Ahmet Burak Daglioglu, Head of the Investment Office of the Turkish Presidency, said that the cumulative foreign direct investment from the United Arab Emirates to Turkey has surged to $5.6 billion (Dhs20.6 billion) from 2002 through August 2023.
Speaking exclusively to the Emirates News Agency (WAM) during the eighth edition of the World Investment Forum in Abu Dhabi, Daglioglu reported that, as of the first half of this year, around 600 UAE companies have been actively operating in Turkiye.
Daglioglu further highlighted that the UAE currently stands as Turkiye’s 13th largest trade partner for exports and the 15th largest for imports, resulting in a combined trade volume of approximately $10 billion through 2022.
He underscored Turkiye’s consistent attraction of UAE investments, particularly in sectors such as energy, healthcare, agriculture, logistics, transport, infrastructure, finance, and tourism. Additionally, both nations are collaborating in areas such as climate change, energy, water, and food security.
Daglioglu explained that one of the most significant investments made by UAE companies in Turkiye is the strategic partnership between the Dubai Ports World (DP World) group and the Turkish Yibitaş Group. This partnership involves the ownership shares of “DP World Yarimca Port” and the Yibitas Port, alongside the acquisition of Denizbank by Emirates NBD Bank.
He also highlighted that, from 2014 to 2022, the total foreign direct investment from Turkiye to the UAE amounted to approximately $1.1 billion. Furthermore, there are over 400 Turkish companies operating in the UAE across various sectors, including construction, tourism, defense, and others.
The Head of the Turkish Investment Office added that some of the latest UAE investments in Turkiye include the acquisition of a stake in the T.O.M. Group of Companies in Turkiye by Dubai Islamic Bank. This group is the first Turkish bank licensed for digital services for individuals. Additionally, International Holding Co. recently acquired a 50% stake in the Turkish company “Kalyon Energy.” This deal encompasses the solar power plant project in Karapinar, Konya, a 1-gigawatt wind power project, a 100-megawatt solar power project in the city of Niğde, as well as a 50-megawatt solar power project in Gaziantep, along with other renewable energy projects in various Turkish cities.
He explained that there are a series of investment agreements and memoranda of understanding signed between the UAE and Turkiye to strengthen cooperation in the fields of trade, energy,and the environment. These agreements include those signed between “ADQ” and the Turkiye Wealth Fund, encompassing a general cooperation agreement and a memorandum of understanding to establish a “Technology Venture Capital Fund” aimed at investing in Turkish technology companies. Additionally, there is a cooperation agreement related to Abu Dhabi Ports’ investments in Turkey, as well as a collaboration agreement between the Abu Dhabi Securities Exchange and the Borsa İstanbul.
Ahmet Burak Daglioglu mentioned that the Turkish Wealth Fund and “ADQ” recently announced the establishment of the “Turkiye Technology Fund” with a capital of $300 million. This fund is dedicated to investing in various venture capital funds and emerging Turkish companies with significant growth potential and innovative business models. The fund’s focus will be on companies engaged in developing new technologies or enhancing existing ones within key sectors including energy, utilities, healthcare, life sciences, food, agriculture, transportation, logistics, financial services, and education.
He emphasised that Turkiye provides abundant opportunities for investors from the UAE and across the globe. Mergers and acquisitions present a significant opportunity for UAE investors with interests in the Turkish market. Notably, there have been major acquisition deals announced across various sectors, spanning from financial technology to manufacturing, from services to infrastructure, and from real estate to services. He underscored that investing in Turkish companies and fostering collaborative partnerships present avenues for expanding business between the two nations.
In June, Dr Thani Bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade said that the UAE and Turkiye enjoy close trade and investment relations, thanks to the common will of their leadership to promote their cooperation to a broader level of partnership.
Speaking to the Emirates News Agency (WAM), the minister 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, during a virtual summit between President His Highness Sheikh Mohamed bin Zayed Al Nahyan and the Turkish President Recep Tayyip Erdogan.
He added that this agreement, which ushers in a new era of partnership and economic integration, stems from a solid base of close trade and investment relations between the two countries, as non-oil intra-trade increased by 40% to $18.9 billion in 2022, making Turkiye among the top 10 trade partners of the Emirates with a share of more than 3% of the UAE’s non-oil foreign trade. The UAE’s direct foreign investments in Turkiye amounted to more than $5 billion, which puts the UAE among the top 15 countries investing in Turkey.
The Comprehensive Economic Partnership Agreement with Turkiye is the fourth of its kind to be concluded by the UAE as part of its global economic agreements programme, following similar agreements with India, Israel, and Indonesia.
The UAE-Turkiye 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 Türkiye 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 longstanding ties between the two countries are based on the spirit of mutual understanding and respect, and are aimed at enhancing collaboration in various fields including the economic, climate, cultural, and youth-empowerment sectors.
Source: gulftoday