Ahmet Burak Daglioglu, Head of the Investment Office of the Turkish Presidency, announced that the total foreign direct investment from the UAE to Turkey has grown to $5.6B (AED 20.6B) between 2002 and August 2023.
During the eighth edition of the World Investment Forum in Abu Dhabi, Daglioglu revealed that around 600 UAE companies are currently active in Turkey.
UAE-Turkey Trade and Investment
Daglioglu also pointed out that the UAE holds the rank of Turkey’s 13th most significant trade partner in terms of exports and the 15th in imports, resulting in a total trade value of around $10 billion up to the year 2022.
He emphasized Turkey’s steady appeal to UAE investments, particularly in sectors like energy, healthcare, agriculture, logistics, transport, infrastructure, finance, and tourism.
Additionally, both countries are actively collaborating in areas such as climate change, energy, water, and food security.
Daglioglu outlined a major UAE investment in Turkey, which is the strategic alliance between Dubai Ports World (DP World) and the Turkish Yibitaş Group.
This partnership includes shares in “DP World Yarimca Port” and the Yibitas Port, as well as the acquisition of Denizbank by Emirates NBD Bank.
He also pointed out that between 2014 and 2022, foreign direct investments from Turkey to the UAE totaled about $1.1B, according to Arabian Business.
Additionally, there are more than 400 Turkish companies operating in various sectors in the UAE, including construction, tourism, and defense.
Dubai Islamic Bank’s Stake in T.O.M. Group
The Head of the Turkish Investment Office also highlighted recent UAE investments in Turkey, including Dubai Islamic Bank’s acquisition of a stake in the T.O.M. Group of Companies, the first Turkish bank licensed for digital services for individuals.
Furthermore, International Holding Co. recently acquired a 50% stake in the Turkish company Kalyon Energy, which involves various renewable energy projects.
Daglioglu explained that there are multiple investment agreements and memoranda of understanding signed between the UAE and Turkey to enhance cooperation in trade, energy, and the environment.
These agreements involve collaboration between “ADQ” and the Turkey Wealth Fund, which encompasses a general cooperation agreement and a memorandum of understanding aimed at establishing a “Technology Venture Capital Fund” for investing in Turkish technology companies.
Moreover, there is a cooperation agreement related to Abu Dhabi Ports’ investments in Turkey, along with a collaboration agreement between the Abu Dhabi Securities Exchange and the Borsa İstanbul.
Innovation Investment: $300M ‘Turkey Technology Fund’ Announced
Ahmet Burak Daglioglu mentioned that the Turkish Wealth Fund and ADQ recently announced the establishment of the “Turkey Technology Fund” with a capital of $300M. This fund is dedicated to investing in various venture capital funds and emerging Turkish companies with significant growth potential and innovative business models.
The fund’s primary focus will be on companies engaged in developing new technologies or enhancing existing ones in key sectors, including energy, utilities, healthcare, life sciences, food, agriculture, transportation, logistics, financial services, and education.
He emphasized that Turkey offers abundant opportunities for investors from the UAE and around the world. Mergers and acquisitions present significant opportunities for UAE investors with interests in the Turkish market.
Notably, there have been major acquisition deals announced across various sectors, spanning from financial technology to manufacturing, from services to infrastructure, and from real estate to services. He underscored that investing in Turkish companies and fostering collaborative partnerships are avenues for expanding business between the two nations.
