A large delegation of Turkish business leaders will accompany President Recep Tayyip Erdoğan on his visit to Saudi Arabia, where the focus will be on potential announcements signaling further advancements in economic cooperation.
The two-day visit is Erdoğan's first trip abroad of the year, which comes amid soaring tensions in the region, and is part of a tour that also includes a stop in Egypt.
Erdoğan is scheduled to arrive in Riyadh on Tuesday and be received by Crown Prince Mohammed bin Salman at Al Yamamah Palace.
His visit in mid-2023 resulted in the largest defense and aviation export contract in Türkiye's history that included the sale of dozens of unmanned combat aerial vehicles manufactured by the Turkish drone powerhouse Baykar.
Developing a local military industry has been part of an ambitious plan by Prince Mohammed to diversify the kingdom's economy away from oil. The deal with Baykar also entailed cooperation on technology transfer and joint production.
"Erdoğan’s visit to Saudi Arabia represents the will of the two countries to elevate their relations, especially in economy and investments, as well as further advancing private sector cooperation,” said Haşim Süngü, chair of the Türkiye-Saudi Arabia Business Council at the Foreign Economic Relations Board (DEIK).
The focus is expected to primarily be on regional issues, including developments in Gaza and Syria, as well as the Trump administration's threats of a possible strike on Iran. Ankara and Riyadh are said to have been in touch with leaders in Washington and Tehran to make the case that an escalation by either or both sides would cause massive destabilization throughout the region and affect energy markets.
Erdoğan is expected to attend business forums in both Riyadh and Cairo. Eyes will be on the signings of new strategic cooperation agreements, potentially in energy and defense.
Last week, the Saudi Council of Ministers authorized relevant ministries to conclude agreements with Türkiye in the fields of renewable energy and civil defense, and approved a memorandum of understanding on cooperation in social services between the two countries.
Ankara and Riyadh are seeking to push bilateral trade from roughly $8 billion toward a long-term target of $30 billion.
"The way to achieve such goals is to transcend the traditional understanding of trade and boost investments, support domestic production, and conduct project-based cooperation," Süngü said.
"Strengthening direct contacts between the business communities of the two countries is key in this process,” he told Anadolu Agency (AA).
According to Süngü, energy, infrastructure, construction, industry, defense, health care, tourism and digital transformation are some of the particular areas for cooperation and strong investment opportunities.
He noted Saudi Arabia’s future road map, called the Vision 2030, which he says is largely compatible with Türkiye’s capacities in industry, production, engineering, and technology. Süngü said the visit would offer significant advantages to the Turkish business community in strengthening relations and paving the way for new investment projects.
Süngü also mentioned that massive projects, like the global cities Neom and Qiddiya, the Red Sea Destination and the AlUla Project, which he says represent significant potential for Turkish firms.
"These projects create a foundation for reliable partnerships for Türkiye’s strong engineering, manufacturing, and technology infrastructure, and we think that the coming period will bring with it an increase in mutual investments and more robust long-term strategic partnerships, and thus, the economic relations between the two countries will be more balanced and sustainable,” he added.
Saudi Arabia, which derives up to 90% of its state revenues from oil, exports crude oil and petrochemical products to Türkiye, while importing various goods, including carpets, processed stones for construction, tobacco products, food and furniture.
Bilateral trade stood at over $5.1 billion in 2019 before a dip due to the COVID-19 outbreak. It rebounded to reach nearly $6.5 billion in 2022 and $6.8 billion in 2023. It hovered around $8 billion over the last two years.
Türkiye's exports to Saudi Arabia rose by more than 11% to nearly $3.15 billion last year. Grains, pulses, oilseeds, and related products ranked first in exports to Saudi Arabia with $371.7 million, followed by carpets with $299.3 million and chemical products with $283.1 million.
Exports to Egypt, meanwhile, dropped by 5% last year compared to 2024 to around $3.3 billion. Chemicals and textiles dominated the shipments to Egypt.
Meanwhile, DEIK President Nail Olpak recently said Turkish overseas contracting firms continue to be involved in major projects in Saudi Arabia.
Olpak said trade with Gulf countries, particularly Saudi Arabia and the United Arab Emirates (UAE), has reached around $45 billion over the past three years.
Saudi Minister of State for Foreign Affairs Adel Al Jubeir had recently said cooperation between Türkiye and Saudi Arabia has particularly improved in recent years.
"We aim to advance cooperation between the two countries in various fields. We have many shared interests in the economic, energy, political and military fields," Al Jubeir said.
