Abu Dhabi-based investment and holding company ADQ signed two multi-billion dollar initial agreements with Turkey to provide earthquake relief financing and boost bilateral trade.
The agreements were signed during Turkish President Recep Tayyip Erdogan's visit to the UAE as part of a wider trip to the GCC, where he sought investment opportunities and looked to forge stronger ties with the region.
As part of an agreement with Turkey’s Ministry of Treasury and Finance, ADQ will finance up to $8.5 billion of earthquake relief bonds.
The proceeds will be used to finance reconstruction efforts in southern and central Turkey that were affected by the twin earthquakes in February. It will focus on the development of residential units for people displaced by the natural disaster, ADQ said in a statement on Wednesday.
The UAE was one of the first countries to respond to the disaster with aid.
President Sheikh Mohamed directed the launch of Operation Gallant Knight 2 on February 6 to supply humanitarian and medical aid. It established an air bridge to transport urgent relief supplies, medical items and equipment through 260 flights.
In a separate agreement worth $3 billion, ADQ partnered with the Export Credit Bank of Turkey to extend credit financing solutions. It will support Turkish companies that intend to export goods and services to the UAE and other markets.
On Wednesday, the UAE and Turkey announced agreements worth a combined $50.7 billion to boost investment and promote collaboration in strategic sectors.
In May, the UAE and Turkey also ratified the comprehensive economic partnership agreement that was signed in March this year. The deal aims to push bilateral non-oil trade beyond $40 billion in the next five years.
Turkey is one of the Emirates’ largest trading partners, with non-oil trade between the nations from 2013 to 2022 amounting to more than $103 billion.
That figure included $56 billion in imports, $35 billion in exports and over $12 billion in re-exports, according to the UAE’s Federal Competitiveness and Statistics Centre.
