ANKARA — Since the beginning of the reign of the Justice and Development Party led by Recep Tayyip Erdogan in 2002, Turkey’s orientation towards the Arab region has facilitated increased Arab investments, particularly from the Gulf Cooperation Council (GCC) countries, into Turkey.
According to the Turkish Ministry of Economy, there are currently 1,973 Gulf companies operating in Turkey, making the GCC the third largest source of foreign investment in the country, following the United Kingdom and the Netherlands.
Buraq Daglioglu, the head of the Turkish presidency’s investment office, revealed in August 2021 that the volume of Gulf investments in his country, excluding Qatar, amounts to approximately $13 billion.
“The Gulf countries are among the important investors in Turkey, and there are promising indicators of further investment growth in the coming period,” Daglioglu said.
Which Gulf countries invest the most in Turkey?
Qatar
In recent years, Qatar has emerged as the gateway for Gulf and Arab investments in Turkey. Daglioglu stated in December that Qatar is one of the largest investors in Turkey, with its foreign direct investments in the country reaching approximately $10.3 billion by the end of 2021. Until the end of June, there were inflows of around $3 billion in foreign direct investments from Qatar to Turkey.
Saudi Arabia
Saudi Investment Minister Khaled Al-Falih announced in December that Saudi Arabia intends to invest $3.3 trillion in various projects over the next decade. The Kingdom considers Turkey to be one of the most important investment destinations, and it encourages Turkish companies to invest in Saudi Arabia. The number of Saudi companies operating in Turkey has significantly increased, surpassing 1,100 by the end of last year. Official Turkish data indicates that Saudi Arabia ranks third in the Gulf, following Qatar and the UAE, in terms of investment volume in Turkish lands, with $2 billion.
The UAE
The UAE signed a comprehensive economic partnership agreement with Turkey in March, aiming to expand trade and mutual investments between the two countries. Emirati investments in Turkey exceeded $4.9 billion by the end of 2020. Additionally, the UAE established a $10 billion fund to support investments in Turkey in November 2021.
Oman and Kuwait
Direct Kuwaiti investments in Turkey totaled $1.9 billion, with a major focus on the real estate sector, according to Turkish Statistical Center data. Oman, on the other hand, owns 11 companies in Turkey with investments totaling approximately $10 million, spanning mining, import-export, and real estate sectors.
Investments have played a crucial role in Turkey’s economic growth, transforming it from a country on the verge of bankruptcy to becoming one of the world’s top 20 economies. Turkey represents a promising investment opportunity for Gulf countries, and it is expected that any future Turkish regime will continue to encourage and increase these investments. The Gulf countries are seeking to expand their investment activities in Turkey, as evidenced by recent positive developments in Turkey’s relations with Saudi Arabia, the UAE, and Egypt.
“Bloomberg” recently stated in April 2023 that if Erdogan wins the Turkish presidency, the recent positive developments in the region are likely to continue, with increased trade exchange and mutual investments. Turkey is a major destination for Arab investments and has established strategic relationships with many Arab Gulf countries.