The increase in Turkish exports to Arab countries reflects a combination of political, geographical, and economic factors that have strengthened Turkey's position as a major trading partner in the region.
Turkey's geographical proximity to Gulf and Levant markets, along with its modern transportation network, facilitates faster and more cost-effective delivery of goods compared to competitors from Europe and Asia.
Major development projects in Gulf countries, such as Saudi Vision 2030, have created a surge in demand for Turkish products, particularly in construction and industrial sectors.
The ongoing improvement in political relations between Turkey and Arab countries is likely to foster further economic cooperation and growth in trade volumes.
If Turkey successfully navigates the challenges of competition and currency fluctuations, it could solidify its role as a primary supplier for major development projects in the region.
The strategic planning efforts to diversify exports and enhance investments may lead to a more resilient trade relationship, benefiting both Turkey and its Arab partners.
Turkey has seen a significant increase in trade with Arab countries, with exports reaching $39.9 billion in the first ten months of 2024, marking a 7.7% growth from the previous year. This growth highlights Turkey's strategic position as a regional economic power, with Arab nations accounting for 18.4% of its total exports, which amounted to $216.4 billion during the same period.
Iraq leads as the top importer of Turkish goods, followed by the UAE, Egypt, and Saudi Arabia. The diverse range of exports includes building materials, textiles, food, and technical devices, showcasing Turkey's ability to meet various market needs.
The historical trade relationship between Turkey and Arab countries has evolved, with recent years witnessing a shift towards broader strategic cooperation, including infrastructure and energy projects, particularly in the Gulf region. This has positioned Turkey as a key partner in the region's development.
A significant factor in this trade growth is the political rapprochement between Turkey and several Gulf nations, which has restored confidence and allowed for expanded cooperation. The Turkish Ministry of Trade's announcement of negotiations for a free trade agreement with Gulf Cooperation Council countries is a pivotal step in enhancing economic relations.
Despite the positive trends, challenges such as international competition from countries like China and India, exchange rate fluctuations, and unstable political situations in some Arab nations pose risks to sustaining this trade momentum. Experts emphasize the need for strategic planning to diversify exports and capitalize on emerging market opportunities.
