3 Mar 2023; MEMO: Bilateral trade and relations are set for an immense boost with a new free trade agreement between Turkiye and the UAE, according to the Gulf state's Foreign Trade Minister.
The UAE recognises that Turkiye's financial sector is the "right place" for investment and "the sky is the limit" for us in that respect, Thani Ahmed Al Zeyoudi told Anadolu in an exclusive interview in London as the countries gear up to ink a lucrative free trade deal.
The agreement will have "a huge impact", he asserted.
"At least 25,000 jobs are expected to be created in the UAE and more than 100,000 jobs in Turkiye," he said.
"There is also huge potential for many sectors like food security, health, ICT (information and communications technology), the financial sector and logistics."
Apart from removing trade barriers and cutting tariffs, the deal is also expected to ease access to new markets for businesses in both countries and bolster their competitiveness.
Despite past political tensions, the countries have maintained strong economic ties, with Turkiye being the UAE's sixth-largest trading partner.
"Bilateral trade saw excellent growth last year, exceeding 40 per cent compared to 2021. We reached around $18.9 billion in our non-oil trade," said Al Zeyoudi.
"This growth in trade, when compared to 2020, exceeded 112 per cent, which means that we're doubling the trade volume."
'Turkiye right place for investment'
The UAE has already invested more than $5 billion in Turkiye and remains keen on increasing that figure, the Minister said.
In 2021, the UAE launched a $10 billion fund for investments in Turkiye, including infrastructure projects, real estate and other sectors.
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"But we are not restricting ourselves to this figure – the sky is the limit. As long as there are opportunities, we will jump in and explore," Al Zeyoudi emphasised.
The "excellent" growth in the Turkish financial system has proven that this is "right place" for our investments, he said, pointing out that their 2022 profits were more than 40 per cent greater than the previous year.
All of this means there are "strong economic opportunities" in Turkiye, he added.
He said the two countries are also exploring ways to help each other gain access to new markets.
"Because we have a huge interest in Turkiye's neighbourhood, especially when it comes to the eastern part of Asia, the eastern part of Europe and we have a common shared interest within Africa as well," he said.
The UAE has access to the Indian market and Turkiye has access to Pakistan, which is where we can complement each other, the Minister said.
New trade routes
Logistics is another important area where both countries are looking to enhance cooperation.
According to Al Zeyoudi, the UAE has invested heavily in transport and logistics infrastructure in recent years, pointing to its connections to 250 ports in more than 400 cities worldwide.
"This gives us this excellent exposure when it comes to logistics and trade movements from the UAE," he said.
He said Turkiye and the UAE have made "great progress" in logistics cooperation.
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"We're actually exploring new routes, which is going to reduce the time for shipments from Turkiye to the UAE," he said.
"That normally takes 28 days, and now it is going to take half of that time, because the discussion is about how we're going to go directly from Turkiye to Iran and to the UAE by sea, or from Turkiye to Iraq to the UAE."
At the same time, the UAE is working on its logistics infrastructure, as well as engaging with Turkish companies on how to collaborate in the African market, he added.
Talks are also being held on solar and wind energy, as well green hydrogen projects, the Minister said.
"There is huge interest. Not only that, we've already moved into the feasibility study phase. As I said earlier, the sky's the limit in our relations," he said.
Pouring billions into renewable energy
The UAE is "very pragmatic" in tackling climate change and has successfully managed to reduce the share of oil and gas in its gross domestic product, Al Zeyoudi said.
"Yes, it's part of the investment. It's part of the whole diversification," he said.
"Transition is going to be a key issue, particularly how we address all aspects of energy along with … the growth of the nation."
When it comes to renewable energy, he underlined, the UAE is "proud" to be one of the top global investors.
"We're investing more than $50 billion in more than 70 countries," he said.
"We are also beating global prices when it comes to producing power from renewable energy," he said, adding that the UAE has the world's "cheapest" solar power.
