GRM 2010 GRM 2011

Abstract Details

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Turkey’s role in Gulf affairs through its investment activities
Paper Proposal Text :
Turkey’s role in Gulf affairs through its investment activities
The role and involvement of Turkey in Gulf affairs is multifaceted. This study will focus on Turkey’s role in Gulf affairs through its investment activities which have direct and positive implications for all of the Gulf Cooperation Council (GCC) States. Bilateral Investment Treaties (BITs) are valuable components of economic affairs as well as diplomatic relations. Turkey’s role in Gulf affairs can be strengthened and enhanced through Bilateral Investment Treaties (BITs) particularly in the GCC and with a focus on Saudi Arabian-Turkish trading patterns. It is a well-established fact that Turkey is highly involved in Qatari construction projects, for example. In addition, The European Union has once again denied Turkey admittance and this means that Turkey will look to the GCC and especially Saudi Arabia for new market and business opportunities which are economically and legally binding and which allow it to be fully engaged at different levels of economic, diplomatic, technological and international involvement. Gulf investors investing in Turkey’s specific niche areas and Turkish investors investing in Gulf States, particularly Saudi Arabia have the intention of developing closer ties and future business transactions between the two regions. Currently, both countries have differing but complementary interests in strengthen different sectors. Investors from both sides are interested in investing in many sectors. Islamic banking and hospitality, to name a few, are strengths of Saudi Arabia, which can enhance Turkish sectors, such as tourism, marketing and the industry specific business acumen that Turkey offers. On the other hand, new potentials by certain Saudi Arabia industries such as the construction industry into Turkish investments projects can create a two-way beneficially viable relationship. Investment transactions between Saudi Arabia and Turkey are binding with a special relationship which comes from investors’ understanding and desire to be involved in that part of the world, meaning the GCC. They wish to build a dynamic and stable long-term relationship with the Gulf States and other investing parties in this region. Relations between relevant countries need to be governed by BITs to protect the sovereignty of the host State as well as investor rights. In essence, there is a straightforward expectation that these kinds of treaties will encourage new investment, which will, in turn, contribute to the economic development of the host State. It is argued that in the context of the GCC, BITs will play a major role in stimulating the desired relationship with Turkey.