Erodgan reaches Saudi Arabia
Turkish President Recep Tayyip Erdogan reached Saudi Arabia as he embarked on a Gulf tour, beginning in Jeddah. The aim of his visit is to focus on business and investment opportunities with Saudis.
The Turkish president led an extensive delegation consisting of government ministers, officials, and approximately 200 business leaders, investors, and company owners.
Upon his arrival, Erdogan was warmly received by Crown Prince Mohammed bin Salman and engaged in meetings with various Saudi ministers and officials.
Saudi Crown Prince Muhammad Bin Salman received Turkish President in Jeddah.
The discussions revolved around bilateral relations and strategies to enhance cooperation across all sectors, as well as addressing current regional and international developments.
Furthermore, both leaders witnessed the signing of several agreements encompassing energy, defense industries, research and development, direct investment, media, and two contracts with the Turkish company Baykar.
Following his visit to Saudi Arabia, Erdogan will continue his tour with trips to the UAE and Qatar, where business forums will be held in all three countries.
Erdogan expressed that the primary focus during these engagements would be joint investments and commercial activities with these nations.
Trade between Turkey and Saudi Arabia reached $6.5 billion last year and amounted to $3.4 billion in the first half of this year.
Over the past two decades, Turkey’s trade with all Gulf states has increased significantly from $1.6 billion to approximately $22 billion. Erdogan expressed his intention to further bolster this figure through the organization of business forums.
Erdogan emphasized the substantial investment opportunities for Turkey in the defense industry, infrastructure, and superstructure projects within the three countries.
Additionally, these countries will have the opportunity to acquire certain assets from Turkey.
The visit is expected to yield numerous agreements spanning various sectors such as energy, pharmaceuticals, technology, food, logistics, agriculture, and petrochemicals.
Turkey’s urgent need to attract foreign direct investment and bolster its international currency reserves is intricately linked to this visit. Erdogan has turned to Gulf investors in search of external resources before the upcoming debt repayments in November.
Professor Aylin Unver Noi from Halic University in Istanbul noted that various factors, including the Abraham Accords, the change in the US administration, the 2021 AlUla agreement, the economic impact of the COVID-19 pandemic, the war in Ukraine, and earthquakes in southeastern Turkey, have contributed to the recent improvement in relations.
“Exploring new economic partnerships is an important determinant of this new foreign policy approach,” she said. “Last month, Aramco met with 80 Turkish contractors to discuss potential projects worth $50 billion in Saudi Arabia.”
Hakan Akbas, representing the commercial diplomacy firm Albright Stonebridge, highlighted that Erdogan’s priority was to rebuild relations with Turkey’s regional neighbors to secure much-needed economic support for the country before crucial elections in May.
“As a result of Erdogan’s visit, bilateral trade will flourish, and Saudi tourism flows to Turkey will increase. Moreover, new deals for military and defense equipment procurement are expected, as the Saudi government aims to diversify its suppliers beyond the US,” Akbas predicted.
