UAE announces $10 billion fund for investments in Turkey
- Last updated: November 24, 2021 | 21:08
Gulf Today Report
The UAE announced a $10 billion fund for investments in Turkey on Wednesday during His Highness Sheikh Mohamed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, visit to Ankara.
Sheikh Mohamed Bin Zayed and Recep Tayyip Erdogan, President of Turkey, discussed the bilateral relations between the UAE and Turkey in the presidential complex in Ankara on Wednesday, opening new chapter in their bilateral relations.
Sheikh Mohamed Bin Zayed arrived in the Turkish capital on an official visit to the country.
They discussed new prospects for overall cooperation between their countries to serve the mutual interests, as well as regional and international issues of mutual concern.
Following their talks, the UAE announced it would establish a $10 billion investment fund in Turkey. This announcement aimed to support the Turkish economy and boost the bilateral cooperation between the two countries.
Sheikh Mohamed Bin Zayed said on Twitter, “Today in Ankara I met Turkish President Recep Tayyip Erdogan & we had fruitful discussions focusing on ways to strengthen relations between our countries. I look forward to exploring new cooperation opportunities to benefit our two nations & advance our mutual development goals.”
The new fund will focus on strategic investments, most notably in the logistics sectors, including energy, health and food. Turkey and the UAE signed accords on energy and technology investments on Wednesday.
The memorandums of understanding were signed between the Abu Dhabi Development Holding (ADQ), Turkish Wealth Fund (TVF), and the Turkish Presidency Investment Office, as well as with some Turkish companies. ADQ signed an accord on investing in Turkish technology firms and on establishing a technology-oriented fund, while Abu Dhabi Ports also signed an agreement on port and logistics cooperation. A deal between ADQ and Turkish company Kalyon on energy and infrastructure, another with CCN Group on health cooperation, and a third with Turkey's Presidency Investment Office on renewable energy were also among the agreements, a Turkish official said.
The Turkish and Emirati central banks also signed a cooperation agreement on Wednesday. Earlier, two sources said they were holding talks about a potential swap agreement.
Turkey's central bank has previously sought swap deals with other countries as a source of hard currency to build reserves and support the lira, which has declined as much as 45% this year.
Turkey said in September it was in talks with the UAE over investments in energy such as power generation, while the UAE, whose sovereign wealth funds have made significant investments in Turkish online grocer Getir and e-commerce platform Trendyol, has said it seeks deeper trade and economic ties with Ankara.
State broadcaster TRT Haber said Turkish Foreign Minister Mevlut Cavusogu will visit Abu Dhabi in mid-December. On the other hand, Turkey is a "great natural partner" for the UAE and the two countries "share a similar outlook and agree on a range of strategic topics," a senior Emirati official said on Wednesday.
Dr. Sultan Bin Ahmed Al Jaber, UAE’s Minister of Industry and Advanced Technology, told the Turkish Radio and Television Corporation (TRT), "As we celebrate our Golden Jubilee, partnerships and building bridges will continue to be central to our next 50-year development plans. So, we are laser-focused on prioritising sustainable economic growth and prosperity alongside regional and global partners.
"That means establishing stronger economic, trade, business and cultural ties with nations around the world like Turkey. As a close regional neighbour, Turkey is just a great natural partner," he added.
Al Jaber is part of the high-level delegation accompanying Sheikh Mohamed during his official visit.
"From our engagements with various Turkish counterparts, it is evident and very clear that we share a similar outlook and agree on a range of topics that are strategically important to both of us," he explained.
"It is our common interests, genuine commitment and shared vision for peace, stability and prosperity, not just for us but for the broader region. Al Jaber highlighted the fact that the UAE is Turkey’s largest regional trading partner.
"From 2019 to 2020, UAE exports to Turkey increased by more than 110 percent and total trade increased by 21 percent. The UAE, now, is "taking a comprehensive approach" to the partnership with Turkey, he emphasised.
"We will build on the existing foundation between the two countries and enhance our economic, trade and social ties across multiple sectors, including energy, healthcare, food and agriculture, logistics, ports, transportation, industry and manufacturing, infrastructure, finance and capital markets, technology, tourism, culture and more.
The UAE announced on Wednesday that it will establish a $10 billion investment fund in Turkey, which will focus on logistics, energy, healthcare and food.
The Emirati minister explained that in the past five years, the UAE has mostly invested in Turkey’s transportation, renewable energy and tourism sectors, while Turkish investments in the UAE focused on construction, automotive components and renewable energy. "We are now ready to enter the next phase and to build on those investments," he said.