File photo used for representation only.
The close relations between Qatar and Turkey have resulted in strong Foreign Direct Investment (FDI) flows between the two brotherly countries.
The FDI inflows from Qatar to Turkey reached $2.7bn as of April 2020. The total value of Qatari FDI stock in Turkey was $22bn as of December 2019, according to ‘Qatar-Turkey Bilateral Trade & FDI Report’, compiled jointly by the Presidency of the Republic of Turkey Investment Office and the Investment Promotion Agency Qatar.
The FDI inflows from Qatar to Turkey in 2019 were $570m, which was the highest in the last decade. Since 2011, there has been $29m of FDI inflows from Turkey to Qatar. Between 2013 to 2017, the value of Turkish FDI stock in Qatar was $363m.
In the last two decades, the economic relations between both nations have flourished, with a significant rise in both the volume of trade and FDI being notable. Qatar is the second largest investor in Turkey and has shown a continued commitment to investing in Turkey.
The relationship between Qatar and Turkey has been going from strength to strength in recent years. The areas of collaboration between the two countries span a broad range of sectors and domains.
In 2020, several major deals were signed between the companies in the two countries. In October last year, Qatar’s QTerminals had signed sale and purchase agreement with Global Ports Holding, the world’s largest independent cruise port operator, for the acquisition of Port Akdeniz in Turkey for an enterprise value of $140m.
Next month in November, the Turkey Wealth Fund (TWF) signed a memorandum of understanding with Qatar Investment Authority (QIA) to consider and finalise the QIA’s potential purchase of 10 percent of shares in the Istanbul stock exchange.
Over the past few years, Qatar and Turkey have signed agreements spanning technology, scientific research, innovation, and free zones.
The trade between Qatar and Turkey continues to strengthen, having increased by 2.5 times between 2013 and 2019.
The increases in trade and FDI have had an effect on several other bilateral indicators, with the average footfall of tourists increasing exponentially and flagship carriers Qatar Airways and Turkish Airlines offering several daily flights between major hubs in both nations.
In 2019 alone, Qatar’s Ministry of Commerce and Industry registered 143 new Turkish investments in Qatar with almost a third of investments being made in the trade sector.
Over 675 Turkish companies are operating in Qatar and this number continues to see an upward trend, given the increased bilateral cooperation.
