With new agreements inked, including a partnership in technology transfer between a Turkish defense company and a firm from Saudi Arabia, along with several other agreements signed during a business forum in Istanbul recently, the two nations are poised to strengthen commercial ties even further following a surge in trade volume last year.

Turkish defense industry firm Ramsa Defence will be a partner in a $120 million technology investment in Saudi Arabia, according to information Anadolu Agency (AA) obtained on Friday.

In the latest addition to Turkish companies' business relations in the Gulf, Ramsa Defence provided details on its investment plans in Saudi Arabia at the World Defense Show (WDS) exhibition, held in the Saudi capital Riyadh earlier this month

The Turalı Group subsidiary, based in the capital Ankara, inked an agreement with the Arms Company for Military Industries (ACMI) to complete the technology transfer of about 20 products in its portfolio within eight months.

According to the deal, deliveries of the products will begin at the end of roughly a year and a half.

The products include unmanned aerial vehicles (UAVs), unmanned ground vehicles, the Eskelot Weapon Transport System, kamikaze drones, the Hakan hybrid guard security tower, grenade launcher drones, aircraft test benches and ultrasonic weapon cleaning systems.

Ramsa Defence aims to become a major player in the Saudi market with this technology transfer.

The Ramsa Defence-ACMI partnership will involve two stages of investment in Saudi Arabia.

A factory will be built in the initial phase and be put into service in 2025 in the city of Jeddah on an area of 50,000 square meters (about 12.4 acres) with an investment of $70 million. This facility will produce UAVs, unmanned combat aerial vehicles (UCAVs), unmanned ground vehicles and minicopters.

In the second phase, another factory in the same area will be set up in the capital Riyadh with another $50 million, making Ramsa's total investment in Saudi Arabia $120 million.

Ramsa Defence was established in 2016 to develop and produce high-tech products and subsystems for the Turkish Armed Forces (TSK) and other security forces, Turalı Group Chairperson Ramazan Gücükturalı told AA.

The company's investment in Saudi Arabia is very important for it and the Turkish defense industry to become stronger in international markets, Gücükturalı said, noting that the company has turned to foreign currency-earning activities by expanding abroad, the company,

"We are a center of interest for our international partners in many areas such as research and development, design, production, logistics, training and management with our value proposition, and with this investment, we are opening Turalı Group’s first production base in Saudi Arabia," he added.

"Our investment decisions that prioritize sustainability and global collaborations and create employment are a concrete example of our commitment."

Meanwhile, another Turkish company, Tor Holding, and Saudi Arabia's Investment Ministry signed an agreement in Istanbul on Saturday during the Türkiye-Saudi Arabia Investment and Business Forum. The event was attended by ministers, officials, experts and representatives from private sectors from both countries.

The agreement, which aims at a high level of cooperation, will further strengthen economic ties between the two countries, Tor Holding said in a statement.

"The high-level cooperation agreement would strengthen the relations between two nations, paving the way for mutually beneficial projects and initiatives for both countries," the statement quoted Tor Holding Chairperson Mustafa Torun as saying.

Head of Türkiye's Investment Office Ahmet Burak Dağlıoğlu, who along with Treasury and Finance Minister Mehmet Şimşek and Culture and Tourism Minister Mehmet Nuri Ersoy addressed the forum said on the occasion that bilateral trade between Türkiye and Saudi Arabia is growing, particularly since Turkish exports to Saudi Arabia increased by more than 100% last year.

As part of evaluations to AA, he also stated that the trade volume between the two grew by 10% last year and said, "But more importantly, it was a year when we saw Türkiye's exports to Saudi Arabia increased by over 100%."

"Trade always comes ahead. Then the investments come. Let's say we hope to receive much more concrete, large-scale investment news in the coming quarters," he noted.

Several other agreements were signed at the forum to further strengthen economic relations between Türkiye and Saudi Arabia.

Memorandums of understanding (MoU) and business agreements were signed as part of the forum to promote cooperation and investment in various sectors.