Turkey-GCC Ties: Ankara Sets its Sights on the Gulf

WPR/ here

"......... Economic ties are the most important aspect of the budding relationship. In the past few years, Turkey's commercial links with the Gulf have increased significantly. In 2005, Ankara signed a Trade and Investment Framework Agreement with the countries of the GCC. According to recent comments by Turkey's Finance Minister Mehmet Simsek, after years of negotiations, a formal free trade agreement should be signed by the end of this year.

For GCC countries, Turkey represents a major emerging and strategic market for investment, as well as an attractive hub for oil and gas exports. Already one of the most important markets of the Islamic world, Turkey has become even more dynamic and attractive as a result of economic reforms implemented as part of its European Union accession bid. Its tourism sector -- along with the development of the related infrastructures such as hotels, rail and motorways, and seaports -- as well as its agriculture, energy, banking and real estate sectors are all areas in which the interest of Gulf countries is steadily growing. Trade volume between Turkey and the GCC countries reached $17 billion in 2009 and, according to Foreign Minister Ahmet Davutoglu, the goal is to reach $25 billion to $30 billion in the future. Because of its Islamic heritage, Turkey also represents a major destination for wealthy Islamic tourists coming from the Gulf. At the same time, GCC countries represent a suitable market for Turkish manufactures, and efforts to diversify and modernize Gulf economies and infrastructures could require both skilled and unskilled workers from Turkey.

In the past few years, the relationship between Ankara and the GCC has also developed in other fields. A memorandum of understanding signed in 2008 made Turkey the first country outside the Gulf area to be given the status of "GCC strategic partner." A year later, in July 2009, the first meeting of the Turkish-GCC strategic dialogue was held in Istanbul. Common strategic interests include concerns over the integrity and stability of Iraq, efforts to address the threat related to radical terrorism, the need for a more stable Middle East (inclusive of a stable and fair settlement of the Israeli-Palestinian issue), and containing the spread of nuclear weapons in the Middle East. ....... In late-May 2010, Turkey signed a military cooperation agreement with Saudi Arabia, by far the most important country of the GCC, with Gen. Ilker Basbug, the chief of the Turkish General Staff, calling the agreement a major contribution to peace and stability in the Middle East region.

Both Turkey and the GCC have stressed that their historic partnership has not been undertaken in order to form a bloc aligned against any regional power, which is a way to reassure Tehran that it is not aimed at containing Iranian regional ambitions. Moreover, Ankara's relationship with Tehran has significantly improved in the past few years, with energy, trade and the Kurdish issue serving as the main catalysts of this rapprochement. Among the payoffs of this approach has been Iran's increased trust in Turkey, as shown by the recent trilateral agreement on a nuclear fuel swap signed by Ankara, Tehran and Brasilia. Although the perception of Iran as a geopolitical threat is stronger in the Gulf than in Turkey, Ankara continues to see Iran's further rise as a potential cause for concern. Pragmatically, Turkey has opted for engaging, rather than confronting Tehran as its preferred approach..."