Mutual investments to flourish: Turkish Minister

When the current Gulf crisis broke out and the land, sea and air blockade was imposed on the State of Qatar without any warning or indications, Turkey’s Economy Minister Nihat Zeybekci instructed cancellation of a number of commercial flights and directed nine flights carrying food stuff to Doha to prevent shortage in basic needs of the people, in contrary to the plans of the siege states. He also instructed all suppliers and distributors of these materials in the Turkish market to take this emergency situation into consideration.
Nihat Zeybekci responded to the criticism to his country for sending foodstuff to Qatar following the imposition of the siege, saying that sending food to Qatar is part of the trade exchange between the two countries and that his country does not provide assistance to Qatar. This came in the speech he delivered at the opening of the Turkish Trade Center in Tehran, a month after the imposition of the blockade on the State of Qatar.
In an exclusive interview with The Peninsula, conducted by Dr. Khalid Mubarak Al-Shafi, the Editor-in-Chief, the Minister said that Turkey and Qatar seek to achieve economic partnership and diversify areas of economic cooperation following the signing of ten important trade and economic agreements.
He added that his ministry had organized five visits of economic delegations to Qatar this year and that the three countries — Qatar, Turkey and Iran — will soon sign the tripartite agreement to provide logistical services. The Minister also mentioned that the Turkish companies are currently implementing more than 129 projects in Qatar, some of which are considered among the giant and strategic projects.
The full interview is as follows:
Talking on Qatar-Turkey trade and economic relations, he said Turkey and Qatar are two brotherly countries enjoying excellent relations. “We have developed a multi-faceted economic partnership that encompasses trade of goods and services, investments and finance. They are two of the most dynamic economies of the region and they complement each other in many respects,” he said.
In the recent years, we have recorded annual trade volumes of well over $1bn. I believe, in the coming years, trade between the two countries will not only continue to increase, but also it will diversify.
We also wish that mutual investments between the two countries would flourish. There have been major investments by Qatar in Turkey, in finance, media and real estate sector. There are plenty of reasons and important potentials for Qatari origin capital to invest in different sectors in Turkey.
Likewise, there is a significant number of contracting projects undertaken by Turkish companies in Qatar. To this day, our construction companies have undertaken 129 projects, some of them being really major ones, like the projects with respect to Hamad International Airport or the Doha Metro Golden Line.
To a question about the enhanced investment consulting services of Investment Support and Promotion Agency of Turkey (ISPAT) in Qatar, he said Turkey is one of the most attractive FDI destinations of the global economy. Having a Customs Union with the EU, and a robust growth trend of its own combined with a significant size of human capital, it continues to attract FGI from all around the world and in various sectors.
We also operate a very supportive institutional and legislative structure in Turkey towards foreign investments. ISPAT is a significant element of this supportive approach. ISPAT personnel provide guidance to potential investors.
“Likewise, my Ministry oversees the investment incentives in Turkey; which are quite extensive and instrumental. Last year, we have put in force what we called ‘project-based’ incentive program. With this program, we treat each investment project separately and tailor our incentive instruments according to the needs of that particular project. It is indeed one of the most attractive and effective investment incentive programs globally,” he said.
Qatar is one of the most important target countries for Turkey in terms of inward FDI flows. “I hereby invite, once again, our Qatari friends to explore more about the investment opportunities as well as incentives provided in Turkey,” he maintained.
When asked whether his ministry intends to sign some agreements, or Memorandum of Understandings (MoUs), with the Qatari side to expand and deepen bilateral cooperation, the minister said: “We are currently pursuing negotiations towards signing a Trade and Economic Partnership Agreement (TEPA) with Qatar. Last meeting at the technical level was held a couple of weeks ago. It is very apt that two significant economic partners like Turkey and Qatar undersign such an agreement.”
There is another very important protocol on the agenda that is a trilateral Protocol among Turkey, Qatar and Iran with respect to logistics partnership. We emphasize this protocol very much so that bilateral trade between Turkey and Qatar could continue smoothly. I think in the coming days, the protocol will be signed by the parties.
Other than these, we have regular cooperation mechanisms with Qatar, the primary one being the Joint Economic Commission.
