Thai firms eyeing investment in Saudi Arabia's Qassim region, ambassador reveals

26/03/2025 06:44 AST

Several Thai companies plan to invest in Saudi Arabia's Qassim region, recognizing it as an attractive business hub, according to the country's ambassador to the Kingdom.

Darm Boontam highlighted Qassim's position as Saudi Arabia's "food basket" and its role as a key trade and transport link connecting Riyadh, Madinah, and Hail, making it an appealing destination for Thai investors, he told Al-Eqtisadiah.

Located near the geographic center of the Arabian Peninsula, the region produces approximately 1.22 million tonnes of agricultural products annually.

It is also home to the only bauxite mine in the Middle East, with estimated reserves of 183.4 million tonnes, making it a key player in the mining sector.

The investment push aligns with efforts to strengthen economic ties between Thailand and Saudi Arabia after both countries fully restored diplomatic relations in 2022. Since then, bilateral trade and investment have surged to $8.8 billion.

According to Al-Eqtisadiah, Ambassador Boontham said the two sides are working on the possibility of concluding a free trade agreement between Thailand and the Gulf Cooperation Council in 2025, which would boost bilateral trade and investment.

In 2024, Thailand's key exports to Saudi Arabia included automobiles, which accounted for 57 percent of the total, followed by wood products and rubber and its derivatives at 7 percent and 5.6 percent, respectively, bringing the total export value to $2.8 billion, according to the top official.

Conversely, Thailand primarily imported crude oil and petroleum products from Saudi Arabia, which made up a significant portion of the $5.56 billion total.

In May, a delegation of over 100 Saudi companies visited Thailand to explore investment opportunities, underscoring the growing trade and investment relationship between the two nations.

Saudi Minister of Commerce Majid bin Abdullah Al-Qasabi led the delegation, and held discussions with Thai leaders, including Prime Minister Srettha Thavisin. Both sides agreed to enhance cooperation in areas including agriculture, tourism, and manufacturing.

According to Boontam, Thai businesses across diverse industries - including food manufacturing, health and wellness, jewelry, and cosmetics - are increasingly interested in establishing a presence in Saudi Arabia.

Arab News