Saudi Arabia and Thailand sign landmark agreements on energy

The Saudi crown prince’s visit to Thailand is a historic moment in Riyadh-Bangkok ties. (SPA)
Short Url
Updated 20 November 2022
Follow

Saudi Arabia and Thailand sign landmark agreements on energy

  • Saudi Arabia’s crown prince is special guest at Asia-Pacific summit in Bangkok
  • Diplomatic ties between the two kingdoms were restored after three decades
  • Thais say they hope for more exchanges, cultural interaction with Saudi Arabia

BANGKOK: Crown Prince Mohammed bin Salman’s visit to Bangkok this week has had more of an impact than just forging a bond between the two kingdoms — it touched the sentiments of Thais, spurring hopes of a fruitful and lasting relationship.  

The crown prince’s arrival in Thailand marked the first visit by a Saudi royal to the country after three decades of frozen diplomatic and economic ties.

Ties between Saudi Arabia and Thailand were restored earlier this year when Thai Prime Minister Prayuth Chan-ocha visited Riyadh in January and the two countries agreed to work on bilateral cooperation in a “historic breakthrough.”

Thailand invited the crown prince to be a special guest at the Asia-Pacific Economic Cooperation summit on Nov. 18-19.

HIGHLIGHT

Thailand invited Crown Prince Mohammed bin Salman to be a special guest at the Asia-Pacific Economic Cooperation summit on Nov. 18-19.

While his meetings with Thailand’s leadership have yielded numerous memorandums on energy, tourism and normalizing diplomatic relations, Thais who spoke to Arab News said it was also important to them on a personal level.

“The leader of Saudi Arabia, the crown prince and prime minister, is very widely well respected by our people,” said Tanee Sangrat, director-general of information at the Thai Ministry of Foreign Affairs, and soon to be Thailand’s ambassador to the US.

The visit has been “closely watched and followed by the Thai people in Thailand and around the world,” he told Arab News.

With the restoration of ties with Saudi Arabia, Thailand has found not only a new powerful partner in navigating volatile energy markets and energy transition, but also, as many have said, a “gateway” to the Middle East.

Business development professional Suppalerk Aramkitphotha saw the crown prince’s visit as a “great opportunity.”

“We are very glad that we have this opportunity,” he said. “Business and everything, that can come to Thailand, or any business from Thailand can go to the Middle East.”

Jirayut Srupsrisopa, a fintech professional, was glad that the crown prince was visiting Thailand and “bridging” the relationship.

“Now we can do so much more between Thailand and Saudi,” he said. “We can work with Saudis for the future of energy, the future of green hydrogen or a future growth in other aspects like the digital economy.”

But there is much more to the renewed ties than the immense business opportunities for both nations.

Voralak Tulaphorn, a marketing professional, said that a Saudi presence is something that has been missing from the diverse multicultural landscape of Thailand.

“Saudi Arabia and Thais actually have a lot of rich cultures, and with rich cultures it would be nice to have an exchange … I think from food to nature, fashion, to many handicrafts and all.”

But the biggest potential for her was in bringing Thais and Saudis together by exchanging cuisines, and if the way to another’s heart is through their stomach, Thai cuisine is definitely one that can offer a hearty fare.

“People love Thai street food,” she said, adding that she hoped that Thais will try Saudi food soon.

“In the last 30 years, we have not seen many Saudi restaurants in Bangkok. We would love to taste Saudi Arabian food, too.”


Closing Bell: Saudi main index closes in red at 10,818 

Updated 6 sec ago
Follow

Closing Bell: Saudi main index closes in red at 10,818 

RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Thursday, losing 126.83 points, or 1.16 percent, to close at 10,818.32. 

The total trading turnover of the benchmark index was SR4.5 billion ($1.2 billion), as 26 of the listed stocks advanced, while 233 retreated. 

The MSCI Tadawul Index decreased, down 15.78 points, or 1.07 percent, to close at 1,457.04. 

The Kingdom’s parallel market Nomu lost 137.69 points, or 0.58 percent, to close at 23,413.78. This comes as 26 of the listed stocks advanced, while 40 retreated. 

The best-performing stock was Alistithmar AREIC Diversified REIT Fund, with its share price surging by 3.81 percent to SR7.36. 

Other top performers included Etihad GO Telecom Co., which saw its share price rise by 3.08 percent to SR91.90, and Consolidated Grunenfelder Saady Holding Co., which saw a 2.55 percent increase to SR9.65. 

On the downside, Thimar Development Holding Co. was among the weaker performers, with its share price falling 6.52 percent to SR33. 

Baazeem Trading Co. fell 4.94 percent to SR6.35, while Fawaz Abdulaziz Alhokair Co. slipped 4.05 percent to SR18.02. 

On the announcements front, Saudi Electricity Co. has officially commenced the offering of a US dollar-denominated senior unsecured sukuk, following its earlier announcement. 

The two-day offering, running from Jan. 15 to Jan. 16, will be carried out through a special purpose vehicle and is open to eligible local and international investors. 

According to a Tadawul statement, the final amount, pricing, and maturity terms of the sukuk will be determined based on prevailing market conditions, with a minimum subscription set at $200,000. 

SEC has mandated a consortium of sixteen global and regional financial institutions, including J.P. Morgan, HSBC, and Standard Chartered Bank, as Joint Lead Managers for the issuance. Upon completion, the sukuk are expected to be listed on the London Stock Exchange’s International Securities Market. 

This issuance falls under SEC’s international sukuk program and is being offered in reliance on Regulation S, meaning it will be sold exclusively outside the US to non-US persons. 

SEC’s shares traded 0.07 percent higher on the main market to reach SR14.08.