Ankara Seeks to Take Saudi Economic Ties to Higher Levels

Türkiye and Saudi Arabia Seek to Take Economic Ties to Higher Levels

Türkiye and Saudi Arabia are reshaping their economic relationship, moving beyond traditional trade and investment flows toward long-term industrial partnerships in renewable energy, defense, tourism and logistics.

The emerging model combines Saudi capital with Turkish expertise and technology. Both countries are pursuing joint investment, technology transfer and localized production to build economic ties that can remain resilient beyond fluctuations in trade.

The shift is gaining momentum as Saudi investors show growing interest in Turkish assets and companies through funds, mergers and acquisitions. At the same time, Turkish companies are expanding in Saudi Arabia to take advantage of opportunities created by the kingdom's megaprojects and Vision 2030 targets.

More Confidence in Bilateral Investment

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

According to Dağlıoğlu, Saudi investors are increasingly interested in mergers and acquisitions, buying stakes in Turkish companies and investing through funds. Saudi capital also remains active in banking, financial services, manufacturing, real estate and family-owned businesses.

Turkish companies are also expanding into the Saudi market, particularly in manufacturing, services, healthcare, hospitals and logistics. These businesses are seeking opportunities created by Saudi Arabia's Vision 2030 strategy and large-scale development projects.

Dağlıoğlu said the improvement in relations between Riyadh and Ankara had increased confidence among investors in both countries and helped put trade and investment on an upward path.

He also noted that the actual scale of Saudi investment in Türkiye could be larger than official figures indicate. Some investments are made through funds and companies registered in international financial centers, meaning they are not always recorded as direct Saudi capital inflows.

Renewable Energy Becomes a Key Area

Renewable energy is one of the sectors expected to play an increasingly important role in Türkiye–Saudi economic cooperation.

Dağlıoğlu highlighted Saudi Arabia's ACWA Power and its involvement in Turkish renewable energy projects as an example of the direction investment relations are taking.

Türkiye is seeking to expand its clean-energy capacity, while Saudi companies can bring experience in developing, financing and operating large-scale renewable energy projects.

Dağlıoğlu also referred to investment commitments involving major renewable energy projects and said further steps were expected as Türkiye prepares to host the COP31 United Nations climate conference in Antalya.

With Saudi Arabia expanding its international renewable energy investments and Türkiye increasing the share of clean energy in its energy mix, energy could become one of the central pillars of the bilateral partnership.

Defense Cooperation Moves Toward Joint Production

Defense is another major area of potential cooperation. Muttalip Tütüncü, secretary-general of the SAHA Istanbul defense and aerospace industry cluster, said relations between the two countries were moving beyond product sales and export agreements.

The emerging model includes technology transfer, industrial localization and joint production capabilities.

Saudi Arabia is seeking to increase local production in its defense industry, while Türkiye has developed significant technical and industrial capabilities in recent years. This creates opportunities for cooperation between companies and institutions in both countries.

“Turkish companies view the Saudi market as a long-term strategic partner, not merely as an export market.”

Tütüncü said future cooperation could include joint manufacturing, technology transfer, workforce training and the development of local supply chains.

He described the relationship as a form of “industrial integration”, combining Saudi financial and investment capabilities with Turkish technical and industrial expertise.

This approach could also extend to aviation, unmanned systems, electronics and other advanced technologies.

Drone agreements between the two countries have already marked an important milestone, but Tütüncü said they should be viewed as the beginning of a broader phase that could eventually include industrial and production capabilities inside Saudi Arabia.

Seasonal Tourism Integration

Tourism offers another opportunity for closer economic integration. Dağlıoğlu said Türkiye and Saudi Arabia could develop a model based on their different tourism seasons.

Türkiye attracts large numbers of Saudi tourists during the summer, while Turkish tourism companies and operators could benefit from Saudi Arabia's winter tourism season and its expanding tourism and entertainment projects.

Turkish hospitality operators and tourism service companies could use their expertise and personnel in the Saudi market during periods of lower demand in Türkiye. This could help meet the needs of Saudi projects while creating additional opportunities for Turkish businesses.

Cooperation is not limited to governments and major corporations. According to Dağlıoğlu, it also includes connecting investors, entrepreneurs and small and medium-sized enterprises and making it easier for them to enter both markets.

Investment Expected to Grow Further

Turkish officials expect mutual investment between Türkiye and Saudi Arabia to increase further in the coming period.

Growth is expected to be supported by improving bilateral relations, the expanding scale of Saudi megaprojects and continued interest from Saudi investors in Turkish assets and companies.

Türkiye's efforts to attract high-quality investment into industry, energy and technology are also expected to contribute to this trend.

The developing relationship signals a shift from simply rebuilding trade momentum toward deeper economic and industrial cooperation based on joint investment, technology transfer and complementary capabilities.

This model could give Türkiye–Saudi Arabia economic relations a more lasting foundation, extending beyond fluctuations in traditional trade.

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