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)
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Updated 20 November 2022
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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 rises to 10,894

Updated 8 sec ago
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Closing Bell: Saudi main index rises to 10,894

RIYADH: Saudi Arabia’s Tadawul All Share Index extended its upward trend for a third consecutive day this week, gaining 148.18 points, or 1.38 percent, to close at 10,893.63 on Tuesday. 

The total trading turnover of the benchmark index stood at SR6.05 billion ($1.61 billion), with 144 listed stocks advancing and 107 declining. 

The Kingdom’s parallel market Nomu also rose by 81.35 points to close at 23,668.29. 

The MSCI Tadawul Index edged up 1.71 percent to 1,460.89. 

The best-performing stock on the main market was Zahrat Al Waha for Trading Co., with its share price advancing 10 percent to SR2.75. 

Shares of CHUBB Arabia Cooperative Insurance Co. increased 8.27 percent to SR23.04, while Abdullah Saad Mohammed Abo Moati for Bookstores Co. saw its stock climb 6.17 percent to SR50.60. 

Conversely, the share price of Naseej International Trading Co. declined 9.90 percent to SR31.48. 

On the announcements front, Arabian Drilling Co. said it secured three contract extensions for land rigs with energy giant Saudi Aramco, totaling SR1.4 billion and adding 25 active rig years to its backlog. 

In a Tadawul statement, the company said one rig is currently operational, the second will begin operations by the end of January, and the third — currently suspended — is expected to resume operations in 2026. 

Since November 2025, Arabian Drilling has secured seven contract extensions amounting to SR3.4 billion, representing 55 committed rig years. 

The three contracts have durations of 10 years, 10 years, and five years, respectively.

“Securing a total of SR1.4 billion in new contracts and expanding our backlog by 25 rig-years demonstrates both the trust our clients place in us and our ability to consistently deliver quality and reliability,” said Ghassan Mirdad, CEO of Arabian Drilling, in a statement. 

Shares of Arabian Drilling Co. rose 3.15 percent to SR104.70. 

Separately, Alkhorayef Water and Power Technologies Co. said it signed a 36-month contract valued at SR43.35 million with National Water Co. to operate and maintain water networks, pumping stations, wells, reservoirs, and related facilities in Tabuk. 

In October, Alkhorayef Water and Power Technologies Co. announced it had been awarded the contract by NWC. 

In a Tadawul statement, the company said the financial impact of the deal began in the fourth quarter of 2025. 

The share price of Alkhorayef Water and Power Technologies Co. declined 0.49 percent to SR120.70.