UAE Embassy in Bangkok-Economic Cooperation

The Kingdom of Thailand is now considered a well deserving member of the industrialized nations club. The Kingdom has managed to attract most of the internationally renowned companies to set up base in Thailand in diverse areas such as car assembly plants, manufacture of car spare parts, electric & electronic components, in addition to the well-established agricultural and handicraft products.
The Kingdom's government wise economic policies focused on "opening" new markets for the country's product. Recognizing that the UAE is now the main gate for trade with the GCC countries, most of the Arab and Islamic World and African states, the UAE and Thai missions are very active in exploring all the opportunities that offers to foreign investors and encourages businessmen and corporations to participate the trade and technology exhibitions and forums that both countries has come to be well known for hosting. Also, the Kingdom succeeded in attracting a considerable number of UAE’s nationals to invest in Thailand in various and diverse projects.
The Embassy's tireless efforts relationship with all the Chambers of Commerce Industry in the UAE is testament to its success.
The volume of the balance of trade between the two countries has reached, more than US$ 651.74 million in 2021 (Jan - Feb) and US$ 3.33 Billion in 2020. During 2021 (Jan – Feb), the Total trade mounted US$ 1.43 Billion and US$ 7.61 Billion in 2020 increasing by 32.44% from the same period in 2019 during which it reached US$ 9.81 Billion in increase by 36.93% from the same period in 2018, the balance of trade tendency towards UAE favor due to Thailand's import of crude oil and finished oils.
Total exports from UAE to Thailand estimated in 2020, at US$ 5.47 Billion and imports amounted to about US$ 2.14 Billion comparing to exports of US$ 7.37 Billion and imports of US$ 2.44 Billion in 2019. UAE’s most imported item are: motor cars, parts and accessories; precious stones and jewellery, air conditioning machine and parts thereof; automatic data processing machines and parts thereof; woods and wood products; rubber products; teleprinters, telephone sets and parts thereof; refrigerators and parts thereof; aluminum products; machinery and parts thereof.
While export items include: crude oil; finished oils; other metal ores, metal waste scrap, and products; chemicals; vegetables and vegetable Products; jewellery including silver bars and gold; metal manufactures; ships, boats and floating structures; iron, steel and products; machinery and parts.
Crude oil imports to Thailand were down in 2020 to the lowest level since 2015, according to data from Thailand’s energy department. Total imports fell 19,000 barrels per day from 2019 figures, down to 837,000 barrels. Due to the Covid-19 pandemic, domestic production also dropped along with the reduction in oil importing. Thai refineries decreased their production to 1 million barrels a day instead of their maximum capacity of 1.24 million barrels, as demand for refined oil products fell.
Thailand diversified its supply sources and reduced oil reliance from the Middle East, which has provided the majority of Thailand’s crude importing. One reason for the reduction could be the production cuts in OPEC and Mideast Gulf, which left Thailand looking for other suppliers. In 2016 crude oil imports from the Mideast accounted for 66% of all Thai importing, but by 2020 it fell to just 54%. Asian-Pacific oil imports fell from 19% in 2016 and 15% in 2019 down to 14%.
As one of top supplier to Thailand, UAE witness decrease in supply figures which dropped from 210,000 barrels a day in 2019 to 185,000 barrels in 2020, PTT Oil Company of Thailand holds the national task of importing crude oil from Abu Dhabi National Oil Company (ADNOC), according to the contract signed in 1994 in order to purchase in approach based on (Govt. to Govt.) deals.
July 25, 2007, the Union of Municipalities of the UAE issued resolution of the adoption "Halal" Trade Mark issued by the Committee on Islamic Affairs in Thailand, for all Thai Industries products specially the processing poultry plants, all these steps opened various opportunities of competition for Thailand to export its products to countries in the Middle East and Islamic countries in Africa and other Member States of the Association of Islamic Cooperation.
The Thai investment in the UAE very few still, more recently, some fame Thai companies have begun investment projects in UAE in the fields of architecture and medical services nevertheless, Currently, on 29 March 2021, Mr. Auttapol Rerkpiboon, President & Chief Executive Officer of Petroleum Company Thailand (PTT) Public Co., Ltd. and other co-founders joined the official opening ceremony of Futures Abu Dhabi (IFAD).
PTT expressed its proudness to partner with Abu Dhabi National Oil Company (ADNOC) - the producer of Murban crude - and eight of the world’s largest energy companies and the Intercontinental Exchange (ICE) ), a leading operator of global exchanges and clearing houses, to launch ICE Futures Abu Dhabi (IFAD).
