Thailand is eyeing a substantial increase in exports to Saudi Arabia, to be driven by agriculture, industry and the service sectors, says the Commerce Ministry.
Commerce Minister Jurin Laksanawisit said yesterday the normalisation of diplomatic ties has opened the way to opportunities, adding the ministry has set a goal of 6.2% growth in exports to Saudi Arabia, up from last year's export value of 51.5 billion baht.
The ministry's analysis has identified three key export drivers. One is farm products, which have strong potential for entering the Saudi market including rice, chicken, fruit, fish and coffee, in addition to Halal foods. Industrial goods likewise are considered to have key export potential. These include cars and car accessories, air conditioners, refrigerators, electrical appliances and jewellery. The third key driver, the service industry, includes medical tourism, a potential big earner.
Mr Jurin said rice is the commodity with the brightest export potential since Saudi Arabia does not grow the crop. The country buys at least 1.2 million tonnes of rice a year, 80% of which is from India.
Saudi Arabia imports only 2% of rice from Thailand meaning there is much room for expansion, Mr Jurin said. As for chicken meat, the country's main suppliers are Brazil, followed by Ukraine and France.
About 60% of chickens are raised locally and the rest imported. Demand for chicken imports in Saudi Arabia tops 1.4 million tonnes each year. Thailand can make further inroads into the chicken market pending Halal and avian flu-free certification of factories that supply the meat.
Mr Jurin said a committee between Thailand and Saudi Arabia would negotiate a bilateral trade to forge a Free Trade Area involving the two kingdoms.