K H A L E E J T I M E S | A DV ERT ISI N G SU P P LE M E N T S u n d a y, J a n u a r y 0 0 , 2 0 1 3
Turkey - UAE bilateral Ties
Rise of the crescent and star UAE is Turkey’s biggest partner in the GCC
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t took a decade of political and economic reforms, a strong parliamentary democracy, a customs union with the EU, and a great deal of ingenuity but Turkey has done what most emerging markets of the world are dreaming of — it tripled its per capita income from $3,492 to $10,444 and reduced poverty, while growing its economy more than eight per cent a year, achieving in the last two years the highest rate of GDP growth after China, to become one of the world’s fastest-growing economies. Growth has recently slowed as Turkey’s largest trading partner, the European Union, which imports half of its goods, is shuddering from the effects of the prolonged Eurozone crisis, which is projected to continue in 2013. As a result, the Turkish economy grew by three per cent in 2012, and is estimated for 2013 to remain at 4.1 per cent. The country’s social and economic transformations, which have been led by Prime Minister Recep Tayyip Erdoğan since 2003, have become an inspirational model for the Middle East, as Turkey has risen from the ashes of the downtrodden Ottoman Empire to once again become a pivotal player with a strategic role at the crossroads of Europe, the Middle East and Russia. Furthermore, its memberships of the G20 and NATO, the European Council, the Organisation of the Islamic Conference and the Black Sea Economic Cooperation have also ensured Turkish
General Shaikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, with Turkish President Abdullah Gul in Ankara. — AFP prestige in the international community. The attraction of Turkey’s domestic market of 75 million, together with a young and skilled workforce, are also proving a strong incentive for increased investment and trade, as Turkey’s population is forecast to grow to 92 million by 2050. There have been some bumps in the road in respect to Turkey’s relations with its neighbours. The escalation of violence in Syria continues to worry the region, and the pressure for protective military measures are growing, however Turkish diplomacy has remained staunchly supportive of the
Arab League and United Nations to find an acceptable resolution of the conflict. Indeed Turkish diplomacy has looked eastwards with greater solidarity, trade and cooperation with the Muslim world and this has been furthered accentuated as Turkey’s relations with the EU have cooled following the stalling of its accession talks to the monetary union. Turkey is now increasingly developing closer relations with the Middle East, and the UAE in particular. The UAE is today Turkey’s main trading partner in the GCC, with bilateral trade increasing from $355 million in 2000
to over $5.3 billion in 2011, with an expected $7 billion for 2012. More than $6 billion worth of construction contracts were awarded to Turkish businesses in the Emirates over recent years, most recently the Turkish construction company TAV was awarded the contract for construction of Abu Dhabi Airport, and Yapi Merkezi recently built the world’s longest fullyautomated and driverless metro — Dubai Metro, and Turkish steel is building much of Dubai’s high-rise buildings. Tourism and business travel is also increasing as Turkish Airlines announced new flights to the UAE and GCC countries as it expands its Asian and Middle East network. Trade has also increased in logistics, banking, food and retail, with 850 Turkish companies operating in the UAE. UAE businesses have also penetrated the Turkish market with 193 UAE firms operating there in 2012. Turkey’s Ambassador to the UAE, Vural Altay, is confident that relations with Turkey’s biggest partner in the GCC will be further enhanced as increased political and economic ties are strengthened. “The country is experiencing a significant momentum in Turkish-UAE relations. The boom in trade and investment, coupled with the visit of Turkish President Abdullah Gul to the UAE in January 2012 and General Shaikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces visit to Turkey in February 2012, have ensured a determined improvement of the bilateral relations, which will undoubtedly flourish in the years to come. The two nations share many cultural and historical values, and have a common understanding of sustaining a prosperous Middle East as a hub for trade, tourism and investment.”
S Vural Altay (left), Ambassador of Turkey to the UAE. (Right) Altay and Elif Comoglu Ulgen, Consul General, cut the ribbon at the Turkish pavilion at the Global Village in Dubai
Turkey is now increasingly developing closer relations with the Middle East, and the UAE in particular. The UAE is today Turkey’s main trading partner in the GCC, with bilateral trade increasing from $355 million in 2000 to over $5.3 billion in 2011, with an expected $7 billion for 2012. More than $6 billion worth of construction contracts were awarded to Turkish businesses in the Emirates over recent years, most recently the Turkish construction company TAV was awarded the contract for construction of Abu Dhabi Airport, and Yapi Merkezi recently built the world’s longest fully-automated and driverless metro — Dubai Metro, and Turkish steel is building much of Dubai’s high-rise buildings
UAE and Turkey sign a $12 billion agreement for energy investment
Resourcing energy The UAE and Turkey join together to develop power plants The UAE and the Republic of Turkey recently signed an Intergovernmental Agreement for the development of power plants and associated mines in the Afsin-Elbistan region of Turkey. The agreement marks the start of exclusive negotiations between Abu Dhabi National Energy Company PJSC (TAQA), Turkey’s Electricity Generation Co. Inc. (EUAS) and the Turkish government for the project with a combined power generation capacity of up to 7,000 MW. TAQA and EUAS have been selected as the government-related entities responsible for implementing the project. The two companies have signed a Memorandum of Understanding (MoU) for the establishment of a project company in which TAQA and any future partners would retain the majority shareholding. Mohamed bin Dhaen Al Hamli, Minister of Energy of the UAE, said, “This agreement further strengthens the bond between Turkey and the UAE, adding an important commercial dimension to this strategic relationship.” Taner Yildiz, Minister of Energy and Natural Resources of Turkey stated that the agreement is worth $12 billion. The development of Turkey’s indigenous lignite resources is a priority because it enables the nation to reduce its dependence on imported natural gas. Lignite’s role in power generation is set to expand alongside rapid growth expected in electricity demand. Approximately 40 per cent of Turkey’s lignite is located in the AfsinElbistan basin. The negotiations will lead to the signing of a Host Government Agreement in the second quarter of 2013, establishing more detailed terms.