Saudi THB700-bn investment plan, ‘an opportunity for Thai food industry’
Saudi Arabia plans to invest over 700 billion baht in food-related industries, which would offer Thai companies an opportunity to leverage its strengths in the industry and generate revenue, the Ministry of Commerce said.
Buntee Parnichprapai, secretary to the Minister of Commerce, revealed that reports had been received from the Thai Office of Trade Promotion in Jeddah, that the Ministry of Industry and Mineral Resources of Saudi Arabia aims to attract US$20 billion or approximately 703 billion baht investment in the food industry sector by 2035, to support and develop the food industry in that country. This includes dairy products, bakeries, confectionery, beverages, and maximising the value of agricultural produce. It is expected to create over 4,000 job opportunities.
Saudi Arabia also aims to double export value from US$3.7 billion (130 billion baht) in 2022 to $10.9 billion (380 billion baht) in 2035. This target aligns with the objectives of Thailand's National Industrial Strategy (NIS) to promote the sustainable growth of the food industry.
The Ministry of Industry and Mineral Resources of Saudi Arabia has undertaken several projects, including the project to increase poultry production capacity, valued at US$1.2 billion (42 billion baht), led by Almarai Company. Another project involves the setting up of a poultry product manufacturing facility worth US$120 million (4.2 billion baht) by Arab Seara Food Industries, a subsidiary of the GBS group from Brazil, in the Central East and North Africa region. Additionally, there is the project for tuna canning, valued at US$133 million (4.6 billion baht).
Thailand possesses a strong and diverse food industry, being a significant agricultural products producer, the ministry said. It also has capabilities in food processing, innovation, safety standards, sustainability, and the ability to swiftly respond to the ever-changing demands of the global market. Additionally, Thailand has great potential for food exports, the ministry said.
Thailand was ranked 15th in global food exports in 2022, with a value of approximately 1.36 trillion baht, marking a 22.7% increase over the previous year.
It is important for Thai entrepreneurs and exporters to closely monitor the market situation to explore future marketing opportunities, the ministry.