Saudi Arabia Tops the List of Foreign Investments in Turkey
Saudi Arabia is one of the Gulf countries with strong investment ties with Turkey
Saudi Arabia Tops the List of Foreign Investments in Turkey
Recent studies on trade relations between Turkey and the Gulf indicate a significant growth in trade and investment between these countries.
Saudi Arabia is one of the Gulf countries with strong investment ties with Turkey. Statistics of the year 2016 indicate that the volume of trade between Turkey and Saudi Arabia reached more than 5.7 billion dollars, which is the highest ratio among Islamic countries.
The volume of Saudi exports to Turkey reached about 3 billion dollars, while Turkey exports worth about 2.5 billion US dollars.
The number of Saudi companies with commercial ties with their Turkish counterparts rose to more than 1,000 last year, increasing from 111 in 2011 to more than 1,000 in just four years.
The real estate sector is considered one of the most attractive commercial sectors in Saudi Arabia, where studies indicate that the amount of Saudi investment in the field of real estate is about 30%.
Several Saudi companies have recently entered into many investment fields in Turkey, ranging from real estate to energy, food, transportation, industry, and many other fields.
Turkey is working hard to bring the volume of Saudi investments in the country to 25 billion dollars and to reach the volume of trade between them to reach 20 billion dollars, Turkey put this goal within the vision of the Republic of Turkey in 2023, which marks the centennial of the establishment of the Republic.
Studies indicate that Saudi and Gulf companies’ investments have increased significantly after Turkey's adoption of more laws and regulations that help to invest in many sectors, starting with tax cuts and other facilities that have attracted investors.
Over the past few years, Saudi Arabia has been among the most foreign countries investing in real estate in Turkey. In 2015, these countries topped 1.445.589 m2 of properties, surpassing Britain, the United States, and many Gulf countries such as Kuwait and the UAE.
If the average is taken over the past years on the acquisition of real estate in Turkey by foreigners, we notice that Saudi Arabia has also ranked first, reaching 782.674 m 2, surpassing Germany, which reached 649.254 m2 and, Britain 557.776 m2.
According to the General Directorate of Real Estate Records of the Ministry of Environment and Cities of the Republic of Turkey, Gulf investors have directed the investment spark in real estate during the last 10 years to Turkey instead of Britain, which was known to attract Arab and Gulf real estate investors over many years.
The General Directorate of Real Estate Records has published the real estate acquisition figures by Gulf investors in the last 10 years. Figures based on 2016 data indicate that Saudi investors bought more than 1642 residential units, land and plots of land for construction. Istanbul had the largest share of investors Saudi real estate buyers who have purchased 1000 housing units on investment land, apartments, villas and many other properties. Bursa and Antalya came in second and third place in terms of real estate investment.
It is worth mentioning that the Turkish government's facilities at the tax level and the facilitation of payments and the granting of Turkish nationality to real estate investors have played a big role in this great turnout.
We also note that Turkish banks have begun to grant Saudi investors wishing to own real estate loans to buy housing units against mortgaging property until the expiry of the payment, as in the cases of acquisition by Turkish investors also. This is the first procedure of its kind, and facilitation is on the citizens of other countries before.
It is worth mentioning that Saudi investors have acquired the largest share of foreign ownership of real estate in Turkey, where the past three years have seen large purchases, making them owned hundreds of real estate increased by more than 110%, removing the Germans and Britians, who led the list for a long time from time.
This is a very significant achievement as Saudi Arabia has been in the top position despite Germany's real estate strength in Turkey, due to the presence of more than 3 million Turkish citizens residing in Germany who have been investing heavily in Turkey for many years.
It is well known that Turkey's real estate has witnessed a great buying trend during the past two years and the first quarter of this year by Gulf investors in general and Saudis in particular, where their share of the total area bought by foreigners ranked first in terms of area sold to foreigners.
The total number of foreign investors in the real estate sector reached 14,000 investors, while the number of Arab investors reached 4408 investors, and there was a change in the order of the provinces that are receiving investors. New cities such as Ankara and Konya have entered the list of cities that increased Arab real estate investment In addition to Istanbul and Antalya.
As mentioned above, the GCC's demand for real estate in Turkey came after the Turkish government made extensive amendments to the reciprocity clause in the Turkish real estate law. The amendment of the reciprocity law was an important factor in attracting Gulf investment and making it a top tier in this sector.
In addition, there are about 320 real estate companies with Saudi capital operating in Turkey. Between 2002 and 2012, total Saudi investments in Turkey amounted to more than $ 1.6 billion. This number is expected to have doubled in the period up to a quarter the first of 2017, while Turkey received direct international investment worth more than 125 billion dollars, the share of Saudi Arabia alone, about 1.5%.
Learn about the most important elements of the Turkish economy in 2020, its strengths, weaknesses, and future expectatio...
Learn more about Kadikoy area in the Asia part of Istanbul, and its most important landmarks, most beautiful areas, and...