1. 2011
Turkey and UAE- Trade
Relationship
Paritosh Kashyap

2. Turkey and UAE- Trade Relationship
Turkey and UAE are undergoing a very interesting phase in their bilateral relationship,
with trade between them undergoing a rapid escalation in the last few years. Though
still in its crawling phase, the bilateral trade between the two nations has witnessed a
significant growth. According to a study conducted by researcher Ahmed Al-Ananbeh
of MoFT’s Department of Analysis and Trade Information, bilateral trade between the
nations has increased from US $ 2.074 billion in 2006 to US $ 7.99 billion in 2008.
Both Turkey and UAE offer a great case study to explore- one an oil rich Gulf state with
a small population- considered richest among the world in terms of per capita income;
other an emerging economy of great geo political significance- placed between the
crossroads of Europe and Asia with a predominantly western orientation.
UAE is presently the 3rd largest export destination for Turkey with Turkey’s export to
UAE increasing from US $ 2.892 billion in 2006 to US $ 7.473 billion in 2008. There had
also been a gradual increase in UAE’s non oil export and re export to Turkey. In 2010
Turkey accounted for 1.4% of UAE’s non oil trade with the world. Other than trade both
the nations are also exploring business opportunities with each other. Presently UAE’s
investments in Turkey are worth US $ 5.01 billion and turkey’s investments in UAE are
worth US $ 6.51 billion (moft.gov.ae, 2011).
In the light of growing relationship between the two nations the given report is
prepared to give a generalist overview- country profiles, nature of trade, attractiveness
of both the destinations etc.
Turkey and UAE: Country profiles
The following part will compare the two nations across various social and economical
parameters along with the graphical representation of data pertaining to the trade
figures of both the nations.
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3. Turkey and UAE- Trade Relationship
Parameters Turkey UAE
Real GDP (PPP) US $ 952.6 billion US $ 246.8
GDP Growth Rate 8.2 % 3.2 %
GDP per Capita (PPP) US $ 13, 398 US $ 49,200
Inflation (CPI) 8.5 % 2.2 %
Current Account Balance -US $ 48.56 billion + US $ 36 billion
US $ 195 billion (Including
Exports US $ 117.7 billion
Oil)
Imports US $ 166 billion US $ 159 billion
Table 1: - compares Turkey and UAE across various social and economic parameters.
Source of data: CIA fact books, Euro Monitor etc.
Import in US $ billion
180
153.9
160
140 132.1
121.8
120
100
79.3
80 67.4 Import in US $ billion
60
40 21.4 27.2
20 6.7 11.6
0
85 90 95 00 05 06 08 09 10
Fig 1: Value of Import for UAE in US $ billion, over the period of last 25 years. Source:
National Bureau for Statistics, United Arab Emirates
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4. Turkey and UAE- Trade Relationship
60
50.61
50
44.34
40.22
40 Export & Re Export in US $ billion
30 26.01 26.03 Export
22.6
Re Export
20 16.34 17.7
10 7.08 7.96
3.17 1.54 1.95 4.48
4.42
1.16
0.39 0.94
0
85 90 95 00 05 06 08 09 10
Fig 2: Value of non oil Export and Re Export for UAE in US $ billion, over the period of
years. Source: National Bureau for Statistics, United Arab Emirates
250
201
200
170.6
139.6 146.8
150 132.1
116.8
107.2 102.1 Export
100 85.5 Import
73.5
54.5
50 35.7
22.3 21.6 27.8
7.9 12.9
11.3
0
85 90 95 00 05 06 07 08 09
Fig 3: Value of annual Export and Import for Turkey, in US $ billion, over the period of
years. Source: Turkey Statistical Institute, US dept of state
UAE Turkey: Trade Statistics
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5. Turkey and UAE- Trade Relationship
Year Turkey’s Export to UAE UAE’s non oil Export to
(million Kg) Turkey (million Kg)
2006 2520 24
2007 3300 41
2008 6280 41
2009 2270 34
2010 1980 30
Table 2: Total weight of Export of Turkey to UAE and vice versa. Source of data:
National Bureau of Statistics, UAE
Year Turkey’s Export to UAE UAE’s Export to Turkey
(US $ billions) (US $ billions)
2006 1.89 0.05
2007 2.85 0.08
2008 7.47 0.25
2009 2.55 0.19
2010 2.48 0.16
Table 3 : Data pertaining to total value of Export of Turkey to UAE and vice versa.
