Saudi Arabia signs major deal with Turkey to acquire Baykar drones

ANKARA — Turkey and Saudi Arabia have signed five deals to boost cooperation in economic, defense and energy during President Recep Tayyip Erdogan's visit to the Gulf powerhouse, Turkish officials announced Tuesday.

The Turkish presidency's communications directorate said one of the deals was signed between the Turkey's leading drone Manufacturer Baykar's CEO Haluk Bayraktar and Deputy Saudi Defense Minister Khalid bin Salman Al Saud without elaborating further, but the latter said the deal involves two acquisition contracts and that it aims to enhance the readiness of the kingdom's armed forces and bolstering its defense and manufacturing capabilities. 

CEO Haluk Bayraktar described the deal as “the biggest defense and aviation export contract” in Turkey’s history, in a Twitter post. He added that the deal includes the exportation of the Akinci TIHA, a high-altitude long-endurance unmanned combat aerial vehicle. 

Erdogan announced in 2021 that Saudi Arabia had been interested in purchasing Baykar drones and also in setting up a manufacturing plant for the joint production of the drones. The Kingdom has been the eight country which purchased Akinci combat drones from Baykar. 

Baykar also manufactures Bayraktar TB2 drones that have been exported to 30 countries. Kuwait, Qatar, the United Arab Emirates, Algeria, Morocco and Iraq are among the countries in the Middle East and North Africa that purchased Bayraktar TB2 drones. Four NATO and two European Union member states also bought them. 

The export revenue of the company, which is owned by the family of Erdogan’s younger son-in-law, exceeded $1.15 billion in 2022, according to Baykar’s website. 

Bayraktar TB2s came under limelight first in the Libyan conflict when the Tripoli-based government repelled the eastern-based forces led by Khalifa Hifter during a siege of Tripoli. The drones also acted as a game changer in the conflict in 2022 between Azerbaijan and Armenia over the contested Nagorno-Karabakh territory. But it was Russia's war on Ukraine that brought international fame to the TB2 drones; the armed drones turned into one of the main pillars of the Ukrainian army’s defense in the early days of the war.

The Turkish Presidency’s Communication Directorate said that other agreements between the two countries included promoting direct investments between the countries, the defense deals and another one to increase energy ministry cooperation.

Erdogan traveled to the Saudi city of Jeddah on Monday for the first leg of his three-day Gulf tour that marks the first regional trip since his reelection. He met with Saudi King Salman bin Abdul-Aziz Al Saud and Crown Prince Mohammed bin Salman.

Speaking just before departing for Saudi Arabia, the Turkish president said boosting joint investments and trade ties between Turkey and Gulf countries would be the main focus of his visit. The Turkish government is scrambling to draw Gulf dollars in a bid to ease Turkey’s foreign currency crunch, as the country’s current account deficit widened to nearly $8 billion in May and $60 billion over 12 months. 

Nearly 200 businessmen are accompanying Erdogan on his tour and are also set to meet with their Gulf counterparts during the visit, to increase cooperation between Turkish and Gulf companies. In addition to Erdogan's meetings, Turkish industry, trade and other ministers also met with their counterparts during the visit.

Erdogan is scheduled to travel to the Qatari capital Doha following his meetings in Saudi Arabia and will wrap up his Gulf tour in the United Arab Emirates on Wednesday.