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Erdogan’s Saudi Visit to Boost Economic, Investment Ties

Saudi Crown Prince Mohammed bin Salman holding talks with Turkish President Recep Tayyip Erdogan in Riyadh on Feb. 3 (Turkish Presidency)
Saudi Crown Prince Mohammed bin Salman holding talks with Turkish President Recep Tayyip Erdogan in Riyadh on Feb. 3 (Turkish Presidency)
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Erdogan’s Saudi Visit to Boost Economic, Investment Ties

Saudi Crown Prince Mohammed bin Salman holding talks with Turkish President Recep Tayyip Erdogan in Riyadh on Feb. 3 (Turkish Presidency)
Saudi Crown Prince Mohammed bin Salman holding talks with Turkish President Recep Tayyip Erdogan in Riyadh on Feb. 3 (Turkish Presidency)

Türkiye President Recep Tayyip Erdogan’s visit to Saudi Arabia has given fresh momentum to economic ties between the two countries and opened new avenues for cooperation in trade, energy, and joint investments.

A joint statement issued at the end of Erdogan’s visit to Riyadh on Wednesday said the two sides were determined to move ahead with strengthening their political and economic partnership.

The statement said that Erdogan and Saudi Crown Prince Mohammed bin Salman “held a session of official talks during which they reviewed the historical relations between the two brotherly countries and ways to develop them in all fields.”

The statement showed Saudi-Turkish alignment on deepening economic and investment cooperation and on capitalizing on opportunities offered by Saudi Vision 2030 and the Century of Türkiye Vision.

“In the economic, trade, and investment sectors, both sides commended the strength of the economic ties between the two countries and agreed on further strengthening them, particularly in sectors of mutual priority. They also agreed to capitalize on the investment opportunities offered by the (Saudi Vision 2030) and (Century of Türkiye Vision), for the mutual benefit of both economies,” the statement read.

Emphasizing boosting non-oil trade and activating the Saudi-Turkish Business Council, the statement said the leaders “praised the level of trade exchange and stressed the importance of continued joint efforts to develop the non-oil trade volume, intensify mutual visits between officials in the public and private sectors, and hold trade events in both countries through the (Saudi-Turkish Business Council).”

Energy cooperation

Energy featured prominently in the discussions, with both sides stressing the importance of cooperation in oil, petrochemicals, and renewable energy, and exploring electricity interconnection, clean hydrogen, and energy supply chains to enhance energy security and sustainability.

“Both sides agreed to enhance cooperation in the fields of oil, oil derivatives, and petrochemical supply, and to work together to exploit investment opportunities in the petrochemical and agricultural nutrients sectors, as well as to cooperate on innovative uses of hydrocarbons,” the statement read.

“Both sides affirmed their desire to enhance cooperation in the fields of electricity and renewable energy, leveraging both countries’ extensive experience in renewable energy integration and the Kingdom’s large-scale energy investments.”

“They committed to expediting feasibility studies for electrical interconnection between the two countries, exchanging expertise in electricity and renewable energy technologies and grid automation, electrical grid security and resilience, renewable energy projects, grid interconnection, energy storage technologies, and promoting the participation of companies from both sides in implementing these projects,” it affirmed.

“They also emphasized the importance of strengthening cooperation in energy efficiency and conservation, raising awareness of its importance, and exchanging expertise in the energy services sector and capacity building in this field.”

The two sides also underscored cooperation in mining and the production of critical minerals in support of the global energy transition.

“Both sides agreed to strengthen cooperation in the exploration, extraction, and processing of mineral resources. They also emphasized the importance of international cooperation and joint ventures in critical minerals to ensure the security of supply chains essential for the global energy transition.”

Several agreements and memoranda of understanding were signed during a meeting of the Saudi-Turkish Coordination Council on the sidelines of the visit, covering energy, justice, space, and research and development.

Regarding the Saudi-Turkish Coordination Council, the statement said: “Both sides commended the level of coordination and cooperation within the framework of the (Saudi-Turkish Coordination Council), aimed at achieving shared interests and advancing them to new horizons across all sectors.”

“They emphasized the importance of strengthening cooperation and partnership in the following areas: digital economy, artificial intelligence, emerging technologies, and space technologies; transportation, logistics, and civil aviation; law and justice; culture; tourism; sports and youth; scientific and educational cooperation; media; environment, water, agriculture, and food security; customs, defense industries; Health.”

Reflecting the strong desire to deepen strategic energy cooperation, Saudi Energy Minister Prince Abdulaziz bin Salman and Turkish Energy and Natural Resources Minister Alparslan Bayraktar signed an agreement to collaborate on renewable power generation projects totaling about $2 billion in investment.

