Thailand and The United Arab Emirates have been holding talks about plans to develop huge livestock farms and produce halal products in the Andaman region of Thailand.

A senior Thai official in Dubai, who did not wish to be named, told Emirates Business that his government had spoken to a number of GCC governments about the proposals.

"For the GCC countries the priority will be to develop livestock farms in the southern part of Thailand and the proposed major farms would produce goats, sheep and other animals."

The official said GCC investment in livestock production would focus on the provinces of Phuket, Phangnga, Krabi, Ranong, Trang and Satun, which are all agricultural and fishing areas with a considerable amount of arable land suitable for commercial livestock production.

He said the GCC countries had expressed an interest in establishing rice farms but this would not be possible because of a shortage of suitable land.

The UAE already has ambitious plans to establish agricultural production centres in Sudan and Pakistan. The Abu Dhabi Fund for Development intends to develop 70,000 acres of land for food production in Sudan.

Charoen Pokpand Foods, Thailand’s largest agri-business firm with operations in 14 countries, is planning a major investment to develop livestock farms in the Moscow region of Russia, according to official Thailand Government sources. A fodder plant has already been established and the entire project is due to be completed by 2012.

A Joint business meeting under the Indonesia, Malaysia and Thailand Growth Triangle (IMT-GT) held in Phuket last agreed that business sectors in the three nations will push for the region to be excellent in halal science industry, agricultural development, tourism and IT.

The chairman of the Thai delegation for IMT-GT, Mr. Thanarak Pongphetar said that Thailand is ready for the halal industry.

The burgeoning Islamic finance industry is using the global economic crisis to win new non-Muslim customers. Investors are attracted by Islamic banking’s more conservative approach: Islamic law forbids banks from charging interest (though customers pay fees) and many scholars discourage investment in excessively leveraged companies.

Though it currently accounts for just 1% of the global market, the Islamic finance industry’s value is growing at around 15% a year, and could reach $4 trillion in five years, up from $500 billion today, according to a 2008 report from Moody’s Investors Service.