On November 30, 2024, Turkey and Saudi Arabia have entered a new phase of economic collaboration, following years of strained relations. The thaw comes as Turkish companies seek investment opportunities in Saudi Arabia, particularly in infrastructure and construction, amidst Turkey's ongoing economic challenges.
Historically, relations between the two nations soured after the murder of Saudi journalist Jamal Khashoggi in 2018, leading to an unofficial boycott of Turkish products by Saudi Arabia. However, recent diplomatic efforts have prompted a resurgence in trade, with Turkish exports to Saudi Arabia witnessing a significant increase.
In 2022, Turkish exports to Saudi Arabia rose by 450% compared to the previous year, reaching $1.5 billion, and further increased to $2.3 billion in 2023. The first nine months of 2024 saw a record $2.9 billion in exports, primarily consisting of machinery, carpets, and furniture.
Approximately 200 Turkish companies are currently operating in Saudi Arabia, with a focus on construction, energy, health, food, furniture, and tourism. Following recent reconciliatory measures, Turkish firms have secured infrastructure contracts worth around $10 billion.
In a recent investment forum, Turkish Economy Minister Mehmet Şimşek noted that Saudi businessmen are eager to collaborate with Turkish enterprises. Significant contracts have been awarded to Turkish companies, including a $500 million project to build two bridges near Riyadh.
Despite the positive outlook, some experts express caution regarding the sustainability of this economic partnership. Concerns have been raised about Turkey's strategic approach to capturing a larger market share in Saudi Arabia, especially given the competitive landscape dominated by the United States, China, and France.
As both nations pursue collaborative projects in renewable energy, the potential for future cooperation remains significant. However, experts emphasize the need for a well-structured strategy to ensure long-term success in their economic relationship.