UAE and Turkey announce agreements worth $50.7bn and set up strategic council

The UAE and Turkey announced agreements and accords worth a combined $50.7 billion on Wednesday as they seek to strengthen bilateral investment ties and boost collaboration in strategic sectors. The accords, covering a range of sectors including energy, defence, infrastructure, technology, finance and space, were signed at Qasr Al Watan in Abu Dhabi during a visit to the UAE by Turkish President Recep Tayyip Erdogan. President Sheikh Mohamed and Mr Erdogan witnessed the announcements of the agreements and a joint accord on the establishment of a high-level strategic council between the two countries, state news agency Wam reported. The agreements are aimed at “diversifying the framework of the UAE-Turkey Comprehensive economic partnership agreement and deepening investment between both nations across strategic sectors”, it said. The two counties signed the Cepa earlier this year and the deal was ratified in May. It is expected to help push bilateral non-oil trade to more than $40 billion from about $19 billion currently as well as create thousands of jobs in the two countries, Dr Thani Al Zeyoudi, Minister of State for Foreign Trade, said previously. “The Comprehensive Economic Partnership Agreement signed between the UAE and Turkey, which will enter into force this September, will contribute to the launch of a new era of economic integration between our two countries,” Dr Al Zeyoudi said at the UAE-Turkey Business Forum in Abu Dhabi on Wednesday. “The relationship between Turkey and the UAE has seen its biggest boom in recent years with new agreements and MoUs [memorandums of understanding] in different sectors.” Turkey is currently the fastest-growing of the UAE’s top 10 trading partners, he said. “Our trade and investment ties continue to deepen and the Cepa agreement will create more opportunities for the UAE and Turkish business communities,” he added. “It will open new paths for exporters of goods and services to the two countries and surrounding regional markets, stimulating trade and investment flows in both countries.” Two agreements were also signed at the forum. The first agreement was between the Abu Dhabi Department of Economic Development and the Turkish Exporters Assembly. The second was between the UAE's Alpha Dhabi Holding and Turkish group Limak Holding, to conclude a set of commercial partnerships and establish joint ventures in construction and development, infrastructure, energy and hospitality. Also speaking at the event, Turkey's Finance and Treasury Minister Mehmet Simsek said: “These agreements of about $51 billion will likely cement ties between the UAE and Turkey and we are delighted to have the UAE as a key partner and stakeholder.” Turkey’s economic programme has three main pillars, a sound monetary policy, fiscal discipline and structural reforms, he said. “We aim to strengthen our macroeconomic stability. We have already taken strong initial steps to improve public finances, to reduce persistent high inflation through multipronged strategies,” Mr Simsek added. “We will continue to gradually tighten monetary policy to achieve price stability and to reduce current account deficit to more sustainable levels. We plan to unveil a structural reform agenda as part of our medium term economic programme sometime in September. We believe that Turkey has huge potential and the government’s commitment to tackling macroeconomic challenges will unlock this potential.” The accords announced on Wednesday include: • An agreement between the UAE and Turkish governments on reciprocal promotion and protection of investments • An extradition agreement between the two countries • An agreement on legal and judicial co-operation in civil and commercial matters • An agreement on mutual legal assistance in criminal matters • A joint declaration on the establishment of a Joint Economic and Trade Commission • A preliminary agreement between the UAE's Ministry of Industry and Advanced Technology and Turkey's Ministry of Industry and Technology on collaboration in the field of digital transformation • A strategic partnership framework agreement signed between the UAE's new Ministry of Investment and Turkey's Ministry of Industry and Energy and Natural Resources to develop energy and natural resources projects. Under the deal, the UAE plans to make large-scale investments covering the full spectrum of Turkey's national energy transition strategy. Investments include projects in renewable energy, green hydrogen and ammonia, hydropower plants, transmission projects, battery storage, nuclear energy co-operation and emerging technologies, including hydrogen and carbon-capture utilisation and storage. • A preliminary agreement on the development of joint launch vehicle capabilities for commercial purposes between the UAE Space Agency, the Turkish Ministry of Science, Industry and Technology, and the Turkish Space Agency • A preliminary agreement between the UAE International Investors Council and Turkey's Investment Office of the Presidency • A preliminary agreement on strategic co-operation in the field of defence industries between the UAE Tawazun Council and the Turkish Defence Industries Agency • A preliminary agreement in the field of export credit financing between Abu Dhabi Developmental Holding Company (ADQ) and Turkish Eximbank • A preliminary agreement on investing in sukuk for the purposes of the reconstruction of areas of Turkey affected by earthquakes, between Abu Dhabi Developmental Holding Company (ADQ) and the Turkish Ministry of Treasury and Finance • A strategic co-operation agreement between Adnoc and the Turkish Petroleum Corporation • A preliminary agreement between the Abu Dhabi Investment Office and Turkey's Investment Office of the Presidency Total UAE investments in Turkey reached $7.8 billion by the end of 2021, spanning several sectors, such as financial services, real estate, transportation, renewable energy, ports and logistical services. Prominent Emirati companies with major investments in Turkey include ADQ Holding, Emirates NBD, Emaar Properties, International Holding Company (IHC), Abu Dhabi Investment Authority and Mubadala Investment Company. Last year, IHC, through its subsidiary International Energy Holding, acquired a 50 per cent stake in Turkish renewable energy company Kalyon Enerji for Dh1.8 billion ($490 million). In 2021, the UAE formed a $10 billion fund to support investments in Turkey following talks between President Sheikh Mohamed and Mr Erdogan in Ankara. The investment fund aims to increase support for the Turkish economy and will focus on sectors such as energy, health and food. Turkey's Vice President Cevdet Yilmaz accompanied by treasury and finance minister Mehmet Simsek visited the UAE last month to strengthen ties between the two countries. Mr Erdogan made his first official visit to the UAE in almost a decade in February last year. The two countries signed 13 agreements and protocols in various fields at the time, including defence, health and medical sciences, sea and land transport, advanced industries and technology, climate action and culture. The central banks of the two countries also signed a currency swap agreement . Mr Erdogan landed in Abu Dhabi on Wednesday after visiting Saudi Arabia and Qatar as he aims to attract more investment into his country.

UAE and Turkey announce agreements worth $50.7bn and set up strategic council

Accords aimed at diversifying the framework of their Cepa deal and deepening bilateral investment