Connect with us

Middle East

Oil Price Slump : Thai Exports to MENA Likely Down 13% in 2015

Because oil price slump has reduced Thai exports to the MENA region by 14.7 percent YoY, KResearch hold the view that Thai shipments to that region will continue to weaken over the remainder of 2015

Published

on

As of August 2015, Brent crude oil prices stood at USD47/barrel, plunging 59.2 percent from the mid-2014 record high. It is expected that the current phase of low oil prices will last longer than the previous oil price collapse of 2008-2009, and this is bound to have serious repercussions on the Middle East and North Africa (MENA) economy that is heavily dependent on oil trade.

Because this slump has reduced Thai exports to the MENA region by 14.7 % YoY, representing a USD6.1 billion drop, during 7M15,  KResearch hold the view that Thai shipments to that region will continue to weaken over the remainder of 2015, thus bringing full-year exports to perhaps USD10.2 billion, contracting 13.0 percent YoY, or within our projected band of USD9.9-10.6 billion, shrinking 15.6-9.6 percent YoY.

Thus, Thailand may lose its export income from the MENA region by some USD1.5 billion from that reported in 2014.

Although 2016 crude oil prices are projected to improve somewhat over 2015, they should nevertheless remain lower than the levels that could help ease fiscal and economic pressure on the MENA region.

Close attention must be paid to the largest economy there, Saudi Arabia, because the entire region could face greater risk if Saudi Arabia’s economy deteriorates further. Consequently, Thai exports to the MENA region will likely remain slow during 2016.

Currently, Saudi Arabia is Thailand’s second largest export destination within that region.

Relatively bleak prospects are seen in our luxury product and non-essential consumer good exports. However, because the MENA region has a huge consumer market of 430 million people, many Thai exports could make greater inroads into this market, e.g., rice, sugar, vegetables, fruit, fresh chicken, instant noodles, wheat-based desserts, food seasonings, meat products, prepared foods, including soup, cereals, cocoa, snacks and rice-based products. Thai Halal foods – for which the Thai government is currently promoting production and investment – should especially have rosier prospects in the MENA region, as well.

Source: Kasikorn Research Center

Middle East

Wego identifies nine 2018 travel trends in the MENA region

MENA covers the Middle East and North Africa and Wego’s trending is based on observations sourced from data  in this region

Published

on

As the 2017/2018 peak holiday season closes, travel planning for the next round of 2018 holidays is on the front burner for families, singles and business travellers. (more…)

Continue Reading

Middle East

Qatar Airways opens new Doha-Chiang Mai route

Qatar Airways will operate four flights per week on the Doha-Chiang Mai route with an Airbus A330-200 aircraft, which features 24 seats in Business Class and 236 seats in Economy Class

Published

on

Thailand celebrated the start of Qatar Airways’ latest direct non-stop service from Doha to Chiang Mai, bringing significant new sources of traffic by allowing visitors from Europe, the Middle East and Africa to connect to the Northern Thai city via the airline’s hub in Qatar. (more…)

Continue Reading

Most Viewed

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 14,160 other subscribers

Wise

Recent