GCC-Turkish FTA Creates Opportunities For Kuwaiti, Turkish Companies - Amb

(MENAFN- Kuwait News Agency (KUNA)) Interview by Suleiman Redha
KUWAIT, Sept 11 (KUNA) -- Turkish Ambassador to Kuwait Tuba Nur Sonmez said that the anticipated Free Trade Agreement (FTA) between the Gulf Cooperation Council (GCC) countries and Turkiye would enhance trade cooperation and new investment opportunities for Kuwaiti and Turkish companies.
In an interview with KUNA, Sonmez said that ongoing negotiations regarding the agreement cover a wide range of areas, including trade in goods, rules of origin, customs procedures, intellectual property rights protection, and investment facilitation.
She explained that the FTA aims to establish a favorable investment environment that will boost trade between the GCC countries and Turkiye, fostering broader economic relations.
The first round of negotiations took place in Ankara in July, and the agreement was expected to be signed soon, she said.
Trade between the GCC and Turkiye increased significantly from USD 1.201 billion in 2002 to USD 31.4 billion in 2023, and Sonmez anticipates continued growth once the agreement was implemented, which would lead to expanded cooperation across various economic sectors.
Sonmez highlighted that 2024 marks the 60th anniversary of diplomatic relations between Kuwait and Turkiye, praising the bilateral relations and affirming Turkiye's commitment to strengthening its relationship with Kuwait in fields such as trade, investment, and tourism.
Economic and commercial relations between Kuwait and Turkiye were witnessing continuous growth, with bilateral trade having reached USD 338 million in the first half of 2023.
The total trade by the end of 2023 stood at approximately USD 688 million, and this was expected to increase in the coming years.
Sonmez emphasized Kuwait's importance as an economic partner for Turkiye, noting that Turkish contractors have completed 50 projects in Kuwait worth a total of USD 902 billion, adding that Kuwait was considered one of the key markets for Turkish construction firms, and ranking 12th in terms of investments.
One of the most significant projects is Kuwait International Airport, undertaken by Turkiye's Limak Construction, with a total cost of KD 1.3 billion (about USD 4.3 billion), marking the largest overseas contract won by Turkish contractors in a single contract.
In addition to construction firms, Turkish consulting firms have also completed 21 technical consulting projects in Kuwait, valued at USD 65 million.
Sonmez added that promising opportunities exist for further cooperation in sectors such as healthcare, education, and banking, with Turkiye aiming to support Kuwait's sustainable development goals.
Regarding Kuwaiti investments in Turkiye, the ambassador pointed out that Kuwait was among the largest investors in Turkiye, with investments totaling USD 1.096 billion between 2002 and 2023, Turkiye continues to attract more Kuwaiti investments, particularly in industries such as manufacturing, technology, and renewable energy.
Sonmez also outlined Turkiye's key exports to Kuwait, which in 2023 included clothing, silk, textiles, carpets, metal products, and electrical machinery.
Kuwait's exports to Turkiye comprised steel, plastics, organic chemicals, and industrial machinery, among other goods.
The Turkish tourism sector was also experiencing a surge in Kuwaiti visitors, with around 400,000 Kuwaitis having traveled to Turkiye in 2023.
Also, Kuwaiti nationals purchased 15,000 properties in Turkiye between 2015 and June 2024, reflecting their confidence in the Turkish market.
Sonmez noted that the Turkish-Kuwaiti Agreement on Reciprocal Promotion and Protection of Investments, renewed in 2010 and enforced in 2013, has played a key role in strengthening investment relations.
She affirmed that the agreement remains an important foundation for long-term investment collaboration between the two nations.
Regarding defense, Sonmez revealed that Kuwait purchased Turkish Bayraktar TB2 in 2023, underscoring the evolving bilateral relationship in defense industries, in which Turkiye was eager to enhance cooperation in this sector by providing advanced technology and training.
Turkiye's defense industry has seen significant growth, with exports to over 170 countries, and the ambassador emphasized that defense cooperation was not just part of foreign trade but also a strategic element of bilateral relations between Turkiye and Kuwait. (end)
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