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Erdogan will even go to Qatar and the UAE to enhance relations and negotiate commerce offers with the Gulf nations.
Saudi Arabia has agreed to purchase Turkish drones, considered one of many profitable contracts President Recep Tayyip Erdogan has secured for Turkey’s struggling financial system, whereas Ankara is reaping the rewards of its current diplomatic efforts to revive ties with the Arab Gulf powers .
President Erdogan arrived in Saudi Arabia on Monday accompanied by an entourage of some 200 businessmen, based on Turkey’s International Financial Relations Board, as a part of a three-day tour of the area
Each nations have signed a number of Memoranda of Understanding (MoUs) in lots of areas, together with power, direct funding and protection industries.
Erdogan and Saudi Crown Prince Mohammed bin Salman attended the signing ceremony between Turkish protection agency Baykar and the Saudi protection ministry, Saudi state information company SPA reported.
Saudi Arabia will procure the drones “with the intention of accelerating the readiness of the dominion’s armed forces and strengthening protection and manufacturing capabilities,” Protection Minister Prince Khalid bin Salman Al Saud stated in a tweet on Tuesday.
SPA didn’t present particulars on the worth of the deal.
Turkey’s financial woes
Erdogan’s go to comes as Turks are hit by will increase in gross sales and gasoline taxes, which Finance Minister Mehmet Simsek says are essential to revive fiscal self-discipline and curb inflation.
Official annual inflation stood at 38 p.c final month, up from a excessive of 85 p.c in October.
Turkey’s present account deficit hit a file excessive this yr — $37.7 billion within the first 5 months — and Erdogan hopes the oil and gas-rich Gulf states will assist shut the hole.
On Tuesday, the Turkish lira weakened to a file low of 26.6 in opposition to the greenback as investor consideration started to deal with Thursday’s central financial institution policy-making assembly, the place rates of interest are anticipated to be hiked once more.
The lira misplaced as a lot as 0.9 p.c of its worth in opposition to the US foreign money in comparison with Monday’s closing worth of 26.3505.
It has weakened by practically 30 p.c up to now this yr.
Rapprochement between Turkey and Saudi Arabia
Turkey has just lately re-established ties with Saudi Arabia and the United Arab Emirates after a decade-long rift following the 2011 Arab Spring and Ankara’s help of the Muslim Brotherhood, which some Gulf monarchies see as a menace.
Deteriorating relations have been exacerbated by a boycott of Turkey’s ally Qatar by Saudi Arabia, the UAE, Egypt and Bahrain in 2017.
The 2018 assassination of Saudi dissident journalist Jamal Khashoggi on the Saudi consulate in Istanbul led to an extra deterioration of ties with Riyadh. US intelligence companies decide that the homicide was dedicated on the orders of Prince Mohammed, one thing the dominion denies.
Qatar and the UAE just lately supplied Turkey with about $20 billion in foreign money swap offers, whereas Saudi Arabia deposited $5 billion in Turkey’s central financial institution in March.
Days after Erdogan received re-election final month, the UAE and Turkey signed a commerce deal probably value $40 billion over the subsequent 5 years.
Erdogan will meet Qatari Emir Sheikh Tamim bin Hamad Al Thani in Doha on Tuesday earlier than visiting the UAE chief in Abu Dhabi on Wednesday.
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Saudi Arabia buys Turkish drones throughout Erdogan’s go to | Recep Tayyip Erdogan Information
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