Gulf investors' interest in Turkey has increased as they lose trust in major economies like the U.S., according to Prime Minister Binali Yıldırım.
Yıldırım held a private meeting with economy editors of national newspapers on Saturday where he discussed recent developments in the economy on a local and global scale, underlining the rising interest of Gulf investors. Touching upon the U.S.'s latest decision on Saudi Arabia, the prime minister noted that these kinds of decisions weaken trust in the U.S.
In late September, the U.S. Congress overrode U.S. President Barack Obama's veto of legislation, known as JASTA, which gives families of 9/11 victims the right to sue Saudi Arabia for any alleged role it may have had in the 9/11 attacks. Fifteen of the 19 hijackers were Saudi citizens but no link to the Saudi government has been proven while the government denies any ties with the plotters.
Gulf investors' interest in Turkey has increased as they lose trust in major economies like the U.S., according to Prime Minister Binali Yıldırım. Yıldırım held a private meeting with economy editors of national newspapers on Saturday where he discussed recent developments in the economy on a local and global scale, underlining the rising interest of Gulf investors. Touching upon the U.S.'s latest decision on Saudi Arabia, the prime minister noted that these kinds of decisions weaken trust in the U.S.
"If the U.S. cut the invoice to Saudi Arabia because a terrorist carries a Saudi passport, people would leave. Are we going to blame the U.S. government if someone carrying an American passport causes a massacre?" asked Yıldırım, adding, "This is against international law."
The global finance sector and investors prefer more secure places after seeing these examples, according to Yıldırım. "We are speeding up the Istanbul International Finance Center project to be prepared for this," he said. On Saturday, the prime minister attended the groundbreaking ceremony for Istanbul's new finance center that aims to attract global investors.
Being more specific, Yıldırım defined the interest of Gulf investors in Turkey. Investors interested in making long-term investments in different sectors like telecom, petrochemicals, and port sector are also interested in portfolio investments. "We prefer long-term investments that create employment," Yıldırım noted. Moreover, Gulf investors are seeking to partner up with participation banks in Turkey.
The prime minister also hinted that some Gulf investors would like to take an active role in Turkey's new Sovereign Wealth Fund. Turkey's investment agency and related ministries hold necessary talks with investors, he noted. This Sovereign Wealth Fund (SWF) aims to eliminate financing issues for megaprojects, often the biggest obstacle a project can face. It is also expected to turn domestic firms into global players in the fields of defense, aviation and software. Following publication of the government's decision to create an SWF in the Official Gazette, the Prime Ministry-led Turkish Wealth Sovereign Fund Management Inc. was established with an estimated capital of TL 50 million ($16.93 million). With the said fund, it will be easier to access financing for large-scale projects, such as Channel Istanbul, Istanbul's third airport, the Three-level Istanbul Tunnel Project, high-speed train projects and a nuclear power plant. By realizing these types of projects over a shorter period at lower costs, Turkey will increase its visibility on the international stage. Being the only country without an SWF among the G20 countries, Turkey aims to expand the size of its fund to $200 billion.
