Monday, May 20, 2024

On the business card… UAE-Turkey relations towards further warmth


Istanbul / Anatolia

The pace of recovery in relations between Turkey and the United Arab Emirates has been driven by foreign trade figures over the past two years and expectations of further warming in relations after a major deal revealed on Friday.

On Friday, the United Arab Emirates and Turkey signed an agreement that the Gulf nation said could increase the volume of bilateral trade to $40-45 billion over the next five years.

The two countries finalized the final details of the Comprehensive Trade Agreement, which provides for commercial ties with major tax breaks and incentives on trade between the two countries.

The comprehensive trade deal includes an 82 percent reduction in customs duties between the two countries, making Ankara a clear beneficiary of the deal as a major exporter of goods to the UAE.

The trade deal signed on Friday focuses on sectors including agricultural technology, clean energy, logistics and construction.

Turkey has decades of experience in the agricultural sector and the integration of technology in the development of the agricultural sector, which is one of the main sectors that the UAE is focusing on in diversifying its economies.

The United Arab Emirates has the Abu Dhabi Future Energy Company, which operates on five continents and more than 30 countries, while Turkey has become one of the G20 countries that produces clean electric power.

This combination in the renewable energy sector between the two countries will lead to a new revolution in the renewable energy sector with competitive production costs and higher efficiency for international companies.

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In addition to a $4.9 billion currency exchange deal with Turkey last year, the UAE has pledged to invest billions of dollars in Turkey through government entities.

** Two successful models

Turkey and the United Arab Emirates have two emerging models of economic progress that have been accelerating since the beginning of the current millennium, as shown by GDP growth data for both countries.

Turkey achieved average growth rates of 5 percent in the years following the turn of the new millennium, reflecting the amount of work the country saved in developing the industrial and manufacturing sectors.

Whereas the United Arab Emirates, since the turn of the millennium, has been able to diversify its economies away from crude oil and create a boom in the Middle East with industrial, tourism, services and construction sectors.

The United Arab Emirates, a member of OPEC, has the fifth largest proven crude reserves with an average daily oil production of 3.5 million barrels and more than 108 billion barrels under normal conditions.

Today, Turkey has a developed infrastructure in the transport sector with advanced transport systems by land, sea and air in a network that extends from east to west, in addition to its geographic location connecting three continents (Africa, Asia). , Europe).

In turn, Emirates, located on one of the main lines of the Silk Road, has one of the largest ports in the world “Jebel Ali Port” and two of the most important international airlines (Emirates Airlines and Etihad Airways). )

** Trading in non-oil products

According to the data of the Turkish Statistics Authority, exports of goods to the United Arab Emirates have reached the level of $ 5.5 billion, which is the same level recorded in the export of Turkish goods in 2021.

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Turkish imports of Emirati or non-oil products from the UAE increased to $4.5 billion in 2021, compared to $2.44 billion in 2021.

On Friday, UAE Foreign Trade Minister Thani Al-Ziyadi said bilateral trade (exports, imports, re-exports) between the two countries will be approximately $19 billion by 2022.

The news published on the official page of Anadolu Agency is a summary of part of the news shown to subscribers by the News Stream System (HAS). To subscribe to the agency, contact the following link.

Bill Dittman
Bill Dittman
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