Turkey and UAE enter new cooperation, restore ties

Middle East, News November 27, 2021 , by IRIA No Comments

UAE invests $10 billon into Turkey, signing strategic deals to reset ties

Turkey and the United Arab Emirates (UAE) have signed dozens of cooperation and investment agreements worth billions of dollars. The investment could help ease Turkey’s economic crisis after the local currency’s sharp slide.

The small but influential oil-and-business powerhouse UAE has announced to launch a $10 billion fund to support investments in Turkey after the de facto ruler of UAE visited Turkey for the first time in almost a decade.

President Recep Tayyip Erdogan and Abu Dhabi Crown Prince Mohammed bin Zayed (MBZ) met in Ankara to restore ties and enter into a new partnership. The crown prince was welcomed at the Turkish presidential complex in Ankara in a ceremony that included a 21-gun salute.

MBZ said he had “fruitful” talks with Erdogan on strengthening bilateral ties. “I look forward to exploring new cooperation opportunities to benefit our two nations and advance our mutual development goals,” he said on Twitter.

The development marks a significant change in the geopolitics of the Middle East as both the UAE and Turkey have competed for influence in the region for over a decade now. Turkey is currently engaged in an effort to mend ties with regional powers after finding itself increasingly isolated internationally.

The crown prince’s brother who is the UAE national security advisor, Sheikh Tahnoun bin Zayed Al Nahyan, visited Turkey in August as the first step toward mending frayed ties.

Strategic agreemnts

The accords were signed between the Abu Dhabi Development Holding (ADQ), Turkish Wealth Fund (TVF) and the Turkish Presidency Investment Office, as well as other Turkish companies.

The strategic agreements will focus on trade, energy, security, and environment. ADQ signed agreements entailing direct investments and cooperation with Turkey in the fields of petrochemicals, technology, transportation, infrastructure, healthcare, financial services, and energy, including renewable energy projects in Turkey.

Turkey-UAE trade ties

Turkey is a “great natural partner” for the UAE which is “now ready to enter the next phase” of trade partnership, said Dr. Sultan bin Ahmed Al Jaber, UAE’s Minister of Industry and Advanced Technology. Al Jaber, who was part of the high-level delegation to Turkey, said that the UAE is “taking a comprehensive approach” to the partnership with Turkey.

UAE is also Turkey’s largest regional trading partner. UAE exports to Turkey increased by more than 110 percent from 2019 to 2020. In the last five years, the UAE has mostly invested in Turkey’s transportation, renewable energy and tourism sectors, while Turkish investments in the UAE focused on construction, automotive components and renewable energy.