Saudi Arabia Inks Historic Defense Deal with Turkey as Bilateral Ties Strengthen
RIYADH:
In a landmark defense contract, Saudi Arabia has agreed to purchase Turkish drones, marking the largest-ever deal for Turkey’s defense industry.
The agreement comes as a result of President Tayyip Erdogan’s diplomatic efforts to mend ties with Gulf nations and bolster Turkey’s struggling economy.
The signing ceremony, attended by President Erdogan and Saudi Crown Prince Mohammed bin Salman, took place in Jeddah, Saudi Arabia.
Turkish defense firm Baykar and the Saudi defense ministry were the key parties involved in the deal, according to the Saudi state news agency SPA.
Saudi Defence Minister Prince Khalid bin Salman announced the acquisition of the drones with the intention of enhancing the readiness and capabilities of the kingdom’s armed forces.
Although specific financial details of the contract were not disclosed, Baykar CEO Haluk Bayraktar confirmed it to be the most significant defense and aviation export deal in Turkey’s history.
The contract includes the procurement of Baykar’s unmanned combat aerial vehicle, the Bayraktar Akinci.
Moreover, the agreement involves technology transfer and joint production, which aims to advance the high-tech development capabilities of both countries.
The deal signifies a pivotal moment in the relationship between Turkey and Gulf states, particularly Saudi Arabia and the United Arab Emirates.
Since 2021, investments and financial support from the Gulf have played a crucial role in alleviating pressure on Turkey’s economy and its currency reserves.
This development followed Turkey’s efforts to repair diplomatic ties with Gulf powers after years of strained relations due to disagreements over Ankara’s support for pro-democracy movements in the Middle East and North Africa, as well as the high-profile murder of Saudi journalist Jamal Khashoggi at the Saudi consulate in Istanbul in 2018.
President Erdogan’s Gulf tour began with his visit to Saudi Arabia, and he is set to continue his diplomatic engagement with a trip to Qatar, followed by the United Arab Emirates.
For Saudi Arabia, this defense contract represents a significant step in Crown Prince Mohammed bin Salman’s ambitious plan to diversify the kingdom’s economy away from its heavy reliance on oil.
Developing a robust local military industry is part of the broader strategy to achieve this goal.
Apart from the defense deal, the two nations also signed several memorandums of understanding covering various sectors, including energy, real estate, and direct investments.
While Turkey welcomes the financial boost from its Gulf partners, the nation continues to face tough economic issues.
The budget deficit has surged to seven times the levels of the previous year in June, and inflation remains high, reaching close to 40% last month.
Additionally, the Turkish lira has depreciated by almost 29% this year, putting further strain on the country’s financial stability.
As the Gulf nations, particularly Saudi Arabia and the United Arab Emirates, strengthen their ties with Turkey, President Erdogan’s Gulf tour has taken on significant importance in promoting economic cooperation and fostering stronger diplomatic relations.
The tour comes as a culmination of Turkey’s diplomatic efforts to mend previously strained relations with Gulf powers, which resulted in financial support and investments to alleviate Turkey’s economic challenges.
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Yahoo News
