ANKARA (Middle East Eye) – A series of investment agreements were signed by the United Arab Emirates and Turkey on Wednesday, during Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed al-Nahyan’s visit to Ankara to meet President Recep Tayyip Erdogan, according to Turkish officials.
After 10 years of political and proxy conflicts in places such as Libya, Egypt and the Horn of Africa, and accusations that the Emiratis had plotted to take down the Turkish government, the two countries have begun to restore relations over the past year.
Mohammed bin Zayed’s visit to Turkey was his first in almost a decade.
As well as a memorandum of understanding to strengthen trade, energy and environmental ties, agreements were also signed on Wednesday covering direct Emirati investment in Turkey.
The UAE’s Industry Minister Sultan al-Jaber said that the main purpose of the visit was to increase trade and business partnerships through sustainable, successful investments.
A well-placed source told MEE recently that the crown prince told Erdogan in a phone call earlier this year that he was ready to invest as much as $100bn. Others said the number was at least $10bn - both hefty numbers that would boost Turkey’s flagging economy.
The U.S. dollar dropped 7 percent against the Turkish lira on Wednesday after news of the investment agreements broke, Bloomberg reported.
Turkey’s lira had nose-dived around 10 percent against the dollar on Tuesday after President Erdogan defended recent rate cuts, and vowed to win his “economic war of independence” despite widespread criticism and pleas to reverse course.
The lira, which at one point was more than 13 against the dollar, crashed after hitting record lows in the last 11 straight sessions.
Erdogan defended the policy at a news conference late on Monday and said tighter monetary policy would not lower inflation.
“I reject policies that will contract our country, weaken it, condemn our people to unemployment, hunger and poverty,” the president said.