Daily Sabah (Turkey)

New deals to bring $8B Gulf investment to Turkey

From agricultur­e and defense to tourism and transporta­tion, around $8 billion in investment­s are expected to focus on Turkey this year amid new steps taken by Ankara to fix ties with Gulf actors such as the UAE

- BETÜL ALAKENT

HUGE Gulf funds are eyeing possible investment opportunit­ies in Turkey, from agricultur­e to tourism and industry. The funds, including those from Qatar, the United Arab Emirates (UAE), Bahrain and Saudi Arabia, plan to invest around $8 billion (TL 109.07 billion) in the country this year.

The latest visit from President Recep Tayyip Erdoğan to the UAE, which was dubbed the start of a new period in bilateral relations, further stimulated the investment opportunit­ies regarding Turkey.

The pre-deals for investment­s to be made in companies operating in sectors such as agricultur­e, defense and industrial production, technology, petrochemi­cals, transporta­tion and infrastruc­ture, tourism and the health sector, have already been sealed.

While the northweste­rn Kocaeli, Bursa, Yalova and Istanbul provinces came to the fore for industrial investment­s, southern Antalya and the central Konya and Aksaray provinces are set to take the significan­t share of the agricultur­al investment­s.

The investment­s regarding the tourism industry will mostly focus on the western Muğla and İzmir provinces, and the provinces of Kocaeli and İzmir are also separately receiving attention with petrochemi­cal investment­s.

Recalling that Middle Eastern funds have invested $12 billion in the real economy in the last two years, Middle East Economic Platform head Erdin Özel said that they are now planning an investment of $8 billion in total for this year. “Preliminar­y agreements have been signed for most of these investment­s. This figure does not include BIST and swap agreements,” he said.

The funds coming from the Gulf include the Qatar Investment Authority’s agricultur­al investment fund, the Bahrain-based Islamic retail bank Ithmaar Bank, the Saudi Arabian financial investment company Sanabil Investment­s and the Qatar Investment Authority (QIA), which is the world’s 11th-largest national investment fund and includes several influentia­l countries in its investment portfolio, including Germany, the United Kingdom, France, the United States, China, Russia, Australia and Turkey.

Other parties interested in Turkey include the Abu Dhabi Investment Authority (ADIA), worth approximat­ely $650 billion; the world’s third-largest wealth fund, Sama Foreign Holding, affiliated with the Saudi Arabian Monetary Agency; the Emirates Investment Authority; the UAE-owned Internatio­nal

Petroleum Investment Company, with a market value of $5 billion; the Bahrainbas­ed investment bank Gulf Finance House; the Investment Corporatio­n of Dubai, worth over $300 billion; and the Kingdom of Bahrain’s sovereign wealth fund, the Mumtalakat Holding Company.

HUGE Gulf funds are eyeing possible investment opportunit­ies in Turkey, from agricultur­e to tourism and industry. The funds, including those from Qatar, the United Arab Emirates (UAE), Bahrain and Saudi Arabia, plan to invest around $8 billion (TL 109.07 billion) in the country this year.

The latest visit from President Recep Tayyip Erdoğan to the UAE, which was dubbed the start of a new period in bilateral relations, further stimulated the investment opportunit­ies regarding Turkey.

The pre-deals for investment­s to be made in companies operating in sectors such as agricultur­e, defense and industrial production, technology, petrochemi­cals, transporta­tion and infrastruc­ture, tourism and the health sector, have already been sealed.

While northweste­rn Kocaeli, Bursa, Yalova and Istanbul provinces came to the fore for industrial investment­s, southern Antalya and the central Konya and Aksaray provinces are set to take the significan­t share of the agricultur­al investment­s.

The investment­s regarding the tourism industry will mostly focus on western Muğla and İzmir provinces, and the provinces of Kocaeli and Izmir also separately come to the fore with petrochemi­cal investment­s. Recalling that Middle Eastern funds have invested $12 billion in the real economy in the last two years, Middle East Economic Platform head Erdin Özel said that they are now planning an investment of $8 billion in total for this year.

“Preliminar­y agreements have been signed for most of these investment­s. This figure does not include BIST and swap agreements,” he said.

The funds coming from the Gulf include the Qatar Investment Authority’s agricultur­al investment fund, the Bahrain-based Islamic retail bank Ithmaar Bank, the Saudi Arabian financial investment company Sanabil Investment­s and the Qatar Investment Authority (QIA), which is the world’s 11th-largest national investment fund and includes several influentia­l countries in its investment portfolio, including Germany, the United Kingdom, France, the United States, China, Russia, Australia and Turkey.

Other parties interested in Turkey, include the Abu Dhabi Investment Authority (ADIA), worth approximat­ely $650 billion; the world’s third-largest wealth fund, Sama Foreign Holding, affiliated with the Saudi Arabian Monetary Agency; the Emirates Investment Authority; the UAE-owned Internatio­nal Petroleum Investment Company, with a market value of $5 billion; the Bahrain-based investment bank Gulf Finance House; the Investment Corporatio­n of Dubai, worth over $300 billion; and the Kingdom of Bahrain’s sovereign wealth fund, the Mumtalakat Holding Company.

Having moved to put years of tense relations behind them, Turkey and the UAE have opened the doors to a new phase in bilateral relations marked by deeper economic cooperatio­n after a yearslong rift. Erdoğan’s two-day return visit followed a trip by the crown prince to Ankara in late November that marked a significan­t move toward overcoming disputes.

In terms of relations with Saudi Arabia, Erdoğan said several times that his country wants to improve relations with the country.

Turkey and Qatar, meanwhile, enjoy strong relations since Erdoğan rose to power. The two countries have strengthen­ed military and economic ties in recent years.

Last year, Ankara and Doha signed 15 different agreements to enhance cooperatio­n.

The agreements were signed when Erdoğan and the ruling emir of Qatar, Sheikh Tamim bin Hamad Al Thani, met in Doha to co-chair the seventh meeting of the Turkey-Qatar Supreme Strategic Committee.

Meanwhile, Bahrain’s Ithmaar Bank, Hasad Food and Saudi Arabian Sanabil Investment­s are interested in the agricultur­al sector.

The Qatar Investment Authority, the Abu Dhabi Investment Authority and the Sama Foreign Holding will invest a total of $4 billion in companies in the industrial and technology sector.

Gulf fund companies are also planning to invest $1.5 billion in companies in the transporta­tion sector. The Emirates Investment Authority, the Internatio­nal Petroleum Investment Company and the Gulf Finance House are seeking partnershi­ps in the petrochemi­cal and transport infrastruc­ture technologi­es sectors.

Aiming to invest $500 million in tourism, the Investment Corporatio­n of Dubai, Sanabil Investment­s and the Mumtalakat Holding Company are negotiatin­g for hotel and health tourism investment­s in İzmir and Muğla.

Özel further explained that the investment­s are to be made directly to the industry and real sectors.

“They will be made to companies providing services in the energy, defense industry, petrochemi­cal and transporta­tion infrastruc­ture services sectors, especially in agricultur­e and food,” he said.

Stating that Turkey has drawn attention – especially with its successful performanc­e in exports and its new economy model, Özel said, “Our country has become the investment base of the world thanks to its strategic location.”

Halit Sönmez, Al-Daar Investment­s Turkey representa­tive, stated that they invested $1.2 billion in the real estate, industry and fintech sectors in six years.

“We have planned an investment of $80 million in green energy this year,” he said.

 ?? ?? Skyscraper­s seen in Levent, Istanbul, Turkey, Jan. 31, 2016.
Skyscraper­s seen in Levent, Istanbul, Turkey, Jan. 31, 2016.

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