The News
Two years after the UAE said it would invest $51 billion in Türkiye, few deals have been done, amid mismatched expectations between Gulf buyers and Turkish sellers, according to Bloomberg. It illustrates how government investment pledges are often announced with much fanfare, but words are not always followed by actions.
Timing seems to be a major factor — Türkiye’s economy is far healthier than when the investment pledge was made in July 2023. A foreign exchange crisis has been avoided and local companies can borrow from abroad with relative ease, meaning Emirati cash is less critical, and the scale of discounts Gulf investors often seek are unappealing to Turkish business owners.
As a result, proposed investments in Turkish banks, airlines, and energy firms have collapsed. Most recently, a plan for Abu Dhabi Ports to buy Izmir Port was shelved in February.