UAE, Thailand agree to enhance trade and investment cooperation
- 29 Sep 2023
Dr Thani Bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, has concluded a high-level visit to Thailand, during which the two nations agreed to advance cooperation in a wide number of sectors, in particular trade, logistics, energy, travel and tourism.
As part of the visit, Dr Al Zeyoudi held a bilateral meeting with Phumtham Wechayachai, Thailand’s Deputy Prime Minister and Minister of Commerce, in Bangkok. They discussed strategies to accelerate trade and investment flows and reviewed the progress of the Comprehensive Economic Partnership Agreement between the two nations, the negotiations for which are now on their fourth round.
Al Zeyoudi also met Sanan Angubolkul, Chairman of the Thai Chamber of Commerce, in which they outlined the opportunities in each other’s markets, not only in trade but also joint ventures and SME collaboration.
UAE-Thailand relations have been flourishing in recent years. Thailand is now the UAE’s second-largest trading partner in the ASEAN bloc, accounting for 20 per cent of its trade within the region, while the UAE is Thailand’s leading trading partner in the Middle East - and the 13th largest globally. In the first half of 2023, non-oil bilateral trade reached $3.2 billion, a 3.7 per cent increase on the same period in 2022.
Al Zeyoudi said: “Thailand is an important trade and investment partner for the UAE, boasting one of the fastest-growing economies in South-East Asia and quickly solidifying its position as one of the region’s most promising business hubs. Both sides acknowledge the benefits of deeper cooperation between our two nations, and we are working hard to deliver enhanced market access for our respective exporters, and create new projects and partnerships for our investors and SMEs. I look forward to working with Jurin Laksanawisit to build on the momentum that recent visits by ministers, government officials and business leaders have generated.”
In May this year, Dr Thani Al Zeyoudi and Jurin Laksanawisit have signed a joint statement agreeing to launch negotiations to establish a Comprehensive Economic Partnership Agreement (CEPA) between the two countries. The first round of negotiations held in the UAE on May 16.
Dr Thani Al Zeyoudi emphasised that these negotiations represent another important step in our growth agenda and underline UAE’s role as a key enabler of global trade.
l Zeyoudi underlined the developing relations between the UAE and Thailand, stating that the negotiations are a natural progression following the launch of the first UAE-Thai Business Council in February 2023.
He added: “Thailand is an increasingly important trade and investment partner for the UAE, and a high-growth economy in the heart of an exciting, rapidly emerging region. We have enjoyed strong bilateral trade growth in recent years and believe a Comprehensive Economic Partnership Agreement will deliver a wealth of opportunity in sectors such as tourism, food security, IT, logistics and financial services. These negotiations represent another important step in our growth agenda and underline our role as a key enabler of global trade.”
Thailand’s economy is the second largest in South-East Asia and is projected to grow 3.8 percent in 2023, driven by the rebound in the country’s vital tourism sector. It also boasts a well-developed services sector that contributes 58.3 percent of the nation’s GDP. A UAE-Thailand CEPA will build on the rapidly increasing non-oil trade between the two nations, which increased 21 per cent in 2022 to reach $6.1 billion.
The UAE’s principal exports to Thailand are ethylene polymers, gold, vegetable residues, delivery vehicles and parts, and electric batteries, with iron, steel and cosmetics emerging sectors. In the other direction, Thailand’s leading exports include office machinery and parts, motor vehicle parts, tires and aluminum plating. The CEPA negotiations with Thailand are the latest under the UAE’s ambitious foreign trade agenda, which seeks to double its foreign trade and the national economy by 2031.
The UAE has so far concluded 4 CEPAs with India, Israel, Indonesia and Turkey and the first two have already come into force, and the signing of other two agreements will follow later.
The UAE is currently in talks with more markets of strategic importance at the regional and global levels to establish similar agreements.
In February, the 1st Emirati-Thai Business Council was launched during the UAE-Thai business forum, organized by the Federation of UAE Chambers of Commerce and Industry (FCCI).
The forum discussed ways to boost economic relations between the two countries.
The Sharjah Chamber of Commerce and Industry (SCCI) hosted the meeting in conjunction with a visit from a Thai business delegation led by Jurin Laksanawisit.
The event witnessed the launch of the first joint business council between the UAE and Thailand, established under a Memorandum of Understanding (MoU) signed between the UAE’s FCCI and Thailand’s Joint Standing Committee on Commerce, Industry and Banking (JSCCIB).
