17.10.2024 İstanbul

Speaking at the 15th Turkish Arab Economic Forum, M. Rifat Hisarcıklıoğlu, President of the Union of Chambers and Commodity Exchanges of Türkiye (TOBB), reminded that we are in a period of increased geopolitical risks and conflicts and said that they believe that the need for strong international cooperation and solidarity has increased.

The 15^th Turkish-Arab Economic Forum kicked off in İstanbul with the theme “Türkiye and the Arab World: Global Corridor for Investment, Trade and Technology” in İstanbul.

Hisarcıklıoğlu pointed out that the private sector should be strengthened with cooperation and said, “Because in our age, the main power of countries comes from their private sectors. The strength and dynamism of the Turkish economy is also based on the private sector. In this way, we are an entrepreneurial country that has established the largest industrial production capacity and exports the largest industrial products between Italy and China.”

Hisarcıklıoğlu pointed out that Türkiye is one of the world’s largest in the fields of construction, tourism and agriculture, and said the following:

“We are Europe’s main supplier in many sectors, especially automotive, white goods, iron and steel and apparel. We are the country from which the EU imports the most automobiles. With 12,600 different products, 94% of which are industrial goods, we export 260 billion dollars a year to more than 200 countries. We export 60% of this to developed, rich markets and countries. This shows the quality, price competitiveness and consumer appreciation of Turkish products. We have achieved all this by liberalizing trade and increasing competition, because trade enriches, protectionism impoverishes. Freer trade is essential for the stability and prosperity of developing countries in particular.”

- “Economic relations between us do not reflect our potential”

Pointing out the need to integrate into the world and improve the business environment, Hisarcıklıoğlu said, “The countries that achieve this will be the winners of this century. Unfortunately, despite this situation, economic relations between us do not reflect our potential. The volume of trade and investment between us remains below where it should be. The way to make countries more prosperous is to come together and stand together. The way to do this is to increase economic relations and especially trade with each other.”

Emphasizing the need to bring together the capital accumulation of Arab countries and the production experience of the Turkish private sector in the fields of industry, tourism and agriculture, Hisarcıklıoğlu said, “We 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 information on these issues.”

Reminding that they have recently made significant progress in increasing trade relations, Hisarcıklıoğlu continued:

“Türkiye’s exports to Arab countries were 5 billion dollars 20 years ago. In 2023, it exceeded 45 billion dollars. In the last 20 years, Türkiye has received more than 50 billion dollars of foreign direct investment from Arab countries. Located at the center of Africa, Europe and Asia, Türkiye has a business-friendly investment environment. Türkiye’s economy, which has shown positive growth in 19 out of the last 20 years, is developing robustly and rapidly. I believe that this forum will contribute to the realization of new regional cooperation and the further strengthening of economic relations with our Arab brothers and sisters.”

- Minister of Treasury and Finance Mehmet Şimşek

Minister of Treasury and Finance Mehmet Şimşek moderated a panel titled “Türkiye and the Arab World. A Global Corridor for Investment, Trade and Technology” organized as part of the forum attended by government, business and financial sector representatives from Kuwait, Iraq, Egypt, Libya, Egypt, Libya and Tunisia: A Global Corridor for Investment, Trade and Technology”.

In his assessment here, Şimşek stated that there is a global artificial intelligence revolution and said, “As a result of this, there will not only be a revolution in the industry, but every aspect of our lives will be affected by it. Therefore, we cannot miss this revolution.”

Speaking at the panel, Şimşek noted that this meeting was held at a time of great uncertainties in the world, and said that uncertainties restrict growth, that trade generally fuels growth, but that global trade is currently contracting.

Şimşek said, “As if this is not enough in the world, we are also experiencing a global artificial intelligence revolution. As a result, there will not only be a revolution in the industry, but every aspect of our lives will be affected. Therefore, we cannot miss this revolution. Also, populations are getting older. This is a global challenge. In addition, conflicts and geopolitical tensions pose a threat to the order established after the Second World War. All these are reducing global growth.”

Minister Şimşek stated that the increase in inflation in Türkiye has now started to decline and made the following statements:

“But there is some uncertainty globally. Both in terms of monetary and fiscal policies. Maybe monetary policies will loosen a bit globally, but this will have a significant impact on the pace and coordination. “Will the easing of monetary policies result in fiscal consolidation?” is a challenging question for us. But one thing we do know is that global trade will continue at the same constrained level in the coming years, and no growth of more than 3% is expected. So there are challenges, but there are also opportunities. We need to look at it this way.”

Şimşek noted that thanks to the forum held today, very useful cooperation between Türkiye and the Arab world can be achieved, emphasizing that the parties have the potential to complement each other in many sectors.

- “Economic corridors between the Turkish and Arab world should be developed”

Tunisian Minister of Economy and Planning Semir Abdulhafız said that the development of economic corridors between Türkiye and the Arab world would provide great advantages for the countries in the region and would have great repercussions for the economic development of these countries. Stating that the majority of these countries have already signed free trade agreements among themselves, Abdulhafız continued his words as follows:

“We expect the framework of these agreements to be a bit broader and more inclusive. It is important to further strengthen the basis of these agreements. I think this is how we can guarantee our economic integration between Türkiye and the Arab world. We need to work together to protect our region from economic shocks. These economic shocks affect us closely as they affect the whole world. But if we consider our geographical position, especially Türkiye’s position here, there are very important steps that can be taken. Türkiye is the nexus between Asia and Europe and Africa. This geographical location is indeed a very remarkable situation for all of us.”

