Thailand BOI Office Opens in Riyadh, 11 Deals Signed

The Ministry of Investment of Saudi Arabia, in collaboration with the Thailand Board of Investment (BOI) and the Embassy of the Kingdom of Thailand in Riyadh, hosted the Saudi-Thai Investment Forum on July 14, 2024, where the opening of a BOI office in Riyadh was announced alongside the signing of 11 agreements and memoranda of understanding. The event, held in Riyadh, was attended by Eng. Khalid Al-Falih, Saudi Minister of Investment, and Maris Sangiampongsa, Minister of Foreign Affairs of Thailand, along with senior officials, CEOs of major companies, and private sector representatives from both nations. The forum underscores the deepening economic ties between the Kingdom and Thailand, built on the historic agreement between His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister, and former Thai Prime Minister Prayuth Chan-ocha in 2022.

Context and Background

The Saudi-Thai Investment Forum represents a milestone in the ongoing normalization and strengthening of bilateral relations, which were reestablished two and a half years ago after a long hiatus. In his opening speech, Minister Al-Falih highlighted the progress achieved since the historic agreement, stating, “Your visit comes two and a half years after the historic agreement between His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister, and former Prime Minister of Thailand Prayuth Chan-ocha, to open a new chapter in our journey. This partnership, which took place here in Riyadh, has contributed to advancing trade relations between the two countries, and we hope to see this repeated through investment as well.” The forum’s primary objective is to enhance partnership, increase investment and trade cooperation, and facilitate access to opportunities for companies and investors in both countries.

Key Details

During the forum, the opening of the Thailand Board of Investment (BOI) office in Riyadh was officially announced, a move designed to highlight the strategic partnership and enhance economic relations between Saudi Arabia and Thailand while expanding trade exchange. The event also witnessed the signing of 11 agreements and memoranda of understanding across diverse sectors, including agriculture, food, tourism, infrastructure, and energy, aimed at boosting commercial cooperation and developing trade and investment relations. Minister Al-Falih noted the steady increase in trade since the resumption of relations, reaching $7.5 billion in 2022 and approximately $9 billion in 2023. In travel and tourism, around 200,000 Saudis traveled to Thailand, and more than 30,000 Thai visitors came to Saudi Arabia last year. The forum featured visual presentations showcasing key projects of Saudi Vision 2030, Thailand’s land bridge project, and the roles of relevant institutions in enabling private sector access to investment opportunities.

Implications and Impact

The establishment of the BOI office in Riyadh is set to significantly enhance bilateral investment flows by providing a dedicated platform for Thai businesses to explore opportunities in the Kingdom and for Saudi investors to access the Thai market. The 11 agreements signed span critical sectors that align with both nations’ economic diversification goals. Notably, the manufacturing sector ranked first in terms of the stock of Thai investments in Saudi Arabia for 2022, accounting for 56.7% of the total, while the mining and minerals exploitation sector led in investment flow, comprising 73.4% of Thai investments into the Kingdom. These figures indicate substantial potential for further collaboration, particularly in areas such as advanced manufacturing, renewable energy, and infrastructure development. The forum’s bilateral discussions and meetings between private sector representatives also reviewed developments in the investment environments of both countries, paving the way for increased joint ventures and knowledge exchange.

Vision 2030 Alignment

This development strongly aligns with Saudi Vision 2030, which seeks to diversify the Kingdom’s economy, attract foreign investment, and strengthen international partnerships. By facilitating Thai investment and fostering collaboration in key sectors, the forum supports the Vision’s objectives of economic growth, job creation, and enhanced global engagement. The opening of the BOI office in Riyadh and the signed agreements reflect the Kingdom’s commitment to creating a dynamic investment environment and its pivotal role as a bridge between Southeast Asia and the Middle East. As Saudi Arabia continues to advance its transformative agenda, partnerships like this with Thailand will contribute to sustainable development and mutual prosperity, reinforcing the Kingdom’s position as a leading global investment destination.

20 Questions

Q1. What was the main event held in Riyadh on July 14, 2024?

A1. The Saudi-Thai Investment Forum was held in Riyadh, organized by the Ministry of Investment, the Thailand Board of Investment, and the Thai Embassy. It aimed to enhance investment and trade cooperation between Saudi Arabia and Thailand.

