08.11.2023 İstanbul
The 14th Turkish-Arab Economic Forum (TAF) was held in İstanbul with the support of the Ministry of Foreign Affairs, the Ministry of Treasury and Finance, the Presidential Investment Office and in cooperation with the Union of Chambers and Commodity Exchanges of Türkiye (TOBB).
Speaking at the opening
of the forum organized under the theme ‘New Era in Cooperation’, TOBB President
M. Rifat Hisarcıklıoğlu stated that the world is going through a difficult
period, the growth in the global economy and trade volume has slowed down and
geopolitical risks and conflicts have increased.
Pointing to the need
for strong international cooperation and solidarity, Hisarcıklıoğlu said,
“Together, we must strengthen the private sector in our countries. Because in
our age, the real power of countries comes from their private sectors. The
strength and dynamism of the Turkish economy is also based on the private
sector.”
Pointing out that
Türkiye is an entrepreneurial country, Hisarcıklıoğlu said, “We are the main
supplier of Europe in many sectors, especially automotive, white goods and
apparel. We are the country from which the EU imports the most automobiles. We
achieved all this by liberalizing trade and increasing competition, because
trade enriches, protectionism impoverishes. More free trade is essential for
the stability and prosperity of developing countries in particular. Therefore,
we need to demand free trade together.”
Stating that the world
has entered a different era, Hisarcıklıoğlu said, “With the emergence of new
technologies, the carbon-based growth period of the past century is coming to
an end. Countries whose economies are based on natural resources, do not have
competitive markets, and do not know how to trade will be the losers of this
century if they stay with their current business models.”
Pointing out that the
era of easy growth based on low interest rates and high credit flow is over,
Hisarcıklıoğlu said, “Countries, and especially developing ones like us, need
to focus on a new and different growth process based on productivity increases
and innovation. Countries that are integrated into the world and have improved
their business environment will be the winners of this new century.”
- “European states prospered by increasing their trade with
each other”
Stating that Türkiye
has a very large industrial production power, Hisarcıklıoğlu said that 60
percent of Türkiye’s exports are made to developed, rich markets and countries.
Hisarcıklıoğlu said,
“The way to make our countries and nations more prosperous is to come together
and stand together. The way to do this is to increase trade and especially
trade with each other. European states, which were hostile to each other for
centuries, have prospered by increasing their trade with each other. EU
countries do 70 percent of their foreign trade with each other.”
Emphasizing that the
capital accumulation of Arab countries and the production experience of the
Turkish private sector should be brought together in the fields of industry,
tourism and agriculture, Hisarcıklıoğlu concluded his words as follows:
“We also want to work
closely with our Arab friends to develop entrepreneurship and strengthen SMEs
in our geography. As TOBB, we are ready to share experience and knowledge on
these issues. Together we can also realize the reconstruction of Arab countries
in need of investment. As Türkiye and Arab countries, we can overcome global
problems and challenges through more cooperation, trade and joint investments.
We must work together and rise together. As the Turkish business world, our
wish is to further deepen and multidimensionalize our relations with our Arab
brothers and sisters.”
- Minister Şimşek
Treasury and Finance
Minister Mehmet Şimşek emphasized that the world is going through a very
challenging period and said, “When we look at the global economy, we see that
there is moderate growth. According to the IMF’s forecast for next year, the
global growth rate will be only 2.9 percent. If we exclude India and China, we
see that the global growth rate will drop to 1.6 percent. Below this rate
almost means recession. When we look at the 5-year growth in the coming period,
it is thought to be around 3 or 3.1 percent. Integration in regional trade is
very important. Trade is one of the basic mottoes of growth. There is a serious
competition here. We can strengthen regional trade by working more closely. At
the same time, we can overcome the obstacle of slow growth together.”
Şimşek said that Egypt
and Türkiye are facing tough financial conditions and that the only way forward
for Egypt and Türkiye is to reform and improve their credibility within their
own countries.
Explaining that there
is a serious uncertainty about energy prices, Şimşek said, “There is little
investment in energy. As a result, it seems that energy prices will remain
high. Therefore, we need to cooperate better.”
- Presidency Investment Office Head Burak Dağlıoğlu
Burak Dağlıoğlu, Head
of the Investment Office of the Presidency of the Republic of Türkiye, said
that Türkiye has been on the right path in terms of cooperation with Arab
countries under the leadership of President Recep Tayyip Erdoğan since 2003.
Reminding that Türkiye
is among the world’s 20 largest economies, Dağlıoğlu said, “Türkiye aims for
sustainable and digital growth. Türkiye has been a regional center so far, but
we want to continue as a global economic power from now on. We expect
investors, especially from Arab countries, to invest in Türkiye to contribute
to this growth.”
Pointing out the
importance of Türkiye’s geographical location in the middle of Africa, Europe
and Asia, Dağlıoğlu said, “Türkiye has a business-friendly investment
environment. Türkiye has a robust and fast growing economy. Since 2003, our
rapid growth has continued. Türkiye has a very competitive talent pool.”
- “Türkiye’s exports to Arab countries are increasing every
year”
Dr. Khaled Hanafy,
Secretary General of the Union of Arab Chambers, stated that there is an
ongoing, developing and continuous economic relationship between Türkiye and
the Arab countries and this is evident from the figures.
Pointing out that Türkiye
is a major economic partner in the Arab region, Hanafy said, “Türkiye’s exports
to Arab countries are increasing every year. There is an increase of around 10
percent. Arab countries are also constantly increasing their investments in
Türkiye and making direct investments. There are also non-direct investments.
These investments are especially in the real estate sector. An average of 10
million Arab tourists travel to Türkiye every year.”
“Our markets should not
be target markets, there should be an atmosphere of cooperation, maybe special
zones should be opened, big opportunities should be seized. Right now, we have
such a bad situation internationally that we need to turn it into an
opportunity. The supply chain is much weaker now than it used to be. We are
geographically closer to fulfill this need.”
- “We want to create a more robust network”
Walid Abou Zaki, Deputy
Chief Executive Officer of Al-Iktissad Wal-Aamal Group, said Arab countries
want to deepen reforms and further diversify investments in their countries.
Stating that Arab
countries are trying to become more prominent in the world economy, Zaki said,
“The organization of this forum shows how exceptional Turkish-Arab cooperation
has become. Turkish companies are making their presence more visible in most
regions and points of the Arab market.”
“We want to create a
more robust network between Türkiye and Arab countries. With this network,
Turkish and Arab companies can better match with each other or eliminate the
risks they face,” Zaki said, adding that more partnerships between the
countries should be realized.