The commercial ties between Saudi Arabia, the UAE, and East Asia—particularly ASEAN countries—have undergone significant transformation in recent years. According to the Asian Development Bank, the Gulf Cooperation Council’s (GCC) total trade with ASEAN countries grew to $105 billion in 2020, a number that has continued to rise despite global economic challenges. The relationships, once primarily driven by hydrocarbons, have diversified into a range of non-oil sectors such as sports, tourism, FMCG, and manufacturing. This shift aligns with national strategic plans like Saudi Vision 2030 and UAE Vision 2021, both of which seek to decrease dependency on oil and expand trade with emerging regions like ASEAN.

As of 2023, the trade volume between the UAE and ASEAN stood at $60 billion, an increase driven by greater collaboration in logistics, infrastructure, and agriculture. Similarly, Saudi Arabia’s non-oil exports to ASEAN increased by 15% over the past five years, highlighting the growing importance of sectors like technology, food security, and consumer goods.

Historical Context and Key Drivers

Historically, Saudi Arabia and the UAE’s trade relationships with ASEAN were largely defined by oil exports. For instance, Saudi Aramco has long been one of the largest suppliers of crude oil to ASEAN countries, particularly Indonesia and Thailand, accounting for over 40% of their crude oil imports as recently as 2015. However, global economic trends and regional strategies have necessitated a shift towards diversification.

• Saudi Vision 2030 outlines plans to reduce oil revenues from 87% in 2016 to less than 50% by 2030. To achieve this, Saudi Arabia is investing in sectors such as logistics, tourism, entertainment, and agriculture. As a result, Saudi exports of petrochemical products to ASEAN have grown by 18% annually, with non-oil exports contributing more than $20 billion to the country’s economy by 2022.
• UAE Vision 2021, meanwhile, highlights the nation’s pivot towards high-tech industries and digital transformation, with non-oil sectors now constituting over 70%of the UAE’s GDP. The UAE is ASEAN’s largest trading partner within the Gulf, and in 2023, ASEAN-UAE trade reached an all-time high, accounting for 11% of the region’s total non-oil trade.

ASEAN’s Economic Context

ASEAN itself is a dynamic region with over 650 million inhabitants and a combined GDP of $3 trillion. Countries such as Vietnam, Thailand, Malaysia, and Indonesia have enjoyed steady GDP growth, averaging 4-6% annually, driven by strong manufacturing, agricultural exports, and a growing middle class. As the 5th largest economy in the world, ASEAN has become a central partner in global trade, particularly in sectors such as automobiles, electronics, agriculture, and pharmaceuticals.

Key Non-Oil Sectors Driving Relationships

1. Sports

The sports industry has emerged as a major sector in the commercial relationships between the Gulf states and ASEAN countries. Both Saudi Arabia and the UAE have invested heavily in global sports, positioning themselves as hubs for international sporting events.

• Recent Investments: In 2021, the UAE hosted the Asian Football Confederation (AFC) Champions League, partnering with Southeast Asian nations such as Thailand and Malaysia. Saudi Arabia has followed suit, increasing investments in sports facilities, such as their partnerships with Indonesia to jointly build training facilities for youth athletes. By 2022, Saudi Arabia had invested over $500 million into sports infrastructure in Southeast Asia.
• Esports Growth: The esports industry has witnessed explosive growth in both the UAE and ASEAN. In 2022, the UAE became the official host of the Global Esports Games, while ASEAN countries like Singapore and Malaysia invested heavily in creating esports arenas. The Gulf-ASEAN Esports Partnership, launched in 2023, is estimated to generate over $70 million in annual revenue, with joint tournaments bringing together players from across the regions.

2. Fast-Moving Consumer Goods (FMCG)

The FMCG sector remains a cornerstone of Gulf-ASEAN relations, with Southeast Asia’s rapidly growing consumer class driving demand for a wide range of consumer goods, from personal care products to household items.

• Key Data: In 2021, ASEAN exports of processed food products to the Gulf reached $3.8 billion, with Malaysia and Thailand leading the way. The UAE has increasingly become a hub for FMCG products, with 15% of Dubai’s re-exports involving goods from ASEAN. The market for halal-certified FMCG products is particularly lucrative, with Gulf nations importing more than $1.2 billion in halal FMCG goods from ASEAN in 2022.
• Strategic Partnerships: Gulf FMCG companies such as Almarai and Agthia have expanded their operations into Southeast Asia. Almarai partnered with PT Indofood in Indonesia to produce dairy products for local and regional markets. Similarly, UAE-based Agthia has extended its distribution network in ASEAN, focusing on bottled water and packaged foods.

