The wholesale solution to leverage good relations between Türkiye and the Arab countries is to have free trade agreements (FTAs), Treasury and Finance Minister Mehmet Şimşek said Thursday.
Speaking at the International Arab Banking Summit in Istanbul, Şimşek emphasized that FTAs are crucial for enhancing trade and investment between Türkiye and Arab nations.
Şimşek pointed out that Arab countries, significant capital exporters, are looking to diversify their economies and advance their manufacturing sectors.
Investing in Türkiye could help achieve these goals, he stressed.
"Our political relations are excellent. How can we capitalize on this and use it most beneficially for both sides? I believe free trade agreements alone provide a solution... Arab countries should not shy away from FTAs," Şimşek remarked.
Şimşek identified tourism, construction, and defense industries as the most promising sectors for cooperation.
Highlighting Türkiye's advancements in the defense industry, he noted the increase in development projects and export volumes.
The nation's defense exports hit a record of around $5.5 billion in 2023, spearheaded by sales of unmanned aerial vehicles (UAVs). That rose from $4.4 billion in 2022.
"We are conducting joint design, development, and manufacturing activities with neighboring countries," said Şimşek.
He also underscored the potential for cooperation in the construction sector in Africa and Central Asia, and particularly in the reconstruction of Libya, Syria, and Ukraine.
Recalling that Türkiye has the second largest construction sector after China with projects on a global scale, Şimşek said it is also a prospective field for partnership.
The top Turkish finance chief also said Türkiye and the Arab world have a strong presence but are not utilizing their full potential.
He stressed that Türkiye serves as a gateway to the European Union and Central Asia and the Arab world also has great potential to serve as the sole linkage between Asia and Africa.
Şimşek said having free trade agreements would create more wealth and prosperity, and would help boost trade and investments.
"Whether we are talking about Africa, Central Asia, or anywhere around the world, I think all companies should work together to see how they can create value," he noted.
Şimşek said Türkiye could help in developing tourism, a sector where he says Türkiye and the Arab countries could do a lot together.
The two-day International Arab Banking Summit that ends on Friday is organized by the Union of Arab Banks under the auspices of President Recep Tayyip Erdoğan.
