#

Turkey-Saudi Arabia Economic and Trade Relations

Trade and Investments

 

Trade volume between Turkey and Saudi Arabia, which exceeded 5 billion dollars in 2008, decreased to 3 billion dollars in 2009. Global economic crisis and fall in our iron-steel exports due to the completion of construction projects were the main factors behind this decrease. In 2010, bilateral trade volume started to increase again with the regression of the negative effects of the economic crisis. Bilateral trade volume amounted to 4.65 billion dollars by the end of 2010.

 

Trade data (in million dollars) between Turkey and Saudi Arabia are presented below:

 Year

Export

Import

Volume

Balance

2007

1.486

2.439

3.925

-953

2008

2.197

3.322

5.519

-1.125

2009

1.605

1.526

3.131

79

2010

2.219

   2.440

4.659

- 221

Our exports to Saudi Arabia are mainly composed of automotive, clothing and textiles, iron and steel, fruits, vegetables and other agricultural products. Around 80% of our imports are crude oil.   

 

Turkish Trade Centers, which aim at increasing bilateral trade volume and developing joint investment projects, are operational in Riyadh and Jeddah.

 

Well known Turkish construction companies are successfully operating in Saudi Arabia for many years.

 

Total investments made by 173 Saudi firms in Turkey between 2004-2009 are 1.3 billion dollars. Saudi firms mainly operate in sectors such as textiles, food industry, banking, foreign trade, real estate and tourism.

 

Tourism is an important area of cooperation between the two states. The number of Saudi tourists visiting Turkey is increasing each year. The number of Saudi tourists was 55,636 in 2008 and 66,938 in 2009.

 

Bilateral Cooperation Mechanisms

 

Joint Economic Commission (JEC) and Business Council constitute bilateral mechanisms for cooperation.

 

10th meeting of JEC was held on 25 January 2011 in Riyadh.

Business Council was founded on 11 October 2003 in Jeddah. 8th meeting of the Council took place on 5th February 2009 in Jeddah during the visit of the President of the Republic of Turkey.


Legal Framework

 

Trade Agreement dated 1974 and Agreement on Economic and Technical Cooperation constitute the legal framework of the relations between the two countries. Agreement on Avoidance of Double Taxation (2007) and Agreement on Reciprocal Promotion and Protection of Investments (2006) are also important bilateral documents in terms of bilateral economic and trade relations.