Introduction
The comprehensive partnership agreement between Turkey and the UAE signals a strong step toward enhancing their strategic partnership.
Both countries aim to achieve full economic integration and increase bilateral trade with this Comprehensive Partnership Agreement.
Through this agreement, signed in March 2023 and implemented in August,
the goal is to raise trade value from $20 billion to $40 billion in the coming years.
This is a clear indication of the leadership’s support for these ambitions. According to a report from Gulf Online,
Turkey and the UAE are steadily advancing toward greater economic cooperation,
positioning themselves as key players in regional economic integration, benefiting from their strengths across various sectors.
In line with this renewed ambition,
a Turkish official recently pointed out Ankara’s desire to achieve $40 billion in trade over the medium term, after trade reached around $20 billion in 2023.
Towards an Ambitious Economic Partnership Between Turkey and the UAE
Turkish Deputy Minister of Trade, Mustafa Tozcu,
stated that Turkey is looking to boost its foreign trade with the UAE to $40 billion in the medium term.
His statement came during the opening of a forum organized by the Dubai International Chamber in Istanbul,
in collaboration with the Turkish Union of Chambers and Commodity Exchanges and other Turkish economic institutions.
According to Tozcu, the current trade volume between the two countries is $20 billion, with expectations of it rising soon to $25 billion.
Ali Koubuz, Vice President of the Turkish Union of Chambers and Commodity Exchanges,
also confirmed the two countries’ ability to carry out successful projects, not just locally, but also in regions like Africa and Central Asia.
Koubuz discussed the scale of joint investments, noting that UAE investments in Turkey total around $6 billion,
while Turkey invests approximately $2 billion in the UAE.
He also mentioned that Turkish companies have executed 145 projects worth a total of $13.2 billion in the UAE.
Expansion of Investments and Trade Cooperation
During his speech at the opening of the forum, Mustafa Tozcu highlighted that trade between Turkey and the UAE has reached $20 billion, with expectations to increase to $25 billion soon.
Ali Koubuz further emphasized the two countries’ capacity to execute joint successful projects within Turkey and the UAE,
as well as in promising markets like Africa and Central Asia.
He added that UAE investments in Turkey are valued at around $6 billion, while Turkish investments in the UAE are approximately $2 billion.
Turkish companies have also carried out about 145 projects in the UAE, amounting to $13.2 billion in total.
New Memorandum of Understanding to Enhance Investment Between Istanbul and Dubai
On the sidelines of the forum, a Memorandum of Understanding was signed between the Istanbul Chamber of Commerce
and the Dubai International Chamber to enhance cooperation in economic and industrial fields.
This agreement is expected to further connect the business worlds of Istanbul and Dubai, increasing mutual investment.
This step comes one year after the comprehensive partnership agreement between the UAE and Turkey,
signed on March 3, 2023, which aims to boost trade and elevate economic cooperation.
UAE State Minister for Foreign Trade, Thani Al Zeyoudi,
indicated that this agreement could double non-oil trade to $1.09 trillion.
The agreement includes eliminating or reducing customs duties by 93% on non-oil trade components,
with the goal of doubling bilateral trade to $40 billion. It also aims to increase UAE exports to Turkey by 21.7% and enhance investments in vital sectors such as
logistics, e-commerce, food security, and renewable energy, according to a report by WAM in July 2023.
Ambitious Economic Partnership
Turkey is among the UAE’s top 10 economic partners, accounting for 3% of its non-oil foreign trade.
In July 2023, bilateral relations saw the signing of agreements and memoranda of understanding worth $50.07 billion
during a meeting between Turkish President Recep Tayyip Erdoğan and UAE President Mohammed bin Zayed,
covering vital sectors like energy, trade, industry, transportation, nuclear energy, and emerging technologies.
In August 2024, sources informed Reuters about talks between the UAE and Turkey to create a joint project
for operating the Izmir Port on the Aegean Sea, in collaboration with Abu Dhabi Ports Company.
The UAE had previously expressed interest in buying a stake to operate the port, estimated at $500 million,
but the deal was delayed due to changes in regional competition dynamics.
These partnerships are part of a strategic goal to raise trade volume between the two countries,
which reached $10 billion in 2023, with plans to increase it to $25 billion over the next five years.
Economic Stability Despite Political Tensions
Despite the political tensions between the UAE and Turkey in recent years,
both countries have maintained economic stability and strong trade cooperation.
Turkish journalist Firas Rizwan Oglu mentions that the UAE has become a significant partner in the Turkish market, with substantial investments,
particularly in the port sector, and the presence of a UAE bank in Turkey. He explained to Gulf Online
that there are promising UAE projects that may expand in Turkey soon,
including stakes in the Mersin and Izmir ports and other coastal cities.
He added that the UAE market is very important for Turkey, noting the continuous growth in trade volume between the two sides.
Regarding the goal of increasing trade to $40 billion,
Rizwan Oglu believes it is achievable in the long term,
but the current political situation in Gaza and Lebanon may affect trade volume at the moment.
As for economic growth, he states that Turkey needs to strengthen its economic partnerships,
especially with Gulf countries like the UAE, Qatar, and Saudi Arabia, which have the financial capacity to support Turkey’s economy.
