Thailand Eyes FTA with GCC: A New Gateway to the Arab Gulf Market
June, 2 2025
The Gulf Cooperation Council (GCC), consisting of Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Oman, and Bahrain, is emerging as a new economic powerhouse with increasing global influence.
According to the IMF (May 2025), the GCC's combined GDP stands at USD 2.16 trillion, accounting for 44.51% of the Middle East’s GDP and 1.89% of the global total. The bloc has a population of 62.47 million and enjoys a high average income per capita.
A feasibility study on an FTA between Thailand and the GCC shows promising outcomes:
Thailand's GDP is expected to grow by 0.36–0.49%
Thai exports to the GCC may increase by USD 2.18–4.09 billion (23.85–44.82%)
GCC exports to Thailand could grow by USD 827–1,313 million (3.65–5.80%)
Promising Thai export products include food, chemicals, rubber, plastics, electronics, machinery, and automotive parts. In return, GCC exports to Thailand may focus on petroleum, petrochemicals, metals, and vehicles.
In 2024, bilateral trade between Thailand and the GCC was valued at USD 35.76 billion, a 2.71% increase from the previous year. It represents 5.89% of Thailand's total global trade and 87.97% of its trade with the Middle East. The UAE is Thailand’s largest trading partner in the group.
During Q1 2025 (Jan–Mar), trade between Thailand and the GCC reached USD 10.15 billion, rising 22.78% year-on-year.