This Commission gathers regularly and presents an opportunity for overseeing cooperation opportunities.
On bilateral trade volumes, the minister said that the two countries have indeed witnessed a 27% increase in the first nine months of this year compared to the same period of last year. This increase is partly explained by the blockade of certain countries to Qatar.
However, it is true that the numbers could be much higher considering the potentials of both economies. Aside from the global economic issues affecting trade volumes as well as the fluctuations in energy prices, I believe we have large margin to increase our trade.
In order to do this, Qatar’s efforts of diversifying its economy are quite critical. As the Qatari economy flourishes into new sectors and fields, we will see more goods and services traded mutually. In a similar respect, as mutual investments increase, this will have a very positive impact on trade flows. Joint investments would be very instrumental in creating deeper bond between the two economies; hence greater trade.
To a question about the promising sectors in the Turkish economy where Qatari investors can explore opportunities, he said Turkish economy is indeed very diversified; and there are really good opportunities in almost all sectors one can think of. However, as rising economy, we have a priority for realizing investments in technology oriented sectors or sectors that would offer high value added. We try to design our investment incentives accordingly. The incentive program also aims to provide integrity among our investment, production, employment and export policies. In this respect, automotive, machinery, electronics, petro-chemicals, and food industry can be named as some strategic sectors for investors from Qatar. As for very large scale investments, renewable energy production technologies, integrated metallurgy investments, petro-chemicals, medical equipment and health related technologies, pharmaceuticals, biotechnology and nanotechnology investments, light rail systems and high-speed trains, information & telecommunication technologies are also some of the key sectors for investments in Turkey.
When asked whether Turkish companies were facing some challenges to tap the growing business opportunities in Qatar, the minister replied: Turkish companies, like their competitors, are seeking opportunities globally; by locating their production facilities abroad and expanding their consumer base.
Middle East region is not only an important exports target for Turkey, but also a crucial target destination for Turkish investors. We have some shared cultural and historical values. There is also the religious affinity.
In this context, I believe, Turkish investors are eager to expand their market share in the Gulf countries and benefit from the increasing wealth of the region.
I see no reason for the Turkish firms not to become more visible in the Qatari market. This is also very related to economic diversification in Qatar. As the diversification process expands, we will see more and more Turkish firms visibly taking their place through their brands, investments and projects.
On a high level Qatari trade mission which recently visited several cities in Turkey, he said a business delegation made up of leading importer companies of Qatar visited İzmir, third largest city in Turkey, on 02-05 August 2017. A Business to business meeting program was carried out with comprehensive participation of Turkish companies. More than 150 Turkish companies and 73 Qatari firms attended the program, supplemented by site visits and other networking meetings.
The venue was great and the participation was very satisfactory. So, overall it was a very successful event.
These kinds of events are very critical for promoting and exploring new opportunities. My ministry coordinated 2 trade delegation visits in 2016 and 5 in 2017 to Qatar.
Commenting on the impact of the direct shipping lines between Qatar’s iconic Hamad Port and several ports in Turkey, including the Izmir Port, the minister said one potentially very important cooperation area between Turkey and Qatar is the launch of a direct shipping line between the ports of two countries to promote trade and commercial links. As a matter of fact, Hamad Port which is one of the largest ports in the Middle East, is strategically important for Turkey.
Since there is no land route between Turkey and Qatar and taking into consideration that the direct shipping line transport model has significant advantages, we think that both countries can significantly benefit from a new shipping line.
This would also help bring together both countries’ logistics companies at common platforms, increase their cooperation and support their joint participation in logistics projects.
Hence, our view is quite positive towards such initiatives; this is also one of the items that is being discussed at the technical level between the two countries in terms of its feasibility.
When asked whether Turkey was facing some challenges or pressures from Saudi Arabia and the UAE in maintaining the robust relationships with Qatar, the minister said it has always been an issue of priority for Turkey to be on the side of peace and stability in the region. In this respect, our attitude towards Qatar does not reflect a choice. This reflects an effort for peace.
Economic cooperation is a great way of replenishing and reinforcing stability. Hence, we would like to maintain and enhance all kinds of economic relations with all countries of the region.