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Fitch Commends Türkiye’s Economic Policy, Warns of Reversal

Flags of Türkiye adorn a commercial street in Ankara (Reuters)
Flags of Türkiye adorn a commercial street in Ankara (Reuters)
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Fitch Commends Türkiye’s Economic Policy, Warns of Reversal

Flags of Türkiye adorn a commercial street in Ankara (Reuters)
Flags of Türkiye adorn a commercial street in Ankara (Reuters)

Fitch Ratings has upgraded Türkiye’s rating to ‘B+’ from ‘B’ and changed its outlook from ‘stable’ to ‘positive.’ This is because Türkiye has tightened its monetary policy since June 2023, following changes in the economic team after the elections in May.

The tightening of monetary policy has been stronger and faster than expected, which has helped reduce financial stability risks. Despite this, inflation has continued to rise, reaching a 15-month high in February.

Fitch expects inflation to decrease but remain high. It predicts it will average 58% in 2024 and end the year at 40%, which is above the central bank’s target.

Fitch warns against easing monetary policy too soon or providing extra stimulus, as this could undermine the positive effects of recent policy changes.

It also predicts Türkiye’s economy to grow by 2.8% this year and 3.1% in 2025. However, it does not expect any changes in Türkiye’s monetary policy after the local elections in March.

Overall, Türkiye’s financial stability is expected to improve in the coming months, with inflation slowing down and the current account deficit narrowing.

The agency ruled out any changes in Türkiye’s monetary policy after the local elections scheduled for March 31.

Last September, Fitch kept Türkiye’s foreign currency long-term credit rating at ‘B’ and revised its outlook from ‘negative’ to ‘stable.’ Its next report on the Turkish economy is expected in September this year.

Turkish Finance Minister Mehmet Simsek said the rating upgrade was a concrete result of the government's economy program as well as its rule-based and predictable policies.

"Macrofinancial stability will be further strengthened and our credit rating will increase in H2 with disinflation, narrowing current account deficit and budget discipline," Simsek added on social media platform X.

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Saudi Arabia Makes History with Adoption of Riyadh Treaty on Design Law

Photo of the Riyadh Diplomatic Conference on the Design Law Treaty (Asharq Al-Awsat)
Photo of the Riyadh Diplomatic Conference on the Design Law Treaty (Asharq Al-Awsat)
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Saudi Arabia Makes History with Adoption of Riyadh Treaty on Design Law

Photo of the Riyadh Diplomatic Conference on the Design Law Treaty (Asharq Al-Awsat)
Photo of the Riyadh Diplomatic Conference on the Design Law Treaty (Asharq Al-Awsat)

Saudi Arabia has made history by uniting the 193 member states of the World Intellectual Property Organization (WIPO) to adopt the Riyadh Treaty on Design Law. This landmark achievement, realized after two decades of deliberation, underscores the Kingdom’s leadership in enhancing the global intellectual property system.

The announcement came at the conclusion of the Riyadh Diplomatic Conference on the Design Law Treaty, a rare event for WIPO, which has not held a diplomatic conference outside Geneva for more than a decade. It was also the first such event hosted in Saudi Arabia and the Middle East, representing the final stage of negotiations to establish an agreement aimed at simplifying and standardizing design protection procedures across member states.

Over the past two weeks, intensive discussions and negotiations among member states culminated in the adoption of the Riyadh Treaty, which commits signatory nations to a unified set of requirements for registering designs, ensuring consistent and streamlined procedures worldwide. The agreement is expected to have a significant positive impact on designers, enabling them to protect their creations more effectively and uniformly across international markets.

At a press conference held on Friday to mark the event’s conclusion, CEO of the Saudi Authority for Intellectual Property Abdulaziz Al-Suwailem highlighted the economic potential of the new protocol.

Responding to a question from Asharq Al-Awsat, Al-Suwailem noted the substantial contributions of young Saudi men and women in creative design. He explained that the agreement will enable their designs to be formally protected, allowing them to enter markets as valuable, tradable assets.

He also emphasized the symbolic importance of naming the convention the Riyadh Treaty, stating that it reflects Saudi Arabia’s growing influence as a bridge between cultures and a global center for innovative initiatives.

The treaty lays critical legal foundations to support designers and drive innovation worldwide, aligning with Saudi Arabia’s vision of promoting international collaboration in the creative industries and underscoring its leadership in building a sustainable future for innovators.

The agreement also advances global efforts to enhance creativity, protect intellectual property, and stimulate innovation on a broader scale.

This achievement further strengthens Saudi Arabia’s position as a global hub for groundbreaking initiatives, demonstrating its commitment to nurturing creativity, safeguarding designers’ rights, and driving the development of creative industries on an international scale.

The Riyadh Diplomatic Conference, held from November 11 to 22, was hosted by the Saudi Authority for Intellectual Property and attracted high-ranking officials and decision-makers from WIPO member states.