Blue Diamond Affair

In News 

Recently, Saudi Crown Prince Mohammed bin Salman and Thailand’s prime minister signed agreements to expand diplomatic relations between the two countries.

• The relations were restored only earlier this year, three decades after a high-profile jewelry theft, also known as the Blue Diamond Affair.

About Blue Diamond Affair

• Saudi Arabia downgraded its diplomatic relations with Thailand over the theft that led to a string of mysterious killings and became known as the Blue Diamond affair.
  • It all started with the theft of jewelry and other valuable gems from the palace of Prince Faisal bin Fahd, the eldest son of King Fahd of Saudi Arabia, in 1989.
  • A Thai worker employed as a servant at the palace, stole precious gems worth $20 million from Prince Faisal’s home, which also included a rare 50-carat blue diamond, which is still missing.
  • The ensuing diplomatic repercussion was thus named after the gem.
• Impacts: 
  • It resulted in loss of jobs for thousands of Thai migrant workers. 
  • Saudi Arabia stopped issuing work visas for Thais and discouraged its own citizens from visiting Bangkok. 
• Present Saudi-Thailand relations:  Recent The high-level meeting also saw the two leaders agreeing on the appointment of ambassadors “in the near future” and to strengthen economic and trade relations
  • As the two countries turned a new page in their relationship, Saudi restarted direct flights to Thailand in February.
  • Since January 2022, many friendly exchanges have taken place between the two countries — one being an agreement between state-owned energy firms Saudi Aramco and Thailand’s PTT for cooperation in carbon capture and crude oil sourcing.
• Recent Developments: In October 2022, Thailand hosted the controversial Saudi-backed circuit, LIV Golf Invitational.
  • In November 2022, Saudi Investment Minister Khalid al-Falih attended a business forum in Bangkok meeting agriculture firms.
• Relevance: Restoration of ties has benefits for both countries, as the two leaders inked agreements pledging to increase trade and investment.

Source: IE