Source: National Statistics Bureau, UAE
Nature of Trade B/W Turkey and UAE
Major exports from Turkey to UAE include aluminum, precious stones, food stuffs and
beverages, plastics followed by animal products, chemicals, vegetable products etc. The
following pie chart shows the percentage wise break up of major export items from
Turkey to UAE in 2010.
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6. Turkey and UAE- Trade Relationship
a
14% b
7% 39% c
1%
4%
d
1%
e
3% f
1% g
1% 29%
h
i
j
Fig 4: percentage wise break up of Turkish export to UAE in 2010
In the given figure
(a stands for base metals and their articles; b stands for pearls stones and other precious
metals; d stands for others; c stands for articles of woods; e stands for food stuffs; g
stands for textile and textile articles; c stands vegetable products; f stands for plastic,
rubber articles; h stands for chemicals and allied products)
Total value of non oil exports from UAE to Turkey is US $ 160 million in 2010. The
major export items are – Pearls and precious stones followed by plastics, rubber etc. The
following pie chart gives a percentage wise break up the UAE’s export to Turkey.
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7. Turkey and UAE- Trade Relationship
2% 2% 3%
16%
A
B
4%
C
D
73%
E
F
Fig 4: percentage wise break up of Turkish export to UAE in 2010
(In the given figure A stands for pearls and precious stones; B stands for articles of
stones, Mica etc; C stands for plastics, rubbers etc; D stands for products of chemicals, E
stands for food stuffs and beverages; F stands for others.)
Future Prospect
Presently the trade between Turkey and UAE is in its crawling phase, with GCC and
UAE comprising a comparatively smaller share in Turkey’s overall trade in the MENA
region. But it has huge latent potential with both the nations taking strong measures to
boost their relationship further. In Q1 2011, the total trade volume between them stood
over US $ 1.3 billion, 50 % increase compared to the same period last year. (Khaleej
Times, 2011).
The following part of the report will evaluate the future prospect of trade between
Turkey and UAE.
Turkey’s attractiveness
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8. Turkey and UAE- Trade Relationship
Turkey is an attractive trade partner and investment destination for UAE. Turkish
attractiveness is due to a wide range of Economical, Socio-Cultural, Legal and
Geographical factors stated below (Middleeastelectricity.com , 2011) -
With a GDP growth rate of 8.2% in 2010- it is presently among the fastest
growing European nations.
Strategically well placed between the cross roads of Central Asia and Europe- is
well connected with 1.5 billion lucrative consumers in the region.
60 % of its population is aged less than 30, providing a huge and sustainable
consumer base.
Turkish annual trade standing at US $ 320 billion in 2010- constituted 1 % of the
world trade.
Turkey has strong presence in the MENA region making it easier for UAE to
build further relationship.
UAE and Turkey are Islamic societies with UAE once being part of the bigger
Ottoman empire. Both share rich and glorious Islamic heritage and there is
comparatively lesser cultural differences between them.
UAE nationals do not require VISA before their arrival to Turkey.It can be
applied upon arrival.
Turkey is geo graphically close to UAE. Istanbul port is at a distance of 6700 KM
from Dubai (Jebel Ali port ) where as the aerial distance is just 2995 KM. (The
higher port distance is on account of ships travelling via Suez Canal to reach
each other)
UAE’s Attractiveness
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9. Turkey and UAE- Trade Relationship
UAE also offers attractive business opportunities for an emerging economy like
Turkey. Other than the common cultural and geographical factors that is being shared,
UAE’s strength lies in the following-
UAE is among the richest nations in the world. With a GDP per capita of US $
40,000 in 2008, it was ranked as the 19th richest nation in the world. (World’s
richest countries.com, 2009). With an annual disposable income of US $ 120
billion (2010) it offers a lucrative and elite consumer base. (Euromonitor
International, 2011)
UAE had been one of the fastest growing economies of the world in the last
decade. Due to global economic slump followed by real estate crisis, GDP was
hit hard in the last couple of years. But with oil prices’ increasing again- the
economy is back on track.
