The relationship between Thailand and Saudi Arabia has significantly improved after more than three decades. In January 2022, when Thai Prime Minister Prayuth Chan-o-cha visited Saudi Arabia, talks were taking place. The Blue Diamond Affair broke off bilateral ties between the two countries in 1989–1990. Ever since then, this was the highest-level interaction between the two countries. The Saudi Arabian ambassadors severed their political links with Thailand as a result of this burglary, which sparked a wave of homicides that left both countries perplexed. But lately now, Thailand Saudi Arabia Relation is restoring on a peaceful note.
Currently, Mohammed bin Salman Al Saud, a progressive Saudi prince, has decided to let the past go. Both parties reaffirmed their commitment to restoring normalcy and beginning a new era of friendship during the meeting on January 25 and 26, 2022. New relationships is emerging as a result of the Thai government’s sincere regret and desire to build cordial relations. The nations are preparing to make joint investments in the petrochemical, energy, and tourism industries. Therefore, either you are from Thailand or Saudi Arabia, it will be possible to start inter-country business ventures. For investors of Saudi Arabia, the Board of Investment of Thailand can have some benefits for their investments in the petrochemical, energy, and tourism industries.
What Caused Bitterness in Thailand-Saudi Arabia Relation?
The two countries’ ties suffered as a result of the infamous Blue Diamond Affair in 1989. A Thai janitor stole valuable items from the Saudi royal residence while the Prince and his wife were on vacation, including a priceless 50-carat blue diamond and jewelry valued at $20 million USD. Strange things kept happening when the Thai authorities finally declared they had apprehended the thief. After discovering that the jewels given to Saudi authorities were counterfeits, three Saudi ambassadors were shot and killed in Bangkok in February 1990 by Thai gunmen who had been looking for the fake diamonds.
Since his body was never found, it is believed that the Saudi businessman who had flown to Thailand to look into the case of the lost jewels is dead. The story highlighted the pervasive abuse of power and authority that exists within the Thai police force. The senior authorities may have kept the gems and jewels, according to rumors. The case has not yet been resolved.
The two countries’ relations soured as a result, and the Thai embassy in Riyadh no longer has an ambassadorial status. There was discontinuation in the issuance of visas to millions of Thai workers. Numerous Thai Muslims travel to Mecca every year. But during this period, none had the permission to do so. Additionally, citizens of Saudi Arabia were not visiting Thailand.
The Thai government has demanded an authorization document from anyone going to Saudi Arabia for business or pleasure till 2021. There was no promotion of tourism, and any abuse resulted in fines or jail time. There were restrictions in the number of Thai pilgrims traveling to Mecca.
Improvements in Thailand-Saudi Arabia Relation
Thailand has been waiting a long time to mend relations. The crucial turning point occurred when Saudi Arabia restructured its administrative structure and transferred power to the younger generation, who look forward to fostering new relationships that will support the country’s economy’s diversification away from its reliance on oil.
Overseas, Prince Mohammed has steadily gained allies. Relations with adversaries in the region, including Pakistan, Iran, Qatar, and Turkey, are now normal. The most recent entry on the list is Thailand.
As a result, the Thai side reiterated during the crucial meeting in January of this year that they would make every attempt to settle the cases if fresh, credible evidence emerged. The Thai government reaffirmed its commitment to give the Saudi Arabian royal family sufficient security during their visit to Bangkok. Together, they pledged to protect the other nationals while they visit the other country.
Opportunities Created due to Development of Thailand-Saudi Arabia Business Relation
Amongst the number of agreements made during the summit, the labor cooperation pact was one of the more notable ones. More than 300,000 Thai workers lived and made a living in Saudi Arabia throughout the 1980s, which was a popular destination. Currently, there are a little under 1,400 people working as menial labor.
The Thai Overseas Manpower Association has made an announcement. It states that a small team of workers will go to Saudi Arabia within two months in response to the most recent development. Henceforth, if this team adjusts to the new environment, the Association will send more personnel.
Secondly, the restoration of diplomatic ties has rekindled collaboration in the travel and tourism industry. The Tourism Authority of Thailand (TAT) is getting ready to launch a marketing campaign to draw visitors from Saudi Arabia. The Thai government is focusing on promoting and expanding on two exceptional areas of medical and retail tourism. 33,517 Saudi nationals traveled to Thailand in total in 2017, but as a result of the COVID-19 epidemic, those numbers fell to 4,125 in 2020 and 467 in 2021. In a new move, there will be direct flights from Saudi Arabia to Thailand starting on February 28. Thai International Airways will also start operating direct flights from Bangkok to Riyadh in May.
Thailand’s Tourism Authorities establishes a target of 20 billion baht after anticipating 200,000 visitors from Saudi Arabia in 2022. To introduce and present services in Thailand, plannings for roadshows are going on. Plans are being made to get to know Saudi Arabia’s clients so that comprehensive services can be developed to meet their needs.
The Bottomline
Even if these incidents are significant, for the development of Thailand-Saudi Arabia Relation, restoration of trust is crucial. Both sides have paid a price for the breakdown in trust. Saudi Arabia’s financial generosity in Southeast Asia is highly praiseworthy and so demonstrates a growing level of support for the Saudi Kingdom, particularly with Indonesia and Malaysia. The Saudi Vision 2030 places a strong emphasis on reducing the country’s dependency on oil and seeks to boost its economy by growing the fields of education, health, and tourism. Thailand should seize the chance since it can play a crucial part in this.
Therefore, if you are an Investor from Saudi Arabia, now is the time to start your venture in Thailand. The royal Thai Government is very benevolent for foreign investors. Owing to this reason, there are various investment incentives, tax holidays and deductions that only foreign investors can enjoy. The Board of Investment of Thailand can also help you set up a 100% foreign ownership firm in Thailand. For all types of legal help in this regard, feel free to email us at [email protected].
