Abu Dhabi, UAE — Turkey and the UAE have signed agreements worth more than $50 billion in energy, defense and other sectors, UAE’s Ministry of Investment said.
UAE Presidents Sheikh Mohamed bin Zayed Al Nahyan and his Turkish counterpart Recep Tayyip Erdogan presided over signing of these agreements, WAM reported.
Key agreements
- Strategic Partnership Agreement: The UAE Ministry of Investment and the Ministry of Energy and Natural Resource of Turkey inked a strategic partnership agreement. The investments encompass a wide range of sectors, including renewable energy, green hydrogen and ammonia, hydropower plants, transmission projects, battery storage, nuclear energy cooperation, and emerging technologies such as hydrogen and carbon capture utilization and storage.
- Upstream and Petrochemical Cooperation: The Abu Dhabi National Oil Company (ADNOC) and the Turkish Petroleum Corporation entered into a strategic cooperation agreement aimed at exploring joint ventures in upstream and petrochemical projects. This collaboration is expected to leverage the strengths and expertise of both entities to drive mutual growth and development.
- Defense Industries Collaboration: The UAE Tawazun Council and the Turkish Defense Industries Agency signed a Memorandum of Understanding (MoU) to foster strategic cooperation in the field of defense industries. This agreement opens up avenues for joint initiatives and technological exchanges, enhancing the defense capabilities of both nations.
- Advancing Space Capabilities: The UAE Space Agency, the Turkish Ministry of Science, Industry and Technology, and the Turkish Space Agency joined forces through a Memorandum of Understanding (MoU) to develop joint launch vehicle capabilities for commercial purposes. This collaboration in space exploration and technology aims to further strengthen the UAE-Turkey partnership.
- Boosting Trade and Investment: ADQ, an Abu Dhabi-based holding company, and the Turkish Eximbank signed a Memorandum of Understanding (MoU) on export credit financing. This agreement aims to enhance trade and bilateral investments between the two countries, promoting economic growth and cooperation.
- Reconstruction Support: ADQ also signed a Memorandum of Understanding (MoU) with the Turkish Ministry of Treasury and Finance to invest in sukuk, a form of Islamic bonds, for the reconstruction of areas in Turkey affected by earthquakes. This partnership underscores the commitment to supporting Turkey’s recovery efforts and fostering long-term stability.
The UAE and Turkey have enjoyed a robust trade relationship, with non-oil intra-trade between the two nations amounting to over US$103 billion from 2013 to 2022. This includes imports valued at US$56 billion, exports exceeding US$35 billion, and re-exports totaling over US$12 billion, as reported by the UAE’s Federal Competitiveness and Statistics Centre (FCSC).
Earlier this year, both governments signed a Comprehensive Economic Partnership Agreement (CEPA) with the aim of boosting trade to US$40 billion over the next five years.
The CEPA, ratified by both governments, eliminates or reduces customs duties on a significant portion of goods and products, facilitating market access and enhancing trade. It aims to surpass US$40 billion in non-oil bilateral trade within five years and encourages investments in key sectors such as logistics, e-commerce, food security,
In 2022, non-oil trade between the UAE and Turkey reached nearly $19 billion, reflecting a substantial increase from previous years. Turkey has emerged as one of the UAE’s fastest-growing trade partners.
Erdogan’s visit to the UAE marks the fifth in a series of summits and meetings that have strengthened the comprehensive partnership between the two countries.
Abu Dhabi was last stop in Erdogan’s Gulf tour that included Saudi Arabia and Qatar. Turkish president is looking for investment to revive Turkey’s economy which has struggled with a weakened lira, heavy deficits and chronic inflation.