The Turkish Finance Minister indicated the possibility of increasing cooperation between his country and Saudi Arabia in several fields (Reuters)
Today, Friday, the Turkish-Saudi Investment and Business Forum will be held in Istanbul with the participation of more than 1,200 officials, businessmen and personalities from the two countries, amid talk of broad prospects for cooperation between the two countries, and this was evident from the statements of senior Turkish and Saudi officials.
The volume of trade between Turkey and Saudi Arabia reached $6.8 billion in 2023, according to Turkish Vice President Cevdet Yilmaz, who saw increasing this number to more than $10 billion in the short term as a realistic goal.
This came in a speech during a ceremony held for participants in the Turkish-Saudi Investment and Business Forum in Istanbul.
Yilmaz explained that the goal of the two countries in the medium term is to reach $30 billion.
Joint investments
Yilmaz pointed out that the investments of Saudi companies in Turkey amounted to two billion dollars, expressing his belief in the possibility of increasing mutual investments easily, by increasing the frequency of events that bring together businessmen in the two countries.
He pointed out that close communication and cooperation between the Saudi Investment Fund and the Turkish Presidential Investment Office will provide great economic benefits to the two countries.
Yilmaz emphasized that one of the most important fundamental factors that contributed to Turkey's economic development over the past 21 years is direct international investments.
He continued: "Direct international investments have affected the growth of our country's economy, its technological transformation, the formation of qualified job opportunities, the effective use of our resources, and the increase of our exports. During the past years, several reforms have been implemented in order to attract international investments to our country, and these reforms have increased the attractiveness and competitiveness of the business and investment environment in Turkey."
Yilmaz pointed out that within the scope of international investments, various sectors such as technology, defence, renewable energy, petrochemicals, finance, tourism and housing provide opportunities for investors.
He added that chemicals, machinery, food and beverage processing, automobiles, aviation, pharmaceuticals, biotechnology, medical and military devices and materials, renewable energy, building materials and mining are among the sectors that attract the interest of Saudi investors.
Yilmaz explained that Saudi Arabia aims to diversify its economy, reduce its dependence on oil, and build a more sustainable future through its 2030 vision.
He added, "Our vision for Turkey's Century and Saudi Arabia's Vision for 2030 will bring great economic benefits to the two countries and to the entire region. We want our companies to play an active role in mega Saudi projects such as NEOM, Diriyah Gate, Qiddiya, and the Red Sea project."
Yilmaz said that Turkish contractors implemented 402 projects worth $27.6 billion in Saudi Arabia.
The Turkish Vice President confirmed that the number of Saudi tourists who flocked to Turkey during 2023 increased by 65% compared to the previous year.
Serious steps
For his part, the Saudi Minister of Investment, Khalid Al-Falih, said: “Just a few years ago, there were several Turkish companies operating in Saudi Arabia, ranging from 20 or 30 companies, while last year their number reached nearly 400 Turkish companies registered in Saudi Arabia.”
Al-Falih indicated that his country will take serious steps to make investments within the framework of Vision 2030.
He added, "We are talking about investment opportunities amounting to about 1.8 trillion dollars with international companies. I hope that Turkish companies will be the biggest beneficiaries of these investment areas."
In turn, Saudi Tourism Minister Ahmed Al-Khatib said that his country will take very serious steps regarding infrastructure and urban expansion within the framework of its 2030 vision.
He added, "Saudi Arabia will ask Turkish friends for help in the fields of defence, construction, contracting, tourism, and industry within the framework of Vision 2030... We are in Turkey (today) to evaluate the opportunities available in these fields and prepare our infrastructure to strengthen our bilateral relations."
Turkish experiences
For his part, Turkish Minister of Treasury and Finance, Mehmet Simsek, said that Turkey can contribute to helping Saudi Arabia achieve its ambitious tourism goals.
He added, while answering journalists’ questions during the “Turkish-Saudi Investment and Business Forum” held in Istanbul: “Turkey can contribute to building and operating facilities, and also contribute to transporting tourists through tour operators in Turkey, and that is why it is in our interest and in their interest for Saudi Arabia and Turkey to cooperate in these areas.” ".
Referring to Saudi Arabia's tourism goals, Simsek said: "Turkey can help achieve these goals, because our seasons do not overlap. Their tourist season is winter, and our season is generally summer and fall."
He explained that Turkey has tremendous experience in the construction sector, noting that "we can contribute to building and operating facilities and contribute to transporting tourists, and our tour operators can earn money and take tourists there, just as they bring tourists here in the summer."
He added, "We are now among the top five in the world in the field of tourism, and in 2022 we ranked fourth in the number of tourists. Our numbers for 2023 are clear, and when the global numbers are known, it is likely that we will be in third or fourth place again, and so Turkey has very great experience in this." connection."
The minister stated that the goal is to develop services exports, as they have reached more than $100 billion, stressing that “the Ministry provides very strong support for services exports, and we provided a basic reduction of 80%.”
Accordingly, he stressed, "If you export certain services from Turkey to any country, the tax will actually be very, very low. There is a basic discount of 80%, and this is very important."
The Turkish Minister touched on the possibility of establishing cooperation between his country and Saudi Arabia in several fields such as tourism, contracting, defense and aviation industries.
Simsek stressed that the Turkish government's medium-term economic program aims to achieve price stability and reduce inflation to single digits.
"By 2028, we will have already achieved price stability," he said.
He pointed out that the current account deficit will decline to less than $30 billion in the first half of this year, and that the growth rate is strong in Turkey.
He concluded that the market “expects inflation to fall to less than 40% during the next 12 months.”
Source: Anadolu Agency