Two visionary countries: KSA and Turkey

By Dr. M. Mustafa Göksu

THEY are visionary as both decided to develop their countries in a scheduled near future timeline. The reference here is to 2030 and 2023 vision plans of the Kingdom Saudi Arabia and Republic of Turkey, respectively. All stories of success begin with a vision and rewarding visions are based on strong pillars. Saudi Arabia's aim to be the investment powerhouse and the hub connecting three continents are the two important pillars of their vision. Turkey's plan includes several aspects from economics, energy, tourism, transportation to health care and foreign policy with quantitative targets. Whether both countries can achieve their vision or not is not only depends on them, but it also depends on global economic and political stability and risk appetite. Sticking with a vision and trying to reach that vision will objectify the needed dimensions of a country. We believe that the intention and attitude in that respect are as important as the outcome of the visions.

What is obvious is that Turkey, as a bridge and intersection between Asia, Middle East, Europe and Africa is attractive geographically. Its 82 million educated population as a driving factor of the production is a huge asset to benefit from. Turkey has seen an annual growth rate of 4 percent, 17th largest economy in the world. It is the 9th largest crude steel producer. As much as Turkey is an industrial production hub it is also 6th most visited holiday destination in the world and Turkish Airlines is the best airline in Europe. Its economy is driven by private sector and the strategic location of Turkey allows her access to multiple markets including Europe, Russia, MENA region and Central Asia and Caucasus where 1.7 billion people, $25 trillion GDP and $7.3 trillion trade volume is available.

All above-mentioned priorities of Turkey allow it to be the 16th manufacturing hub in the world and 2nd in Europe over the next 5 years. The structural reforms thro ughout last decade in every manner, but more importantly on FDI Law and other related legislations, make Turkey a good hub for any multinational company that desires to be available in the global markets. Turkey is not only a transportation hub for international flights but also is an energy corridor and terminal too.

Again, what is obvious is that Saudi Arabia has a direction towards increasing its international connections, increasing the transparency and diversifying its production from oil related fields to non-oil related fields. KSA is one of the largest markets in the region. Its incentives and commitment provides access to industrial loans and equity partners such as the Public Investment Fund (PIF), the Saudi Industrial Development Fund (SIDF) and the Saudi Industrial Investment Company. King Abdullah Economic City, MODON, Royal Commission and similar infrastructure help supply of industrial land, commercial real estate and utilities at very competitive prices.

As we indicated in the beginning, Turkey and Kingdom of Saudi Arabia are similar in that Turkey has Vision 2023 mainly to increase the GDP per capita 2.3 times of 2013 while KSA has Vision 2030 with a National Transformation Plan. Both countries can work together in every level to reach their targets for the betterment of their societies. Huge potential is available to improve bilateral trade and investment and deepen the special economic relationship between the two countries. ISPAT, Investment Support and Promotion Agency of Turkey, as the title indicates, has a special duty to increase the investment towards Turkey. However, ISPAT's regional office and its representative Dr. M. Mustafa Göksu has a special instruction not to work only to attract investment in Turkey but also to attract investment for Saudi Arabia to support the country to reach Vision 2030 goals. As he puts that "Whatever is good for KSA to reach its Vision 2030 is also good for us. Turkey needs a strong frie nd and ally to work with and to attract investment from."

Both countries need to be careful as the world, particularly the Middle East, is in political turmoil, which effects economy and social life deeply. KSA and Turkey, with increasing mutual relations in every manner, deserves to be more connected in such complicated conditions. It is clear that Saudi investors try to make this happen by investing in Turkey more. As of June 2017, there are 1,036 companies in Turkey with the Saudi Arabian capital distributed to 45 different sectors. Last year there were only 744 companies. Although there is a perception that real estate activities are the main drivers of Saudi investment in Turkey, it is not. Real estate investment is only 20 percent of the operating companies in Turkey with Saudi capital.

Turkey and Saudi Arabia are attached very closely from several dimensions. There are several flights of many airline companies to and from KSA. The lucrative business can be achie ved once there are more connections between these two countries. It is high time that relationship is developed more and more. The visions of both countries are a ground for the betterment of the societies.

Source: Two visionary countries: KSA and Turkey