Collaboration between Saudi Arabia and Türkiye forging ahead

Saudi Arabia declared that it has invested $5 billion in the Turkish central bank to help Türkiye strengthen its depreciating currency. Along with the announcement, the Saudi Fund for Development (SFD), a government entity that grants loans to developing countries, published the following words on its website: “The deposit is a testament to the close cooperation and historical ties that exist between the Kingdom of Saudi Arabia and the Republic of Turkey and its brotherly people.”
Due to the timing of the deposits, comments were made that Saudi Arabia may have offered Erdogan support for the elections. On the other hand, it is also known that the two countries have negotiated for a long time to re-establish trade relations and increase the export volume rapidly. As a result of the restrictions imposed by Saudi Arabia on Turkish products, there was a significant decrease in the country’s exports. After attempts by the Turkish state, relations started to normalize again. As stated by the Turkish Exporters’ Assembly (TIM), exports of Türkiye to Saudi Arabia increased 32 times in the January-February period compared to the same period of the previous year. Fatih Ulusoy, Turkey’s ambassador to Saudi Arabia, emphasized that there is an aim to at least double the trade volume with Saudi Arabia.
The establishment of such a collaboration raised many question marks due to the long-lasting tension between Türkiye and Saudi Arabia, which came to a head after journalist Jamal Khashoggi, who criticized the Saudi royal family, was brutally murdered in the Consulate General of Istanbul. President Erdogan blamed Saudi Crown Prince Mohammed bin Salman for the murder, without giving a name. However, at a time when the economic crisis in Turkey deepened, relations began to restore. In April 2022, the file of the Khashoggi was transferred to Riyad. Afterward, mutual visits were made and economic agreements were reached. The new deals made after breaking the ice with Saudi Arabia appear to be in line with Erdogan’s repetitive call “to start a new era in foreign policy”.
Ilhan Uzgel, a professor of international relations, who has been purged along with thousands of academics after the coup attempt in 2016, briefly evaluated the developments in response to the question we asked about the reconciliation between the countries: “Despite the issues, Erdogan is a valuable ally for the Saudis. If the opposition wins the elections, they will have distant relations with the Gulf. They prefer an Islamist to a secular-minded leader in Turkey. The 5 billion dollars to be deposited in Turkey helps, but does not solve the underlying problems in the economy.”