[1/6]Saudi Crown Prince Mohammed bin Salman meets with Turkish President Tayyip Erdogan in Jeddah, Saudi Arabia, July 17, 2023.Handout via Saudi Press Agency/Reuters
ISTANBUL/RIYADH, July 18 (Reuters) – President Tayyip Erdogan arrived in Saudi Arabia on Monday as the first destination of his Gulf tour, as Turkey seeks to ease fiscal burdens, chronic inflation and a weak currency. , had “great expectations” for investment and finance.
Saudi state-run Al-Eqbaria TV showed several Saudi officials welcoming Erdogan as he arrived at the Saudi-Turkey Business Forum in the Red Sea city of Jeddah.
President Erdogan met late Monday night with Saudi Crown Prince Mohammed bin Salman, the country’s de facto ruler, the state-run Saudi news agency reported.
Since the Turkish government launched diplomatic efforts to mend ties with Saudi Arabia and the United Arab Emirates in 2021, investments and funds from the Gulf countries have helped ease pressure on the Turkish economy and foreign exchange buffers. rice field.
“This visit has two main themes: investment and finance.
President Erdogan’s visit to Saudi Arabia will be the first of his Gulf tour, which will include Qatar and the UAE, from 17-19 July following his re-election in May.
“Turkey will have significant investment opportunities in the defense industry, infrastructure and superstructures of the three countries,” he said.
“In addition, these countries will be given the opportunity to purchase certain assets from Turkey,” he added.
Two senior Turkish officials have previously said they hoped the Gulf states would initially invest about $10 billion in direct investments in domestic assets as a result of Erdogan’s visit to the region.
Ekbarrier broadcast live footage of Saudi Investment Minister Khaled Al-Falih addressing dozens of businessmen from both sides at the Saudi-Turkey Business Forum in Jeddah.
Turkish Vice President Cevdet Yilmaz and Finance Minister Mehmet Simsek visited the UAE last month to discuss “opportunities for economic cooperation” with their counterparts and met with President Sheikh Mohammed bin Zayed Al Nahyan last month, according to the Turkish government. had a meeting.
Erdogan’s post-election appointments of Yilmaz and Simsek will make a U-turn after years of unusual economic policies sent inflation soaring and net foreign exchange reserves hit a record low in May. It was also for the sake of As part of the policy shift, the central bank raised interest rates by 650 basis points last month.
Data on Monday showed Turkey’s budget deficit soared to 219.6 billion lira ($8.37 billion) in June, seven times more than the same period last year. The lira has fallen nearly 29% this year, compared with annual inflation of nearly 40% in June.
Reporting by Huseyin Hayatsever and Ali Kucukgocmen. Written by Daren Butler and Aziz El Yaakoubi.Editing: William McLean and Deepa Babington
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