Alpha Dhabi Holding, a unit of Abu Dhabi's International Holding Company, has signed a preliminary agreement with Turkish conglomerate Limak Group to explore business opportunities in various sectors, as the two countries strengthen their economic ties.
Under the initial pact, the two companies will explore joint ventures in areas including construction, development, infrastructure, energy and hospitality, all within a framework of sustainable development in the UAE and Turkey.
The pact is an opportunity for Alpha Dhabi to expand its investment portfolio in Turkey through potential partnership with Limak Group, Alpha Dhabi said in a statement on Thursday.
The opportunities include the construction and rehabilitation of areas impacted by the 7.8-magnitude earthquake that shook Turkey in February this year, in which 1.5 million people were displaced, according to the UN estimates, it added.
“Our potential partnership with Limak Group is a strategic move that aligns with our commitment to sustainable development and geographic expansion. It builds on our core verticals of infrastructure and construction, the energy sector and hospitality,” said Hamad Al Ameri, chief executive and managing director of Alpha Dhabi.
“We are particularly interested in exploring the opportunity to support the rehabilitation of areas in Turkey impacted by the earthquake.”
The latest agreement comes as the UAE and Turkey announced agreements and accords worth a combined $50.7 billion on Wednesday, as the two countries seek to strengthen bilateral investment ties and boost collaboration in strategic sectors.
The accords, covering a range of sectors including energy, defence, infrastructure, technology, finance and space, were signed at in Abu Dhabi during a visit to the UAE by Turkish President Recep Tayyip Erdogan.
President Sheikh Mohamed and Mr Erdogan witnessed the announcements of the agreements and a joint accord on the establishment of a high-level strategic council between the two countries, state news agency Wam reported.
The two counties signed a Comprehensive Economic Partnership Agreement earlier this year and the deal was ratified in May.
This partnership between Alpha Dhabi and Limak Group seeks to support several infrastructure and construction projects, with a key focus on the rehabilitation of the communities impacted by earthquake the in the country.
Alpha Dhabi, which was previously known as Trojan Holding, has grown into a regional conglomerate with interests in construction, health care, hospitality and industry after completing a series of acquisitions in 2021 and 2022.
The company said in May it would continue to pursue acquisitions and new investments as part of its growth and portfolio diversification strategy.
Limak Group’s operations span multiple sectors such as construction, infrastructure, energy, tourism, food and beverage.
“The potential partnership … will bring valuable contribution to both Turkey and the UAE,” said Ebru Ozdemir, chairperson of Limak Group.
The agreement with Alpha Dhabi “will not only strengthen our business ties but also contribute to the wider community rehabilitation in the earthquake-affected zones in Turkey”, she said.