Thailand's hard disk drive (HDD) exports to the Middle East are expected to contract by 18% to US$79 million this year as the Iran conflict disrupts maritime shipping and weighs on regional trade, according to Kasikorn Research Center (K-Research).
However, the impact on Thailand's HDD exports is expected to be limited as the Middle East accounts for only 1% of the country's total HDD shipments.
Total HDD export value tallied $11.7 billion last year, of which $96 million was shipped to the Middle East.
The United Arab Emirates (UAE) is Thailand's primary market for HDD exports in the Middle East, accounting for 78% of export value to the region, followed by Israel at 12% and Turkey at 9%.
China remains Thailand's major competitor in the global HDD market, K-Research noted.
The Middle East continues to invest in data centres, with the number of facilities rising from 319 in 2024 to 347 in 2025, representing year-on-year growth of 9%.
The UAE increased its data centres from 54 to 60, a gain of 11% year-on-year.
However, the value of Thai HDD exports to the Middle East is projected to contract by 18% this year because of the closure of the Strait of Hormuz and a potential slowdown in data centre investment, particularly in the UAE, according to the think tank.
Before the war in Iran, Thai HDD exports to the UAE contracted by 3% year-on-year during the first two months of 2026.
Following the outbreak of the war, exports plummeted by 31% year-on-year between March and April, with April exports down 35%.
A broader slowdown in regional data centre investment this year is also expected to throttle HDD import demand, noted K-Research.
Maritime shipping routes from Thailand to Turkey do not pass through the Strait of Hormuz, instead utilising the Suez Canal. As a result, Turkey has faced relatively limited impact from the Middle East conflict.
Thai HDD exports to Turkey surged by 55% year-on-year during March and April.
Although Thai HDD exports to Israel contracted by roughly 50% year-on-year in March, likely due to wartime disruptions and a high export base the previous year, exports rebounded to 33% growth in April as most cargo routes from Thailand to Israel do not pass through the Strait of Hormuz, said the research house.
