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50-year friendship bond sets stage for prosperous future

Both nations have embarked on a new strategy to strengthen their partnership on all levels

The UAE and Türkiye looks set to further strengthen their bilateral relations on multiple front to bolster their economy, trade, investment, cultural and diplomatic relations in coming years, experts say.

Analysts and economists said both the nations have embarked on a new strategy to strengthen their partnership on all levels in the past 50 years, setting the stage for a prosperous future. In the next 50 years, the two countries will work towards fostering bilateral and constructive cooperation in diverse fields, according to the experts.

“The UAE-Türkiye ties are nearly as old as the country itself. During the last 50 years, this bond has grown sturdier where each country knows and respects each other’s strengths,” an expert said.

Ahmet Burak Daglioglu, head of the Investment Office of the Turkish Presidency told UAE news agency WAM that the UAE is currently Türkiye’s 13th largest trade partner for exports and the 15th largest for imports – resulting in a combined trade volume of around $10bn through 2022.

Speaking on the sidelines of the World Investment Forum in Abu Dhabi, Daglioglu underscored Türkiye’s consistent attraction of UAE investments, particularly in the energy sector, healthcare, agriculture, logistics, transport, infrastructure, finance, and tourism. The two nations are also collaborating in areas such as climate change, energy, water, and food security.

According to Daglioglu, Dubai’s DP World and Türkiye’s Evyap Group agreed to form an equity partnership between DP World Yarimca Port and Evyap Port in August to advance supply chain services in the country. Upon the completion of the deal, DP World will own 58 per cent of Evyap Port while the Evyap Group will own 42 per cent of DP World Yarimca.

Abdulla Mohamed Al Mazrui, Chairman of the Federation of UAE Chambers of Commerce and Industry (FCCI) and Chairman of the Abu Dhabi Chamber of Commerce and Industry (ADCCI), said the UAE and Türkiye have embarked on a new stage to strengthen their partnership on all levels.

“The UAE Chambers is committed to working in collaboration with Turkish entities to discuss prospects for cooperation and mutual investment in the Emirati and Turkish markets, which both provide attractive elements and promising opportunities in various sectors of mutual interest,” he said recently at the UAE- Turkiye Business Forum held in Abu Dhabi.

He said the UAE Chambers will ensure that this visit yields positive outcomes for the bilateral economic relations between the UAE and Türkiye and drives business growth in the two countries, considering their position as major economic and trade hubs.

“Since the establishment of the UAE, the economy has been one of the key pillars of the strong relations between the two countries, which has consistently continued to grow and evolve over the years. As such, the UAE Chambers will continue to provide the necessary support for Turkish companies and investors, enabling them to establish their businesses in the UAE successfully, achieve the best returns and results, and drive economic growth,” he said.

Strong friendship bond

Another businessman said the UAE-Türkiye are key trade partners. “Türkiye has a strong manufacturing base and a long line of experience. The UAE is a key player in the trading and financial sector business in the region and hence the friendship is expected to blossom exponentially over the next decades,” he said.

To a question, he said infrastructure, real estate, energy and food are among the key areas where both are expected to have more common grounds and attract foreign direct investment (FDI) from each other.

“The CEPA agreement, which was signed between the countries in March and became effective in September, shows the commitment of both the countries towards deepening the economic ties. Both countries have already signed several MoU’s which also include extradition to further strengthen their relationship,” he added.

The UAE and Türkiye have historically maintained strong economic relations. Economic cooperation includes investments in various sectors, including real estate, construction, and tourism.

An economist said the UAE and Türkiye have shown interest in collaborating on energy projects. Turkish companies have been involved in infrastructure and construction projects in the UAE, reflecting their cooperative efforts to improve infrastructure.

“Both the UAE and Türkiye are key players in the broader Middle East and North Africa region. Their positions and alliances can have a significant impact on regional dynamics,” he said.

In reply to a question, he said expanding economic ties can be a significant catalyst for improving relations.

“Both nations can work on enhancing trade relations, promoting investments, and exploring opportunities for joint ventures in various sectors,” he said.

Identifying common interests and areas of cooperation, such as energy projects, infrastructure development, and regional stability, can provide a foundation for stronger relations, he added.

“Building trust is essential. Both countries can take confidence-building measures to demonstrate their commitment to a more cooperative relationship. This includes honoring agreements and respecting each other's sovereignty and interests,” he said.

Both countries can explore opportunities to increase two-way trade and investment, particularly in areas such as manufacturing, technology, and infrastructure development.

“Both countries have vibrant tourism industries. Encouraging tourism exchanges and promoting cultural tourism can lead to increased visitors and revenue for both nations. Given the importance of food security, cooperation in agriculture, food production, and supply chain management can also be explored,” he said.

The way forward

Over the past five decades, the UAE and Türkiye have established multiple strategic agreements and Memoranda of Understanding (MoUs) aimed at reinforcing their cooperation across various domains, including the economy, security, environment, technology, and more. Economic cooperation plays a central role in their evolving partnership, with a history dating back to the UAE's establishment.

Looking ahead, another economic expert said both the UAE and Turkiye are actively exploring fresh investment opportunities and areas for collaboration across various sectors to further expand their bilateral economic relations.

“Both countries are particularly interested in cooperating in sectors like gas, energy infrastructure, renewable energy, healthcare, biotechnology, agriculture technology, defence, logistics, digital communication, e-commerce, and financial services, as stated by the Ministry of Industry and Advanced Technology,” he said.

Moreover, the UAE is a leader in several key sectors, including energy, petrochemicals, metals, defence, pharmaceuticals, and food and beverages. Collaboration with Türkiye in these sectors, along with advancements in industry and advanced technology, demonstrates a firm commitment to increasing joint investments, leading to stronger diplomatic and economic ties between the two nations.

Additionally, the two countries signed a Memorandum of Understanding for cultural cooperation in February 2022, revealing their interest in fostering cultural ties. This cultural collaboration has been on the rise, evident in Türkiye's participation as the Guest of Honour at the Abu Dhabi International Book Fair 2023 and its significant presence during Expo 2020 Dubai.

“While economic collaboration plays a central role in this growing partnership, it's the shared cultural history and literary traditions that have sustained the bonds between the two countries over time,” the expert said.

AREAS TO EXPLORE

> Manufacturing

> Technology

> Infrastructure development

> Tourism

> Food security

> Real estate

> Construction

> Energy

> Logistics

> Security

— muzaffarrizvi@khaleejtimes.com