Thailand explores renewable energy and green hydrogen cooperation with Saudi Arabia

Thai Foreign Minister Maris Sangiampongsa said that relations between Thailand and Saudi Arabia go beyond bilateral cooperation to encompass regional and international cooperation, focusing on three key areas where both countries can leverage the expertise and complementarity of their economies and the compatibility of the Saudi Vision 2030 and Ignite Thailand policies, namely: food security, energy security and human security.

Sangiampongsa told Asharq Al-Awsat in an interview that renewable energy sources, green hydrogen and small modular reactors (SMRs), as well as cooperation in the automotive industry, especially electric vehicles (EVs), are potential areas of cooperation that the two countries should further explore.

Here is the full text of the interview.

1. What were the main goals of your visit to Saudi Arabia?

First of all, I visited Saudi Arabia at the invitation of the Secretary General of the Thailand Board of Investment of Thailand (BOI) to preside over the opening ceremony of the BOI Office in Riyadh. This is the 17th overseas office of the BOI and more importantly, the first Foreign Investment Economics Office in the Middle East, which will cover a total of 13 countries in the Middle East region. The initiative reflects the importance that Thailand attaches to Saudi Arabia and aims to realize and fulfill the vast trade and investment opportunities that exist between our two countries by attracting investment in targeted industries to Thailand and supporting and facilitating Thai entrepreneurs interested in investing in the Middle East.

Secondly, I also chaired the opening ceremony of the 2nd “Thailand-Saudi Investment Forum” with His Excellency Mr. Khalid bin Abdulaziz Al-Falih, Minister of Investment of the Kingdom of Saudi Arabia. The forum witnessed the signing of 11 memorandums of understanding (MOU) between Thai and Saudi companies, and provided an opportunity for executives and high-level representatives from government agencies, financial institutions, the Thai Chamber of Commerce, the Federation of Thai Industries and the Thai private sector to have fruitful business meetings with their Saudi counterparts.

In addition, I held very constructive meetings with high-level Saudi Arabian representatives, namely: His Excellency Mr. Khalid bin Abdulaziz Al-Falih, Minister of Investment of the Kingdom of Saudi Arabia, His Excellency Mr. Fahd bin Abdurrahman bin Dashes Al-Jalajel, Minister of Health of the Kingdom of Saudi Arabia and His Excellency Eng. Abdulrahman bin Abdulmohsen Al-Fadhli, 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, especially in the areas of agriculture, food processing, public health and tourism. I also met with representatives of leading Saudi private sectors such as SALIC, Ceer Motors, BUPA Arabia, Al-Baik, among others, to show our commitment and reaffirm our priorities in increasing trade and investment.

2. What is the significance of the Second Thai-Saudi Investment Forum?

This is the second such Forum, after the first one held in May 2022 in Riyadh, shortly after the full normalization of our diplomatic relations, thus demonstrating the sense of continuity and strong will of both sides to deepen cooperation, especially in trade and investment. Moreover, the number and level of participants representing the business sectors of both countries gives us confidence that this event will yield fruitful results and will be remembered as an important step in the development of economic and investment cooperation between Thailand and Saudi Arabia.

This Forum also builds on the success of last year’s Thailand International Mega Fair, hosted by the Thai Chamber of Commerce, where over 30 Thai business sectors showcased over 1,000 products from 200 brands, a significant achievement in promoting Thailand in Saudi Arabia. These events and initiatives show that there are still untapped opportunities and potentials for our two countries, and both sides need to work together even more urgently to realize these potentials and deliver concrete and tangible results. We are therefore pleased to announce the 2024-Riyadh International Mega Fair, scheduled for November 2024, which will focus on promoting trade in a range of high-potential sectors and will showcase Thailand’s diverse and innovative industries, from construction materials, hospitality to defense technology.

3. What are the most important areas of cooperation between the two countries?

Relations between Thailand and Saudi Arabia have been developing rapidly following the normalization of diplomatic ties in 2022. Since then, both sides have witnessed more than 10 high-level bilateral visits and accelerated cooperation through various mechanisms.
The Saudi-Thai Coordinating Council (STCC) will be an important driving force in developing our relations across five pillars of cooperation, ranging from trade and investment, through political and consular cooperation, to socio-cultural, military and security cooperation.

On the economic front, it is worth noting that last year, Thailand-Saudi Arabia bilateral trade amounted to US$8.8 billion, which accounted for almost 22% of Thailand’s total trade with the Middle East. These impressive figures will certainly be further boosted by the recent bilateral Memorandum of Understanding (MoU) between the Thai Ministry of Commerce and the General Authority of Foreign Trade of Saudi Arabia, as well as our commitment 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 our two countries can leverage the expertise and complementarity of our economies and the alignment of the Saudi Vision 2030 and Ignite Thailand policies, namely: food security, energy security, and human security.

