In recent years, Turkey and the UAE have developed strong relations at the cultural, military and economic levels. Recently, Turkey has become one of the largest trading partners of the UAE, with annual bilateral trade between the two countries reaching $9 billion – which has led to a rise of 800 percent in the last Seven years at the level of trade exchange.
Within the framework of the privatization system in Turkey, Emirati businessmen were encouraged to invest in it in order to activate joint cooperation between the two countries. The two sides pledged to improve trade relations through joint projects and invite officials to meet and consult in the future in order to identify possible areas of cooperation in order to encourage Emirati investments in Turkey and Turkish investments in the UAE. The UAE announced the establishment of a fund to support Emirati investments in Turkey worth ten billion US dollars. This announcement was made by Mohammed Hassan Al-Suwaidi, Chairman of the Board of Directors of the Abu Dhabi Development Holding Company, who accompanied Mohammed bin Zayed on his visit.
Strategic Agreements
President Erdogan and Bin Zayed witnessed the signing ceremony of 10 agreements related to the fields of energy, banking, transportation, technology, environment, trade exchange and Emirati investments in Turkey, as well as Turkish investments in the UAE, and this is his duty to strengthen Turkish-Emirati relations at all levels.
In a tweet, the Crown Prince of Abu Dhabi described his talks with Erdogan as fruitful, explaining his strong optimism to open new horizons for cooperation and joint work between the two countries.
After the return of Turkish-Emirati relations, Abu Dhabi bought stakes in Turkish projects and established strategic partnerships, especially in the new Istanbul Canal project, which will link the Sea of Marmara and the Black Sea and create a new trade line that opens up prospects for a broader commercial market.
The UAE has also purchased banks and shares in the Turkish stock exchange, in order to expand Emirati investments in Turkey to ensure the achievement of strong partnerships that support the Turkish defense industry sector, which has witnessed a wide boom in recent years, especially in the drone manufacturing sector.
A group of economic observers suggested that the Turkish president would agree to grant Mohammed bin Zayed great economic privileges in Turkey, as long as this would be in the interest of the Turkish economy and the local Turkish currency, and would strengthen Turkish-Emirati relations in terms of trade and investment exchange.
-Trade links between Turkey and the UAE
- The Turkish-Emirati relations in terms of trade and investment enjoy very broad prospects, especially in light of the economic diversity and open trade policies of the two countries and their distinct strategic location. The UAE is a bridge between East and West, and a broad commercial gateway for Turkish exports to the Middle East, Asia and Africa markets, while Turkey is an important commercial market for Emirati goods and exports, and a window for its access to a number of European and Asian markets, which heralds the development of joint Turkish-Emirati relations, and jump them to higher levels in the future. The strong similarity between the two countries appears in that they constitute an important trade crossing between the East and the West, with their distinguished geographical location.
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- Turkey is ranked 11th among the largest trading partners of the UAE, while the UAE is Turkey’s twelfth trading partner globally. Gold, jewelry and jewelry are the most important commodities of trade exchange between the two countries over the past ten years.
- Emirati investment flows in Turkey achieved about 4 billion dirhams at the end of 2020; The investments of Emirati companies vary in several sectors in the Turkish markets, such as construction, oil and gas, financial services, manufacturing, tourism and renewable energy. Moreover, the balance of Turkish investments in the UAE until the beginning of 2020 amounted to more than 1.3 billion dirhams, and the most important of these investments were in building and construction, real estate, the financial sector, insurance, industry and information technology.
- The UAE is at the forefront of Turkey’s trading partners, and in the list of the twenty most traded countries with Turkey. According to the data of the Turkish Ministry of Trade for 2019, the UAE’s exports to Turkey amounted to 3 billion dollars. Turkey’s exports to the UAE amounted to $3.5 billion, while the volume of bilateral trade reached its peak in 2017, at $14.7 billion.
- The real estate investment sector comes at the top of the pyramid of Emirati investments in Turkey, in addition to large investments in the banking sector, port operation and the tourism sector. It offers them tax breaks, strong infrastructure, and a qualified workforce.
Emirati investments in Turkey in the real estate sector
Commercial and economic reports indicate an increase in the volume of Emirati investments in Turkey in the real estate sector and an expansion in the construction of hotels, resorts and villas in many tourist areas in Turkey such as Istanbul, Antalya, Marmaris, the Mediterranean region in general, Trabzon, the Black Sea region, Bursa, Yalova, and Sabanca Emirati companies are also seeking to build apartments and residential complexes in Trabzon and Bursa with a capital of half a billion dollars.
The areas that Emiratis choose when buying a property in Turkey?
Istanbul comes at the forefront of the areas that Emiratis focus on when buying real estate in Turkey, especially in the central areas, such as: Çamlıca, in which there is an Emirati real estate project that won the award for the best mixed-use architectural building in Europe, and it includes residential buildings along with a hotel and a shopping center on an area of 150 thousand square meters.
Also, the Buyukcekmece district in European Istanbul occupied a strong position in attracting Emirati investors with luxury apartments and beautiful villas overlooking Lake Buyukcekmece.
Among the most important Emirati investments in Turkey in the real estate sector in Turkey, we find the Emaar Squere project or “Emaar Square” or Emaar Residences, which is a residential complex within a huge project that includes a hotel, a shopping center, and apartments with high views of Istanbul, characterized by the best standards of beauty, luxury and luxury in its design. Elegant and modern shape.
As well as the Lake Valley project with its luxurious buildings and beautiful views, in addition to a shopping center similar to New York centers, which will open soon.
That is why Turkey has become an attractive environment for Emirati investors in buying real estate and implementing projects, as it is a safe investment environment, characterized by government facilities, exemptions and discounts, as Emiratis achieved less than 5% of total real estate sales to foreigners in Turkey during August 2020, all of which would support Turkish-Emirati relations at all levels.
The future of Turkish-Emirati relations
Experts expect that the future of Turkish-Emirati relations is based on strengthening economic relations, especially after the return and strengthening of normal relations between them, as the UAE is one of the most important markets for Turkish products, and the economy depends on Emirati investment flows in Turkey among the important figures in foreign investment in Turkey.
Considering Turkey as one of the most important commercial markets for Emirati products contributes significantly to moving economic and trade relations to a more developed stage that benefits both parties, in addition to Turkey being a window to access a number of European and Asian markets, and this reflects the promising possibilities for developing joint economic and trade relations and access It leads to broader future horizons that predict long-term plans and projects.
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