contrast, exports extensively while facing limited direct competition from China in its primary export commodity, a situation that creates a strategic opportunity. The current environment allows the Kingdom to obtain imports from China at lower cost and access a broader range of goods that previously flowed largely toward the United States market.

Addressing how emerging economies should respond to dumping pressures and rising competition, Antràs said countries should minimize protectionist tendencies and instead position themselves as committed participants in the multilateral trading system, allowing foreign producers to access domestic markets while encouraging domestic firms to expand internationally.

He noted that although Chinese dumping presents concerns for countries with manufacturing sectors that compete directly with Chinese production, the risk is lower for Saudi Arabia because it does not maintain a large manufacturing base that overlaps directly with Chinese exports. Lower-cost imports could benefit Saudi consumers, while targeted policy tools such as credit programs, subsidies, and support for firms seeking to redesign and upgrade business models represent more effective responses than broad protectionist measures.

Globalization has not ended

Antràs said globalization continues but through more complex structures, with trade agreements increasingly negotiated through diverse arrangements rather than relying primarily on multilateral negotiations. Trade deals will continue to be concluded, but they are likely to become more complex, with uncertainty remaining a defining feature of the global trading environment.

Interest rates and artificial intelligence

According to Antràs, high global interest rates, combined with the additional risk premiums faced by emerging markets, are constraining investment, particularly in sectors that require export financing, capital expenditure, and continuous quality upgrading.

However, he noted that elevated interest rates partly reflect expectations of stronger long-term growth driven by artificial intelligence and broader technological transformation.

He also said if those growth expectations materialize, productivity gains could enable small and medium-sized enterprises to forecast demand more accurately and identify previously untapped markets, partially offsetting the negative effects of higher borrowing costs.

Employment concerns and the role of government

The Harvard professor warned that labor markets face a dual challenge stemming from intensified Chinese export competition and accelerating job automation driven by artificial intelligence, developments that could lead to significant disruptions, particularly among younger workers. He said governments must adopt proactive strategies requiring substantial fiscal resources to mitigate near-term labor-market shocks.

According to Antràs, productivity growth remains the central condition for success: if new technologies deliver the anticipated productivity gains, governments will gain the fiscal space needed to compensate affected groups and retrain the workforce, achieving a balance between addressing short-term disruptions and investing in long-term strategic gains.