In terms of food security, we have already identified several investment initiatives in food production and processing between Saudi Agricultural and Livestock Investment Company (SALIC) and several related Thai companies. We also aim to start exporting live cattle and farm animals from Thailand to Saudi Arabia, as the Saudi authorities have recently given the green light for this. We believe there is a lot of potential in the area of ​​agriculture and processed food, especially considering that Thailand is already a major producer and exporter of halal food.

In terms of energy security, we should further explore potential areas of cooperation such as renewable energy, green hydrogen and small modular reactors (SMRs), as well as cooperation in the automotive industry, especially electric vehicles (EVs).

In the area of ​​Human Security, we can promote stronger people-to-people contacts through medicine, biotechnology, health and wellness cooperation, as well as tourism and connectivity to promote mutual understanding and soft power. Medical tourism is indeed a key area for closer bilateral cooperation, and Thailand’s private hospitals are already receiving a large number of medical tourists from all over the world, including Saudi Arabia and other Middle Eastern countries. Thailand can also play a role in promoting the wellness industry in Saudi Arabia with our strong experience in this sector.

Our relationship goes beyond bilateral cooperation. Saudi Arabia can leverage Thailand’s strength as a bridge builder and mediator on the global stage. With Thailand assuming the chairmanship of the Asian Cooperation Dialogue (ACD) in 2025, we are ready to link the ACD with other regional groups such as the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), which would cover a population of 4 billion people, which could be an important win-win cooperation. It is therefore clear that Thailand and Saudi Arabia have the potential to serve as twin hubs for each other. Thai companies can benefit from cooperation with Saudi Arabia, the economic hub of the Middle East, to expand their market to the entire Middle East region, while Saudi Arabia can consider using Thailand as an investment base to expand its business to the ASEAN region and leverage the Regional Comprehensive Economic Partnership Agreement, the world’s largest free trade area. It is also important to note that we need to encourage our private sector to participate in all these endeavours, as it is the private sector that is the real player while the public sector is the facilitator.

From my discussions with the Ministers of Investment, the Minister of Health and the Minister of Environment, Water and Agriculture of the Kingdom of Saudi Arabia, it is clear that we agree on these issues, and Thailand and Saudi Arabia are on the same page in their efforts to realize our potential.

4. What will be the size of the Thai economy and its expected growth rate in 2024?

Thailand is at the heart of ASEAN. We are the second largest economy in Southeast Asia and act as a gateway to major economies such as China and India. Thailand is actively expanding trade relations through 15 Free Trade Agreements (FTAs) with 19 countries and many more in the pipeline. With its strategic location, Thailand serves as a hub for multinational corporations looking to establish a regional headquarters in the Asian region due to its strategic location, excellent business ecosystem, solid infrastructure, regional connectivity, competitive business costs, skilled talent pool and attractive investment incentives. In line with the vision of “Ignite Thailand”, HE Mr. Srettha Thavisin, Prime Minister of Thailand, attaches priority to making Thailand a hub for 8 major industries: agriculture and food, medicine and wellness, tourism, future mobility, finance, digital economy, logistics and aviation. The Prime Minister also attaches importance to making it easier to do business in Thailand. Through the vision of “Ignite Thailand”, Thailand aims to become a center of progress and prosperity not only for the good of the country, but rather for the good of the entire region.

Tourism has been and continues to be a key driver of Thailand’s economic growth. Recently, to further boost the country’s tourism sector, Thailand approved a 60-day visa waiver program, allowing travelers from 93 countries, including the Kingdom of Saudi Arabia, to visit Thailand for short-term business engagements as well as leisure travel.

5. Will a new cooperation project be launched in the near future?

HE Mr. Srettha Thavisin, Prime Minister of Thailand, who paid an official visit to Saudi Arabia a few months ago, instructed himself to have the Board of Investment open an office in Riyadh as soon as possible. This reflects the importance that the Thai government attaches to strengthening cooperation with Saudi Arabia in all areas, especially trade and investment.

I am looking forward to co-chairing the first STCC meeting to be held this year in Bangkok with His Excellency

His Highness Prince Faisal bin Farhan Al Saud, Minister of Foreign Affairs of the Kingdom of Saudi Arabia. STCC is an important mechanism that includes 5 pillars of cooperation, covering all aspects of bilateral relations, from political and consular to security and military, from culture and tourism to trade, economy and investment. I am sure that the meeting will not only reflect the goodwill and commitment of both countries to work together, but also succeed in promoting cooperation and achieving tangible results and raising Saudi-Thai cooperation to new heights.