The UAE and Turkey enjoy close trade and investment relations thanks to the common desire of both countries to upgrade these relations to a broader level of partnership and joint growth for the economies of the two countries.
Last March, the UAE and Turkey signed a comprehensive economic partnership agreement between them, during a presidential summit via visual communication technology, held by Sheikh Mohammed bin Zayed Al Nahyan, President of the UAE, and Recep Tayyip Erdogan, Turkish President, and the agreement was officially ratified by the governments of the two countries. in preparation for its activation and entry into force.
The agreement ushered in a new era of partnership and economic integration, based on a solid foundation of close trade and investment relations, as non-oil intra-trade increased by 40 percent, reaching a value of $18.9 billion in 2022, making Turkey one of the UAE’s top 10 trading partners around the world, with a share of more than From 3 percent of the UAE’s non-oil foreign trade.
The total volume of Emirati investments in Turkey reached about $7.8 billion at the end of 2021 in various sectors, including financial services, real estate, transportation, renewable energy, ports and logistics.
Once the Comprehensive Economic Partnership Agreement enters into force, customs duties on 82 percent of products and commodities, which represents more than 93 percent of the value of bilateral non-oil trade, will be abolished or reduced, in addition to removing unnecessary barriers to trade and creating new paths for foreign investment flows. Direct bilateral relations, and enhance local exporters’ access to markets, including key sectors such as construction, metal products, polymers and other industrial products, according to the Emirates News Agency.
The agreement aims to increase non-oil intra-trade from its current value of $18.9 billion to more than $40 billion annually within 5 years, increase UAE exports to Turkey by 21.7 percent, and increase investment flows in key sectors such as logistics, e-commerce, food security, and renewable energy. .
The two countries play a pivotal role in facilitating the flow of international trade as they are among the most vital economies, thus enhancing regional progress and prosperity in light of the development of joint economic relations that witnessed the establishment of investment funds worth billions of dollars and cooperation in key important sectors, including advanced technology and logistics services, in addition to the partnership to support the development of emerging e-commerce. .
The comprehensive economic partnership agreement between the UAE and Turkey opens new paths for exporters of goods and services to the markets of the two countries and the region, and launches a platform for cooperation and partnership between small and medium-sized companies and entrepreneurs in the two countries, which places the region at the heart of international trade and on the map of new centers of global growth.
It is worth noting that among the leading Emirati companies investing in Turkey are ADQ Holding, Emirates NBD, Emaar Properties, International Holdings, Abu Dhabi Investment Authority, and Mubadala.
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