Ankara – While Türkiye is strengthening its position as a regional economic power, the official figures for the year 2024 bear witness to Ankara’s success in consolidating its trade relations with Arab countries.
Türkiye’s exports to Arab countries recorded $39.9 billion during the first ten months of this year, achieving a growth of 7.7% compared to the same period last year.
The Arab countries constituted a major destination for Turkey’s exports, as they represented about 18.4% of its total exports to world markets amounting to $216.4 billion in the same period, according to data from the Turkish General Trade System.
Iraq is in the lead
Iraq tops the list of Arab importers of Turkish products, followed by the UAE, Egypt, and Saudi Arabia, with a notable diversity in exports that includes building materials, textiles, food, and technical devices.
This diversity not only reflects the breadth of the Turkish production base, but also shows the ability of the Turkish economy to meet the needs of different markets, whether of basic goods for families or value-added products that meet the needs of vital and advanced sectors.
But this economic relationship is not a spur of the moment. Trade cooperation between Türkiye and Arab countries has for decades formed an important pillar for promoting regional integration.
However, recent years have witnessed a qualitative shift in the nature of this cooperation, and the relationship has gone beyond the boundaries of traditional trade to become part of a broad strategic vision that includes huge projects in the fields of infrastructure and energy, especially in the Gulf region, which is witnessing a major development boom, according to observers.
This new situation opened the doors for Türkiye to be a strategic partner in providing the materials and expertise required by this stage of growth, which strengthens its position as one of the most important regional suppliers.
List of Arab countries that import the most from Türkiye
- Iraq topped the list with $10.76 billion.
- The UAE came second with $6.84 billion.
- Then Egypt: $3.4 billion.
- And Saudi Arabia: $3.26 billion.
- Morocco: $2.8 billion.
Turkish exports to the Arab world increased by 7.7% in 10 months of the current year 2024 (Anatolia Agency)
Development in Turkish-Arab relations
The President of the Union of Arab Chambers, Samir bin Abdullah Nass, confirmed during the fifth joint meeting of the Arab and Turkish Chambers last February that the economic relations between the Arab countries and Turkey are witnessing continuous growth and development at various levels, noting that Turkey is a prominent economic partner for the Arab region, The volume of bilateral trade between the two parties amounts to about 55 billion dollars.
Nas explained that Turkish exports to Arab countries are recording annual growth of up to 10%, driven by the increase in direct and indirect Arab investments in Turkey, which have witnessed remarkable and accumulated growth in recent years.
Reasons for the growth of trade between Türkiye and the Arabs
Economic researcher Emre Ozdemir explained that the rapid growth in Turkey’s exports to Arab countries reflects the combination of a group of political, geographical and economic factors that contributed to strengthening its position as a major trading partner in the region.
He pointed out in his speech to Al Jazeera Net that the political rapprochement between Ankara and a number of Gulf capitals played a pivotal role in restoring confidence and rebuilding economic relations that were affected during periods of tension, which provided the two parties with the opportunity to expand cooperation and launch joint projects with a tangible impact on the movement of trade.
He added that these efforts culminated in strategic steps to enhance trade cooperation, the most prominent of which was the announcement by the Turkish Ministry of Trade at the end of last July of holding the first round of free trade agreement negotiations with the Gulf Cooperation Council countries in Ankara.
Emre Ozdemir considered that these negotiations represent a qualitative shift in economic relations, and open the way for enhancing the movement of trade and investments between the two sides in a more efficient and organized manner.
He added that Turkey’s geographical location remained a major element that supported the movement of trade with Arab countries, as its proximity to the Gulf and Levantine markets, in addition to the modern transportation network that it developed, made it a preferred choice for trade in goods and merchandise.
Ozdemir explained that this geographical location and the Turkish transportation network provide the possibility of delivering products more quickly and at lower costs compared to European or Asian countries that face greater logistical challenges.
He also pointed out that the major development projects taking place in the Gulf countries, such as Saudi Vision 2030 and the 2022 World Cup in Qatar, played a major role in increasing the demand for building materials and industrial equipment.
The economic researcher explained that this development boom prompted Turkish companies to play a pivotal role in meeting the needs of these projects, thanks to their ability to provide high-quality products and prices that suit the nature of these huge projects, which strengthened Turkey’s position as a major and reliable provider to support this renaissance.
The challenge of competition and exchange rate fluctuations
For his part, economic affairs researcher, Muhammad Abu Alyan, explained that Türkiye’s success in enhancing its trade with Arab countries is not without challenges that may hinder the continuation of this trade momentum.
Speaking to Al Jazeera Net, he pointed out that international competition constitutes the most prominent obstacles, as Turkish products face pressure from countries such as China and India that offer alternatives at competitive prices, in addition to European products that, despite their high cost, still maintain high quality in Arab markets.
Abu Alyan stressed that exchange rate fluctuations represent another challenge, as the constant fluctuation in the value of the Turkish lira affects the cost of production and places exporting companies facing difficulties in maintaining competitive prices.
He also pointed out that the unstable political conditions in some Arab countries may lead to disruptions in demand and supply chains, which increases the complexity of the trade scene and exposes it to unexpected fluctuations.
A promising opportunity
Regarding the future of the economic relationship between Turkey and the Arab countries, Abu Alyan believes that the current encouraging numbers reflect promising opportunities for future cooperation, especially with the improvement of political relations and the increasing demand for Turkish products.
However, he stressed that sustaining this success requires strategic planning that focuses on diversifying exported products, enhancing investments in emerging markets, as well as exploiting the opportunities provided by major development projects in the region.
Abu Alyan pointed out that the economic partnership between Türkiye and the Arab countries is not just a commercial relationship, but rather represents a model of balanced regional integration that achieves common interests at the political and economic levels.
As this approach continues, it seems that the region is on the cusp of a new phase of fruitful cooperation that carries with it sustainable benefits for both parties, he said.