The agreement aims to enhance cooperation in renewable energy and green technologies and to support the development and implementation of high-quality projects that help diversify the energy mix, strengthen energy security, and accelerate the shift toward a low-carbon economy in line with both countries’ priorities.

It includes the development and implementation of solar power plants in Türkiye with a total installed capacity of up to 5,000 megawatts in two phases.

The first phase includes two solar projects in the Turkish provinces of Sivas and Karaman, with a combined capacity of 2,000 megawatts. In contrast, the second phase covers additional projects under agreed frameworks, adding an extra 3,000 megawatts.

Projects under the first phase will offer electricity prices that are highly competitive with those of other renewable plants in Türkiye. With investments of about $2 billion, the plants will supply electricity to more than two million Turkish households.

A state-owned Turkish company will purchase the electricity generated by the plants for 30 years, while the projects will maximize the use of locally sourced equipment and services during implementation.

Boost to foreign investment

Turkish Treasury and Finance Minister Mehmet Simsek said the agreement would significantly boost foreign direct investment inflows into Türkiye.

Writing on X on Wednesday, Simsek said "the pace of FDI is picking up, underscoring the growing credibility of our economic program."

"An FDI inflow of USD2bn in Türkiye’s renewable energy projects will accelerate the green transition, enhance energy security, and structurally reduce reliance on energy imports," he added.

Simsek also noted that foreign direct investment in Türkiye reached $12.4 billion in the first 11 months of 2025, up 28% from the same period in 2024.

Economic relations between Saudi Arabia and Türkiye have seen substantial growth over the past two years, reflected in rising trade volumes.

Türkiye’s interest in further strengthening ties was evident in Erdogan’s decision to bring a large business delegation of around 200 company heads and representatives to Riyadh, alongside officials from regional offices of Turkish companies.

The private sector plays a central role in the Saudi-Turkish partnership. Participants at the Saudi-Turkish Economic Forum, held on the sidelines of Erdogan’s visit, stressed the need to enter a new phase focused on implementing joint projects.

Trade growth accelerates

Turkish direct investments in Saudi Arabia have exceeded $2 billion, concentrated in manufacturing, real estate, construction, agriculture, and trade.

Nail Olpak, head of Türkiye’s Foreign Economic Relations Board, said trade with Saudi Arabia was growing at a rapid pace, noting that despite a slowdown in overseas activity by Turkish contractors, they continue to carry out major projects in the kingdom.

According to the latest official Saudi data, total trade between the two countries reached about $8 billion in 2025, up 14% from the previous year. By the end of last year, 1,473 investment licenses had been issued to active Turkish companies.

Saudi Arabia exports crude oil and petrochemical products to Türkiye and imports a range of goods, including carpets, processed stone for construction, tobacco products, food, and furniture.

Data from the Turkish Statistical Institute showed bilateral trade of $5.59 billion in 2015, $5.007 billion in 2016, $4.845 billion in 2017, $4.954 billion in 2018, and $5.107 billion in 2019.

After a decline in 2020 and 2021 due to the COVID-19 pandemic, trade rebounded to $6.493 billion in 2022 and $6.825 billion in 2023, exceeding $7 billion in 2024.

Türkiye’s exports to Saudi Arabia rose to $3.1496 billion in 2025, out of the total bilateral trade of about $8 billion.

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Business

Gold Rallies as Dollar, Treasury Yields Soften after US Midterm Results

Gold chips displayed at a state-owned gold retail store in Surabaya, East Java (AFP)
Gold chips displayed at a state-owned gold retail store in Surabaya, East Java (AFP)
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Gold Rallies as Dollar, Treasury Yields Soften after US Midterm Results

Gold chips displayed at a state-owned gold retail store in Surabaya, East Java (AFP)
Gold chips displayed at a state-owned gold retail store in Surabaya, East Java (AFP)

Gold climbed to its highest level in over two weeks on Thursday as the fallout from the US midterm election results rippled through the global financial and oil markets.

Spot gold rose 1.6% to $4,124.89 per ounce by 0752 GMT. It touched $4,146.63 per ounce, its highest level since October 20, earlier in ‌the session.

Bullion ‌climbed about 3.4% on Wednesday, its biggest ‌daily gain ⁠since August 19.

US ⁠gold futures for December delivery climbed 1.5% to $4,135.40, Reuters said.

A weaker dollar and lower Treasury yields have helped gold recover above the key $4,000 level, though holding above that threshold remains crucial for the recovery outlook, said Linh Tran, market analyst at XS.com.

"If investment flows and yield movements continue to provide support, gold could stabilize ⁠above $4,000, also opening up an opportunity for a ‌recovery toward $4,200, followed by $4,400."

Oil prices ‌were slightly higher after earlier falling for a fourth day on ‌expectations that the losses US President Donald Trump's Republican Party ‌suffered in congressional elections this week may reduce the risk of further escalation of the US-Israeli war with Iran.

