UAE and Türkiye embark on a new strategy to bolster trade and investment

The UAE and Türkiye looks set to further strengthen their bilateral relations on multiple front to bolster their economy, trade, investment, cultural and diplomatic relations in coming years, experts say.

Analysts and economists said both the nations have embarked on a new strategy to strengthen their partnership on all levels in the past 50 years, setting the stage for a prosperous future. In the next 50 years, the two countries will work towards fostering bilateral and constructive cooperation in diverse fields, according to the experts.

Atik Munshi, Managing Partner at FinExpertiza UAE, said the UAE-Türkiye ties are nearly as old as the country itself.

“During the last 50 years, this bond has grown sturdier where each country knows and respects each other’s strengths,” he said.

Strong friendship bond

Munshi said the UAE-Türkiye are key trade partners. “Türkiye has a strong manufacturing base and a long line of experience. The UAE is a key player in the trading and financial sector business in the region and hence the friendship is expected to blossom exponentially over the next decades,” he said.

To a question, he said infrastructure, real estate, energy and food are among the key areas where both are expected to have more common grounds and attract foreign direct investment (FDI) from each other.

“The CEPA agreement, which was signed between the countries in March and became effective in September, shows the commitment of both the countries towards deepening the economic ties. Both countries have already signed several MoU’s which also include extradition to further strengthen their relationship,” Munshi said.

Key Mena markets

Saad Maniar, Senior Partner at Crowe UAE, said the UAE and Türkiye have historically maintained strong economic relations.

“Economic cooperation includes investments in various sectors, including real estate, construction, and tourism,” he said.

He said the UAE and Türkiye have shown interest in collaborating on energy projects. Turkish companies have been involved in infrastructure and construction projects in the UAE, reflecting their cooperative efforts to improve infrastructure.

“Both the UAE and Türkiye are key players in the broader Middle East and North Africa region. Their positions and alliances can have a significant impact on regional dynamics,” he said.

In reply to a question, he said expanding economic ties can be a significant catalyst for improving relations.

“Both nations can work on enhancing trade relations, promoting investments, and exploring opportunities for joint ventures in various sectors,” he said.

Identifying common interests and areas of cooperation, such as energy projects, infrastructure development, and regional stability, can provide a foundation for stronger relations, he added.

“Building trust is essential. Both countries can take confidence-building measures to demonstrate their commitment to a more cooperative relationship. This includes honouring agreements and respecting each other's sovereignty and interests,” he said.

Maniar said both countries can explore opportunities to increase two-way trade and investment, particularly in areas such as manufacturing, technology, and infrastructure development.

“Both countries have vibrant tourism industries. Encouraging tourism exchanges and promoting cultural tourism can lead to increased visitors and revenue for both nations. Given the importance of food security, cooperation in agriculture, food production, and supply chain management can also be explored,” he said.

Strategic agreements

Vijay Valecha, Chief Investment Officer at Century Financial, said the UAE and Türkiye are strongly dedicated to strengthening their bilateral relations, backed by the leadership of both nations.

“These relations are viewed as crucial for fostering comprehensive development in each country. The UAE-Türkiye connection creates opportunities for regional prosperity and contributes to peace and stability,” he said.

He said the UAE places great importance on its relationship with Türkiye as part of its strategy to build partnerships with various friendly nations. The UAE is actively working to enhance collaboration with Türkiye across various sectors, acknowledging Turkey's regional and global significance, he said.

Over the past five decades, he said the UAE and Türkiye have established multiple strategic agreements and Memoranda of Understanding (MoUs) aimed at reinforcing their cooperation across various domains, including the economy, security, environment, technology, and more.

“Economic cooperation plays a central role in their evolving partnership, with a history dating back to the UAE's establishment,” he said.

Notably, he said the two countries signed an Economic and Technical Cooperation Agreement in 1984, followed by additional agreements that bolstered economic and trade ties. The pinnacle of these efforts was the signing of the Comprehensive Economic Partnership Agreement (CEPA) in March.

“CEPA is projected to increase non-oil intra-trade to $40 billion within five years, generate 25,000 new job opportunities by 2031, and boost UAE exports to Türkiye by 21.7 per cent,” he said.

In 2022, he said the total non-oil trade between the UAE and Türkiye reached nearly $19 billion, marking a 40 per cent increase from 2021 and a remarkable 112 per cent surge from 2020. “Notably, Türkiye has emerged as the fastest-growing among the UAE's top 10 trade partners. In November 2021, the UAE unveiled a $10 billion investment fund dedicated to Türkiye, with a focus on strategic investments, particularly in sectors like logistics, energy, healthcare, and food,” he said.

Fresh investment opportunities

Looking ahead, Valecha said both the UAE and Türkiye are actively exploring fresh investment opportunities and areas for collaboration across various sectors to further expand their bilateral economic relations.

“Both countries are particularly interested in cooperating in sectors like gas, energy infrastructure, renewable energy, healthcare, biotechnology, agriculture technology, defence, logistics, digital communication, e-commerce, and financial services, as stated by the Ministry of Industry and Advanced Technology,” he said.

Moreover, he said the UAE is a leader in several key sectors, including energy, petrochemicals, metals, defence, pharmaceuticals, and food and beverages.

“Collaboration with Türkiye in these sectors, along with advancements in industry and advanced technology, demonstrates a firm commitment to increasing joint investments, leading to stronger diplomatic and economic ties between the two nations,” he said.

Additionally, he said the two countries signed a Memorandum of Understanding for cultural cooperation in February 2022, revealing their interest in fostering cultural ties. This cultural collaboration has been on the rise, evident in Türkiye's participation as the Guest of Honour at the Abu Dhabi International Book Fair 2023 and its significant presence during Expo 2020 Dubai.

“While economic collaboration plays a central role in this growing partnership, it's the shared cultural history and literary traditions that have sustained the bonds between the two countries over time,” he said.

AREAS TO EXPLORE

> Manufacturing

> Technology

> Infrastructure development

> Tourism

> Food security

> Real estate

> Construction

> Energy

> Logistics

> Security

— muzaffarrizvi@khaleejtimes.com

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