- “The signed agreements will contribute to strengthening trade relations”

Iraqi Finance Minister Taif Sami Mohammed said that Iraq is one of the largest and most open countries for cooperation with Türkiye. Stating that there are important opportunities in global trade and Türkiye plays the role of a corridor for international investment and trade, Muhammed reminded that the two countries have signed more than 20 memorandums of understanding.

Referring to the details of these memorandums of understanding, Muhammed went on:

“We signed memorandums of understanding on water, infrastructure, development projects, trade and investment protection, SME development, health sector, strategic cooperation agreements. Trade, agriculture and health are among the sectors where major projects will be implemented after 2025. We have memorandums of understanding signed in the field of tourism cooperation and security. We have also signed memorandums of understanding on strengthening legislation and building regulatory infrastructure, in the communications and energy sectors.” Mohammed underlined that all these agreements aim to improve bilateral relations, adding that they will contribute greatly to strengthening economic and commercial relations.

- “Stronger trade relations can be built”

Egyptian Finance Minister Ahmed Kucuk emphasized that the cooperation between the two countries will be built on a “win-win” scenario.

Ahmet Kucuk pointed out that relations between Egypt and Türkiye are at a very good level and that important work is being carried out in the private sector.

Kucuk emphasized that exporters in Egypt have established strong ties with Turkish companies and reminded that 3-4 large Turkish companies have signed important contracting projects in Egypt.

Noting that the number of these companies should be increased 3-, 4-fold, Kucuk said, “We need to set bigger goals and decide on them together. I think we need to direct the right resources and efforts in the right direction. We have good relations; we have the necessary foundation for this. Stronger commercial relations can be built on this foundation.”

- “We can make investments our main focus”

Kuwaiti Finance Minister Noora Suleiman Salem Al-Fassam said that a pioneering role should be assumed in order to increase economic development.

Al-Fassam mentioned that a project can be developed that can increase the trade volume to meet expectations and stated that they are making efforts to sign free trade agreements with Gulf countries.

Emphasizing that the removal of barriers to trade will increase the interaction between Türkiye and the Arab world, Al-Fassam said, “We can put investments in our main focus and in doing so, we can accelerate the investments of Kuwaiti companies in various sectors in Türkiye.”

- Ahmed Aboul Gheit, Secretary General of the Arab League

Ahmed Aboul Gheit, Secretary General of the Arab League, said at the opening of the forum, where opportunities in Islamic finance, fintech, capital markets, energy, industry, defense, technology, food and construction sectors were discussed, that the meeting would strengthen the dialogue between the Turkish and Arab world.

“Because the economy between the Arab world and Türkiye is becoming more and more vibrant. We need to utilize areas such as green energy, financial technology, etc. We can build bridges that will benefit both sides based on this unique synergy. Because Türkiye is already a bridge between Asia and Europe,” Gheit said, referring to his meeting with President Recep Tayyip Erdoğan yesterday, adding that the book he saw there dealt with the history of the relationship between Türkiye and Egypt.

Gheit said, “We have a very unique relationship. Since the Roman Empire, we understand these relations and the importance of this geography much better. Therefore, we can see how deep the relations between Türkiye and the Arab world go in history. Of course, we also experience some difficulties. Because of these difficulties, we may not be able to make the best use of our relations by using all opportunities.”

- “Türkiye has a location that connects Russia, Europe and Africa”

Khaled Hanafy, Secretary General of the Union of Arab Chambers, said that they are making efforts to increase economic and trade cooperation between Türkiye and Arab countries and pointed out the importance of Türkiye increasing its trade volumes with Arab countries.

Mr. Faisal Abou Zaki, Executive Director of Al-Iktissad Wal-Aamal, said that economic transformations are taking place in the world and that there is a vision of common wealth and regional development.

Mr. Zaki stated that Türkiye has a position that connects Russia, Europe and Africa and noted that Türkiye can further strengthen its position in the global economy with its strategic and economic potential.

Khalid Ali Salim Al Senaidi, Deputy Secretary of the Gulf Cooperation Council, stated that the free trade agreements between Türkiye and Arab countries are important in terms of increasing bilateral trade between their countries, and that they aim to increase the welfare of countries and peoples.

Erkan Kork, Strategic Partner of the Arab Economic Forum, underlined that Türkiye has a disciplined banking sector and noted that Türkiye and Arab countries can cooperate in the field of fintech, technology, know-how experience and win-win formula.

- Burak Dağlıoğlu, Head of the Presidential Investment Office

Burak Dağlıoğlu, Head of the Presidential Investment Office, stated that they constantly consult and work together with investment ministries or agencies, and said, “I would like to give an example from fintech. A fintech company from Türkiye has acquired a fintech company from Dubai. This is how they will expand their investments in different Arab countries.”

At the opening of the event, Burak Dağlıoğlu emphasized the importance of regional investments and stated that the Presidential Investment Office is in constant contact with its counterparts in the relevant countries.