Q2. Who attended the Saudi-Thai Investment Forum?

A2. The forum was attended by Eng. Khalid Al-Falih, Saudi Minister of Investment, Maris Sangiampongsa, Thai Minister of Foreign Affairs, along with officials, CEOs, and private sector representatives from both countries.

Q3. What significant announcement was made during the forum?

A3. The opening of a Thailand Board of Investment (BOI) office in Riyadh was announced, aimed at strengthening economic relations and expanding trade exchange between Saudi Arabia and Thailand.

Q4. How many agreements were signed at the forum?

A4. Eleven agreements and memoranda of understanding were signed in various fields, including agriculture, food, tourism, infrastructure, and energy, to boost commercial cooperation and investment relations.

Q5. What did Minister Al-Falih say about Saudi-Thai relations?

A5. Al-Falih highlighted the historic agreement between Crown Prince Mohammed bin Salman and former Thai Prime Minister Prayuth Chan-ocha, noting progress in trade relations and expressing hope for similar advances in investment.

Q6. What were the trade figures mentioned for 2022 and 2023?

A6. Trade between Saudi Arabia and Thailand reached $7.5 billion in 2022 and approximately $9 billion in 2023, indicating a steady increase since the resumption of relations.

Q7. How many Saudis traveled to Thailand last year?

A7. Around 200,000 Saudis traveled to Thailand last year, reflecting strong people-to-people ties and tourism exchanges between the two nations.

Q8. How many Thai visitors came to Saudi Arabia last year?

A8. More than 30,000 Thai visitors came to Saudi Arabia last year, contributing to cultural exchange and tourism growth.

Q9. What sectors were covered in the signed agreements?

A9. The agreements covered agriculture, food, tourism, infrastructure, and energy, among other areas, aiming to enhance bilateral commercial and investment cooperation.

Q10. What was showcased in the visual presentations at the forum?

A10. Presentations showcased key projects of Saudi Vision 2030, Thailand’s land bridge project, and the roles of institutions in enabling private sector access to investment opportunities.

Q11. Which sector ranked first in Thai investment stock in Saudi Arabia for 2022?

A11. The manufacturing sector ranked first, accounting for 56.7% of the total stock of Thai investments in the Kingdom for 2022.

Q12. Which sector led in Thai investment flow into Saudi Arabia for 2022?

A12. The mining and minerals exploitation sector ranked first, comprising 73.4% of the total flow of Thai investments into Saudi Arabia for 2022.

Q13. What is the purpose of the BOI office in Riyadh?

A13. The BOI office aims to highlight the strategic partnership, enhance economic relations, and expand trade exchange between Saudi Arabia and Thailand, facilitating investment opportunities.

Q14. What did the forum aim to achieve for private sector companies?

A14. The forum aimed to facilitate access to investment opportunities in all fields for companies and investors in both Saudi Arabia and Thailand, fostering partnerships and cooperation.

Q15. How does the forum support Saudi Vision 2030?

A15. It supports Vision 2030 by promoting economic diversification, attracting foreign investment, and strengthening international partnerships, contributing to sustainable development and job creation.

Q16. What is the significance of the historic agreement mentioned by Al-Falih?

A16. The agreement between Crown Prince Mohammed bin Salman and former Thai Prime Minister Prayuth Chan-ocha opened a new chapter in Saudi-Thai relations, leading to increased trade and cooperation.

Q17. What types of meetings were held during the forum?

A17. The forum included bilateral meetings and discussions among private sector representatives, reviewing developments in the investment environments of both countries.

Q18. How does the forum reflect Saudi Arabia’s global engagement?

A18. It demonstrates Saudi Arabia’s commitment to building international partnerships, enhancing economic ties, and positioning itself as a bridge between Southeast Asia and the Middle East.

Q19. What opportunities does the BOI office create for Thai businesses?

A19. The office provides a platform for Thai businesses to explore investment opportunities in Saudi Arabia, access market information, and connect with local partners, facilitating expansion.

Q20. What future steps can be expected from Saudi-Thai economic relations?

A20. Future steps include increased investment flows, joint ventures in key sectors, and continued collaboration through forums and agreements, aiming to reach the full potential of the partnership.

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