The United Arab Emirates (UAE) trade chief on Friday expressed the mutual desire of Türkiye and the UAE to help private sectors capitalize on close relationships and agreements between the two states, as he stressed expectations for a robust increase in bilateral trade in the period ahead.
"I am confident that we will witness significant figures between Türkiye and the UAE. We will reach $40 billion in five years," Thani bin Ahmed Al Zeyoudi, the Emirati trade minister, said following his recent trip for talks with Turkish counterpart Ömer Bolat.
"We aim to sustain this momentum and encourage the private sector to look at other markets from a different perspective and collaborate together," Al Zeyoudi said.
He highlighted the substantial growth both nations have achieved in non-oil trade, which he says has reached almost $18 billion.
Emphasizing the growth during the first half of this year, he pointed out that the bilateral trade nearly reached $13.5 billion.
Bolat on Tuesday said the volume of bilateral goods exchange between Türkiye and the UAE is set to reach $15 billion by the end of the year, much earlier than the two states expected.
"While we welcomed the $10 billion trade volume we reached between the two countries last year, we have exceeded $14 billion in the first nine months of this year," Bolat said after their meeting.
The momentum stems mainly from the comprehensive economic cooperation agreement that entered into force this September, providing an extra boost that is expected to help trade reach $25 billion for the first time in the first stage.
Al Zeyoudi underscored the importance of the private sector in bilateral trade, stating, "(Türkiye and the UAE) want to ensure that the private sector benefits from this close relationship and agreements."
The UAE stands as one of Türkiye's most crucial trading partners in the Gulf region. Consumer goods lead Türkiye's exports to the UAE with a share of 58.6%, followed by intermediate goods at 30.07% and investment goods at 8.11%.
Türkiye and the UAE signed 13 agreements covering investments worth $50.7 billion during President Recep Tayyip Erdoğan's visit in mid-July as part of his Gulf trip, which also included stops in Saudi Arabia and Qatar.
Since 2021, when Ankara launched a diplomatic effort to repair ties with Saudi Arabia and the UAE, investments and funding from the Gulf helped boost Türkiye’s foreign reserves and stabilize the Turkish lira.
Türkiye’s government hopes that new policy steps and regulations will attract investment and fund flows.
Ankara has secured some $28 billion in foreign currency swap deals in recent years, including from the UAE. Last year, Abu Dhabi’s International Holding Co. acquired, via a subsidiary, a 50% stake in Türkiye’s Kalyon Enerji for $490 million.
Erdoğan has said his new economy team accelerated efforts to increase foreign direct investment (FDI) inflows after he secured another five-year term in the May elections.