Saudi Arabia and Türkiye New Horizons for Economic Cooperation

New Horizons for Economic Cooperation

The commercial and political relations between Türkiye and the Kingdom of Saudi Arabia are witnessing continuous improvement after nearly two years of stagnation due to the political crisis between the two countries and the repercussions of the Coronavirus pandemic. This paved the way for new horizons of economic cooperation.

Historical relations and prospects for economic cooperation between Saudi Arabia and Turkey with long historical relations, extend before the establishment of the Turkish Republic, during the era of the Ottoman Empire sultans. These relations are distinguished by their strength, as they are based on spiritual bonds represented by mutual Islamic history. The Ottomans were keen to serve the pilgrims of Mecca before the establishment of the modern Saudi state, which paved the way for investment between the two sides.

The history of diplomatic relations between the Kingdom and Türkiye dates back to 1929; a year after the signing of the friendship and cooperation agreement between both. On the political level, the two countries have solid relations based on solid historical and cultural ties. The mutual visits between senior officials of the two countries also laid the foundations for this relationship and supported it in all political, economic, and cultural fields.

Turkish-Saudi relations have witnessed a quantum leap since Turkish President Recep Tayyip Erdogan assumed the presidency in 2014, and King Salman, ruler of the Kingdom in 2015. Three summits were also organized between the leaders of the two countries in 2015; the first in the Saudi capital, Riyadh, the second with King Salman’s visit to the Turkish city of Antalya, and the last with President Erdogan’s visit to the Kingdom in the same year.

Considerable Commercial Exchanges

The economic relations between Saudi Arabia and Türkiye are distinguished by the volume of considerable trade exchanges. In 2016, Istanbul witnessed the signing of the treaty that establishes the Saudi-Turkish Coordination Council, in the presence of King Salman bin Abdulaziz and Turkish President Recep Tayyip Erdogan. This council held its first meeting in February 2017, in the Turkish capital, Ankara, under the chairmanship of the foreign ministers of the two countries.

The same year witnessed two summits; the first, during President Erdogan’s visit to Saudi Arabia in February, and the second in July when President Erdogan met with King Salman and Crown Prince Mohammed bin Salman in Jeddah. Türkiye was a major supporter of the Gulf unity; as the recent period witnessed an intense revitalization of Turkish-Gulf relations and an emphasis on their importance. One of the most prominent features of this period was a phone call between President Erdogan and King Salman in 2021, during which they discussed strengthening bilateral relations and many common issues, and they agreed to keep communication channels open between them.

This improvement clearly showed its economic impact, as Saudi Arabia's imports from Türkiye increased by 2.8% during the first two months of 2022; according to data from the Saudi General Authority for Statistics. The value of imports in the same year also amounted to 71.3 million riyals, compared to 69.4 million riyals in the previous year.

Real Estate Investments in Türkiye

Türkiye is witnessing an increasing demand from Arabs, and Gulf nationals in particular, to buy a residential or investment property. So far, Istanbul ranks first in the number of homes sold to Arabs throughout the country, which is because of its distinguished strategic location and excellent investment value. Given the different nature of Türkiye from the rest of the neighboring countries, buying an apartment in it, whether with the aim of investing or settling in it, is one of the important decisions for investors; especially, with such an investment's advantages. Here are some of these advantages:

1. The good financial return obtained when selling the apartment after a period of purchase, which is due to the growth in real estate prices in most Turkish cities.
2. Obtaining a real estate residency in Türkiye after purchasing an apartment, and this is in light of the facilities available that the government provides to investors on an ongoing basis.
3. Enjoying a calm and stable environment from a social and political point of view when you want to buy an apartment to settle in Türkiye, with a large group of attractive natural areas in the country.

 

Therefore, as the Homeland Real Estate Company team, we are ready to provide free real estate consultations to fulfill your desire to own a distinguished property. Do not hesitate to contact us at +905377793006.

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