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ISTANBUL: Saudi Arabia and Turkiye are recasting their economic relationship, moving beyond trade and traditional investment flows to forge long-term industrial partnerships spanning renewable energy, defense, tourism and logistics.<\/p>\n
The emerging model combines Saudi capital with Turkish expertise and technology, with both countries pursuing joint investment, technology transfer and localized production to build ties that can outlast fluctuations in trade.<\/p>\n
The shift is gathering pace as Saudi investors show greater interest in Turkish assets and companies through funds, mergers and acquisitions. At the same time, Turkish companies are expanding in Saudi Arabia, seeking to capitalize on the kingdom\u2019s megaprojects and Vision 2030 targets.<\/p>\n
Energy and defense lead the sectors poised for deeper cooperation. Both countries are working to build an economic relationship based on joint investment, technology transfer and industrial localization, a model designed to make the Saudi-Turkish partnership more sustainable and less exposed to swings in trade.<\/p>\n
Ahmet Burak Daglioglu, president of the Investment and Finance Office of the Presidency of the Republic of Turkiye, said Saudi investment in Turkiye had changed markedly in recent years.<\/p>\n
Investors are showing greater interest in mergers and acquisitions, buying stakes in Turkish companies and investing through funds, he said. Saudi capital also remains active in banking, financial services, manufacturing, real estate and family-owned businesses.<\/p>\n
Speaking to Asharq Al-Awsat at a meeting with reporters in Istanbul, Daglioglu said Turkish companies were also expanding in the Saudi market, tapping opportunities created by Vision 2030 and the Kingdom\u2019s megaprojects, particularly in manufacturing, services, healthcare, hospitals and logistics.<\/p>\n
The meeting was organized by the Turkish presidency\u2019s Directorate of Communications and its Investment and Finance Office on the sidelines of a climate finance conference in Istanbul.<\/p>\n
More confidence<\/strong><\/p>\n Daglioglu said the improvement in relations between Riyadh and Ankara in recent years had given investors in both countries greater confidence, putting trade and investment on an upward path.<\/p>\n Bilateral relations are an important signal for companies weighing market entry and long-term investment decisions, he said.<\/p>\n The true scale of Saudi investment in Turkiye could also be larger than official figures suggest, Daglioglu said. Some investments are made through funds and companies registered in international financial centers, meaning they are not always recorded as direct Saudi capital inflows.<\/p>\n The pattern reflects an evolution in the tools used by Saudi investors, who increasingly rely on funds and international investment structures to acquire stakes in companies or finance mergers and acquisitions, he said.<\/p>\n Renewable energy<\/strong><\/p>\n Daglioglu pointed to Saudi Arabia\u2019s ACWA Power entering Turkish renewable energy projects as a key example of where investment relations are heading.<\/p>\n The sector offers substantial opportunities, he said, as Turkiye seeks to expand its clean-energy capacity and Saudi companies bring advanced expertise in developing, financing and operating major projects.<\/p>\n Daglioglu cited investment commitments involving large-scale renewable energy projects and said further steps were expected to be announced as Turkiye prepares to host the COP31 United Nations climate conference in Antalya.<\/p>\n Energy could become a central pillar of the partnership, he said, as Saudi Arabia expands its international investments in renewable energy and Turkiye seeks to increase the share of clean energy sources in its energy mix.<\/p>\n Defense cooperation<\/strong><\/p>\n Muttalip Tutuncu, secretary-general of the SAHA Istanbul defense and aerospace industry cluster, said defense cooperation between Saudi Arabia and Turkiye was moving beyond product sales and export deals.<\/p>\n The relationship is developing into a strategic partnership encompassing technology transfer, industrial localization and joint production capabilities, he said.<\/p>\n Saudi Arabia\u2019s drive to localize defense manufacturing aligns with the industrial and technological capabilities Turkiye has built in recent years, opening the door to broader cooperation between companies and institutions in both countries.<\/p>\n Saudi Arabia is not merely seeking to buy defense equipment and systems, Tutuncu said. It also wants to acquire the technical knowledge and capacity to manufacture, develop and maintain them, in line with its targets for increasing local content in military industries.<\/p>\n \u201cTurkish companies view the Saudi market as a long-term strategic partner, not merely as an export market,\u201d he said.<\/p>\n Future cooperation could include joint manufacturing, technology transfer, workforce training and the creation of local supply chains, Tutuncu added.<\/p>\n He described the defense relationship as one of \u201cindustrial integration,\u201d combining Saudi financial and investment capabilities with Turkish technical and industrial expertise.<\/p>\n That model could extend to aviation, unmanned systems, electronics and advanced technologies, he said.<\/p>\n Drone agreements between the two countries marked an important milestone in defense cooperation, Tutuncu said, but they were not the end of the process. Rather, they were the start of a broader phase that could include building industrial and production capabilities inside Saudi Arabia.<\/p>\n Seasonal tourism integration<\/strong><\/p>\n In tourism, Daglioglu said the two countries could build a model of seasonal integration.<\/p>\n Turkiye attracts large numbers of Saudi tourists during the summer, while Turkish companies and operators could benefit from Saudi Arabia\u2019s winter tourism season and the kingdom\u2019s new tourism and entertainment projects.<\/p>\n Turkish hospitality operators and tourism service companies could deploy their expertise and personnel in the Saudi market during periods of lower demand in Turkiye, helping meet the needs of Saudi projects while creating new opportunities for Turkish businesses.<\/p>\n Cooperation between Riyadh and Ankara is not limited to governments and large corporations, Daglioglu said. It also involves connecting investors, entrepreneurs and small and medium-sized enterprises and making it easier for them to enter both markets.<\/p>\n Greater growth<\/strong><\/p>\n The two Turkish officials expect mutual investment to grow further in the coming period, driven by improving relations, the expanding scale of Saudi projects and Saudi investors\u2019 interest in Turkish assets and companies.<\/p>\n Ankara\u2019s push to attract high-quality investment into industry, energy and technology is also expected to support that growth.<\/p>\n The course signals a shift in Saudi-Turkish relations: from rebuilding trade momentum to forging deeper economic and industrial interests based on joint investment, technology transfer and complementary capabilities.<\/p>\n That shift gives the relationship a more enduring foundation \u2014 one that extends beyond the fluctuations of traditional trade.<\/p>\n<\/div>\n