3. Food and Agriculture

Food security has become a critical area of focus for both Saudi Arabia and the UAE. With limited arable land, the Gulf countries have long depended on food imports, and ASEAN’s strong agricultural sector offers a key solution to their needs.

• Investment Figures: In 2022, Saudi Arabia’s Salic (Saudi Agricultural and Livestock Investment Company) invested $600 million in agricultural lands in Thailand and Vietnam, primarily focusing on rice and livestock production. This marked a 20% increase in Saudi Arabia’s total agricultural investments in Southeast Asia since 2020. Meanwhile, the UAE established a $400 million joint venture with Malaysia to import halal-certified food products into the Gulf, with the venture expected to grow by 7% annually.
• Key Agreements: The Saudi-Malaysian Halal Food Partnership, formed in 2022, aims to position both nations as leaders in the global halal food market, which is valued at over $2 trillion. This partnership not only enhances food security for the Gulf nations but also opens new markets for ASEAN’s agricultural sector.

4. Tourism and Hospitality

Tourism is one of the fastest-growing sectors linking Saudi Arabia, the UAE, and ASEAN countries. Both regions are leveraging their unique cultural, religious, and luxury tourism sectors to attract visitors.

• Tourism Numbers: By 2022, more than 1.5 million ASEAN tourists visited the UAE, with Indonesia and Malaysia leading the way. Religious tourism in Saudi Arabia also saw a marked increase, with over 350,000 Southeast Asian pilgrims visiting the Kingdom for Hajj and Umrah annually. The UAE’s luxury tourism market is similarly thriving, with Dubai’s Expo 2020 drawing in over 100,000 visitors from ASEAN.
• Hospitality Investments: In response to rising demand, the UAE’s Emaar Hospitality Group announced plans in 2023 to invest $500 million in building luxury hotels in Malaysia and Thailand. Saudi Arabia’s Red Sea Project, one of the Kingdom’s largest tourism initiatives, has similarly attracted ASEAN investors, including Indonesian property developers interested in co-financing resort developments.

Manufacturing: A Critical Growth Sector

Manufacturing plays a central role in diversifying the Gulf’s economy, with ASEAN offering significant opportunities for collaboration.

Saudi Arabia and ASEAN Manufacturing

As part of Vision 2030, Saudi Arabia has made significant strides in building manufacturing capabilities. ASEAN, known for its strong manufacturing base in electronics, automotive, and textiles, is an ideal partner in these efforts.

• Key Figures: In 2021, Saudi Arabia launched a $1 billion joint venture with Vietnamese electronics companies to develop consumer electronics manufacturing plants. This initiative is expected to generate 10,000 new jobs in Saudi Arabia by 2025 and increase Vietnam’s electronics exports by 15%. Saudi Arabia is also investing in automotive manufacturing in Thailand, with $500 million allocated to a joint vehicle assembly plant in Riyadh, set to open in 2024.

UAE’s Manufacturing Expansion in ASEAN

The UAE is expanding its manufacturing footprint, particularly in textiles, pharmaceuticals, and medical devices, leveraging ASEAN’s robust manufacturing sector.

• Textile Manufacturing: In 2020, the UAE invested in textile manufacturing in Indonesia, with a $200 million investment in sustainable production facilities. This has made Indonesia one of the UAE’s largest textile suppliers, with the joint venture expected to increase ASEAN-UAE textile trade by 30% by 2025.
• Pharmaceutical Manufacturing: In 2023, the UAE signed a $750 million agreement withThe full text was cut off mid-sentence. I’ll continue the article seamlessly from where it was interrupted:

• Pharmaceutical Manufacturing: In 2023, the UAE signed a $750 million agreement with Singapore and Malaysia to co-manufacture pharmaceuticals and medical devices. This collaboration is expected to boost regional exports by 20% over the next five years, with particular emphasis on producing medicines tailored to ASEAN’s healthcare needs.
• Joint Infrastructure Projects: The UAE’s Khalifa Industrial Zone Abu Dhabi (KIZAD) has played a key role in establishing manufacturing hubs in ASEAN. In 2022, KIZAD signed an agreement with Vietnam to develop a $300 million logistics hub that will facilitate the flow of goods between the UAE and Southeast Asia.

