RIYADH: Turkiye is set to benefit from $11.5 billion worth of financing deals with the UAE as government agencies from both countries signed two memorandums of understanding to help with earthquake relief work and boost trade ties.
Abu Dhabi’s investment firm ADQ signed a deal with Turkiye’s Ministry of Treasury and Finance to issue earthquake relief financing bonds worth $8.5 billion.
The agreement will pave the way for financing reconstruction works in southern and central Turkiye, severely hit by twin earthquakes earlier this year.
The MoU was signed by Turkish Treasury and Finance Minister Mehmet Simsek and Mohamed Hassan Al-Suwaidi, the UAE’s investment minister, who is also ADQ’s managing director and CEO.
According to a press release, the financing will focus on projects related to developing residential units for people displaced by the earthquake.
In a separate deal, ADQ signed an MoU with the Export Credit Bank of Turkiye, worth up to $3 billion, to extend credit financing facilities to Turkish firms with plans to export goods and services to the UAE and other markets.
The MoUs were signed during Turkish President Recep Erdogan’s official visit to the UAE earlier this week. The visit saw both countries signing several agreements worth $50 billion to diversify the framework of the UAE-Turkiye Comprehensive Economic Partnership Agreement.
In a bid to deepen bilateral cooperation between the two countries, the UAE and Turkiye earlier this year signed the CEPA to cut 93 percent of tariffs on non-oil trade and increase bilateral trade from $19 billion to $40 billion in five years.
The CEPA is also expected to generate 25,000 jobs in the UAE, while Turkiye will have 100,000 new vacancies.
Turkiye is one of the UAE’s largest trading partners, with non-oil intra-trade between the nations from 2013 to 2022 amounting to more than $103 billion, according to the UAE’s Federal Competitiveness and Statistics Centre.
This includes $56 billion in imports, about $35 billion in exports and more than $12 billion in re-exports.
Among the other recent agreements, Abu Dhabi National Oil Co. and the Turkish Petroleum Corporation entered into a strategic collaboration in export credit financing between ADQ and Turkish Eximbank, WAM reported.
