Thailand remains on track to improve economic ties with Saudi Arabia as it seeks a new potential market for its products, following sluggish exports to the US and Europe.
The value of business deals between Thailand and Saudi Arabia is expected to reach 10 billion baht this year, said Nava Chantanasurakon, a member of the executive board of the Federation of Thai Industries (FTI).
"Saudi Arabia is a high-potential market and a gateway to the Middle East," he said, referring to the Gulf Cooperation Council, which comprises Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain and Oman.
Riyadh wants Thai businesses to invest there, especially after Thailand and Saudi Arabia agreed to boost business relations.
Last year, a joint business council between the two countries was set up to promote trade under a memorandum of understanding signed by the Joint Standing Committee on Commerce, Industry and Banking and the Federation of Saudi Chambers of Commerce.
The FTI is optimistic about trade benefits, work and investments in Saudi Arabia, which is pursuing "Vision 2030", with the flagship of that scheme the establishment of the US$500-billion mega-city of Neom.
The government wants to make Neom, located on the Red Sea coast in the northwestern province of Tabuk, a smart city that is less dependent on oil and promotes diverse businesses.
A vehicle carries a container of local agricultural goods which are exported to Saudi Arabia. Varuth Hirunyatheb
According to the FTI, Saudi Arabia is interested in farm produce, food, cars and auto parts from Thailand.
Thai food processing, especially in the halal food category, has grown rapidly thanks to the country's expertise in food manufacturing and good logistics facilities.
"Thai investors should take advantage of these benefits and plan their new investments in Saudi Arabia," said Mr Nava.
Saudi Arabia, with a population of around 36 million, saw its GDP grow by 8.7% last year, the highest level in the G20.
He said Saudi investors are interested in the Eastern Economic Corridor (EEC) and are expected to spend around 300 billion baht developing various businesses, including those in the energy sector.
Last year around 100 prospective Saudi investors, led by Krayem Alenezi, member of the board of directors of the Riyadh Chamber of Commerce, visited the EEC to get first-hand information about the zone, which covers parts of Chon Buri, Rayong and Chachoengsao.