Thailand ready to move forward with FTA with GCC group, new opportunity to connect economy to the Arabian Gulf

The Gulf Cooperation Council (GCC) is emerging as a new economic power in the world. It consists of six countries: Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Oman, and Bahrain, which play important economic roles in the Middle East.

According to the International Monetary Fund (IMF) in May 2025, the GCC’s combined GDP stood at $2.16 trillion, accounting for 44.51% of the Middle East’s GDP and 1.89% of the world’s GDP, with a total population of 62.47 million and a high per capita income.

The results of the feasibility study for an FTA between Thailand and the GCC group indicate that:

Thailand’s GDP will increase by 0.36-0.49%.
Thai exports to GCC to increase by $2,179–4,095 million, or 23.85–44.82%
Exports from the GCC to Thailand are expected to increase by $827–1,313 million, or 3.65–5.80%.

Thai products that are likely to expand in the GCC market include food, chemicals, rubber, plastics, electrical appliances, machinery, automobiles and parts. GCC products that will increase in Thailand include oil, petrochemicals, metals, automobiles and parts.

In 2024, the total trade value between Thailand and the GCC was 35,761.95 million dollars, an increase of 2.71% from the previous year, accounting for 5.89% of Thailand’s total trade value and 87.97% of Thailand’s trade in the Middle East, with the United Arab Emirates being the country with the highest trade value with Thailand.

In the first three months of 2025 (Jan-Mar), total trade between Thailand and the GCC was $10,148.61 million, up 22.78% from the same period last year.

Source: Bangkok Business Online