Saudi Arabia and Turkiye Deepen Economic Ties Through Industrial Partnerships

Saudi Arabia and Turkiye are moving to deepen their economic relationship by shifting from traditional trade and investment towards long-term industrial partnerships in areas including renewable energy, defense, tourism and logistics.

The emerging approach combines Saudi capital with Turkish technology and industrial expertise, with both sides seeking joint investment, technology transfer and local production. The strategy is aimed at creating stronger economic links that are less affected by changes in trade.

Saudi investors have shown growing interest in Turkish companies and assets through funds, mergers and acquisitions, while Turkish businesses are expanding in Saudi Arabia to take advantage of opportunities created by Vision 2030 and the kingdom’s major development projects.

Ahmet Burak Daglioglu, president of the Investment and Finance Office of the Presidency of the Republic of Turkiye, said Saudi investment in Turkiye had changed significantly in recent years.

He said Saudi investors were increasingly buying stakes in Turkish companies and using investment funds, while capital remained active in sectors such as banking, financial services, manufacturing, real estate and family-owned businesses.

Speaking to Asharq Al-Awsat during a meeting with reporters in Istanbul, Daglioglu said Turkish companies were also expanding in Saudi Arabia, particularly in manufacturing, healthcare, hospitals, services and logistics.

He said improved relations between Riyadh and Ankara had increased confidence among investors in both markets. Official figures may not fully reflect the scale of Saudi investment in Turkiye because some investments are made through funds and companies registered in international financial centers.

Renewable energy is emerging as an important area of cooperation. Daglioglu highlighted Saudi company ACWA Power’s involvement in Turkish renewable energy projects, saying the sector offered opportunities as Turkiye expands clean energy capacity.

Further announcements are expected as Turkiye prepares to host the COP31 United Nations climate conference in Antalya.

Defense is another major area of potential cooperation. Muttalip Tutuncu, secretary-general of the SAHA Istanbul defense and aerospace industry cluster, said ties were moving beyond equipment sales towards technology transfer, local manufacturing and joint production.

Saudi Arabia’s efforts to increase domestic defense manufacturing could create opportunities for Turkish companies in aviation, unmanned systems, electronics and other advanced technologies.

Tutuncu said future cooperation could involve workforce training and local supply chains, describing the relationship as one of industrial integration between Saudi financial resources and Turkish technical expertise.

Tourism also offers room for closer cooperation. Daglioglu said Turkish operators could use their expertise in Saudi Arabia during the kingdom’s winter tourism season, while Saudi visitors continue to travel to Turkiye during the summer.

The two countries are also seeking to strengthen links between investors, entrepreneurs and small and medium-sized businesses. Officials expect mutual investment to increase as Saudi projects expand and interest in Turkish assets grows.

The developing relationship marks a move towards deeper economic and industrial cooperation, with both countries seeking partnerships built around investment, technology and local production rather than trade alone.