Turkish firms commit 1 billion riyals to Saudi investment amid flourishing business ties

Dubai: The Saudi Investment Minister Eng. Khalid Al Falih has announced that 390 Turkish firms have committed to investing in the Saudi market, representing a total capital of nearly SR1 billion.

The remarks were made during the Saudi-Turkish Business Forum, which took place in Jeddah on the sidelines of Turkish President Recep Tayyip Erdogan’s visit to Saudi Arabia.

Eng. Al Falih noted the robust presence of Saudi capital in Turkey, with 1,140 Saudi-funded companies operating across various sectors. He expressed an ambition to grow this number further. Recognising the importance of collaboration, the minister emphasised the need to address investment challenges within the private sectors of both countries swiftly and effectively.

Saudi Arabia is committed to involving both Saudi and foreign private sectors, including those from Turkey, in its major development process. The National Investment Strategy aims to stimulate diversified investments totaling an estimated SR3 trillion and $300 billion by 2030.

Eng. Al Falih voiced his pride in the private sector companies in both nations, whose strong performance is recognized worldwide. He called for further integration of the distinguished capabilities of Saudi Arabia and Turkey. He highlighted promising opportunities within the Kingdom that large Turkish companies can seize, either independently or through investment partnerships with Saudi private sector institutions.

The minister singled out the burgeoning construction sector in Saudi Arabia, which is experiencing an unprecedented boom with spending in 2023 projected to exceed $70 billion annually. By 2030, this figure is expected to soar to more than $215 billion. The drive to meet the surging demand within the construction and contracting sector presents the potential for numerous partnerships between Turkish and Saudi companies, thereby improving operational efficiency, reducing costs, and investing in modern materials and technologies. This would also aid the shift to clean energy.

Moreover, the Kingdom is one of the largest food and beverage markets in the region. Accounting for 60 per cent of the Gulf market volume, the Saudi food and beverage market reached more than $45 billion in 2020 and is anticipated to grow to approximately $65 billion by 2035. These figures underscore the vast investment opportunities that lie within Saudi Arabia for Turkish businesses.