Turkish President Recep Tayyip Erdogan is embarking on a three-day tour to meet the leaders of Saudi Arabia, Qatar and the UAE with major focus on economy and investment….reports Asian Lite News
Turkish President Recep Tayyip Erdogan is embarking on a three-day tour to the Gulf Arab countries – Saudi Arabia, Qatar and the United Arab Emirates respectively on July 17-19, at the invitation of his counterparts.
The meetings in Saudi Arabia, Qatar, and UAE will focus on all aspects of bilateral relations, global and regional issues, and possible areas of cooperation especially in the fields of economy and investment, according to a statement by Turkish Communications Directorate.
According to media reports, the purpose of the Turkish leader’s visit is to strengthen and finalise significant multibillion-dollar agreements which encompass a wide range of areas, including the privatisation of Turkish state assets, direct investments, defence industry collaborations, and business acquisitions or contracts.
In recent statements to the Turkish press, Erdogan expressed his anticipation for the visit, highlighting the chance to personally oversee the support that the Gulf countries have pledged to provide to Turkey.
Previous discussions with these nations have already indicated their readiness to make substantial investments in Turkey. Erdogan remains hopeful that this visit will culminate in the finalisation of these commitments.
To alleviate Turkey’s foreign currency crisis, the Gulf states, known for their oil wealth, have played a significant role by offering immediate solutions. Through currency swap agreements and direct deposits into Turkish state accounts, they have contributed to stabilising the situation, at least in the short term.
Notably, Qatar and the UAE have entered into currency swap agreements amounting to approximately $20 billion. Moreover, Saudi Arabia took a proactive step in March by depositing $5 billion into Turkey’s central bank, providing crucial support to bolster the country’s economy.
The non-oil intra-trade between UAE and Turkey was increased by 40% to $18.9 billion in 2022, making Ankara among the top 10 trade partners of the Emirates with a share of more than 3% of the UAE’s non-oil foreign trade.
Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, said that the bilateral relations between the two nations have witnessed successive positive developments during the past two years, culminating in the signing of the Comprehensive Economic Partnership Agreement (CEPA) last March.
The UAE’s direct foreign investments in Türkiye amounted to more than $5 billion, which puts the UAE among the top 15 countries investing in Turkey.
The UAE-Turkey CEPA aims to achieve mutual benefits for both countries and stimulate long-term, sustainable, and comprehensive economic growth by eliminating or reducing customs duties on 82% of goods and products, representing more than 93% of non-oil trade. Additionally, the agreement improves market access to Turkey for exporters from the UAE, including major sectors such as construction, metals and their products, polymers, and other manufactured products.
It is expected that the agreement will contribute to increasing non-oil bilateral trade to $40 billion annually within five years, while also creating 25,000 new job opportunities by 2031.
The total volume of Emirati investments in Turkey reached about $7.8 billion at the end of 2021 in various sectors including financial services, real estate, transportation, renewable energy, ports and logistics.
Among the leading Emirati companies investing in Turkey are ADQ, Emirates NBD Bank, Emaar, International Holding Company (IHC), Abu Dhabi Investment Authority (ADIA) and Mubadala.
Meanwhile, Turkey’s alliance with Qatar has remained strong for nearly a decade, making it the most favourable relationship among the three nations. During Qatar’s initial diplomatic crisis in 2014, Turkey stood firmly by its side. At the time, Qatar faced isolation from its larger neighbouring countries, Saudi Arabia and the UAE, due to significant disagreements regarding foreign policy approaches.
After his visit to the Arab Gulf countries, President Erdogan will visit the Turkish Republic of Northern Cyprus (TRNC) on July 20 on the occasion of Peace and Freedom Day.
As part of his visit to the TRNC, President Erdogan will attend an official ceremony, meet with President Ersin Tatar and discuss with him the bilateral relations and the latest developments in terms of the Cyprus issue, and inaugurate the new terminal building and runway of Ercan Airport, according to official statement.
