In many Turkish cities, Saudi investments are concentrated in real estate, housing, construction, agriculture, and other fields. According to Saudi Commerce Minister Majid Al-Qasabi, the volume of Saudi investments in Turkey has reached approximately $18 billion, with an additional $3 to $4 billion planned.
The housing and construction sector in Turkey emerged as one of the most attractive sectors for Saudi investors, noting that the housing sector in Turkey constitutes about 30% of the total Saudi investments in the country.
Saudi Arabia is another country that has made significant investments in Turkey’s real estate sector. At the same time, data from the Turkish Statistical Institute show that the Kingdom is ahead of many Middle Eastern countries in this regard, with approximately 15,000 homes purchased between 2015 and 2022, according to the website. The country, according to Al-Jazeera Net.
On October 27, Saudi Investment Minister “Khalid bin Abdulaziz Al-Falih” confirmed during a meeting with Turkish Treasury and Finance Minister “Noureddine Nabatai” that Saudi businessmen will invest in Turkey in areas such as real estate, energy, and technology.
Observers confirm that the real estate investment sector is one of the most important Saudi investments in Turkey, as a Saudi investment in the real estate sector is at the forefront of the scene in Turkey.
Economic analysts expect an increase in the proportion of Saudi investments in Turkey to reach $25 billion and that the volume of trade exchange between Saudi Arabia and Turkey will reach $20 billion by 2023.
Data from the Turkish Statistical Institute indicate that Turkey’s exports to Saudi Arabia were $3.2 billion in 2019 and $2.5 billion in 2020, and declined significantly in 2021 to $265 million, and returned to an increase of 180% in the first nine months of the year. Current, amounting to 420.9 million dollars.
The number of Saudi companies operating in Turkey also increased to more than 1,100 companies at the end of last year, a huge increase compared to what it was during 2011 when the number at that time was only 11 Saudi companies.
According to the Investment Office of the Presidency of the Republic of Turkey, Saudi investments in Turkey will total approximately $18 billion by the end of 2021, with the number of Saudi companies increasing to 1,100. According to the Investment Office, the housing and construction sector has become most appealing to Saudi investors.
And he indicated that during the first nine months of 2022, the volume of Turkish exports to Saudi Arabia amounted to $420.9 million.
Among the most important reasons that helped increase Saudi investments in Turkey are: the special tourism character that is unique to Turkey, the recovery and prosperity of the Turkish real estate sector and the influx of many investors and businessmen to it, and the confidence of the Saudi investor in the success of investment projects in Turkey, the facilities provided by the Turkish government for investors.
This led to a very large increase in the number of Saudi companies in Turkey, as the real estate sector is on the list of those companies businesses. Saudi investment in the real estate sector represents 30% compared to other sectors: energy and oil, food and agriculture, transport and communications, and other industrial sectors.
Over the past years, the Kingdom of Saudi Arabia has entered among the most foreign countries that invested in real estate investment in Turkey, as it topped the list of these countries in 2015 with 1,445,589 square meters of real estate, surpassing Britain, America and many Gulf countries such as Kuwait and the UAE.
The General Directorate of Real Estate Records affiliated with the Ministry of Environment and Cities in the Republic of Turkey confirmed that Gulf investors had directed the needle of real estate investment during the last ten years to Turkey instead of Britain, which was known for attracting and attracting Arab and Gulf real estate investors over many years.
The Saudi Council of Ministers recently directed that direct investment with Turkey be encouraged. The Saudi Minister of Investment or his representative authorized discussions with the Turkish side. “discussing and signing a draft memorandum of understanding between the two countries for cooperation in the field of encouraging direct investment, and then uploading the final signed copy to complete the legal procedures,” the mandate states.
Turkey is a fertile environment for the investment of all kinds. The high population and the influx of tourists worldwide have helped investors spread more and more throughout Turkish cities.