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The “Comprehensive Economic Partnership Agreement between the UAE and Turkey” constitutes a major impetus on the path to launching a new path of joint sustainable growth and mutual trade and investment opportunities, which would contribute to achieving economic integration that serves the aspirations and directions of the two countries and achieves mutual benefit.
The two countries play a pivotal role in facilitating the flow of international trade as they are among the most vital economies, thus enhancing regional progress and prosperity in light of the development of joint economic relations that witnessed the establishment of investment funds worth billions of dollars and cooperation in important key sectors, including advanced technology and logistics services, in addition to partnership to support the development of emerging e-commerce.
The comprehensive economic partnership agreement between the UAE and Turkey opens new paths for exporters of goods and services to the markets of the two countries and the region, and launches a platform for cooperation and partnership between small and medium-sized companies and entrepreneurs in the two countries, which places the region at the heart of the international trade movement and on the map of new centers of global growth.
Dr. Thani bin Ahmed Al-Zeyoudi, Minister of State for Foreign Trade, confirmed in statements to the Emirates News Agency, WAM, that the UAE and Turkey enjoy close trade and investment relations, thanks to the common desire of the leaderships of the two friendly countries to upgrade these relations to a broader level of partnership and joint growth of their economies.
He said that the bilateral relations between the UAE and Turkey have witnessed successive positive developments during the past two years, culminating in the signing of the comprehensive economic partnership agreement between them last March, during a presidential summit via visual communication technology held by His Highness Sheikh Mohammed bin Zayed Al Nahyan, President of the State, “may God protect him”, with Rajab. Tayyip Erdogan, President of the Turkish Republic, and this agreement was officially ratified several days ago by the governments of the two countries, in preparation for its activation and entry into force soon.
He added that this agreement, which ushers in a new era of partnership and economic integration, stems from a solid base of close trade and investment relations between the two countries, as non-oil intra-trade increased by 40% to $18.9 billion in 2022, making Turkey among the country’s top 10 trading partners. The Emirates around the world, with a share of more than 3% of the UAE’s non-oil foreign trade, and the UAE’s foreign direct investments in Turkey amounted to more than $5 billion, which puts the UAE in the list of the 15 largest countries investing in Turkey.
He pointed out that the Emirati-Turkish Comprehensive Economic Partnership Agreement, which was designed to achieve the maximum benefit for the two countries by stimulating sustainable and comprehensive economic growth, according to which – upon its entry into force soon – will cancel or reduce customs duties on 82% of products and goods, which represents more than 93%. It will increase the value of bilateral non-oil trade, remove unnecessary barriers to trade, create new pathways for bilateral FDI flows, and enhance market access for domestic exporters, including in key sectors such as construction, metal products, polymers, and other industrial products.
He explained that this agreement aims to increase non-oil intra-trade from its current value of $18.9 billion to more than $40 billion annually within 5 years, increase UAE exports to Turkey by 21.7% and increase investment flows in key sectors, such as logistics and trade. Electronic, food security and renewable energy.
He said that the continued development of the UAE-Turkish relations, with the support and care of the leaderships of the two countries, confirms that we are on the verge of a new era of strategic partnership based on achieving mutual interests and joint economic prosperity for the benefit of the two friendly peoples.
It is reported that the total volume of Emirati investments in Turkey reached about $7.8 billion at the end of 2021 in various sectors including financial services, real estate, transportation, renewable energy, ports and logistics.
Among the leading Emirati companies investing in Turkey are: ADQ Holding, Emirates NBD, Emaar Properties, International Holdings, Abu Dhabi Investment Authority, and Mubadala.
Emirati investments in Turkey are divided into Emirates NBD Bank worth $2.84 billion in the financial services sector, while Emaar Properties’ investments amount to $2.5 billion in the real estate sector, and Mubadala amounts to about $555 million in the transportation sector. And “Al-Alamiah Holding” $ 480 million in the renewable energy sector, and “DP World” $ 351 million in the ports and logistics services sector, and “ADQ Holding” $ 300 million in the technology sector.
“Deyaar” investments are estimated at about $282 million in the real estate sector, and “Al Ghurair Group” at about $200 million in the building materials sector, while “Etihad Airways” has investments of about $24.2 million in the warehousing sector, and the “Rotana” group has about $5.5 million. in the tourism and hotel sector.
