ABU DHABI, UAE – Ahmet Burak Daglioglu, Head of the Investment Office of the Turkish Presidency, said that the cumulative foreign direct investment from the United Arab Emirates to Turkey has surged to $5.6 billion (AED 20.6 billion) from 2002 through August 2023.
Speaking to the WAM during the eighth edition of the World Investment Forum in Abu Dhabi, Dagliogl said reported that, as of the first half of this year, around 600 UAE companies have been actively operating in Turkey.
Daglioglu further highlighted that the UAE currently stands as Turkey’s 13th largest trade partner for exports and the 15th largest for imports, resulting in a combined trade volume of approximately $10 billion through 2022.
Daglioglu explained that one of the most significant investments made by UAE companies in Turkey is the strategic partnership between the Dubai Ports World (DP World) group and the Turkish Yibitaş Group. This partnership involves the ownership shares of “DP World Yarimca Port” and the Yibitas Port, alongside the acquisition of Denizbank by Emirates NBD Bank.
He also highlighted that, from 2014 to 2022, the total foreign direct investment from Turkey to the UAE amounted to approximately $1.1 billion. Furthermore, there are over 400 Turkish companies operating in the UAE across various sectors, including construction, tourism, defense, and others.
The Head of the Turkish Investment Office added that some of the latest UAE investments in Turkey include the acquisition of a stake in the T.O.M. Group of Companies in Turkey by Dubai Islamic Bank.
This group is the first Turkish bank licensed for digital services for individuals. Additionally, International Holding Co. recently acquired a 50% stake in the Turkish company “Kalyon Energy.” This deal encompasses the solar power plant project in Karapinar, Konya, a 1-gigawatt wind power project, a 100-megawatt solar power project in the city of Niğde, as well as a 50-megawatt solar power project in Gaziantep, along with other renewable energy projects in various Turkish cities.
He explained that there are a series of investment agreements and memoranda of understanding signed between the UAE and Turkey to strengthen cooperation in the fields of trade, energy, and the environment.
These agreements include those signed between “ADQ” and the Turkey Wealth Fund, encompassing a general cooperation agreement and a memorandum of understanding to establish a “Technology Venture Capital Fund” aimed at investing in Turkish technology companies.
Additionally, there is a cooperation agreement related to Abu Dhabi Ports’ investments in Turkey as well as a collaboration agreement between the Abu Dhabi Securities Exchange and the Borsa İstanbul.
Ahmet Burak Daglioglu mentioned that the Turkish Wealth Fund and “ADQ” recently announced the establishment of the “Turkey Technology Fund” with a capital of $300 million.
This fund is dedicated to investing in various venture capital funds and emerging Turkish companies with significant growth potential and innovative business models.
The fund’s focus will be on companies engaged in developing new technologies or enhancing existing ones within key sectors including energy, utilities, healthcare, life sciences, food, agriculture, transportation, logistics, financial services, and education.