Turkey has become a new avenue of Qatari investment, with more than AUD 26.5 billion funds allocated for major infrastructure development and bilateral trade.
According to Turkish trade body Korfez Chamber of Commerce President Sibel Morali at the recent trade delegation in Qatar, strong diplomatic and bilateral trade relations now offer much potential for growth to private sector partnerships between the two countries.
The delegation visited Qatar to promote areas of investment and cooperation. According to a report, multi-nationals are investing in Turkey, with Qatar the second leading investor in terms of value.
The Korfez trade delegation comprised of 19 companies representing construction, health, education, tourism, fire wear, transport laboratories and wood house construction. They discussed areas of interest and mutual cooperation with Qatari counterparts.
During the meet in June 2017, the Turkish Chamber of Commerce signed a memorandum of understanding (MoU) with Qatar Chamber (QC) aimed at increasing cooperation and establishing economic partnerships, especially in construction and contracting health, education and tourism sectors.
Speaking at the meeting, QC Vice-Chairman Mohammed bin Ahmed bin Towar says the Qatar Chamber is keen to enhance cooperation between businessmen from the two countries, and a testament to this are the various bilateral MoUs signed with the Union of Chambers and Commodity Exchanges of Turkey and Istanbul Chamber as well as meetings with Turkish Trade delegations.
He pointed out that the Qatari-Turkish economic relations have witnessed rapid growth in recent years at various levels and urged the private sector in both countries to take advantage of such a development to increase the volume of bilateral trade.
During the MoU signing, Turkey’s Minister of Development Lutfi Elvan says that Turkey’s public private partnership (PPP) projects aim to help attract foreign direct investment (FDI), enhance the quality, effectiveness, and efficiency of public services, and facilitate know-how and technology transfers.
According to Elvan, Turkey’s PPP models include build-operate-transfer (BOT), build-operate, build-lease-transfer (BLT), and transfer of operating rights projects. These schemes include motorway, port, airport, marina, border gate, power generation, hospital, health, and education projects.
Data released by the Turkish Government claims a total of 211 PPP projects with an investment value of AUD 67 billion and a project contract value of AUD 152 billion. There are 101 BOT, 5 build-operate, 18 BLT, and 87 transfer of operating rights projects in Turkey.
Top PPP projects with the highest contract value are airport (AUD 88 billion), energy production facilities (AUD 32 billion), motorway (AUD 17.2 billion), and health facilities (AUD 13.40 billion). Qatari imports from Turkey was AUD 490 million, while Qatari exports reached AUD 353 million. The total volume of trade between the two countries stood at AUD 845 million in 2016.
Qatar Chamber Vice-Chairman says that over 205 Turkish companies are in Qatar, and 186 are joint ventures between Turkish and Qatari businessmen. These joint ventures are based on infrastructure construction, contracting, engineering consultancy, trade, and electric works. 19 companies are fully Turkish owned.
Major imports from Turkey include iron and steel; dairy products, electricity machines and equipment, furniture, organic chemical products; plastic products and textiles, while Qatari exports to Turkey comprise of petroleum and plastic products.