World Investment Forum 2023: UAE investments in Turkiye hit Dhs20.6bn

The two nations are collaborating in areas such as climate change, energy, water, and food security

by Gulf Business

October 18, 2023

UAE investments in Turkiye hit Dhs20.6bn

Image courtesy: WAM

UAE investments in Turkiye hit $5.6bn (Dhs20.6bn) from 2002 through August 2023, with as many as 600 Emirati companies currently operating in the country.

Ahmet Burak Daglioglu, head of the Investment Office of the Turkish Presidency told state-run news agency WAM that the UAE is currently Turkiye’s 13^th largest trade partner for exports and the 15^th largest for imports – resulting in a combined trade volume of around $10bn through 2022.

Speaking on the sidelines of the World Investment Forum in Abu Dhabi, Daglioglu underscored Turkiye’s consistent attraction of UAE investments, particularly in the energy sector, healthcare, agriculture, logistics, transport, infrastructure, finance, and tourism.

The two nations are also collaborating in areas such as climate change, energy, water, and food security.

UAE companies’ investments in Turkiye

Daglioglu highlighted that Dubai’s DP World and Turkiye’s Evyap Group agreed to form an equity partnership between DP World Yarimca Port and Evyap Port in August to advance supply chain services in the country.

Upon the completion of the deal, DP World will own 58 per cent of Evyap Port while the Evyap Group will own 42 per cent of DP World Yarimca.

Dubai Islamic Bank acquired a 20 per cent stake in TOM Group of Companies in September, marking the shariah-compliant bank’s entry into the country’s banking sector.

The investment gives the banking group a significant minority shareholding in TOM Group.

Still in the banking sector, Emirates NBD bought 99.85 per cent stake in Denizbank from Russia’s Sberbank in 2019 for $2.76bn (Dhs10.28bn).

Daglioglu said some of the latest UAE investments in Turkiye include the acquisition of a 50 per cent stake in Kalyon Enerji for Dhs1.8bn ($490m) through a subsidiary of Abu Dhabi’s International Holding Company.

The deal encompasses the solar power plant project in Karapinar, Konya, a 1-gigawatt wind power project, a 100-megawatt (MW) solar power project in Niğde, as well as a 50MW solar power project in Gaziantep along with other renewable energy projects across the country.

There are also a series of investment agreements and MoUs signed between the governments of the UAE and Turkiye to strengthen cooperation in the fields of trade, energy, and the environment.

These include the agreement between the Abu Dhabi sovereign fund ADQ and the Turkiye Wealth Fund to establish a “Technology Venture Capital Fund” aimed at investing in Turkish technology companies.

The Turkey Technology Fund, which has a capital of $300m, is dedicated to investing in various venture capital funds and emerging Turkish companies with significant growth potential and innovative business models.

AD Ports Group also signed agreements to invest in the country in Turkiye while the Abu Dhabi Securities Exchange and the Borsa İstanbul inked a cooperation agreement.

Daglioglu also remarked that between 2014 and 2022 Turkiye’s total investments in the UAE reached $1.1bn and more than 400 Turkish companies operating in the Emirates.

Turkiye provides abundant opportunities for investors from the UAE and across the globe, Daglioglu said, adding that mergers and acquisitions present a significant opportunity for Emirati investors with interests in the Turkish market.