Trade Between Turkey and Arab Countries: Record-Breaking Figures and Promising Future Prospects

Trade between Turkey and Arab countries continues to break new records each year, as demonstrated by the 2024 trade data, which highlights a significant increase in Turkey’s exports to the Arab world. This growth in economic relations reflects a combination of political, economic, and geographical factors that have strengthened Turkey’s position as a key regional economic hub. In this context, the Arab market represents a strategic and important arena for many Turkish companies, especially real estate firms, that are looking to expand and grow.

Growth in Turkish Exports to Arab Countries

In the first ten months of 2024, Turkey’s exports to Arab countries rose by 7.7% compared to the same period last year, reaching $39.9 billion. This figure reflects the significant growth in trade volume between Turkey and Arab countries, with Arabs accounting for approximately 18.4% of Turkey’s total exports to global markets, which amounted to $216.4 billion. These figures highlight Turkey’s growing role as a vital regional hub for the exchange of goods and services.

Top Arab Countries Importing from Turkey

Turkey’s exports to Arab countries span a variety of sectors, from construction materials to advanced technology. Iraq leads the list as the largest importer of Turkish products, with imports amounting to $10.76 billion. The UAE follows with $6.84 billion, then Egypt with $3.4 billion, and Saudi Arabia with $3.26 billion. Morocco also saw an increase in imports from Turkey, amounting to $2.8 billion.

These figures reflect the diverse range of goods exported by Turkey to the Arab world, including everything from building materials to textiles, food, and technology. This diversity not only showcases Turkey’s capacity to meet various market needs, but also its ability to provide both essential commodities for households and value-added products that cater to vital and advanced sectors.

Strategic Shifts in Turkish-Arab Cooperation

In recent years, trade relations between Turkey and Arab countries have undergone a strategic transformation. These relations have evolved from traditional trade exchanges to include large-scale projects in infrastructure and energy, especially in the Gulf region, which is experiencing a major development boom. In this context, Turkey has become a key strategic partner in supplying the necessary materials and expertise for these countries’ developmental projects.

Politically, Turkey’s rapprochement with several Gulf capitals has played a pivotal role in rebuilding trust and restoring economic ties that were affected during periods of tension. This has created opportunities for both parties to expand cooperation and launch joint ventures with tangible impacts on trade movements. The recent agreement between Turkey and the Gulf Cooperation Council (GCC) on free trade negotiations marks a significant step towards enhancing trade and investment flows between the two sides in a more efficient and organized manner.

Key Factors Driving Growth in Turkey-Arab Trade

The success of Turkish exports to Arab countries can be attributed to a combination of factors that have helped elevate Turkey’s position as a leading trade partner in the region. First, Turkey’s geographical location is a critical element that supports trade with Arab countries, as it is strategically situated at the crossroads of Asia and Europe, making it a major gateway to the Middle East, Gulf, and North African markets.

Second, Turkey boasts a developed transportation network that includes highways, modern seaports, and airports, all of which facilitate smooth trade operations. This infrastructure reduces logistical costs and allows for faster shipments, enhancing the competitiveness of Turkish products in Arab markets.

Third, the major development projects underway in the Gulf, such as Saudi Arabia’s Vision 2030, which aims to develop infrastructure and improve essential services, have greatly increased demand for construction materials, industrial equipment, and advanced technology. These developments have made Turkish companies, including those in the real estate sector, key players in fulfilling the needs of these mega-projects, further solidifying Turkey’s position as a reliable supplier of high-quality products at competitive prices.

Challenges Facing Turkish-Arab Trade

Despite the significant growth in trade between Turkey and Arab countries, several challenges may hinder the continuation of this commercial momentum. First, Turkish products face fierce competition from countries like China and India, which offer lower-priced alternatives. Additionally, European products, despite their higher costs, remain strong in Arab markets due to their high quality.

Second, fluctuations in the Turkish lira present another challenge. The ongoing volatility in the value of the currency affects production costs, which may make it difficult for Turkish companies to maintain competitive prices. At the same time, political instability in some Arab countries can lead to fluctuations in demand and supply chain disruptions, complicating the trade landscape and introducing unforeseen risks.

Promising Opportunities for Future Trade Between Turkey and Arab Countries

Despite these challenges, there are significant opportunities for deepening economic cooperation between Turkey and Arab countries in the future. One of the key opportunities lies in adopting long-term strategies to further diversify the range of products exported to the Arab world. Expanding Turkish exports into new areas such as advanced technology, real estate, and financial services will further enhance Turkey’s standing as a key regional supplier.

Large-scale developmental projects in the region, such as infrastructure and renewable energy initiatives in the Gulf countries, represent prime opportunities for strengthening bilateral trade. In this regard, Turkish real estate companies stand to benefit from the increasing demand for housing, commercial properties, and other infrastructure projects across the Arab world.

Economic Partnership Between Turkey and Arab Countries: A Model for Regional Integration

The economic partnership between Turkey and Arab countries is more than just a traditional trade relationship—it represents a model for regional integration. It brings together both political and economic interests, creating vast opportunities for joint cooperation across various fields, including infrastructure, energy, real estate, and technology. To maximize the benefits of this partnership, Turkey and the Arab countries should focus on long-term strategies aimed at enhancing sustainable economic cooperation.

A Bright Future Ahead

The trade relations between Turkey and Arab countries continue to thrive, and it seems that these ties will continue to grow in the coming years. The encouraging figures from 2024 suggest promising opportunities for deepening this economic cooperation, especially with improved political relations and increasing demand for Turkish products across several sectors. If these opportunities are fully leveraged, economic relations between Turkey and Arab countries could evolve into a long-term strategic partnership, generating sustainable benefits for both sides.