Lower energy prices ease inflationary pressures, reducing expectations that the central bank will keep interest rates higher ‌for longer, supporting the appeal of non-yielding bullion.

The dollar slid to its lowest in more ⁠than a ⁠month, and 10-year US Treasury yield fell to its lowest since September 10.

A weaker dollar makes greenback-priced bullion more affordable for holders of other currencies.

Market participants now await the US non-farm payrolls report on Friday to further gauge the Federal Reserve's monetary policy outlook.

Meanwhile, Citi has a 0-3 month price target of $4,500 per ounce for gold, the brokerage said on Wednesday, as it sees substantial upside potential if the Strait of Hormuz reopens and the Yemen/Saudi conflict de-escalates.

Among other metals, spot silver rose 0.8% to $52.63 per ounce, platinum gained 1.2% to $1,514.20 and palladium climbed 2.2% to $1,026.83.

Business

Tech Hit by New AI Worries on Positive Day for Most Markets

Hong Kong stocks rallied more than three percent on a broadly healthy day for Asian markets. Leung Man Hei / AFP
Hong Kong stocks rallied more than three percent on a broadly healthy day for Asian markets. Leung Man Hei / AFP
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Tech Hit by New AI Worries on Positive Day for Most Markets

Hong Kong stocks rallied more than three percent on a broadly healthy day for Asian markets. Leung Man Hei / AFP
Hong Kong stocks rallied more than three percent on a broadly healthy day for Asian markets. Leung Man Hei / AFP

Tech firms tumbled Thursday as investors contemplated the outlook for the AI boom after Democrats swept the US midterms, partly on the back of growing anger over the rapid building of data centers across the country.

However, broader markets mostly rallied and oil plunged after Donald Trump's Republicans were dealt a historic defeat that was blamed on high prices, tariffs and the Iran war.

The result stoked hopes he will look to wind down the Middle East conflict, which would help temper inflation and even soften his stance on trade.

But AI-linked firms came under the cosh amid fears for planned data center construction projects as well as renewed scrutiny from newly installed Democrats on Capitol Hill.

The sector had already been in the crosshairs of investors owing to questions about the vast sums pumped into new facilities, R&D and chip development, and when any companies would see a profit.

Charu Chanana at Saxo Markets said the vote was accelerating a reassessment of AI that was already under way.

"A Democratic Congress introduces another layer of uncertainty: regulatory scrutiny," she wrote, adding that the three main risks were more oversight, data center restrictions and capital spending uncertainty.

"The congressional scrutiny could accelerate demands for AI safety standards, independent model evaluations and greater accountability for data center developers," she added.

However, she also said: "This is not the same as an outright anti-AI policy agenda. AI is strategically important for US competitiveness, particularly against China, and there remains considerable bipartisan interest in maintaining American leadership."

Chip firms were hammered in Asia, with South Korea's SK hynix off more than seven percent and Samsung 5.5 percent down.

Tokyo-listed Kioxia dived more than 13 percent and Advantest tanked 14.7 percent, while Tokyo Electron lost more than nine percent and SoftBank 6.8 percent.

US Nasdaq futures fell more than one percent.

Broader markets performed better as investors rotated into other sectors including finance, auto, mining and manufacturing names.

Seoul, the poster child of the AI-led surge in the first half of the year, shed more than five percent, while Taipei lost more than three percent. Tokyo gave up 1.8 percent.

But there were healthy gains in Hong Kong, helped by hopes for an easing of trade tensions between the US and China, with tech titans including Alibaba, JD.com and Tencent leading the way amid a shift into beaten-down regional stocks.

Shanghai, Sydney, Singapore, Wellington, Mumbai, Jakarta and Manila also advanced.

Oil continued to fall after diving more than eight percent Wednesday on the US result amid optimism Trump will seek a deal to end the Iran war, which has been a key driver of the inflation spike that has hammered US consumers.

Hopes were given a boost when Vice President JD Vance said in a social media post that the Republican defeat was due to the unpopularity of the eight-month-old conflict.

The drop in crude prices -- both main contracts are now below $100 for the first time since the start of October -- has also tempered inflation worries and, in turn, Treasury yields, which dipped again Thursday.

The lower cost of borrowing has also been helped by the prospect that gridlock on Capitol Hill would lead to less spending.

That also weighed on the dollar, which held losses against its peers in Asian trade.