Challenges and Opportunities

While the non-oil commercial relationship between Saudi Arabia, the UAE, and ASEAN countries is growing, several challenges need to be addressed for these partnerships to flourish. At the same time, significant opportunities exist for further expansion in emerging sectors.

Challenges

• Cultural and Regulatory Differences: Navigating the different regulatory environments between the Gulf and ASEAN remains a challenge. Gulf businesses face complex bureaucracies when entering ASEAN markets, and ASEAN firms encounter similar obstacles in Saudi Arabia and the UAE, where laws and regulations differ from their home countries.
• Competition from Other Markets: Both the Gulf and ASEAN are highly competitive regions. ASEAN countries are courted by global powers such as the United States, China, and Europe, while Saudi Arabia and the UAE face competition from other investors, particularly in sectors such as renewable energy and technology.
• Geographical Distance: Although strong logistics networks exist between the Gulf and ASEAN, the sheer distance can still create logistical challenges, particularly in sectors where timely delivery of perishable goods is crucial, such as agriculture and food products.

Opportunities

• Technology and Digital Economy: Both the Gulf and ASEAN are making significant investments in artificial intelligence, smart cities, and fintech. Collaborative ventures in these fields offer vast opportunities for growth. In 2023, Saudi Arabia signed an MoU with Indonesia to develop smart city technologies in Jakarta and Mecca, bringing together the two regions’ tech ecosystems.
• Renewable Energy and Sustainability: With both regions committed to reducing their carbon footprints, renewable energy has become a promising sector for collaboration. The Masdar Solar Project in Malaysia, which began in 2021, is expected to provide 500 MW of clean energy by 2025, marking just one of many projects where Gulf investment is contributing to ASEAN’s energy transformation.
• Education and Knowledge Transfer: The growing number of education exchange programs between Gulf and ASEAN countries is fostering new opportunities for knowledge transfer. Saudi universities are collaborating with Malaysian and Indonesian institutions on research in agriculture, renewable energy, and technology, building a foundation for long-term partnerships across sectors.

Future Outlook

The future of the non-oil commercial relationship between Saudi Arabia, the UAE, and ASEAN looks promising as both regions increasingly prioritize diversification and technological advancement. By 2030, ASEAN is expected to become one of the Gulf’s largest non-oil trading partners, with growth focused on sectors such as manufacturing, technology, and renewable energy.

Key Growth Sectors

• Artificial Intelligence and Smart Cities: Both regions are investing heavily in AI and digital transformation. Saudi Arabia’s Neom Project, which aims to create a fully smart city, has partnered with Singapore to adopt digital governance frameworks, further intertwining the two regions’ tech ambitions.
• Tourism and Hospitality: As travel restrictions ease, the tourism industry is expected to rebound, with more joint campaigns promoting Gulf-ASEAN travel. Dubai’s 2025 Tourism Plan is focused on drawing 5 million tourists from ASEAN annually, while Saudi Arabia’s Vision 2030 will bring millions of Southeast Asian pilgrims to the Kingdom.
• Agriculture and Food Security: Food security will remain a critical area of investment, with Gulf countries continuing to invest in ASEAN’s agricultural sectors. The Saudi-Vietnam Rice Deal, signed in 2022, will provide Saudi Arabia with 2 million tons of rice annually, solidifying the region’s role in the Kingdom’s food security strategy.

Conclusion

The non-oil commercial relationships between Saudi Arabia, the UAE, and ASEAN are becoming increasingly dynamic and diversified. With growing investments in sectors like technology, sports, manufacturing, FMCG, and tourism, both regions are well-positioned to build strong, long-term partnerships. The increased focus on sustainability, knowledge transfer, and economic diversification ensures that these relationships will only strengthen in the years to come.

Through strategic initiatives such as Saudi Vision 2030 and UAE Vision 2021, Gulf countries are fostering partnerships that move beyond oil, creating opportunities for mutual growth and prosperity with ASEAN nations. As the global economy shifts, the ties between these regions will continue to serve as a model for economic collaboration across diverse sectors.

Source: 

1. https://marketresearchsoutheastasia.com/insights/
2. https://marketresearchabudhabi.com/insights/