Bilateral commerce and relations are set for an immense increase with a brand new free commerce settlement between Türkiye and the UAE, based on the Gulf state’s overseas commerce minister.
The UAE acknowledges that Türkiye’s monetary sector is the “right place” for funding and “the sky is the limit” for us in that respect, Thani Ahmed Al Zeyoudi advised Anadolu Agency (AA) in an unique interview in London because the international locations gear as much as ink a profitable free commerce deal.
The settlement could have “a huge impact,” he asserted.
“At least 25,000 jobs are expected to be created in the UAE and over 100,000 jobs in Türkiye,” he mentioned.
“There is also huge potential for many sectors like food security, health, ICT (information and communications technology), the financial sector, and logistics.”
Apart from eradicating commerce boundaries and reducing tariffs, the deal can also be anticipated to ease entry to new markets for companies in each international locations and bolster their competitiveness.
Despite previous political tensions, the international locations have maintained robust financial ties, with Türkiye being the UAE’s sixth-largest buying and selling companion.
“Bilateral trade saw excellent growth last year, exceeding 40% compared to 2021. We reached around $18.9 billion in our non-oil trade,” mentioned Al Zeyoudi.
“This growth in trade, when compared to 2020, exceeded 112%, which means that we’re doubling the trade volume.”
‘Right place for investment’
The UAE has already invested greater than $5 billion in Türkiye and stays eager on growing that determine, the minister mentioned.
In 2021, the UAE launched a $10 billion fund for investments in Türkiye, together with infrastructure initiatives, actual property, and different sectors.
“But we are not restricting ourselves to this figure – the sky is the limit. As long as there are opportunities, we will jump in and explore,” Al Zeyoudi emphasised.
The “excellent” progress within the Turkish monetary system has confirmed that that is the “right place” for our investments, he mentioned, declaring that their 2022 income had been over 40% higher than the earlier 12 months.
All of this implies there are “strong economic opportunities” in Türkiye, he added.
He mentioned the 2 international locations are additionally exploring methods to assist one another achieve entry to new markets.
“Because we have a huge interest in Türkiye’s neighborhood, especially when it comes to the eastern part of Asia, the eastern part of Europe, and we have a common shared interest within Africa as well,” he mentioned.
The UAE has entry to the Indian market and Türkiye has entry to Pakistan, which is the place we will complement one another, the minister mentioned.
New commerce routes
Logistics is one other vital space the place each international locations want to improve cooperation.
According to Al Zeyoudi, the UAE has invested closely in transport and logistics infrastructure in recent times, pointing to its connections to 250 ports in over 400 cities worldwide.
“This gives us this excellent exposure for logistics and trade movements from the UAE,” he mentioned.
He mentioned Türkiye and the UAE have made “great progress” in logistics cooperation.
“We’re actually exploring new routes, which is going to reduce the time for shipments from Türkiye to the UAE,” he mentioned.
“That normally takes 28 days, and now it is going to take half of that time because the discussion is about how we’re going to go directly from Türkiye to Iran and to the UAE by sea, or from Türkiye to Iraq to the UAE.”
At the identical time, the UAE is engaged on its logistics infrastructure, in addition to partaking with Turkish corporations on how one can collaborate within the African market, he added.
Talks are additionally being held on photo voltaic and wind vitality, in addition to inexperienced hydrogen initiatives, the minister mentioned.
“There is huge interest. Not only that, we’ve already moved into the feasibility study phase. As I said earlier, the sky’s the limit in our relations,” he maintained.
Renewable vitality
The UAE is “very pragmatic” in tackling local weather change and has efficiently diminished the share of oil and fuel in its gross home product, Al Zeyoudi mentioned.
“Yes, it’s part of the investment. It’s part of the whole diversification,” he mentioned.
“Transition is going to be a key issue, particularly how we address all aspects of energy along with … the growth of the nation.”
When it involves renewable vitality, he underlined, the UAE is “proud” to be one of many high world traders.
“We’re investing more than $50 billion in over 70 countries,” he mentioned.
“We are also beating global prices when it comes to producing power from renewable energy,” he mentioned, including that the UAE has the world’s “cheapest” solar energy.
Source: www.dailysabah.com
