The Saudi EXIM Bank and its Thai counterpart recently sealed a Memorandum of Understanding (MoU), a move set to significantly boost trade between Saudi Arabia and Thailand. Announced by the Saudi Press Agency, this agreement focuses on enhancing export and import activities, marking a crucial development in the economic relations of these two nations.
This strategic MoU, aligned with the Saudi EXIM Bank’s goal to strengthen the Kingdom’s non-oil economy in global markets, was signed at the Asian EXIM Banks Forum in Sydney, spanning from November 20-23. The agreement underscores the bank’s commitment to facilitating Saudi exports globally by offering necessary financing and reducing export risks.
Naif Bin Abdulrahman Al-Shammari, Deputy CEO of the Saudi EXIM Bank, emphasized the deal as part of the bank’s broader strategy to establish partnerships with key global and regional financial institutions. The collaboration will involve sharing expertise and information, with both banks extending lines of credit and other facilities to bolster Saudi exports in Asian markets and vice versa.
From Thailand’s perspective, Benjarong Suwankiri, Senior Executive Vice President of the EXIM Bank of Thailand, pointed out the partnership’s role in enhancing cooperation between companies in both countries, thus supporting the flow of trade and investments. He expressed confidence in the collaboration’s potential to expand intra-trade with the Kingdom.
This development follows a significant improvement in Saudi-Thai relations, especially after the normalization of diplomatic ties in early 2022. Auramon Supthaweethum, Thailand’s Department of Trade Negotiations Director General, reported over a 50 percent increase in trade growth since the diplomatic reset. Thailand’s ambition to become Saudi Arabia’s gateway to Asian markets was evident during Crown Prince Mohammed bin Salman’s landmark visit to Thailand in November 2022.
The signing of this MoU represents not just an economic agreement but a symbolic step in strengthening the ties between Riyadh and Bangkok, which have seen renewed vigor following years of stalled relations. It sets the stage for a more robust economic partnership, promising mutual benefits for both nations in the years to come.
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