Turkey and UAE ink $50 billion in trade deals during Erdogan visit

DUBAI/ANKARA — Turkish President Recep Tayyip Erdogan met in Abu Dhabi on Wednesday with his UAE counterpart, Sheikh Mohammed bin Zayed Al Nahyan, and established a high-level strategic council in addition to agreements worth $50 billion between the two countries, capping a three-day Gulf tour.

The agreements, estimated at $50.7 billion, are in addition to the trade deal first signed in March valued at $40 billion. It aims to diversify the UAE-Turkey Comprehensive Economic Partnership Agreement, according to the state-owned Emirates News Agency. 

The deals also cover investments, space and defense development, and energy and natural resource projects. The two countries also agreed to establish a Joint Economic and Trade Commission. Other agreements from the visit include consensus on extradition rules and legal cooperation on civil and commercial matters.   

Sheikh Mohammed said he held “fruitful” talks with the Turkish president on Wednesday. “The UAE and Turkiye remain committed to fostering regional stability, growth and sustainable economic development,” he wrote on Twitter. 

A statement from the Turkish presidency's communication office echoed a similar line. “We will raise our relations to the level of strategic partnership through the memorandum of understanding we will sign,” the statement said, adding that the two countries would hold a trade and investment forum in Istanbul in the fall.

It was Erdogan's first regional visit since he was reelected in May, aiming to revive his country’s economy, which is being crippled by a foreign currency crisis.

The Turkish president was accompanied by a large Cabinet delegation, including Foreign Minister Hakan Fidan and Defense Minister Yasar Guler, as well as nearly 200 business people. 

Turkey’s Finance Minister Mehmet Simsek and Central Bank Governor Hafize Gaye Erkan joined Erdogan in Doha on Tuesday evening after concluding their meetings on the sidelines of the G-20 finance ministers’ summit in New Delhi. The two officials are accompanied Erdogan in Abu Dhabi.

Following years of antagonism, Turkish-Emirati ties have improved greatly since 2021 as part of Turkey’s charm offensive to restore relations with former regional rivals, including the UAE, Saudi Arabia, Egypt and Israel. The push was largely aimed at drawing foreign funds as Turkey grapples with challenging economic times. Erdogan and Sheikh Mohammed have met four times in the last three years. The sheikh was the first state head who paid a working visit to Turkey after Erdogan's inauguration in June. 

Total non-oil trade between the UAE and Turkey reached $19 billion in 2022, increasing 40% from the year before and 112% from 2020 to 2021, according to the state-owned Emirates News Agency. 

In March, Turkey signed a $40 billion trade agreement with the UAE, its sixth-largest trading partner, over five years. The agreement, which was ratified by Abu Dhabi in May after Erdogan’s reelection, is set to also boost UAE exports to Turkey by 21.7%. 

Between January and May 2023, Turkey’s exports to the UAE increased by 24% from the same period last year, reaching $2.5 billion, while imports increased by 162% to $4.1 billion.

Erdogan’s tour comes as Turkey marks the 50th anniversary of diplomatic ties with both the UAE and Qatar. During his visit to Qatar on Tuesday, Ankara and Doha released a joint declaration signed by Turkish Foreign Minister Fidan and his Qatari counterpart, Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani, pledging to strengthen ties in all areas. 

During the tour, Turkey also secured five deals with Saudi Arabia, including one involving Turkish drone manufacturer Baykar, according to official sources.