[Salon] Turkey woos Saudi Arabia



https://www.bloomberg.com/news/newsletters/2022-04-28/erdogan-wants-to-bond-with-saudi-he-scorned

When Saudi critic Jamal Khashoggi was murdered by his own country’s agents in Istanbul three years ago, Turkish President Recep Tayyip Erdogan appeared to revel in the bad publicity it created for Saudi Arabia’s crown prince, with his aides disclosing gory details to a shocked world.

Now, with inflation above 60% and finances shaky a year ahead of elections, Erdogan’s making an unprecedented bid to mend ties and lure investment from the world’s biggest oil exporter. Turkish officials say he’s visiting Saudi Arabia today and will meet with Prince Mohammed bin Salman.

Key reading:

Flush with cash from buoyant oil prices, the prince is in less of a hurry. His government has engaged with Erdogan’s but has yet to confirm the visit, or summit, which coincides with the arrival of Pakistan’s new premier.

Saudi Arabia was once a key market for Turkish exports, which reached $3.2 billion in value in 2019 before an unofficial boycott gutted trade.

Boosting manufacturers and exporters is a vital component of Erdogan’s new economic vision, which seeks to leverage the lira’s weakness to generate dollar earnings and reduce Turkey’s reliance on global money flows.

Turkey’s also looking to replicate with Saudi Arabia’s mighty sovereign wealth fund the type of deals it struck with another Gulf energy exporter it reconciled with last year. The UAE has outlined plans for a $10 billion investment fund, while a $4.9 billion currency swap in January helped stabilize the lira.

Officials in Ankara and Riyadh have been working on a rapprochement, part of a regional realignment begun when U.S. President Joe Biden took office. Turkey smoothed the way this month by ending its trial over Khashoggi’s killing, but the Saudi crown prince might need more convincing.

While Saudi Arabia pledged $4.2 billion to Pakistan as recently as October, Turkey’s still waiting. Lin Noueihed



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