Huge gulf bottoms eyeing possible investment opportunities in Turkey, from agriculture to tourism and industry. The funds, including those from Qatar, United Arab Emirates (UAE), Bahrain and Saudi Arabia, plan to invest around $8 billion (TL 109.07 billion) in the country that year.
the latest visit of President Recep Tayyip Erdoğan to the United Arab Emirates, nicknamed the start of a new point final in bilateral relations, has further boosted investment opportunities regarding Turkey.
Pre-offers for the investments to be made made in companies operating in sectors such as agriculture, defense and industrial production, technology, petrochemicals, transport and infrastructure, tourism and the health sector, have already been sealed.
While the northwestern provinces of Kocaeli, Bursa, Yalova and Istanbul have emerged for industrial investments, the south of Antalya and the central provinces of Konya and Aksaray are set take on importance share of agricultural investments.
Investments in the tourism industry will mainly focus on the western provinces of Muğla and Izmir, and the provinces of Kocaeli and Izmir also come separately to the fore with petrochemical investments.
Recalling that Middle Eastern funds have invested $12 billion in the real economy in the last two years, Middle East Economic Platform head Erdin Özel said they are now planning an investment of $8 billion in total for this year.
“Preliminary agreements have been signed for more of these investments. This figure does not include BIST and swap deals,” he said.
Funds from the Gulf include the Qatar Investment Authority’s agricultural investment fund, the Bahrain-based Islamic retailer bank Ithmaar Bank, the Saudi bank financial the investment company Sanabil Investments and the Qatar Investment Authority (QIA), which is the world’s 11th most grand national investment funds and includes several influential countries in son investment portfolio, including Germany, UK, France, USA, China, Russia, Australia and Turkey.
Other interested parties in Turkey, include the Abu Dhabi Investment Authority (ADIA), worth about $650 billion; the worldthe third most grand wealth fund, Sama Foreign Holding, affiliate with the Saudi Arabian Monetary Agency; the Emirates Investment Authority; the International Petroleum Investment Company, owned by the UAE, with a market assess of $5 billion; Bahrain based investment bank Gulf Finance House; the investment company of dubai, worth over $300 billion; and the kingdom of Bahrain’s sovereign wealth fund, the Mumtalakat Holding Company.
Having moved to put years of tight relationships behind them, Turkey and the UAE have opened the doors to a new phase in bilateral relations marked by deep economic cooperation after a break of several years. Erdoğan’s two-day return visit followed a Crown Prince trip to Ankara in end of November which marked an important step move towards overcoming conflicts.
In terms of reports with Saudi Arabia, Erdoğan said several times than son country wants to improve relations with the country.
Turkey and Qatar, for their part, enjoy strong relations since Erdoğan became power. Both countries have reinforced military and economic ties in these last years.
Last yearAnkara and Doha signed 15 different agreements to strengthen cooperation.
The agreements were signed when Erdoğan and the ruling emir of Qatar, Sheikh Tamim bin Hamad Al Thani, met in Doha will co-chair the seventh meeting of Turkey-Qatar Supreme Strategic Committee.
Meanwhile, Bahrain’s Ithmaar Bank, Saudi Arabia’s Hasad Food and Sanabil Investments are interested in the agricultural sector.
Qatar Investment Authority, Abu Dhabi Investment Authority and Sama Foreign Holding will invest total of $4 billion in companies in the industrialist and technology sector.
Gulf fund companies are also plans to invest $1.5 billion in companies in the transport sector. Emirates Investment Authority, International Petroleum Investment Company and Gulf Finance House seek partnerships in petrochemical and transport infrastructure technologies sectors.
Aiming to invest 500 millions of dollars in tourism, the investment company of Dubai, Sanabil Investments and the Mumtalakat Holding Company are negotiating for investments in hospitality and health tourism in Izmir and Mugla.
Özel further explained that the investments should be made directly to industry and real sectors.
“They will be made to companies providing services in energy, defense the industrial, petrochemical and transport infrastructure sectors, in particular in agriculture and food,” he said.
Declaring that Turkey has drawn be careful – especially with it succeeded performance in exports and its new economy modelÖzel said: “Our country has become the investment base of the world thanks to its strategy location.”
Halit Sönmez, representative of Al-Daar Investments Turkey, said he invested $1.2 billion in the real real estate, industry and fintech sectors in six years.
“We have planned an investment of 80 millions of dollars in green energy that year,” he said.