Business

Türkiye Showcases Renewables Surge, but Leaves Coal Intact

Türkiye is rapidly expanding its renewable energy capacity. But as host of COP31, the country faces growing pressure to match its clean energy ambitions with a clear commitment to phase out fossil fuels. Yasin AKGUL / AFP
Türkiye is rapidly expanding its renewable energy capacity. But as host of COP31, the country faces growing pressure to match its clean energy ambitions with a clear commitment to phase out fossil fuels. Yasin AKGUL / AFP
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Türkiye Showcases Renewables Surge, but Leaves Coal Intact

Türkiye is rapidly expanding its renewable energy capacity. But as host of COP31, the country faces growing pressure to match its clean energy ambitions with a clear commitment to phase out fossil fuels. Yasin AKGUL / AFP
Türkiye is rapidly expanding its renewable energy capacity. But as host of COP31, the country faces growing pressure to match its clean energy ambitions with a clear commitment to phase out fossil fuels. Yasin AKGUL / AFP

On a windy hillside about an hour's drive northwest of Istanbul, the Catalca power plant was one of Türkiye's first large-scale wind farms and has been feeding electricity into the grid for 18 years.

With an installed capacity of 93 megawatts, it generates 287 million kilowatt-hours of electricity a year, enough for around 115,000 households, said AFP.

"By replacing electricity that would otherwise come from fossil fuel-fired power plants, this output avoids 185,936 tons of carbon emissions each year," operator Sanko Enerji says.

Nearly two decades on, Catalca is one of nearly 300 wind farms, its giant turbines a symbol of the rapidly expanding capacity for renewable energy in Türkiye which is hosting the COP31 UN climate summit that opens in Antalya on Monday.

Last year, 43 percent of Türkiye's electricity came from clean energy sources, of which wind and solar accounted for 22 percent, according to energy think tank Ember.

With electrification emerging as one of the central themes of COP31, Türkiye has been pushing hard for it to be an implementation-focused summit that turns existing climate pledges into action.

Energy Minister Alparslan Bayraktar has outlined plans to triple Türkiye's installed solar and wind capacity from around 40 gigawatts to 120 gigawatts by 2035.

But with coal still the leading source of power generation, Türkiye is under pressure to pair its impressive renewables growth with a definitive shift away from fossil fuels.

Not only is it still building coal-fired power plants, it has yet to set a date to phase out fossil fuels.

- Coal still dominant -

"Türkiye's continued reliance on coal, alongside plans for further expansion, highlights the contradiction at the heart of its current trajectory," Duygu Kutluay of Beyond Fossil Fuels told AFP.

Embracing an electrification agenda alone did not amount to a genuine energy transition because "coal remains the country's largest source of electricity generation", she said.

Coal-fired power plants accounted for 33.5 percent of Türkiye's electricity production in 2025, energy ministry figures show, with Ember saying almost two-thirds of its coal was imported.

Plans to expand coal capacity "risk locking in further fossil-fuel dependence", she warned.

"As Türkiye increases renewable capacity, it must ensure clean electricity replaces fossil-fuel generation rather than simply meeting additional demand," Kutluay said.

The challenge is not only expanding renewables but establishing "a clear pathway to phase out coal".

Asked about Türkiye's continuing reliance on coal, Bayraktar told AFP in February that Ankara prioritized securing affordable energy supplies and reducing dependence on imports.

"Coal can initially be replaced with gas, but in the medium and long term it can be substituted with nuclear," he said.

Ibrahim Erden, president of the Turkish Wind Energy Association, said every country's transition was different with "no single path that suits everyone".

- Need for investment -

Emin Emrah Danis, chief executive of MOBEN consultancy, said Türkiye's energy policy was shaped by rising electricity demand and the need for "baseload" generation to deliver constant power around the clock.

"This is why Türkiye has invested heavily in gas- and coal-fired power plants over the past 30 years," he told AFP.

"For coal's share of power generation to fall to meaningful levels, Türkiye needs substantial investment in electricity storage and nuclear power," he said, referring to battery storage for renewable power.

Türkiye is currently putting the finishing touches on the first reactor of its Akkuyu nuclear power plant, which should be online by the start of 2027, Bayraktar told an energy summit last week.

But Türkiye's nuclear expansion, with two more plants in the pipeline, was unlikely to add enough baseload capacity to replace coal-fired electricity generation before around 2040, Danis said.

And coal would likely remain part of the energy mix for decades, with the need for baseload power and dependence on imports making a full phase-out infeasible before "the mid-2050s".

Türkiye relies heavily on imports of oil, natural gas and coal from countries like Russia, Iran and Azerbaijan.

Erden said infrastructure updates were essential to give greater place to renewables.

"We cannot simply shut down coal-fired power plants today and rely solely on wind and solar energy ... The technological and physical infrastructure is not yet capable of supporting that."

Beyond the climate argument, geopolitical tensions have also strengthened the case for domestic renewables.

"Renewables ... are not only one of the most effective tools for tackling climate change, but also an important means of strengthening energy security and reducing dependence on foreign supplies," he said.