Türkiye and the Gulf Cooperation Council (GCC) have taken a significant step in their economic ties by signing a joint declaration to start talks on a free trade agreement, an idea that’s been on the table for over 20 years.
Last Thursday in Ankara, Türkiye's Trade Minister Omer Bolat and GCC Secretary-General Jasim Mohammed Al-Budaiwi signed an agreement to begin negotiations for a free trade deal worth $2.4 trillion.
The aim is to create one of the world’s largest free trade zones, freeing up trade in goods and services and making it easier for investments. This move is strategic, given the changing global economic landscape.
This agreement reflects a positive shift in relations between Türkiye and the Gulf states, showing efforts to overcome past political differences and boost cooperation in various areas.
Al-Budaiwi praised the declaration as a sign of the strong bond between the GCC countries and Türkiye, emphasizing their significant role regionally and globally, especially in trade, economy, and finance.
Bolat expressed confidence in the upcoming negotiations for the free trade agreement, expecting them to wrap up swiftly.
In recent months, after Türkiye's elections in May, there have been several visits from Turkish officials to Saudi Arabia and the United Arab Emirates as relations normalize. Officials from both sides focused on boosting economic and trade ties.
In November, Istanbul hosted a Gulf-Turkish economic forum, highlighting investment opportunities. Ministers, officials, and businessmen attended from both sides.
During the forum, Türkiye's Treasury and Finance Minister, Mehmet Simsek, stressed that increased cooperation would lead to benefits like free trade agreements.
He also mentioned opportunities for diversifying Gulf production, boosting trade, and investing in sectors like tourism and construction.
During a meeting in Riyadh last February, Al-Budaiwi stressed the importance of boosting cooperation and signing a free trade agreement between Türkiye and the GCC. This is part of ongoing efforts to strengthen economic ties.
In March 2023, Türkiye and the GCC adopted a joint action plan for 2023-2027, showing their commitment to deepen relations.
Trade between Türkiye and the Gulf Cooperation Council reached $26 billion, but experts believe there's more economic potential.
Between 2002 and 2022, Gulf countries invested $11.4 billion in various Turkish sectors.
