60 Years of Thai-Saudi Relations: A Rollercoaster of Diplomacy and Opportunity

The relationship between Thailand and Saudi Arabia, spanning over six decades, has been a dramatic narrative of flourishing ties, abrupt severance, and a recent, determined revival. From a robust economic partnership to a deep diplomatic freeze, and now a renewed strategic alliance, their shared history offers a compelling case study in international relations.

A Golden Era: Partnership Before the "Blue Diamond Affair"

The foundation of diplomatic relations between Thailand and Saudi Arabia was laid in 1957, quickly blossoming into a mutually beneficial partnership. The 1970s and 1980s marked a golden era, primarily fueled by Saudi Arabia's burgeoning oil wealth and Thailand's growing labor force.

Thai workers flocked to Saudi Arabia in unprecedented numbers, seeking lucrative opportunities in the Kingdom's booming construction and development sectors. Estimates suggest that hundreds of thousands of Thais, possibly up to 500,000, worked in Saudi Arabia, making it the largest market for Thai overseas workers. The remittances sent home were a vital source of foreign exchange for Thailand, significantly boosting its economy and improving the livelihoods of countless families.

Concurrently, trade ties were strong and complementary. Saudi Arabia was Thailand's crucial supplier of crude oil and petrochemical products, essential for Thailand's industrialization. In return, Thailand exported a wide range of manufactured goods, including automobiles and auto parts, electronics, textiles, and, notably, agricultural products like canned seafood and rice. High-level official visits and even development loans from Saudi Arabia to Thailand further underscored the depth of their cooperative relationship.

The Decades of Downfall: The "Blue Diamond Affair" and Its Aftermath

This thriving relationship came to an abrupt and devastating halt with the infamous "Blue Diamond Affair," beginning in 1989. A theft of valuable jewels, including a rare 50-carat blue diamond, from a Saudi prince's palace by a Thai janitor, Kriangkrai Techamong, spiraled into a complex and tragic international incident.

While some jewels were recovered, Saudi authorities claimed many were fake, and the prized blue diamond remained missing. The situation was then compounded by a series of unsolved murders in Bangkok in 1990: three Saudi diplomats and a Saudi businessman investigating the theft were killed. Saudi Arabia strongly suspected complicity and a cover-up by high-ranking Thai officials and police, as some recovered jewels were rumored to be seen on wives of Thai VIPs.

In retaliation, Saudi Arabia implemented severe diplomatic and economic sanctions:

• Diplomatic relations were downgraded to the chargé d'affaires level, ending the exchange of ambassadors.

• Work visas for Thais were largely halted or not renewed, drastically reducing the Thai workforce in Saudi Arabia from hundreds of thousands to a mere fraction. This resulted in billions of dollars in lost remittances for Thailand.

• Travel warnings were issued, discouraging Saudi citizens from visiting Thailand.

• Direct flights between the two countries ceased, and other forms of economic engagement suffered significantly.

For over 30 years, the "Blue Diamond Affair" cast a long shadow, fostering deep mistrust and transforming a once-vibrant partnership into a frozen relationship.

The Dawn of a New Era: Revival from 2022 Onwards

After decades of strained ties, a landmark shift occurred in January 2022 with a historic visit by then-Thai Prime Minister Prayut Chan-o-cha to Saudi Arabia, at the invitation of Crown Prince Mohammed bin Salman. This visit marked the full restoration of diplomatic relations and ushered in a new chapter of cooperation.

Key to this revival was Prime Minister Prayut's formal expression of "sincere regret over the tragic incidents" of 1989-1990, alongside a pledge to pursue any new, relevant evidence in the unsolved cases. This crucial diplomatic gesture, coupled with a convergence of mutual interests, paved the way for reconciliation.

Since 2022, both nations have demonstrated a strong commitment to revitalizing their ties:

• Exchange of Ambassadors: Full diplomatic representation has been re-established.

• Focus on Saudi Vision 2030: Thailand has strategically aligned itself with Saudi Arabia's ambitious Vision 2030, which aims to diversify the Saudi economy beyond oil. This has opened new avenues for cooperation in sectors like tourism, entertainment, logistics, technology, and renewable energy. Thailand's Board of Investment (BOI) even opened an office in Riyadh in 2024 to facilitate investment.

• Resumption of Labor Cooperation: Efforts are underway to facilitate the return of skilled and specialized Thai workers to Saudi Arabia, especially for its mega-projects.

• Renewed Tourism and Connectivity: Direct flights have resumed, and Saudi tourists are once again encouraged to visit Thailand, boosting tourism revenues.

• Ongoing Dialogue and FTA Exploration: Both countries are actively engaged in various coordination councils and are exploring the potential for a Free Trade Agreement (FTA) with the Gulf Cooperation Council (GCC), further solidifying their economic partnership.

A New Chapter of Economic Growth

The most tangible evidence of the revived relationship is the remarkable resurgence in bilateral trade. Prior to the full restoration of ties, trade between the two countries had stagnated. However, the past two and a half years have seen significant growth:

• In 2023, bilateral trade between Thailand and Saudi Arabia reached approximately $8.8 billion, marking a substantial increase from previous years. This figure underscores the rapid re-establishment of economic links.

• Thailand's exports to Saudi Arabia have notably expanded, with key categories like automobiles and auto parts showing particularly strong growth (40-50% increase in the past year alone). Other major Thai exports include wood products, canned seafood, fresh and canned fruits, and electronics.

• Saudi Arabia continues to be a crucial supplier of energy, with crude oil and petrochemical products remaining primary imports for Thailand. The relationship also seeks to expand into new energy areas like clean technologies and renewable energy.

To further catalyze investment and solidify this burgeoning economic partnership, Thailand officially opened a new Board of Investment (BOI) office in Riyadh on July 14, 2024. This marks the BOI's first presence in the Middle East and its 17th overseas post globally. The Riyadh office aims to serve as a crucial hub for promoting Thai investment opportunities to Saudi and Middle Eastern investors, particularly in target sectors aligned with Saudi Vision 2030, such as agriculture, processed food, renewable energy, healthcare, and electric vehicles. It also seeks to assist Thai companies looking to explore the vast Middle Eastern market.

Looking ahead, both nations are setting ambitious targets. The inaugural Saudi-Thai Coordination Council meeting in early 2025 aimed to generate over $3.5 billion from the green economy, agriculture, and service industries alone, demonstrating a strategic focus on diversified growth.

The 60-year journey of Thai-Saudi relations is a testament to the complexities of international diplomacy. What began as a strong, mutually beneficial bond was severely fractured by a chain of tragic events. However, through persistent diplomatic efforts and a shared vision for future economic growth, the two kingdoms have remarkably managed to turn the page, embarking on a new era of strategic partnership that promises significant opportunities and a robust economic future for both nations.