Economic ties between Turkiye and the Gulf Cooperation Council are poised to improve as both sides signed a deal to launch negotiations for a free trade agreement.
Jassim Mohammed Al-Budaiwi, secretary-general of the GCC, said that this development indicates the strengthening partnership between Turkiye and the countries in the region, the Saudi Press Agency reported.
He added that the signing of the deal to launch FTA negotiations also signals the regional and international recognition achieved by the GCC countries at all levels, including the trade, economic and financial sectors.
Al-Budaiwi further noted that this development comes as part of the efforts of these countries aimed at diversifying their revenue sources and economies.
Omer Bolat, minister of trade of Turkiye, said that the FTA with GCC will bolster the economic relationship between both sides.
“The agreement will liberalize trade in goods and services, facilitate investments and trade, and increase our country’s trade with the region,” he posted on social media platform X, previously known as Twitter.
Turkiye’s institutional relations with the GCC nations commenced with the “Framework Agreement for Economic Cooperation” between both sides signed on May 30, 2005, in Manama, Bahrain.
In 2022, trade exchange between Turkiye and GCC countries amounted to $29.6 billion.
Moreover, countries in the GCC account for 7.1 percent of foreign direct investment in Turkiye since 2020, with $15.8 billion in stock as of the end of 2022.
Qatar provided Turkiye with the most foreign direct investment among GCC nations at $9.9 billion, followed by the UAE and Saudi Arabia at $3.4 billion and $500 million, respectively.
Earlier this month, Turkiye and the UK said that they would launch negotiations on a new FTA aimed at including services as well as goods in the deal.
The UK had an FTA with Turkiye, but it was rolled over when the European nation left the EU in 2020.
“We already have a thriving trade relationship that will only get stronger with a new, modernized trade deal,” said Kemi Badenoch, UK trade secretary in a statement at that time.—AN
