Saudi Turkiye cooperation agreements: Istanbul Forum highlights opportunities to boost bilateral trade to $30 billion

In a significant move to strengthen commercial relations, Saudi Arabia and Turkiye have signed ten cooperation agreements at the Saudi-Turkish Business Forum held in Istanbul. This event marks a pivotal step in advancing strategic initiatives across a range of sectors, including agriculture, food, tourism, advanced manufacturing, construction, and infrastructure.

The forum, organised by the Federation of Saudi Chambers and the Foreign Economic Relations Board of Turkiye, drew participation from over 450 companies alongside various government agencies from both nations. This gathering underscored the potential for joint ventures and collaborations, particularly in technology, innovation, and logistics.

In 2023, the trade volume between Riyadh and Ankara reached SR25.4 billion ($6.76 billion), reflecting a robust growth of 15.5 per cent. Saudi exports to Turkiye accounted for SR15.6 billion, while imports from Turkey reached SR9.8 billion. Turkish Minister of Trade Omer Bolat expressed ambitions to elevate bilateral trade with Saudi Arabia to $30 billion in the medium to long term, emphasising diversification into sectors such as tourism, healthcare, infrastructure, information technology, and defence.

Minister Bolat praised the strong ties between the two countries, commending the quality of Turkish products and the success of Turkiye’s services sector. He also highlighted Saudi Arabia’s ongoing transformations in various sectors, including mining, health, technology, and communications.

Saudi Minister of Commerce Majid Al-Qasabi echoed this sentiment in a post on X, stating, “Today in Istanbul, I met with my brother, His Excellency the Turkish Minister of Trade Omer Bolat, and we discussed strengthening relations and expanding trade partnerships for the good and interest of the two brotherly countries.”

Fayez Al-Shaili, vice president of the Federation of Saudi Chambers, remarked on the qualitative shift in Saudi-Turkish relations, noting the establishment of a business council that has been instrumental in enhancing economic ties. This has positioned Saudi Arabia among Turkiye’s eight largest trading partners.

The number of Saudi companies operating in Turkiye has surged dramatically from just 11 in 2011 to over 1,400 in 2023, with total investments amounting to SR18 billion, according to Al-Shaili. Concurrently, Sami Al-Osaimi, chairman of the Saudi-Turkish Business Council, highlighted that approximately 390 Turkish companies are now investing in the Saudi market. The council aims to achieve a trade exchange volume of $10 billion in the short term.

The forum also served as a platform to showcase investment opportunities for Turkish investors within the framework of Saudi Vision 2030, focusing on areas such as tourism infrastructure, industrial zones, healthcare, digital services, and energy. Additionally, the Saudi-Turkish Business Council convened on the sidelines of the forum to discuss strategic plans, initiatives, and government support necessary to address challenges faced by investors from both nations.