Thailand and Bahrain are considered as gateways for trade and investment growth in their respective regions. The FTA should aggressively increase trade and investment, Hashim Sulaiman Hussein, head of the United Nations Industrial Development Organisation, said yesterday.

The Thai-Bahrain FTA negotiations began in 2002. The two countries have already reached an early-harvest agreement to bring down tariffs on 642 products.

However, negotiations to complete the deal were suspended last year after both sides failed to agree on some key issues.

Hashim said the Bahrain government has a strong commitment to promote trade and investment between the two nations and their regions. The problems to conclude the pact should be eliminated so that the two nations can further boost trade and investment, he said.

The GCC groups the United Arab Emirates, Kuwait, Bahrain, Oman, Qatar and Saudi Arabia.

According to the Commerce Ministry, Thai exports to the GCC grew 52 per cent to US$1.89 billion (Bt70 billion) in the first seven months of the year. Of the total, exports to Bahrain accounted for $42.5 million, an increase of 29.18 per cent.

Thai imports from the GCC grew 18.2 per cent to $9.25 billion, largely because of oil imports. Of this amount, Thai imports from Bahrain grew by 201 per cent to $159.3 million in the first seven months.

Hashim said Bahraini investors are considering investments in Thailand in both manufacturing and service businesses.

The sectors of interest to them are banking and financing, Halal food production, construction, hotels, jewellery and garments.

Hashim was speaking yesterday at a seminar organised by the Thai Trade Representatives Office in Bangkok.

During the seminar, Tariq Khalaf, the president of Bahrain Entrepreneurs Association, urged Thai private enterprises to invest in Bahrain and other Gulf countries where people have high purchasing power.

He suggested Thai businesses invest in petrochemicals and related businesses such as plastics and chemical products in Bahrain.

He said Thai companies would enjoy 100-per-cent ownership in any assets when investing in Bahrain, at very low rental rate - only one and a half dollars per square-metre a year. The government also gives tax-free incentives to Thai investors.

 Tariq also said his company is studying investment possibilities in the recycling business and mega-projects in Thailand.

 Thai Trade Representative Prachuab Chaiyasarn said Thai business has shown outstanding growth in the Middle East market, particular in Bahrain over the last three years.

 Businesses that have received a good response in the market include restaurants, spa and massage services, and trade in high-end goods such as One Tambon One Product items, he said.

 Sirichai Sakornratanakul, senior executive vice president of the Export and Import Bank of Thailand, said the Middle East is the second-largest market for Thai investors this year, after Asean.

 The bank approved Bt5.28 billion for Thai borrowers to open various businesses in the market this year, he said.

 Paiboon Pilun-owad, president of Aroma Vera Co Ltd, said the spa business is growing in the Middle East market by at least by 20 per cent a year. His company has opened two spas in Dubai and is planning to open more in Bahrain, Oman and Saudi Arabia next year.

Petchanet Pratruangkrai

The Nation