Turkish President Recep Tayyip Erdogan is embarking on a three-day tour of Arab Gulf states on July 17, including Saudi Arabia, Qatar, and the United Arab Emirates, DW reports.
During the visit, he aims to solidify multibillion-dollar deals encompassing the privatization of Turkish state assets, direct investments, defense industry agreements, and business acquisitions or contracts.
The financial aspects of the visit are crucial for Turkey's economy, which is facing challenges due to unconventional policies in recent years. High inflation, devaluation of the Turkish lira, and an increasing budget deficit have put a strain on the country's economic stability.
President Recep Tayyip Erdoğan has arrived in the city of Jeddah, Saudi Arabia, first stop of his trip to the Gulf. pic.twitter.com/95RBYTEpJD
— Republic of Türkiye Directorate of Communications (@Communications) July 17, 2023
Erdogan hopes to confirm direct investments of around $10bn from the Gulf states shortly after the trip, with the total amount potentially reaching $25bn to $30bn over an extended period.
Turkey's relations with the Gulf states have gone through fluctuations in the past. While Qatar has been a longstanding ally of Turkey, Saudi Arabia has been a rival, with tensions escalating during the Arab Spring revolutions. However, diplomatic ties with the UAE have improved since 2021, and a trade agreement worth $40bn was signed after Erdogan's reelection.
Saudi Arabia's relationship with Turkey has been tumultuous, marked by competition for regional influence. The murder of Saudi dissident Jamal Khashoggi in Istanbul in 2018 led to a breakdown of diplomatic ties, but relations have since improved somewhat. Bilateral trade between Saudi Arabia and Turkey is on the rise, offering economic opportunities for both countries.
During the visit, Erdogan seeks to strengthen economic ties and build new partnerships with the Gulf states to address the economic challenges facing Turkey and consolidate his leadership position after his slim reelection in May.
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