ShareKUWAIT: Union of Investment Companies (UIC) received a delegation from the Turkish Embassy and discussed means of broadening economic collaboration between Kuwait and Turkey and explored possibilities of expanding joint cooperation between the countries in the domains of trade and investment.
Deputy Chairman of Union of Investment Companies Abdullah Hamad Al-Terkait received the delegation, headed by Turkish Ambassador to Kuwait Tuba Nur Sonmez at the UIC headquarters, as both sides discussed means of strengthening joint cooperation. “We notice the strengthening of principles of cooperation between Kuwait and Turkey year after year, and effective communication channels are expanding through the broadening of the economic action cycle, be it at commercial or touristic levels, or in terms of foreign direct investment,” Al-Terkait said.
Previous success
Al-Terkait said the previous and current successes contribute to laying a roadmap towards a bright future in strengthening relations between the two countries and moving towards greater cooperation on all commercial, cultural, diplomatic and educational levels, which will lead to peace and prosperity in the Middle East.
Commercial exchange
Al-Terkait said the total value of commercial exchanges between the two countries reached $800 million, although they suffered a drop during 2020 due to the coronavirus pandemic, when it reached around $600 million compared to $700 million in 2019. According to the numbers of the Turkish Statistics Authority, the total value of commercial exchanges during 2022 may go beyond previous years, indicating there is a continued growth momentum in terms of commercial relations between the two countries, he said. It is a clear indication that Kuwait and Turkey will see an increase in their respective Gross Domestic Products (GDPs), as Kuwait’s GDP is expected to reach 8.2 percent and Turkish GDP 4 percent.
KUWAIT: Deputy Chairman of Union of Investment companies Abdullah Hamad Al-Tarkait receives Turkish Ambassador to Kuwait Tuba Nur Sonmez.Kuwait qualifications
Ambassador Sonmez said Turkey is looking for more cooperation and commercial exchanges between the two countries, adding that Kuwait has qualifications and financial and investment abilities that are not known to many Turkish investors, adding both countries require enhanced communication channels between them to bolster bilateral investments.
She said Turkey has investment qualifications not only in real estate and contracting, but also in the healthcare sector, technology, automobile manufacturing, nuclear energy and other fields. The Turkish ambassador said Turkey can benefit from Kuwaiti expertise in Islamic finance and other sectors, pointing out the importance of strengthening relations between the two sides through a future visit by members of UIC to the investment office in Turkey to work on removing obstacles, if any, Kuwait investors face to invest in Turkey. The visit will also help the team to familiarize itself with the investment opportunities available in the country, she said.
Al-Terkait welcomed the cooperation and confirmed that Turkey achieved remarkable development in G20 and reached the second rank, as it can offer many opportunities and Kuwait investors can benefit from them.
Mutual visits
Al-Terkait concluded the meeting by affirming the importance of coordinating mutual visits between the two countries, adding that UIC is ready to arrange a visit by Kuwaiti investors to Turkey to meet Turkish companies and get to know available investment projects. He also welcomed visits of Turkish investors to Kuwait to meet businessmen and representatives of investment companies in Kuwait. Al-Terkait wished Turkish Ambassador Sonmez success in her new diplomatic mission at the Turkish Embassy in Kuwait.
Turkish markets
It is worth mentioning that Turkish markets are considered suitable for Kuwait companies to invest in. Currently, more than 380 companies with Kuwaiti capital operate in Turkey in the finance, real estate and foodstuff sectors, while more than 50 Turkish companies are operating in Kuwait. According to official statistics, the number of real estate properties Kuwaitis bought in Turkey from 2015 to 2022 number around 13,800, through which the owners can take several advantages including:
* Earning revenue from real estate investments on a monthly basis.
* Increased capital value.
* Possibility of getting Turkish nationality by owning real estate worth $250,000 and commitment not to sell the property for at least three years.
Turkish real estate
The main reason for investing in Turkish real estate is primarily the movement of tourists from Kuwait to Turkey, which encourages investment in the real estate sector. The number of tourists from Kuwait in 2021 reached around 246,000. The total value of Kuwait’s direct investment in different sectors reached $2 billion in 2022, indicating the depth of relations at all levels. They promise a bright future based on growing confidence and joint cooperation on all regional and international issues.
Turkish exports
The most important Turkish exports to Kuwait are carpets, floor coverings, steel, land equipment, accessories, machinery, spare parts, textiles, gold, jewelry, sheep, boats, cars, fish, construction material, furniture and marble products.
Kuwaiti exports
The most important Kuwaiti exports to Turkey are led by crude oil, petrochemicals, organic chemical products and plastic material.
Official authorities in both countries rely on dialogue mechanisms that are necessary to develop relations and are embodied in the joint cooperation committee, which was formed with joint chairmanship of foreign ministers.
Relations and agreements
The committees had a role in strengthening relations between the two countries in various fields - cultural, educational, political and economic, which were confirmed through the agreement that was signed in 2021. Signed agreements between the two sides include the following fields.
- A workplan between the governments of Kuwait and Turkey for the year 2021-2022.
- A memorandum of understanding in the field of environment.
- Cooperation protocol between the Kuwaiti Information Ministry and Turkish Radio and Television Authority.
- Cooperation protocols in the fields of journalism and information.
- MoU between Kuwait National Library and the general directorate of libraries and publications at the cultural and tourism ministry in Turkey.
- MoU in the field of social affairs and policies.
Previous effective agreements:
- Agreement between the Republic of Turkey and the State of Kuwait to avoid double taxation with regards to income and capital taxes.
- Trade agreement between Turkey and Kuwait.
- Agreement to form a joint committee for cooperation between the Turkish and Kuwaiti governments.
- Agreement between Turkey and Kuwait on economic and technical cooperation.
- Agreement between Turkey and Kuwait on assistance and cooperation in customs issues.
- Agreement between Turkey and Kuwait on mutual encouragement and protection of investments.
