Türkiye’s exports to Saudi Arabia have surged to a record high in the January-February period, reaching $367.3 million, which is over 30 times more than the previous year, according to official data.
In this period, Saudi Arabia emerged as Türkiye’s 22nd largest trading partner, the data by the Turkish Exporters Assembly (TIM) showed.
Germany, the U.S., Italy, the United Kingdom and Russia were the top five countries Türkiye exported the most in the first two months of the year, with export values of $3.1 billion, $1.8 billion, $1.7 billion, $1.6 billion and $1.5 billion, respectively.
In this period, the carpet industry emerged as the leading sector in Türkiye’s exports to Saudi Arabia, with a total value of $40.6 million. Cereals, pulses, oil seeds and their products followed closely with $40.4 million, while chemical substances and products secured $36.8 million. The ready-made clothing and apparel, and machinery and accessories sectors also saw substantial demand with $31.1 million and $23.9 million, respectively.
Ship yachts and services, ornamental plants and products, and other industrial products were the sectors with the least demand in Saudi Arabia, with values of $33,000, $164,000 and $176,000, respectively. Hazelnuts and their products were exported for $1.3 million while aquaculture products were exported for $2.2 million.
In terms of provinces, Istanbul recorded the highest exports to Saudi Arabia, with a value of $153.4 million, followed by southeastern Gaziantep with $46.3 million, capital Ankara with $30.6 million, Hatay with $20.7 million and Bursa with $14.4 million.
The increase in exports to Saudi Arabia reflects Ankara’s strong determination to bolster its foreign sales, as well as its effective efforts to reestablish commercial relations with the Gulf country.
Following a significant drop in Türkiye’s exports to Saudi Arabia due to restrictions on Turkish products, the two countries have taken steps to normalize their relations and increase their trade volume. The recent fairs organized in this regard have played a crucial role in paving the way for the development of commercial relations between the two nations.
These developments follow joint efforts by Ankara and Riyadh to mend ties following years of tension, which escalated significantly after the 2018 murder of dissident Saudi journalist Jamal Khashoggi in Saudi Arabia’s Istanbul Consulate.
President Recep Tayyip Erdoğan’s visit to Saudi Arabia in April last year marked the first high-level visit in years. His trip was followed by Saudi Crown Prince Mohammed bin Salman's (MBS) trip to Türkiye in June.
The two leaders also met in November on the sidelines of the G-20 summit in Bali, Indonesia.
Meanwhile, the kingdom on Monday announced it had signed an agreement with Türkiye to deposit $5 billion in the country’s central bank, in a significant boost as the economy grapples with inflation emerging from last month’s massive earthquakes ahead of presidential elections.
The kingdom described the move as "a testament to the close cooperation and historical ties between the Kingdom of Saudi Arabia and the Republic of Türkiye and its brotherly people."
It also marks "a demonstration of the Kingdom of Saudi Arabia’s commitment to supporting Türkiye’s efforts to strengthen its economy and to promote social growth and sustainable development," the Saudi Fund for Development (SFD) said in a statement.
Saudi Minister of Finance Mohammed bin Abdullah Al Jadaan announced his country’s intention of the deposit in December.
The statement offered no details on how the cash would be used or if the kingdom could call for the sum to be returned. However, such deposits can help firm up exchange rates for a nation’s currency against other currencies internationally.