Turkey-Saudi Arabia ties
Date: 02 May 2022 Tags: MiscellaneousIssue
Turkish President Recep Tayyip Erdogan is on a first trip to Saudi Arabia in the last five years to repair damage in ties.
Background
The ties between Turkey and Saudi took a hit after the killing of dissident journalist Jamal Khashoggi in Saudi consulate in Istanbul.
Details
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The economic situation of Turkey is in dire crisis. Wealthy Arab countries can help draw investments in the country.
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Turkey has tried to repair its relationship with other countries such as Egypt and Israel. UAE has recently pledged $10 billion fund for investments in Turkey.
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Economic situation
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Retail inflation in Turkey has climbed to two decades high of 61%. The currency, Lira, has fallen by 44% in value against the dollar.
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Turkey is scheduled for an election next year and the economic woes could spell doom for President Erdogan’s campaign.
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Significance for Saudi Arabia
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Saudi Arabia’s economy is undergoing a boom with $400 billion of revenue this year for the kingdom, as a result of higher energy prices.
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It is looking for new avenues to invest. Turkey looks a favourable destination due to its political stability.
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It is also looking to expand its alliances amidst strained ties with US. Many US lawmakers have demanded tougher actions against Saudi for its OPEC pact with Russia.
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Jamaal Khashoggi killing
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Saudi dissident journalist Jamaal Khashoggi was enticed to Saudi Arabian consulate on the pretext of false document verification.
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He was killed and his body was dismembered before disposing off. Turkish authorities had conclusive evidences that pointed to the role of Saudi agents.
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Subsequent investigations revealed that such operation could not have been conducted without getting a go-ahead from Crown-Prince Mohammed Bin Salman.
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Strain on ties
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Saudi Arabia imposed trade embargo on Turkish goods that valued more than $5 billion. Turkish soap operas were banned from Saudi satellite TV channels.
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Turkish companies operating in the kingdom were forced to shut down and Saudi investments in Turkey were curbed.
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Way ahead
The improvement in ties between Gulf States and Turkey would impact Iran, which seeks to challenge Saudi dominance in the region.