In recent years, Turkey and the United Arab Emirates (UAE) have actively worked to strengthen their economic relations by concentrating on investment and cooperation opportunities. While Turkey has been engaged in mediating the conflict between Ukraine and Russia, and the UAE hosted the 2022 World Cup, both countries have continued to play significant roles on the global stage, not only benefiting their own nations but also contributing to the broader international community. Both nations are now striving to further enhance their influence and capabilities by boosting their mutual bilateral trade agreements. The UAE anticipates that this effort will lead to surpassing an estimated $40 billion in trade over the next 5 years.
Total Investments
Türkiye and the UAE have taken their historical economic cooperation to new heights by establishing the Joint Economic Committee in 2019, aiming to strengthen their ties even further. Since then, a series of agreements and initiatives have been implemented, fostering a comprehensive and sustainable long-term partnership.
The trade volume between the two nations has seen significant growth, with the total value of trade reaching around $13.7 billion in 2021, marking an impressive 54% increase compared to the previous year, as reported by the UAE Ministry of Foreign Affairs. Turkish exports to the UAE predominantly include machinery, electrical equipment, textiles, and automotive products. The two-way trade between Türkiye and the UAE amounted to $18.9 billion last year, solidifying Türkiye’s position as the UAE’s sixth most significant trading ally in non-oil trade.
Cooperative Key Sectors
Real Estate and Construction: A diverse array of investments is being made, covering various projects such as residential towers, commercial buildings, hotels, and mixed-use developments. Turkish construction companies have proven their competence in successfully delivering top-notch projects.
Tourism and Hospitality: Türkiye’s cultural heritage and stunning landscapes have deeply impressed UAE tourists, making it a preferred destination for them. Acknowledging the immense growth potential in the tourism sector, both nations have taken strategic steps to promote cultural exchanges and strengthen collaboration in this area.
Energy: Turkish companies have been actively involved in renewable energy projects within the UAE, specifically focusing on solar and wind power initiatives. Moreover, Türkiye has shown a strong desire to diversify its energy resources by considering the import of liquefied natural gas (LNG) from the UAE.
Finance and Banking: Financial institutions in Türkiye have recognized the potential and established a significant presence in the UAE. While the UAE leads in the field of Islamic finance globally, Türkiye has also made substantial progress in developing its Islamic banking sector and expanding its influence in the UAE. Both countries are leveraging their common economic interests to build a strong and mutually advantageous partnership.
By strategically concentrating on sectors like real estate, tourism, energy, and finance, Türkiye and the UAE are actively exploring untapped opportunities and reinforcing their alliance.
Author’s Biography
Ramon Rahangmetan has a background in Urban Sustainable Development and Business Management. Ramon is an independent accredited lobbyist at the European Parliament in Brussels and Strasbourg on behalf of his international organization
