After Erdogan’s re-election, an increase in mutual investments with the Gulf is expected. It is emphasized that a significant amount of investment will be unlocked, stating that “Turkey presents itself as a financial and business center.”
The re-election of President Recep Tayyip Erdogan by the people continues to be discussed worldwide.
Qatar-based Al Jazeera has contributed to the discussion with an analysis titled “What does Erdogan’s re-election mean for Turkey-Gulf relations?”
It was stated that the personal connections of the Turkish President with regional leaders, along with economic and defense agreements, will enhance bilateral relations.
Erdogan’s re-election has been welcomed in the Gulf
It was indicated that the development regarding Erdogan, who was elected president on May 28, has been welcomed by officials of the Gulf Cooperation Council (GCC).
It was emphasized that this situation will add a sense of continuity to the process and strengthen relations between Ankara and the bloc and its six members.
Al Sani was the first to congratulate
It was stated that the Emir of Qatar, Sheikh Tamim bin Hamad Al Sani, was the first foreign head of state to congratulate President Erdogan, and it was stated as follows:
Gulf leaders quickly expressed their desire to strengthen ties with Turkey by doing the same. It is expected that Erdogan will soon visit the Gulf as a reflection of how important GCC members are in Turkey’s foreign policy agenda.
From today until 2028, GCC countries can expect business as usual in their relations with Ankara.
If Kılıçdaroğlu had been elected…
It was stated that Erdogan’s re-election has “relieved” many Gulf officials because his opponent, Kemal Kılıçdaroğlu, would have likely changed Turkey’s foreign policy towards the GCC in a way that would undermine their interests.
Unlocking a significant amount of investment
It was emphasized that Ankara will continue to attach great importance to its economic, political, and security ties with GCC countries, and closer economic ties between the United Arab Emirates (UAE) and Turkey will provide opportunities to unlock a significant amount of investment that could contribute to the growth of both economies.
A few days after Erdogan’s re-election, it was reported that Turkey and the UAE approved a cooperation agreement aiming to increase their bilateral trade to $40 billion within the next five years.
Foreign trade with regional countries: UAE in the lead
Meanwhile, the United Arab Emirates (UAE) currently holds the top position in Turkey’s billion-dollar level foreign trade volume with Gulf countries, with $9.72 billion.
Following the UAE, Saudi Arabia ranks second with $5.20 billion, Qatar ranks third with $2.20 billion, Oman ranks fourth with $2.04 billion, Kuwait ranks fifth with $0.95 billion, and Bahrain ranks sixth with $0.88 billion.
Share of countries in exports to the Gulf region
UAE: 58%, Saudi Arabia: 12%, Qatar: 16%, Kuwait: 7%, Oman: 5%, Bahrain: 2%.
Gains in various sectors
Under the Turkey-UAE Comprehensive Economic Partnership Agreement, gains have been achieved in various sectors such as automotive, white goods, petrochemicals, textiles and carpets, footwear, plastic products, and machinery.
The agreement aims to facilitate the development of high-value-added service sectors, ease investment processes, and promote trade and investment between the two countries.
Turkey presents itself as a financial and business center
The same report also highlights the following observations regarding investment developments:
Turkey positions itself as a financial and business center to attract Gulf investors to invest in different sectors. Investment in Turkey could be one of the areas where we can compete with GCC countries such as Saudi Arabia and the UAE.
The economic significance of deeper ties with Ankara
It is noted that deeper ties with Turkey are important for Gulf countries in terms of economic diversification. Turkish companies can play a significant role in helping GCC countries reduce their dependence on hydrocarbons in various sectors, including entertainment, tourism, and food production.
Discussion of $50 billion worth of projects
The analysis further states:
Turkish firms, especially in the construction sector, have long contributed to the growth of mega projects in Gulf markets, ranging from airports and highways to stadiums and high-rise buildings.
A group of executives representing approximately 80 Turkish construction companies met with Saudi Aramco in Ankara to discuss potential projects worth $50 billion in Saudi Arabia.
