Last Updated on June 26, 2024 by Ideal Editor
UAE Investments in Turkey’s Economic Sectors
Suhail Al Mazrouei, the Emirati Minister of Energy and Infrastructure, stated that the UAE is planning significant investments in various sectors in Turkey. At the St. Petersburg International Economic Forum, Al Mazrouei revealed the Gulf state’s interest in exploring energy, agriculture, transportation, tourism, and more opportunities. This information about UAE investments in Turkey’s economic sectors was reported by the state-run Anadolu Agency (AA).
Strengthening Bilateral Ties
In July 2023, the UAE and Turkey signed agreements worth an estimated $50 billion during President Tayyip Erdoğan’s visit to Abu Dhabi. Notably, energy projects comprised more than half of these agreements.
Al Mazrouei emphasized the UAE’s strategic interest in expanding renewable energy initiatives in collaboration with Turkish companies.”It makes sense for us to invest in and expand renewable energy projects in Turkey and collaborate with Turkish companies,” he said.
Turkey’s Strategic Significance
Highlighting Turkey’s strategic position, Al Mazrouei noted its potential as a crucial hub for natural gas and other infrastructure linking Europe and neighboring regions. “Ankara is a genuine partner,” he added, underscoring the strong bilateral relationship.
Rebuilding and Economic Outlook
Turkey is still in the process of rebuilding its economy following the devastating earthquake that struck in February last year. This resulted in approximately 48,000 deaths and leaving hundreds of thousands homeless.
Despite these challenges, Turkey’s real GDP is expected to grow by 2.4 per cent in 2024, according to S&P Global forecasts. The growth rate decreased to 3% from last year but it’s still a positive trend. However, slower growth is anticipated to continue weighing on the economy.
Public debt is projected to be equivalent to 20 percent of GDP in 2024, with interest payments constituting 17 percent of government revenue, up from 13 per cent last year, according to S&P.
Looking Ahead
The UAE’s planned investments across various sectors reflect a robust commitment to strengthening economic ties with Turkey. “By focusing on renewable energy and leveraging Turkey’s strategic location, the UAE aims to foster sustainable growth and mutual prosperity for both nations.”
Frequently Asked Questions (FAQ) on UAE Investments in Turkey’s Economic Sectors
What sectors is the UAE interested in investing in within Turkey?
The UAE is gearing up for significant investments in various sectors in Turkey, including energy, agriculture, transportation, tourism, and more. This diversification reflects the UAE’s strategic interest in broadening its economic footprint in Turkey.
What recent agreements have been made between the UAE and Turkey?
In July 2023, the UAE and Turkey signed agreements worth about $50 billion during President Tayyip Erdogan’s visit to Abu Dhabi. Notably, over half of these agreements pertain to energy projects, highlighting the importance of this sector in bilateral cooperation.
Why is Turkey considered a strategic partner for the UAE?
Turkey’s strategic position makes it a crucial hub for natural gas and other infrastructure linking Europe and neighbouring regions. The UAE views Turkey as a genuine partner, with significant potential for collaboration in renewable energy and other strategic initiatives.
What are the economic challenges and outlook for Turkey?
Turkey is in the process of rebuilding its economy after a devastating earthquake in February last year. Despite these challenges, S&P Global forecasts Turkey’s real GDP to grow by 2.4% in 2024. However, slower growth is anticipated, and public debt is projected to be equivalent to 20 percent of GDP in 2024.
How does the UAE plan to leverage Turkey’s strategic location for mutual benefit?
The UAE plans to collaborate with Turkish companies to focus on renewable energy initiatives. This approach is expected to enhance economic ties and promote mutual prosperity for both nations.
