The Saudi-Turkish Forum calls for building alliances between the companies of the two countries
On the sidelines of the Gulf tour initiated by Turkish President Recep Tayyip Erdogan from the Kingdom of Saudi Arabia, which he described as “one of the most important countries in the region, and we want to develop economic relations with it,” the Saudi-Turkish Business Council meeting was held in Jeddah, initiated by Saudi Investment Minister Khaled Al-Falih by stressing The Kingdom’s keenness to involve the Saudi and foreign private sector, especially the Turkish one. On the other hand, the Turkish Minister of Trade, Omer Bolat, stressed the importance of promoting investment and trade between the two countries.
The Council meeting was initiated by the Saudi Minister of Investment, Khaled Al-Falih, who confirmed that “Vision 2030” came to establish a new phase in all aspects of life in the Kingdom, a phase in which the distinguished economic and investment environment emerges, and in which promising and huge investment opportunities are promoted in various economic sectors with the aim of contributing to strengthening The status and sustainability of the Kingdom’s economy and the diversification of its resources.
Al-Falih added, “One of the most prominent features of the vision is the keenness to involve the Saudi and foreign private sectors, including the private sector from Turkey.” He explained that the National Investment Strategy aims to enable diversified investments with a total estimated volume of $3 trillion and $300 billion by 2030.
Eng. Khalid Al-Falih, Saudi Minister of Investment, delivers his speech (Asharq Al-Awsat)
He said that the goal is to expand investments inside and outside the Kingdom, pointing out that integrating the capabilities of the Saudi and Turkish private sectors will achieve greater opportunities.
Al-Falih stressed that there is a huge and promising opportunity in the Kingdom for major Turkish companies. He pointed out that the volume of spending on the promising building and construction sector, which is witnessing an unprecedented renaissance in the Kingdom, will reach $170 billion annually, and “we are still at the beginning of an upward phase.” The Kingdom’s giant projects and the investments of major investors, such as the Public Investment Fund and Saudi Aramco, and development in all its forms.
Al-Falih pointed out that the Kingdom constitutes 60 percent of the Gulf food market, expecting the Gulf food market to grow to $65 billion annually in 2030.
Revealing that 1,140 Saudi companies are operating in Turkey, Al-Falih said, “The tourism sector in the Kingdom will add 300,000 in the field of hospitality.”
As for the Turkish Minister of Trade, Omar Bolat, he said in his speech that it is necessary to work to enhance investment and trade between the two countries, and “we are able because of the strong relations between us.”
Turkish Trade Minister before giving his speech (Asharq Al-Awsat)
He added, “We pledge to always work to open ways for you in order to reach our goals of sustainable development and the required trade relations.”
He pointed out that the free trade agreement is important to the interests of the two countries, and said, “Turkey and the Kingdom are two countries that have sufficient energy to strengthen relations and work to develop all cultural, commercial, cultural, industry sectors and everything that is exchanged in your minds.”
And he believed that “in the event of signing a free trade agreement, there will be smooth sailing between the Kingdom and Turkey, as there are many agreements between Turkey and foreign markets.”
And he stressed that «it is necessary that there be incentives for investments and work to set taxes on both sides, this will stimulate businessmen and investors».
He said, “Saudi Arabia has investments in Turkey that start at two billion dollars and more. These figures confirm the confidence of our Saudi brothers in Turkey, and we say that we are waiting for you in Turkey.”
He added, “We have many experiences in contracting and artificial intelligence… Also, in Red Sea projects, it is necessary to know the opportunities that we can benefit from.”
Part of the audience at the Saudi-Turkish Forum (Middle East)
In the same context, the head of the Federation of Saudi Chambers, Hassan Al-Huwaizi, told Asharq Al-Awsat that there is great interest from Turkish companies to enter and invest in the Kingdom.
Al-Huwaizi identified companies interested in entering the Saudi market, which is represented in the construction and contracting sector, in light of “Vision 2030” and the space it gives to the investor, guarantees, and the generation of golden opportunities.
He believed that the visit of Turkish President Recep Erdogan to Jeddah (western Saudi Arabia), accompanied by more than 200 businessmen and investors, is an indication of the importance of the local market, stressing that the economic relations between the two countries are on the right track.
Al-Hwazi revealed that Saudi exports to Turkey reached about $5 billion over the past year, which constitutes an increase of about 19 percent compared to 2021, indicating that the volume of trade is still small compared to the aspirations of the two countries.
He disclosed the presence of 1,140 Saudi companies investing in Turkey, and in return 390 establishments in Saudi Arabia, pointing out that the Saudi-Turkish Business Council works continuously and directly with friends in Ankara.
He added that the Saudi-Turkish Business Forum, which was held in Istanbul last week, witnessed the signing of 16 cooperation agreements between the two sides in the fields of real estate development, construction, engineering consultancy and a number of other investment sectors, with a value exceeding 2.3 billion riyals ($613.3 million).
Turkish Trade Minister Omar Bolat announced, a few days ago, that the volume of trade exchange between his country and Saudi Arabia amounted to $3.4 billion in the first half of 2023, indicating that the volume of trade exchange amounted to $6.5 billion in 2022, and will continue with increasing momentum in 2023.
He added, “Our goal is to raise mutual trade to the level of 10 billion dollars in the short term, and 30 billion dollars in the long term.”
The volume of trade is still small compared to what is hoped for between the two countries. Last March, the Turkish government indicated targeting bilateral trade between the two countries at about $10 billion annually in the coming years.
Riyadh had decided to deposit $5 billion in the Turkish Central Bank last March, which contributed to reducing pressure on the Turkish currency, following the devastating earthquake that struck Turkey and Syria last February.
For its part, Saudi Aramco met last June with about 80 major Turkish construction companies in efforts to award them contracts in the Kingdom worth up to $50 billion, according to Bloomberg.
Last week, the Saudi-Turkish Business Forum was held in Istanbul. Where 16 cooperation agreements were signed between the Saudi side and Turkish companies in the fields of real estate development, construction, engineering consultancy and a number of other investment sectors, with a value exceeding 2.3 billion riyals.
2023-07-17 17:16:03
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