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Turkish president ends Gulf tour with over $50 billion from UAE

The Turkish president's tour also included stops in Qatar and Saudi Arabia and signing of lucrative deals

Turkish president ends Gulf tour with over $50 billion from UAE
[Source photo: Anvita Gupta/Fast Company Middle East]

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Turkey’s President Recep Tayyip Erdogan’s Gulf trip to secure investments ended on a high note. The country, which is battling a currency collapse and soaring inflation, signed agreements worth more than $50 billion in the United Arab Emirates.

Earlier, during his stop in Saudi Arabia, Riyadh signed a major drone procurement contract with a Turkish defense firm. The amount involved was not disclosed.

On Wednesday, at the presidential palace in Abu Dhabi, UAE President Sheikh Mohamed spoke of his commitment to strong ties with Turkey as he welcomed Erdogan. The two leaders attended the signing of agreements and memorandums of understanding, estimated to be worth $50.7 billion, according to the official WAM news agency, to diversify and expand the UAE-Turkey Comprehensive Economic Partnership Agreement framework.

Both leaders emphasized the importance of dialogue and diplomacy in resolving and preventing conflicts. This shared belief is expected to deepen economic and strategic relations between the two nations, bringing mutual benefits.

One of the critical initiatives boosting economic ties was signing a free trade agreement in March between Turkey and the UAE. The agreement aims to increase bilateral commerce to an impressive $40 billion annually within five years.

Among the recent agreements signed during President Erdogan’s visit to the UAE, the Abu Dhabi sovereign wealth fund ADQ has committed $11.5 billion in financial support toward Turkey earthquake relief bonds and credit facilities to boost Turkish exports.

The earthquake relief bonds, amounting to $8.5 billion, will fund comprehensive reconstruction efforts in southern and central Turkey following the devastating earthquakes that claimed more than 54,000 lives in February. The $3 billion in credit facilities will also be channeled towards supporting Turkish companies in expanding their trade with the UAE and other markets.

These recent developments indicate a promising trajectory for UAE-Turkey relations, with both nations working together to foster stability, economic growth, and prosperity in the region and beyond. Establishing the high-level strategic council further solidifies their commitment to building a strong and cooperative partnership.

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