As a result of the signing of two memorandums of understanding by government organizations from both nations to support earthquake relief efforts and strengthen economic connections, Turkiye is expected to gain from finance agreements totaling $11.5 billion with the UAE. The Turkish Ministry of Treasury and Finance and the investment firm ADQ have agreed to jointly issue $8.5 billion worth of bonds to fund earthquake recovery.
The deal will make it possible to finance restoration projects in the badly damaged regions of southern and central Turkiye earlier this year. Mehmet Simsek, the Turkish Treasury and Finance Minister, and Mohamed Hassan Al-Suwaidi, the UAE's Minister of Investment and the CEO and Managing Director of ADQ, respectively, signed the MoU.
The funding will be concentrated on initiatives aimed at creating housing for earthquake evacuees. Separately, ADQ and the Export Credit Bank of Turkey inked a Memorandum of Understanding (MoU) to provide up to $3 billion in credit financing facilities to Turkish businesses with ambitions to export goods and services to the UAE and other countries.
Earlier this week, during Recep Erdogan's official visit to the UAE, the MoUs were signed. During the visit, many $50 billion deals were signed between the two nations to expand the Comprehensive Economic Partnership Agreement between the UAE and Turkey. The UAE and Turkey signed the CEPA earlier this year to reduce tariffs on non-oil trade by 93% and raise bilateral commerce from $19 billion to $40 billion over the course of five years in an effort to strengthen bilateral collaboration between the two nations.