OPINION: Türkiye and Saudi Arabia's growing partnership in trade

Türkiye and Saudi Arabia are on track to achieve a historic milestone this year, surpassing $8 billion in bilateral trade, with ambitious plans to reach $10 billion by 2025. The announcement was made by Turkish Trade Minister Omer Bolat during the Türkiye-Saudi Arabia Business Forum in Istanbul, hosted by the Foreign Economic Relations Board (DEIK). The forum hosted Saudi Arabian Commerce Minister Majid bin Abdullah Al-Qasabi and over 500 business leaders from both countries, marking a significant moment in deepening economic ties.

Speaking at the forum, Bolat emphasized the growing strength of economic relations between Türkiye and Saudi Arabia. "Our economic relationship is almost flawless and growing stronger. This year, we'll reach a record-breaking $8 billion in trade, and we're setting our sights on $10 billion by 2025,” he stated, noting that this remarkable growth aligns with a broader strategy to increase Türkiye's trade with Islamic countries, which has already tripled since 2002 to 30% of Türkiye's foreign trade today.

Bolat noted that his first official foreign visit as trade minister was to Saudi Arabia, where he formed a close working relationship with his counterpart Al-Qasabi. "In the past year and a half, Minister Al-Qasabi has worked tirelessly to remove obstacles to our relationship,” Bolat said. “As someone who has witnessed his dedication, I extend my gratitude on behalf of myself and my country.”

Al-Qasabi, who had also addressed the forum, highlighted the reputation of Turkish products among Saudi consumers and businesses, underscoring that Türkiye holds a “special place” in the Saudi market. Known for their high quality, Turkish products have been in high demand as they have set a benchmark in the international market. Al-Qasabi added that Riyadh sees Türkiye as both a “fraternal country” and a “strategic partner.”

The two nations have laid substantial groundwork to foster economic collaboration. Bolat noted that Turkish construction companies are key players in Saudi Arabia's ambitious Vision 2030 projects, executing projects worth $30 billion across 420 initiatives in the kingdom. In 2024 alone, Turkish firms secured construction contracts worth $2.3 billion, with expectations to surpass $3 billion by the end of the year. The scale of this collaboration reflects the vision that the two countries share for Saudi Arabia's transformative projects, including the futuristic Neom megacity, Diriyah Gate, and the Red Sea Project — initiatives with a combined investment value of $3.3 trillion.

- New avenues for trade and tourism

Türkiye's close economic ties extend beyond construction and include strong trade channels through customs and travel agreements. "We have customs union agreements with the EU, free trade agreements with 23 countries, and preferential trade agreements with three others," Bolat explained. "With nearly 100 weekly flights between our countries, Turkish and Saudi citizens travel for business, Hajj, Umrah, and leisure, facilitating ever-growing connections." In 2023 and 2024, close to 1 million Saudi tourists visited Türkiye and the numbers are expected to grow even further.

Bolat also highlighted Türkiye's active role in sectors that align with the pillars of Saudi Arabia's Vision 2030, such as digital transformation and the green economy. “The high-quality services provided by Turkish companies, supported by advanced technologies and green economy practices, reaffirm that we are moving in the right direction,” he said. Bolat expressed Türkiye's readiness to support Saudi Arabia to achieve world-class standards in its recent bids to host the World Expo 2030 and the FIFA World Cup 2034, adding that Türkiye was “fully confident in Saudi Arabia's ability to deliver.”

- Forging new pathways for investment

In an interview, DEIK President Nail Olpak emphasized that trade between Türkiye and Saudi Arabia has shown robust growth, with trade volume reaching $6.4 billion by September of this year. "This figure has the potential to exceed $10 billion,” he told us, underscoring the importance of mutual investments and the development of joint business models in third countries. “Our strong economic potential, strategic location, and forward-looking visions provide opportunities to deepen these relations further,” he said.

Olpak also praised recent agreements signed at the forum, noting that the 10 new accords in construction, energy, tourism, technology, and health will add significant momentum to the cooperation between the two countries. "Saudi Arabia's 2030 Vision provides incredible opportunities for Turkish investors,” he explained, pointing to Riyadh's legal reforms concerning investment, allowing for customs exemptions, streamlined procedures to start a business, and advantages in foreign employment. “We expect the interest of Saudi companies in Türkiye to increase steadily," says Olpak.

Trade Minister Bolat conveyed his anticipation to finalize the free trade agreement between Türkiye and the Gulf Cooperation Council as soon as possible. He expressed optimism that the agreement will catalyze even more robust economic ties. "This forum and the successful projects already underway showcase the shared vision of our countries. We aim to keep building on this momentum, with plans to meet again soon in Saudi Arabia,” Bolat said.

With strong diplomatic efforts and a shared economic vision, the Türkiye-Saudi Arabia Business Forum underscored the commitment of both nations to pursue ever-closer collaboration in a range of sectors, ensuring that both economies thrive in the years to come.

*Opinions expressed in this article are the author's own and do not necessarily reflect Anadolu's editorial policy.