recep tayyip erdogan

Turkey Expects $10 Billion Initial Direct Investments from Gulf Countries

Turkey Expects $10 Billion Investments from Gulf Countries

Turkey

Turkey is anticipating direct investments worth approximately $10 billion from Gulf countries as part of President Tayyip Erdogan’s scheduled trip to the region in two weeks, as revealed by two senior Turkish officials. The visit, taking place from July 17 to July 19, will see Erdogan engaging with leaders in Saudi Arabia, Qatar, and the United Arab Emirates, with the primary objective of securing foreign funding to bolster Turkey’s strained economy following his re-election in May.

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Citing the sensitivity of ongoing private discussions and the absence of finalized deals, the officials disclosed this information on the condition of anonymity. They further shared that these investments are expected to reach up to $30 billion over an extended period, primarily focusing on Turkey’s energy, infrastructure, and defense sectors.

Turkey

“One of the officials emphasized the significance of direct investments worth approximately $10 billion, stating that it is crucial for them to materialize within a short timeframe. Expectations for the Gulf visit are high, with the anticipation of signing several important agreements,” noted the official.

At present, there has been no immediate response from Erdogan’s office regarding this matter. Similarly, officials in Riyadh, Doha, and Abu Dhabi have refrained from commenting as well.

Since initiating a diplomatic campaign in 2021 to restore relations with Saudi Arabia and the UAE, Turkey has received investments and funding from the Gulf, offering much-needed relief to its economy and strengthening its foreign currency reserves.

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Last month, Turkish Vice President Cevdet Yilmaz and Finance Minister Mehmet Simsek traveled to the UAE for discussions on “economic cooperation opportunities” with their counterparts. They also met with President Sheikh Mohammed bin Zayed al-Nahyan, according to statements released by Ankara.

Following the recent elections, Erdogan appointed Yilmaz and Simsek to drive a policy shift after years of unorthodox economic practices that led to soaring inflation and record-low net foreign reserves in May. As part of this realignment, the central bank raised interest rates by 650 basis points last month.