Turkey is actively pursuing increased investment from the UAE in the realm of artificial intelligence, reflecting the growing rapport between the two nations.
### Investment Opportunities
Burak Daglioglu, the president of Turkey’s Investment Office, shared insights with the media in Istanbul, indicating that the UAE is establishing itself as a central player in AI investments, and Turkey possesses significant potential in this area as well. “We have already seen concrete developments, and we expect even more in the future,” he emphasized.
### Infrastructure Projects
Turkey boasts a robust lineup of infrastructure initiatives including data centers, connectivity options, and renewable energy resources aimed at attracting AI investments.
### Economic Engagement
The trade and investment relationship between Turkey and the UAE has strengthened significantly following the signing of the Comprehensive Economic Partnership Agreement (Cepa) in 2023. This agreement has facilitated a spate of investment collaborations across various sectors, such as technology, finance, manufacturing, and infrastructure improvement.
### Recent Agreements
This week marked the signing of a $150 million sharia-compliant financing deal between Dubai Islamic Bank and Turkcell, Turkey’s telecommunications and technology service provider, aimed at bolstering the company’s investments in digital infrastructure. The five-year agreement will enable Turkcell to enhance vital infrastructure across data centers, cloud services, and renewable energy.
### Future Developments
Last month, G42’s Khazna revealed plans to establish an AI-driven data center in Ankara with a potential capacity of 100 megawatts. The Abu Dhabi-based firm is committed to further investment in Turkey and aims to broaden its data center network post the new site completion.
### Broader Investment Scope
Turkey is also keen on drawing UAE investments in various fields such as HealthTech, renewable energy, and manufacturing. Daglioglu pointed out that the Turkish government is proactively encouraging investments by fostering a robust start-up ecosystem.
### Strengthening Bilateral Ties
In recent years, significant diplomatic efforts have been made to enhance bilateral relations. Turkish President Recep Tayyip Erdogan embarked on his first official visit to the UAE in nearly ten years to further this partnership, while President Sheikh Mohamed visited Turkey at the end of 2021.
### Trade Growth Statistics
According to recent data, the UAE’s non-oil trade with Turkey saw an annual increase of 11.5% to reach Dh148.9 billion ($40.54 billion) in the previous year. Mr. Daglioglu noted that the free trade agreement has been instrumental in facilitating a larger trade volume, enhancing investment opportunities in both countries.
### Investment Exchange
Last year, UAE investments in Turkey totaled $307 million, while Turkish investments in the UAE reached $576 million. Since 2002, approximately $5.9 billion in UAE investments have flowed into Turkey, contrasted with $2.4 billion from Turkey to the UAE, highlighting the mutual interest in economic collaboration.
### Market Landscape
As of mid-last year, there were 604 Emirati enterprises operating within Turkey. The Turkish economy is projected to grow by 2.7% this year, and the government aims to bolster its start-up infrastructure by introducing new legislations, providing funding for start-ups, and attracting more sovereign wealth funds for investment.
### Regional Expansion
Mr. Daglioglu expressed confidence in the emergence of successful Turkish start-ups that are now positioning themselves as regional competitors, rather than merely seeking acquisitions by larger domestic firms.
In 2022, Abu Dhabi’s holding company ADQ and the Turkey Wealth Fund collaborated to establish a $300 million technology fund focusing on investments in Turkish start-ups across various sectors including energy, health care, agriculture, and education.