Dubai enjoys the status of a regional distribution center and is the 3rd largest re
export center after Hong Kong and Singapore. Dubai has strong ambitions of
transforming into a global trade hub. Jebel Ali port with an annual capacity of
11.6 million TEUs is undergoing expansion. Post expansion, the annual capacity
is expected to leapfrog to around 55 million TEUs by 2030.
UAE is strategically placed between the cross road of East and West and North
and South.
With the help of flagship carriers like Emirates Airlines and Etihad
Airways,UAE is well connected to whole world.
With ambitious plans such as Abu Dhabi 2030 and Dubai 2015- UAE is
aggressively attempting to transform and diversify its economy. Once realized
the plans are expected to provide ample business opportunities for its trade
partners.
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10. Turkey and UAE- Trade Relationship
Notwithstanding the attractive opportunities between Turkey and UAE as trade
partners, there are some hindrances as well. Lot of Turkish people are interested in
visiting Turkey for trade; however they need to apply for visa before their arrival. (The
same does not hold true for UAE nationals visiting Turkey). Similarly downside of UAE
is that though it is one of the richest nations in the world, its small population of 4.7
million does not represent a very big consumer base. Turkey has bigger market bases-
Russia, EU nations, Poland- in its nearby vicinity. There are other areas of concern that
has to be taken care of in order to bolster the burgeoning trade between the two nations.
Prospects of Turkish Export to UAE
Turkey has a well established textile industry. In 2009 the total textile export valued at
US $ 5.37 billion, comprised 5.3 % of the total Turkish export. According to a WTO
report- Turkish export constituted 3.3 % of the global textile trade where as 17.5% of the
European textile trade. Major markets for Turkish textiles are European Union, Russia
and other former USSR nations (ITKIB, 2009).
Though not a major export destination, Turkish textile export to UAE had burgeoned
in the past few years. In 2010 it was valued at US $ 110 million. The following pie chart
shows the breakup of Turkish textile export to UAE in 2010. Hence textiles offers a great
area for Turkey to explore further.
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11. Turkey and UAE- Trade Relationship
A
0% 2%
B
0% 0%
2% 2% C
5% 5%
D
16% E
34%
F
1% G
H
1%
I
1%
31% J
K
L
M
Fig 5: %wise break up of Turkish textile export to UAE
(In the given figure –
A SILK
B WOOL,FINE OR COARSE ANIMAL HAIR,HORSE HAIR YARN
C COTTON
D OTHER VEGETABLE TEXTILE FIBRES,PAPER YARN &FABRICS
E MAN-MADE FILAMENTS
F MAN-MADE STAPLE FIBRES
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12. Turkey and UAE- Trade Relationship
G WADDING,FELT,NONWOVENS;TWINE, CABLES,CORDAGE ETC.
H CARPETS AND OTHER TEXTILE FLOOR COVERINGS
I SPECIAL WOVEN FABRICS & TUFTED TEXTILE FABRICS
J TEXTILE ARTICLES AND FABRICS USED IN INDUSTRIES
K KNITTED OR CROCHETED FABRICS
L KNITTED OR CROCHETED ARTICLES OF APPAREL
M ARTICLES OF APPAREL, NOT KNITTED OR CROCHETED
From the figure it can be comprehended that carpets and other floor covering, knitted
or crocheted apparels and articles of apparels not knitted or crocheted constitute more
than 80 % of Turkish export to UAE.
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13. Turkey and UAE- Trade Relationship
References:
1> Moft.gov.ae, 2011, moft releases study on UAE Turkey trade exchange, available
at http://www.moft.gov.ae/en/det.aspx?detid=262&resourceid=30
2> Khaleej Times, Turkey targets 20 % rise in food trade with UAE, available at
http://www.khaleejtimes.com/DisplayArticle.asp?xfile=data/business/2011/July/b
usiness_July203.xml&section=business&col=
3> Middleeastelectricity.com, 2011, Turkey-UAE investment reach $ 10 billion in
2010, available at
http://www.middleeastelectricity.com/Global/Middle_East_Electricity/pdf/Turke
yUAEinvestmentshit10bin20104Mar11GN.pdf
4> World’s richest countries.com, 2009, home page, available at
http://www.worldsrichestcountries.com/
5> ITKIB, 2009, Turkish Textile Industry, available at
http://www.itkib.org.tr/english/about/sectors/textile/textile_info.pdf
6>
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