Business deals between Thai firms and Saudi counterparts are expected to flourish after the two parties yesterday signed a memorandum of understanding (MoU) to establish the Thai-Saudi Business Council.
Speaking after meeting with Ajlan bin Abdulaziz Al-Ajlan, president of the Federation of the Saudi Chamber, Commerce Minister Jurin Laksanawisit said the new Thai-Saudi Business Council will play a key role in driving trade negotiations between the business sectors of the two countries.
Mr Jurin predicts business deals between the two countries will reach 10 billion baht within one year after the council is established.
He said a business matching event on Tuesday generated 1.2 billion baht worth of transactions.
Thai companies also signed an MoU on Tuesday on 10 Thai products expected to sell well in Saudi Arabia, including food, seasonings, fresh vegetables, canned food and canned seafood, canned tuna and canned fruit.
The deal is expected to be worth 1 billion baht.
"In visiting LuLu hypermarket or Manuel Market shopping complex, we have observed that Thai products, especially food, fruit and canned food, are popular among Saudi consumers. These products have promising prospects in Saudi Arabia and we hope the nation will become the gateway to distribute Thai goods to the Middle East, including the Gulf Cooperation Council (GCC)," said Mr Jurin.
The GCC is a regional, intergovernmental, political and economic union comprising Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.
He said he also invited Saudi investors to invest more in Thailand where they could enjoy myriad trade privileges offered by Thailand's 14 effective free trade agreements.
According to Mr Jurin, Thailand is also pursuing free trade deals with the European Free Trade Association (Efta) and the UK.
In July, Thailand kicked off the first round of trade talks with Efta, aiming to reach a deal within two years.
Thailand hosted the first round of Thai-Efta FTA meetings in Bangkok between June 28-30, while Efta will host the next round of bilateral meetings from Oct 31-Nov 4 in Geneva, Switzerland.
Efta comprises Iceland, Liechtenstein, Norway and Switzerland.
