The talks between President Erdogan and Sheikh Mohammed ended with 10 agreements. The agreements signed after the negotiations illuminated important environmental, trade, customs, and energy. The most significant contribution of these meetings to Turkey was the investment fund decision with a value of 10 million USD. Representatives meeting in Ankara focused on renewable projects in many fields such as petrochemistry, infrastructure, and transportation, agriculture, health, and finance. These 10 agreements, including direct investment projects, have contributed significantly to Turkey’s economic future.
Relations and Agreement Process Between UAE and Turkey
Diplomatic tensions between the United Arab Emirates and Turkey began to settle in the summer of 2021. In August, Recep Tayyip Erdogan and UAE National Security Advisor Sheikh Tahnoun bin Zayed Al Nahyan made various financial decisions to improve ties between countries. Among the decisions taken, the investment fund to be provided by the United Arab Emirates to Turkey was also discussed. Turkey has been going through a difficult economic process, especially focused on energy[1]based projects. Indicating a natural environment of cooperation between the two countries, the UAE announced the work that can be done to develop commercial and economic ties. Abu Dhabi Investment Agency, which has shares in Turkey’s famous companies, came to the fore again in this process. The economic normalization process, which started in August 2021, resulted in the reconciliation between Turkey and Abu Dhabi. The agreements signed between the two countries are listed as follows:
- Memorandum of Understanding Between Abu Dhabi Development Holding and Presidential Investment Office
- Memorandum of Understanding Between Abu Dhabi Stock Exchange and Borsa Istanbul
- Memorandum of Understanding Between Abu Dhabi Port Company and Turkey Wealth Fund
- Memorandum of Understanding and Cooperation-Based Memorandum of Understanding Between Abu Dhabi Development Holding and Turkey Wealth Fund
- Administrative Cooperation and Partnership Agreement in Customs Matters between the Republic of Turkey and the UAE
- Memorandum of Understanding on Cooperation between the Central Bank of the Republic of Turkey and the Central Bank of the UAE
- Memorandum of Understanding between the Republic of Turkey and the United Arab Emirates on Cooperation in the Field of Energy and Cooperation in the Field of Environment
Post-Agreement Relations between Turkey and the United Arab Emirates
The sides of Turkey and the UAE, which have had a tense communication since 2013, recorded positive developments in their relations with the meetings held. The most important factor in the agreement process was that the countries realized the increasing losses. The UAE and Turkey, which were reshaped according to international conditions, took significant steps with 10 agreements. While the economic power and financial benefits of the United Arab Emirates were evaluated as an opportunity for Turkey, the UAE saw Turkey as support for diplomatic problems.
The 10 significant agreements signed between the two countries contain various regulations on 9 different areas. It is noteworthy that 10 million USD worth of investment fund support is provided to Turkey in the arrangements made. Port management, logistics, finance, real estate, renewable energy, and tourism are topics that the United Arab Emirates emphasizes the most. What are the contents and benefits of the signed agreements? How do these agreements and investment projects affect Turkey’s economic future?
Investment Content and Current Economic Situation of the Sectors
The United Arab Emirates, which provides the most investment resources to Turkey among the Gulf countries, stands out with its direct investment projects. Swap agreements between Turkey and the UAE, whose relations have strengthened after the diplomatic problems, are also on the agenda. The priority in the projects of the United Arab Emirates is listed as logistics and port management. The contents, benefits, and current financial status of the sectors are as follows:
Logistics and Port Management Sector
Investment programs in the fields of logistics and port management are among the projects that the United Arab Emirates is most interested in. Turkey’s strategic location, on the other hand, contributes to the UAE’s interest in port projects. Logistics and port management projects accelerated by the developments in the Eastern Mediterranean waters are important for Turkey’s economic future.
Health Sector
A cooperation agreement on behalf of health was signed between Abu Dhabi Development Holding (ADQ) and CCN Group. Among the agreements aimed at increasing cooperation and trade, the health sector agreement had great repercussions.
Technology Sector
A vital agreement came up between Abu Dhabi Development Holding (ADQ) and Turkey Wealth Fund to provide investment funds to Turkish technology companies. Financial arrangements for sustainable economic growth provide technology companies with support funds for development and orientation to new areas. Thanks to this agreement, technology companies will make progress in many special areas and make up for their deficiencies.
Energy Sector
The energy projects discussed at the Gastech 2021 conference were also concluded with the agreement. On the other hand, renewable investment projects were one of the most striking points in the agreement. As a result of the discussions on the benefits of the projects, the energy resources problem in Turkey has entered the solution process.
10 agreements signed between Turkey and the United Arab Emirates; came to the fore with regulations covering many subjects such as health, energy, agriculture, infrastructure, transportation, port management, finance, tourism, and logistics. The agreements included private investments and financial benefits such as renewable energy, climate change, food, and water. Having a natural environment of cooperation between the Gulf countries, the parties took very important steps for Turkey’s economic future. The concluded negotiations and agreements draw attention to the new cooperation decisions to be taken between the two countries
