Turkey courts Saudi Arabia for more trade and investment

Turkey hopes to tame its chronic current account deficit (CAD) problem by attracting sizable Saudi investments in key industries that contribute most to the widening CAD, Economy Minister Zafer Caglayan has said, while the government eyes a bigger slice in huge multi-billion dollar Saudi infrastructure and construction projects. "We are looking for Saudi experience and investment in refining, petrochemical and energy development to curtail our CAD figures," he said, adding that he was very encouraged with high-level meetings he held in both Jeddah and Riyadh as part of his trade mission trip. The minister said both economies are not rival but rather complementary. Caglayan praised the marked improvement in trade volume between the two countries, saying it was evenly balanced. Caglayan said Turkey also wants Saudi Arabia to lobby for the speedy conclusion of free trade agreements (FTA) with the six-nation Gulf Cooperation Council (GCC). "We very much value the Saudi contribution in this process because they are the engine in the GCC," he said in response to a question from Today's Zaman. "I brought the issue up in meetings I have had with Saudi ministers here," he added. He held talks with Commerce and Industry Minister Tawfiq bin Fawzan Alrabiah, Minister of Transport Jabara Al-Seraisry, Finance Minister Ibrahim Al-Assaf, Housing Minister Shuwaish bin Saud Al-Dhuwaihi and Municipal and Rural Affairs Minister Prince Mansour bin Miteb. Some 100 Turkish businessmen accompanied the Turkish minister on this trip. The business forums held both in Jeddah and Riyadh brought together hundreds of businessmen from both sides. In Jeddah, the business forum saw the signing of agreements between the Jeddah Chamber of Commerce and Industry (JCCI) and the Makkah Chamber of Commerce and Turkey's business interest group the Independent Industrialists and Businessmen's Association (MUSIAD). The agreement on cooperation in the construction sector between Turkey and Saudi Arabia was also signed by Caglayan and his Saudi counterpart. Caglayan also said in Riyadh on Sunday that French companies seeking to invest in the Turkish economy are still welcome to do so despite the strained ties between Turkey and France over a bill approved last week by the French National Assembly, aiming to penalize the denial of the "Armenian genocide." "They earn a place on the top of our head if they want to come to Turkey," he said, recalling a famous Turkish saying that refers to the generous Turkish hospitality shown to guests. "We have a very liberal economy and we believe in free trade," Caglayan told a group of reporters traveling with him on a business trip to Saudi Arabia. He also gave assurances to some 1,000 French companies who have already invested in Turkey, saying, "As my prime minister has said, if a foreign company invests its trust in our economy, it would ‘earn a place on the top of our head'," he noted, adding that "French companies are no different than companies from any other nation." Caglayan warned, however, that there will be a public outcry over the bill in Turkey and that the pressure on the government to retaliate will mount. "I understand the public's frustration as I feel the same. This [bill] is totally unreserved and uncalled for. It is plain simple populism to cater to the domestic electorate. I hope it does not impact on our economic ties," he said.