Thailand seeks cooperation with Saudi Arabia on renewable energy, green hydrogen
Thai Foreign Minister Maris Sangiapongsa said Thai-Saudi relations go beyond bilateral cooperation to regional and international collaboration, focusing on three key areas where the two countries can leverage their economic expertise and complementarity, as well as the compatibility of the Saudi Vision 2030 and Ignite Thailand policies: food security, energy security and human security.
Speaking to Asharq Al-Awsat newspaper, Sangiapongsa also said cooperation in renewable energy, green hydrogen, small modular reactors (SMRs) and the automotive industry, especially electric vehicles (EVs), were potential areas of cooperation that the two countries should further explore.
Read the full interview here.
1. What was your main purpose for visiting Saudi Arabia?
First of all, I visited Saudi Arabia at the invitation of the Secretary-General of the Board of Investment of Thailand (BOI) to attend the opening ceremony of the BOI office in Riyadh. This is BOI’s 17th overseas office and more importantly, the first overseas investment economic office in the Middle East covering a total of 13 countries in the Middle East region. This initiative reflects the importance Thailand attaches to Saudi Arabia and aims to realise and realise the abundant trade and investment opportunities that exist between the two countries by attracting investments in targeted industries to Thailand and supporting and facilitating Thai entrepreneurs interested in investing in the Middle East.
Secondly, together with His Excellency Khalid bin Abdulaziz Al Falih, Minister of Investment of the Kingdom of Saudi Arabia, I presided over the opening ceremony of the second Thai-Saudi Investment Forum, which saw the signing of 11 Memorandums of Understanding (MOUs) between Thai and Saudi Arabian companies and enabled senior executives and officials from government agencies, financial institutions, the Thai Chamber of Commerce, the Federation of Thai Industries and the Thai private sector to engage in fruitful business matching with their Saudi counterparts.
“Furthermore, I held very constructive meetings with senior Saudi officials, namely His Excellency Khalid bin Abdulaziz Al Falih, Minister of Investment of the Kingdom of Saudi Arabia, His Excellency Fahad bin Abdulrahman bin Dashes Al Jarajel, Minister of Health of the Kingdom of Saudi Arabia, and His Excellency Abdulrahman bin Abdulmohsen Al Fadli, Minister of Environment, Water and Agriculture of the Kingdom of Saudi Arabia, to explore ways and means to further strengthen bilateral relations between our two countries, particularly in the areas of agriculture, food processing, public health and tourism. I also met with representatives of leading Saudi Arabian private sector companies, including SALIC, Ceer Motors, BUPA Arabia and Al-Baik, to demonstrate our commitment and reaffirm our priorities in promoting trade and investment.”
2. What is the significance of the 2nd Thailand-Saudi Arabia Investment Forum?
This is the second forum following the first one held in Riyadh in May 2022 immediately after the full normalization of diplomatic relations, demonstrating the continuity and strong will of both sides to deepen cooperation, especially in the areas of trade and investment. Moreover, with the number and level of participants representing the business sectors of both countries, we are confident that the event will bring fruitful results and be remembered as an important step in the development of economic and investment cooperation between Thailand and Saudi Arabia.
The forum also builds on the success of last year’s Thailand International Mega Fair, led by the Thai Chamber of Commerce, which saw over 30 Thai business sectors exhibiting over 1,000 products from 200 brands, a major achievement in promoting Thailand in Saudi Arabia. These events and initiatives demonstrate the untapped opportunities and potential that remain for both countries. The two countries need to work even harder together to realise these potentials and ensure concrete, tangible results. Therefore, we are pleased to announce the International Mega Fair 2024-Riyadh, scheduled to take place in November 2024. The fair will focus on trade promotion in various high-potential sectors and will showcase Thailand’s diverse and innovative industries, including construction materials, hospitality and defence technology.
3. What are the most important areas of cooperation between the two countries?
Relations between Thailand and Saudi Arabia have been developing rapidly since the normalization of diplomatic relations in 2022. Since then, the two countries have conducted more than 10 high-level bilateral visits and accelerated cooperation through various mechanisms.
The Saudi-Thailand Coordinating Council (STCC) will be a key driving force in advancing bilateral relations across five comprehensive pillars of cooperation, from trade and investment to political and consular cooperation, and socio-cultural, military and security cooperation.
On the economic front, it is noteworthy that bilateral trade between Thailand and Saudi Arabia reached US$8.8 billion last year alone, accounting for approximately 22% of Thailand’s total trade volume with the Middle East. This impressive figure is sure to be further boosted by the recently signed bilateral Memorandum of Understanding (MoU) between the Thai Ministry of Commerce and the Saudi Arabian Department of Foreign Trade, as well as our efforts to explore the possibility of a regional Free Trade Agreement (FTA) with the Gulf Cooperation Council (GCC).
