Saudi Arabia and Turkey recently made a significant leap in their bilateral relationship, signing 10 cooperation agreements during a prominent business forum in Istanbul. This event marks a new chapter in the economic partnership between the two nations, focusing on an array of sectors crucial to both economies. From agriculture and tourism to advanced technology and infrastructure, these agreements set the stage for expanded collaboration that aligns with each country’s economic visions and goals for growth. This forum not only symbolizes strengthened diplomatic relations but also opens doors to vast business opportunities for companies in both countries.
Saudi-Turkish Business Forum: Setting the Stage for Collaboration
Organized jointly by the Federation of Saudi Chambers and the Foreign Economic Relations Board of Turkey, the Saudi-Turkish Business Forum attracted more than 450 companies and several government entities from both nations. This robust turnout underscored the high level of interest from businesses eager to capitalize on new investment and trade prospects.
As part of the forum’s agenda, both parties explored the potential for joint ventures and investments across diverse industries, including agriculture, tourism, food production, and advanced manufacturing. In addition, sectors such as technology, innovation, construction, infrastructure, and logistics were identified as priority areas for immediate and long-term cooperation.
Growing Trade Between Saudi Arabia and Turkey
The strengthening economic relationship between Saudi Arabia and Turkey is reflected in their steadily increasing trade volume, which reached SR25.4 billion (approximately $6.76 billion) in 2023. This figure represents a 15.5 percent growth compared to the previous year. In detail, Saudi exports to Turkey amounted to SR15.6 billion, while imports from Turkey stood at SR9.8 billion.
A Vision for Future Trade Growth: Turkey’s Ambitious Goals
Turkish Minister of Trade Omer Bolat highlighted Turkey’s aspirations to increase bilateral trade with Saudi Arabia to $30 billion over the medium to long term. Speaking at the forum, Bolat emphasized the mutual benefits that such growth would bring, particularly in sectors like tourism, health services, infrastructure, information technology, and defense. The minister also noted the high quality of Turkish products and the success of the country’s service industry, encouraging both sides to take advantage of these assets for mutual gain.
Saudi Arabia’s Commitment to Strategic Partnerships
Reflecting on the success of the forum, Saudi Minister of Commerce Majid Al-Qasabi expressed his commitment to expanding trade partnerships with Turkey. Al-Qasabi’s meeting with Bolat in Istanbul focused on solidifying the framework for cooperation that benefits both “brotherly countries.” His statement on social media highlighted the joint resolve to strengthen economic ties for the mutual good of Saudi Arabia and Turkey.
Key Agreements: Targeting High-Impact Sectors
The cooperation agreements signed at the forum encompass a wide array of industries, each chosen for its potential to contribute to both nations’ economic growth:
- Agriculture and Food Production: This sector holds immense promise, especially as both nations seek to enhance food security and sustainable agriculture.
- Tourism and Hospitality: With growing numbers of Saudi tourists visiting Turkey and vice versa, joint ventures in tourism infrastructure will further facilitate travel between the two countries.
- Advanced Manufacturing and Technology: Investments in innovation and high-tech manufacturing are set to play a central role, with Saudi Vision 2030 and Turkey’s tech initiatives as guiding frameworks.
- Construction and Infrastructure: The agreements also cover collaborations in construction, a sector where both nations can share expertise and resources for large-scale projects.
- Healthcare and Digital Services: With a focus on health innovation and digital transformation, both countries aim to enhance healthcare services and digital solutions.
Saudi Vision 2030: Opportunities for Turkish Investors
The Saudi-Turkish Business Forum served as a gateway for Turkish companies to align their investments with Saudi Vision 2030. Saudi Arabia’s ambitious economic transformation plan places special emphasis on sectors such as tourism, industrial zones, healthcare, digital services, and energy—all of which are open for foreign investment. With these new agreements, Turkish companies are now better positioned to contribute to and benefit from these transformative projects.
The Business Council’s Role in Advancing Economic Relations
At the forum, Sami Al-Osaimi, chairman of the Saudi-Turkish Business Council, expressed optimism about the future of Saudi-Turkish trade. The council, which has been instrumental in fostering business connections, set a goal of reaching a $10 billion trade volume in the near term. Additionally, Al-Osaimi emphasized that Turkish companies now have greater access to Saudi markets and resources, creating more pathways for sustainable economic growth.
Rise in Saudi Investments in Turkey
The economic relationship between Saudi Arabia and Turkey has evolved considerably, as highlighted by Fayez Al-Shaili, vice president of the Federation of Saudi Chambers. Over the past decade, the number of Saudi companies operating in Turkey has skyrocketed from just 11 in 2011 to over 1,400 in 2023. These companies have collectively invested SR18 billion in Turkey, a testament to Saudi Arabia’s growing interest in Turkish markets and sectors such as real estate, construction, and finance.
Turkish Companies Thriving in Saudi Arabia
Around 390 Turkish companies currently operate in Saudi Arabia, investing in various sectors, from construction and manufacturing to retail and logistics. These firms are increasingly focused on sectors that align with Saudi Arabia’s development priorities, including energy, infrastructure, and digital services. This surge in investment activity underscores the deepening economic integration between Saudi Arabia and Turkey.
Strengthening Logistics and Infrastructure: Paving the Way for Growth
One of the focal points of the Saudi-Turkish Business Forum was logistics. Both nations recognize the need for a robust infrastructure to support increased trade volume. By enhancing transportation and logistics networks, they aim to reduce costs and improve efficiency in bilateral trade. Turkish firms specializing in logistics and infrastructure development are set to play a critical role in Saudi Arabia’s transportation projects.
Technology and Innovation: A Shared Vision for Progress
The agreements signed at the forum also highlight a shared commitment to technology and innovation. Both Saudi Arabia and Turkey are making strides in tech and innovation, recognizing that advanced technology is a catalyst for sustainable growth. Joint initiatives in artificial intelligence, renewable energy, and digital transformation are expected to yield significant benefits for both economies.
Bilateral Cooperation in the Defense Industry
Another promising area of collaboration is the defense industry. As Turkey aims to expand its defense sector, joint ventures with Saudi firms could be mutually beneficial. By sharing expertise and resources, both nations can enhance their defense capabilities while strengthening economic ties in a sector of strategic importance.
Conclusion: A Future of Prosperous Partnership
The Saudi-Turkish Business Forum has set the stage for a deeper and more diversified economic partnership between Saudi Arabia and Turkey. With 10 new cooperation agreements and a roadmap for future collaboration, the forum marks the beginning of a new era in Saudi-Turkish relations. As both nations continue to invest in each other’s economies, they’re not only building business connections but also fostering a sense of shared vision and mutual prosperity.
For companies in Saudi Arabia and Turkey, the message is clear: the time to invest and collaborate is now. This forum has paved the way for a future where both economies can thrive together, leveraging each other’s strengths to achieve their respective goals.