With this regard, the International Trading Business Unit (TBU) revealed that by foreseeing the benefits of being a Co-Founder, not just a player in the market, TBU decided to establish PTT MEA Ltd. (PTT MEA) in Abu Dhabi, United Arab Emirates, which 100% owned by PTT International Trading Pte. Ltd. (PTTT). The company, registered on 21 February 2021, will be a shareholder of IFAD and represent PTT Group trading hub in Middle East. By connecting Asia, Europe and Africa, insightful market information will be delivered to PTT networks while trading flows can be expanded.
IFAD will be home to the world’s first Murban Crude Futures Contract, where Murabn crude is desired by more than 60 refineries in Asia, offering transparent and market driven pricing for the first time. By establishing a secondary market and offering inter-commodity spreads, not only a differential to other global crude benchmarks such as ICE BRENT and WTI, but also a differential between Murban crude and Petroleum products, participants will have more options to manage risk and clear trades.
ICE Murban Futures traded at IFAD will be cleared at ICE Clear Europe, a leading energy clearing house, and will clear alongside global oil benchmarks - ICE Brent which has daily tradable volume around 1 Billion Barrels per Day.
As PTT Group refineries import crude oil from the United Arab Emirates approximately 20% of the refining capacity; therefore, participation in the IFAD will help provide security of supply for the nation as well as enhance PTT Group efficiency to manage risks and strengthen its competitiveness in the international markets.
The UAE private investors participate in Thailand's mega projects such as, oil and gas exploration in the Gulf of Thailand and a number of diverse industries, more than 61 UAE trading companies invest in Thailand (all companies have partnerships with Thai entities and the percentage of shares owned by UAE businessmen varies from one company to another, with the lowest being 1%) led by:
Mubadala Petroleum, which has established its presence in Thailand since 2004, operates three concessions within the offshore Gulf of Thailand and is the second largest producer of crude oil in the country. Mubadala Petroleum has a well-established community investment program in partnership with key local stakeholders to support coastal communities in their operational surroundings.
Mubadala Petroleum has a 100% participating interest in the development of the Jasmine oil field, which saw the installation of the first platform in March 2005, and the oil was obtained for the first time in June 2005. Ban Yen field began production in 2008, and its cumulative production is more than 80 million barrels.
In November 2014, production began in the Manora oil field, located in the northern Gulf of Thailand, and it was discovered in 2009, the field operated by Mubadala Petroleum and holds a 60% participating interest, the facilities cumulative production has exceeded 15 million barrels so far.
In June 2015, production began in the Nong Yao oil field in the southern Gulf of Thailand. Mubadala Petroleum is the operator and holds a 90% participating interest, the cumulative production from the field to date is in excess of 12 million barrels.
The Nong Yao field, which was originally discovered in 2009, is the second development project in Thailand after Manora, in which Mubadala Petroleum has moved from exploration and evaluation to development and production. Mubadala Petroleum plans to start a partnership in April 2022 with a 40% participation stake in the Erawan Gas Project, where PTT Energy Development Company Limited (PTTEP) will be the operator.
The DP World Thailand (Laem Chabang International Terminal Co., Ltd.) was registered on 16th January 1996 under the Civil and Commercial Code of the Kingdom of Thailand. On the 11th of April 1996 the Company was granted a thirty-year concession by the Port Authority of Thailand to "Construct, Operate and Manage" Container Terminal B5 at Laem Chabang Port. LCIT has been Awards and Achievements a 30 years concession to manage and operate the C3 Terminal at Laem Chabang in April 2003 and commenced full operations in September 2004.

Agreements and Memorandum of Understanding (MoU) on the economic side:

The two countries have now agreed and signed the following:

Air Services Agreement signed on March 20, 1990, and ratified by Federal Decree No. 29 of 1991.
Memorandum of Understanding (MoU) regarding the organization of air services, signed on March 7, 2004. All of these mentioned conventions governing the exchange of air transport air transport and identification of air services between the two countries.
Double Taxation Avoidance and Financial Evasion Prevention Agreement with respect to Income Taxes and the protocol attached thereto signed on March 1, 2000, and ratified by Decree No. 105 of 2000.
Economic, Commercial and Technical Cooperation Agreement (including the establishment of a joint committee between the two countries), signed on April 22, 2007, and ratified by Decree No. (98) of 2007.
Memorandum of Understanding (MoU) between Emirates Securities and Commodities Authority (ESCA) and Thailand's Securities and Exchange Commission (SEC) in relation to Assistance and Mutual Cooperation, signed on July 16, 2007.
Memorandum of Understanding (MoU) on cooperation between the two countries in the field of manpower, signed on October 11, 2007.
Investment Protection and Promotion Agreement signed on February 23, 2015.