During this visit, I proposed that Thailand and Saudi Arabia focus their cooperation on three key areas where we can leverage our economic expertise and complementarity, as well as the compatibility of the Saudi Vision 2030 and Ignite Thailand policies: food security, energy security and human security.
Regarding food security, several investment plans in food production and processing have already been finalized between the Saudi Agriculture and Livestock Investment Company (SALIC) and several related companies in Thailand. We are also aiming to start exporting live cattle and livestock from Thailand to Saudi Arabia, following a recent approval from the Saudi authorities. Considering that Thailand is already a major producer and exporter of Halal food, we see great potential in the agriculture and processed food sectors.
With regard to energy security, renewable energy, green hydrogen, small modular reactors (SMRs), and cooperation in the automotive industry, especially electric vehicles (EVs), are some potential areas of cooperation that we should further explore.
In the area of human security, we can strengthen people-to-people exchanges through medical, biotechnology, health and wellness cooperation, tourism and partnerships to promote mutual understanding and soft power. Medical tourism is indeed a key area of strengthening bilateral cooperation, and Thai private hospitals have already received a large number of medical tourists from all over the world, including Saudi Arabia and other Middle Eastern countries. With its high expertise in this field, Thailand can also help promote Saudi Arabia’s wellness industry.
The relationship between the two countries goes beyond bilateral cooperation. Saudi Arabia can leverage Thailand’s strengths as a bridge and facilitator on the international stage. Thailand will assume the chairmanship of the Asia Cooperation Dialogue (ACD) in 2025 and is ready to link the ACD with other regional groupings such as the Bay of Bengal Initiative for Multisectoral Technical and Economic Cooperation (BIMSTEC), which covers a population of 4 billion people, which could be an important cooperation that benefits all. It is therefore clear that Thailand and Saudi Arabia could act as twin hubs for each other. Thai companies can benefit from cooperation with Saudi Arabia, the economic heart of the Middle East, and expand their market throughout the Middle East region. Meanwhile, Saudi Arabia may consider using Thailand as an investment base to expand its business into the ASEAN region and take advantage of the Regional Comprehensive Economic Partnership, the world’s largest free trade area. It should also be noted that the participation of the private sector should be encouraged in all these endeavors, as the private sector is the real player and the public sector is the facilitator.
Through my discussions with the Kingdom of Saudi Arabia’s Minister of Investment, Minister of Health, and Minister of Environment, Water and Agriculture, I am heartened to see that we are united on these issues and that Thailand and Saudi Arabia are like-minded in our efforts to realize our potential.
4. What will be the size of Thailand’s economy in 2024 and what will be its expected growth rate?
Thailand sits at the heart of ASEAN. It is the second largest economy in Southeast Asia and serves as a gateway to major economies such as China and India. Thailand is actively expanding trade relations with 15 Free Trade Agreements (FTAs) with 19 countries, with more currently in the pipeline. Strategically located, Thailand is a hub for multinational companies looking to set up their regional headquarters in the Asian region, due to its excellent business ecosystem, robust infrastructure, regional connectivity, competitive business costs, skilled talent pool, and attractive investment incentives. According to the “Ignite Thailand” vision, Thai Prime Minister Suretha Tavisin has prioritized making Thailand a hub for eight key industries: agriculture and food, medical and health, tourism, future mobility, finance, digital economy, logistics, and aviation. The Prime Minister also places emphasis on simplifying business processes in Thailand. Through the “Ignite Thailand” vision, Thailand aims to be a hub of progress and prosperity for the benefit of not only the country but the entire region.
Tourism has been and will continue to be a major driver of Thailand’s economic growth. Recently, to further boost the country’s tourism sector, Thailand approved a 60-day visa waiver scheme, allowing travelers from 93 countries, including the Kingdom of Saudi Arabia, to visit Thailand for short-term business and leisure trips.
5. Are there any new cooperation projects planned to be launched in the near future?
Thai Prime Minister Sreetta Tavishin, who visited Saudi Arabia a few months ago for an official visit, personally instructed the Board of Investment to open an office in Riyadh as soon as possible, reflecting the importance the Thai government attaches to strengthening cooperation with Saudi Arabia in all fields, especially trade and investment.
I look forward to co-chairing with Mr Hiss the first STCC conference in Bangkok later this year.
“His Royal Highness Prince Faisal bin Farhan Al Saud, Minister of Foreign Affairs of the Kingdom of Saudi Arabia. The STCC is an important mechanism encompassing the five pillars of cooperation, covering all aspects of bilateral relations, from politics, consular to security, military, culture and tourism to trade, economy and investment. I am confident that this meeting will not only reflect the goodwill and determination to cooperate shared by our two countries, but will also be successful in advancing cooperation, achieving tangible results and elevating Saudi-Thai cooperation to new heights,” he said.