RIYADH: Saudi Arabia and Turkiye have signed an agreement on renewable energy power plant projects. 

This took place during the official visit of Turkish President Recep Tayyip Erdogan to the Kingdom and within the framework of strengthening bilateral relations as well as consolidating strategic cooperation between the two countries in the energy sector. 

The agreement was signed on the Saudi side by Prince Abdulaziz bin Salman, minister of energy, and by Alparslan Bayraktar, minister of energy and natural resources, on behalf of the Turkish side. 

The agreement aims to enhance cooperation between the two countries in the fields of renewable energy and green technologies, and to support the development and implementation of high-quality projects that contribute to diversifying the energy mix, enhancing energy security, and accelerating the transition to a low-carbon economy, in line with the priorities and strategies of both countries. 

The agreement includes the development and implementation of solar power plant projects in Turkiye, with a total installed capacity of up to 5,000 megawatts, in two phases.  

The first phase entails two solar power projects in Sivas and Karaman, with a total capacity of 2,000 MW. The second phase includes additional projects to be implemented according to the frameworks agreed upon by both parties, with an additional capacity of 3,000 MW. 

The projects in the first phase offer highly competitive electricity prices compared to other renewable energy plants in Turkiye. Furthermore, these plants, representing an investment of approximately $2 billion, will supply electricity to more than two million Turkish households. 

A Turkish state-owned company will purchase the electricity generated by these plants for a period of 30 years. During the implementation of the projects, the local use of equipment and services will be maximized. 

Both sides affirmed that this agreement represents a significant step towards strengthening the investment partnership between the Kingdom and Turkiye. 

It also reflects the mutual trust between the two countries and their shared commitment to expanding cooperation in strategic projects with sustainable economic and developmental impact, in accordance with best international practices, while contributing to knowledge transfer, capacity building, and achieving mutual benefits for both nations. 

Trade exchange between the Kingdom and Turkiye increased by approximately 6 percent year on year during the first 11 months of last year, reaching around SR28.2 billion ($7.5 billion), according to the Financial Analysis Unit at Al-Eqtisadiah newspaper, based on data from the General Authority for Statistics. 

This indicates the continued development of trade relations between the two countries and improved flows of goods, 

The data revealed that Saudi exports constituted 58 percent of total trade exchange, compared to 42 percent for imports, resulting in a trade surplus for Saudi Arabia of SR4.4 billion. 

During this period, Saudi exports amounted to approximately SR92.6 billion, compared to imports of Turkish goods worth SR48.3 billion, resulting in a cumulative trade surplus in favor of Saudi Arabia of SR44.3 billion. 

Speaking at the Saudi-Turkiye Investment Forum 2026, Chairman of the Saudi-Turkish Business Council Sami Al-Osaimi said that 1,400 Saudi companies are in Turkiye with investments exceeding $18 billion, compared to 390 Turkish companies investing in the Saudi market, according to a statement.