Ankara and Abu Dhabi enter into contracts for $50 billion during Erdogan's visit to UAE

Turkish President Recep Tayyip Erdogan concluded a Gulf tour with the final stop in Abu Dhabi on Wednesday, where contracts worth over $50 billion were signed between Turkey and the United Arab Emirates.

In addition to the UAE, Erdogan's three-day tour also included Saudi Arabia and Qatar, where agreements were signed to revitalize Turkey's economy, which has been facing significant inflation and currency depreciation.

According to the official UAE news agency, WAM, Emirati President Sheikh Mohammed bin Zayed Al Nahyan received his Turkish counterpart at the Presidential Palace in Abu Dhabi.

WAM reported that the two presidents witnessed the signing of "memoranda of understanding and agreements worth $50.7 billion."

- High-Level Strategic Committee -
The agency explained that these agreements "aim to diversify the comprehensive strategic partnership between the two countries and expand its horizons to achieve the aspirations of both countries for economic growth and sustainable development."

The two presidents also witnessed, according to the same source, the "announcement of a joint agreement to establish a high-level strategic committee" between the two countries.

During their meeting at the Presidential Palace, the Emirati and Turkish presidents discussed "regional and international issues and developments of mutual concern" and exchanged views on them, according to WAM.

The two presidents emphasized that "dialogue and diplomatic solutions are the way to deal with the various challenges and crises facing the region," according to the same source.

They also stressed the "need for effective cooperation and joint work to build relationships based on mutual respect, trust, and common interests, enhancing stability, peace, and development in the region."

- "Key Partner" -

WAM quoted the Emirati President as saying to Erdogan that Abu Dhabi considers Ankara a "key partner" and has a strategic direction to elevate relations to higher levels, especially in the areas of trade, technology, energy, food security, and others.

President Erdogan arrived in the UAE from Qatar, where he met with the country's Amir, Sheikh Tamim bin Hamad Al Thani. The two sides affirmed during their talks "their strong desire to deepen bilateral cooperation through enhancing trade exchange and economic relations," according to the Qatar News Agency.

This is Erdogan's second visit to the UAE since the warming of relations between the two countries in late 2021 after periods of tension in the past decade.

The UAE and Turkey supported conflicting parties in the war in Libya and had differing positions on gas exploration in the Eastern Mediterranean. Turkey also provided support to Islamic groups, including the "Muslim Brotherhood," classified as a "terrorist" organization in the UAE and the Gulf.

Relations were also strained due to the blockade imposed by Saudi Arabia, the UAE, Bahrain, and Egypt on Qatar, Ankara's closest ally, which lasted from mid-2017 until early 2021. Tensions escalated further with Gulf countries, particularly Saudi Arabia, over the murder of Saudi journalist Jamal Khashoggi in Istanbul in 2018.

However, relations have improved with a visit by the Emirati president to Turkey in November 2021 when he held the position of Crown Prince of Abu Dhabi, followed by Erdogan's visit to the UAE in February 2022.

Last month, the Emirati president met his Turkish counterpart in Istanbul shortly after Erdogan was reelected for a third term following a second round of elections in May. Turkish Vice President Fuat Oktay also met Sheikh Mohammed bin Zayed during a visit to the UAE in June.

- Increased Investments -
The restoration of Turkish-Gulf relations has opened the door for increased investments in the Turkish economy.

In March last year, the UAE and Turkey signed a comprehensive economic partnership agreement aimed at increasing the value of non-oil trade to $40 billion annually within five years. In 2021, a $10 billion fund was established to support investments in Turkey.

The total non-oil trade between the UAE and Turkey reached approximately $19 billion in 2022, an increase of 40% from 2021 and 112% from 2020, making Turkey one of the top 10 trading partners of the UAE, according to official UAE data.

AFP