Tourism, Real Estate, and Bayraktar Drones...Revival of Saudi-Turkish Economic Relations

 شهدت Saudi-Turkish relations remarkable developments in 2024 on several levels, coinciding with the signing of new trade and investment agreements aimed at enhancing cooperation between the two countries and opening new areas for strategic partnership that serve mutual interests.

The rapprochement between Riyadh and Ankara reflects a mutual desire to build a strategic partnership that serves the interests of both countries. It also comes within the framework of the two countries' efforts to deepen cooperation in various economic, commercial, investment, and tourism fields, enhancing Saudi-Turkish relations and opening new horizons for bilateral cooperation.

In this context, many high-level diplomatic talks were held to strengthen relations between the two countries, where Saudi Foreign Minister Prince Faisal bin Farhan paid an official visit to Turkey in July 2024, and a memorandum of understanding was signed to establish a coordination council between the governments of the two countries.

In the framework of diplomatic talks, the Saudi-Turkish Forum was held in February of the same year, which saw wide participation from businessmen, with more than 1,240 participants from both countries attending. During this forum, Saudi Arabia showed great readiness to enhance its investments in the Turkish market, identifying investment opportunities worth about $1.8 trillion in cooperation with global companies.

Exceptional Growth in Turkish Exports to Saudi Arabia and Future Trade Cooperation

According to statements made by Burak Daglioglu, head of the Turkish Presidency's Investment Office, Turkish exports to Saudi Arabia achieved exceptional growth in 2023, with an increase of over 100%, raising their value to $2.6 billion compared to only $800 million in 2022. The volume of trade exchange between Riyadh and Ankara reached $7 billion according to official reports in Saudi Arabia. 

Turkey looks optimistically to the future of trade relations with Saudi Arabia, as expressed by Turkish Trade Minister Omer Bolat, who described the coming year as a "golden year" in the course of economic relations. The two countries aim to raise the volume of trade exchange to $10 billion in the near term, with ambitions reaching $30 billion in the long term, highlighting both sides' commitment to enhancing economic partnership and expanding the scope of bilateral cooperation.

Enhancing Defense Partnership Between Saudi Arabia and Turkey through "Bayraktar"

Turkey has become a leader in the drone industry in recent years, with the "Bayraktar" drone produced by "Baykar Company" being one of the most prominent Turkish industries that have proven their efficiency in many fields. According to data released by the manufacturer, this drone has been exported to 30 countries so far.

In a step reflecting the deepening of defense relations between Saudi Arabia and Turkey, the Saudi Ministry of Defense signed an acquisition contract with "Baykar Company" last year. This aims to localize the drone industry in the Kingdom and includes transferring the systems and technology used in producing "Bayraktar" drones to the Saudi SAMI company for military industries. Additionally, the relations between the two countries have witnessed other defense deals, enhancing bilateral cooperation in this field.

The Saudi Tourist Still Loves Turkey

Tourism plays a pivotal role in the Turkish economy, as the movement of tourists to the country is a vital source of foreign currency inflow, contributing to economic stability.

Saudi Arabia is among the prominent countries whose citizens travel to Turkey, ranking second among Arab countries in terms of the number of visitors. According to the Turkish Ministry of Culture and Tourism, the number of Saudi tourists who visited Turkey exceeded 784,000 last year, an increase of 70% compared to the previous year.

Turkish Minister of Culture and Tourism Mehmet Nuri Ersoy looks forward to welcoming one million Saudi tourists by the end of 2024, enhancing tourism and economic relations between the two countries and contributing to strengthening cultural and popular ties within the framework of growing bilateral relations.

Turkish Real Estate: A Renewed Investment Destination for Saudi Investors

Turkey is one of the preferred destinations for Saudi investors in the real estate sector, thanks to its strategic location and diverse real estate projects. Turkey offers a wide range of investment opportunities, including residential apartments, villas, and commercial projects, making it an attractive destination for investors looking to diversify their investment portfolios.

Turkish real estate also plays a prominent role in attracting Saudi investors who seek investment opportunities characterized by good returns and diversity. Turkey offers attractive advantages for foreign investments in general, including competitive prices, tax exemptions, and high-quality services, enhancing its appeal as an investment destination.

Number of Apartments Sold to Saudis by Year until 2023

According to data released by the Turkish Statistical Institute, Saudi nationality ranked eighth among the most foreign nationalities purchasing residential apartments in Turkey during July 2024.

Saudi-Turkish relations in the field of real estate investment reflect an enhancement of bilateral cooperation between the two countries, contributing to the exchange of expertise and expanding business opportunities. Through developing joint real estate projects and facilitating property ownership, this relationship strengthens economic ties between Riyadh and Ankara and supports sustainable economic growth in both countries.

Editing: Emtiaak Real Estate©