Middle East Conflict Impact Limited to One Month, Thai Entrepreneurs in Saudi Arabia See Opportunities for Thai Products

Thai entrepreneurs in Saudi Arabia say Thai business and products still have significant opportunities in the Middle East despite recent regional conflicts. Akkarawut Tangsirikosolwong, chairman of the Asian and Middle Eastern Export Trade Association and CEO of Vega Group, revealed that while recent Middle East tensions negatively impacted Thai business for just one month, most regional countries have now adapted and returned to normal operations. Trade and investment in Saudi Arabia continue as usual, and the country's Vision 2030 development initiatives are proceeding on schedule.

"News coverage may have made the situation seem severe, but the impact was actually short-term," Akkarawut explained. "People in the region still conduct normal daily life, especially in Saudi Arabia and the UAE. The economy continues to function well, and despite a temporary dip in tourism, it's now recovering. Rising oil prices have also boosted regional income and consumer spending."

While the closure of the Strait of Hormuz initially disrupted export operations, Akkarawut noted that businesses have adapted by rerouting shipments through Oman instead. Although this increases shipping costs, commerce continues. Airports have also resumed operations. "I see the Middle East market as a strong opportunity for Thai products and services because the economy is growing well. Thai exports should recover fairly quickly since consumers in the region prefer Thai goods," he said. Product categories with strong market expansion potential include food products, processed foods, herbs, cosmetics, fashion, and home decoration items.

Thai food service businesses, particularly restaurants, continue to expand throughout the Middle East, reflecting strong consumer demand, especially in the UAE and Saudi Arabia. In the second half of the year, business events and trade shows postponed due to the conflict are expected to resume in July and August, presenting important opportunities for Thai entrepreneurs. Private businesses are preparing major projects including Global City in Dammam in eastern Saudi Arabia, offering showcase space for 40-50 Thai entrepreneurs and potentially generating 300-400 million baht in revenue.