The United Arab Emirates’ ambitious pledge to invest $51 billion in Turkey is encountering significant challenges, as several high-profile deals have collapsed, raising concerns about the future of this substantial economic partnership.
In July 2023, during a visit by Turkish President Recep Tayyip Erdoğan to Abu Dhabi, the UAE committed to a series of agreements with Turkey, collectively valued at approximately $50.7 billion. These agreements spanned various sectors, including energy, natural resources, defense, and finance, signaling a robust intent to bolster economic ties between the two nations.
However, recent developments indicate that the execution of these agreements has been fraught with difficulties. One notable setback involves the AD Ports Group, a company backed by Abu Dhabi’s sovereign wealth fund, ADQ. The group had been in protracted negotiations to acquire operating rights for the Alsancak Port in İzmir, a strategic location on Turkey’s western coast. Despite extensive discussions, Turkish Transportation Minister Abdulkadir Uraloğlu confirmed that no agreement was reached, leading to the termination of talks. He stated, “We have pursued long negotiations with an investor from the Gulf, but no agreement has been achieved.” This marks the second unsuccessful attempt to privatize the Alsancak Port, following a failed bid in 2007.
The challenges extend beyond the port negotiations. Other anticipated deals, including an $8.5 billion bond purchase intended to support Turkey’s earthquake relief efforts and a significant investment in one of Turkey’s largest banks, have also encountered obstacles. These setbacks have raised questions about the feasibility of the UAE’s extensive investment commitments in Turkey.
Several factors contribute to the faltering progress of these deals. Turkey’s recent economic rebound has emboldened local firms to adopt firmer stances on valuations, making negotiations more complex. Additionally, shifting regional competition and capacity conditions have introduced further complications. A source familiar with the port negotiations noted that “changing competition and capacity conditions delayed the final agreement,” underscoring the dynamic environment in which these discussions are taking place.
Despite these challenges, both nations continue to express a commitment to strengthening economic ties. In February 2025, the UAE’s investments in Turkey were reported to have exceeded $6 billion, with Turkish investments in the UAE surpassing $3 billion. Burak Dağlıoğlu, President of the Investment Office of the Presidency of Turkey, highlighted this growing partnership, emphasizing the mutual benefits of continued collaboration.
The initial optimism surrounding the UAE’s investment pledge was rooted in a shared vision of economic cooperation and growth. However, the recent series of failed deals illustrates the complexities inherent in international investments, where economic conditions, valuation disagreements, and strategic shifts can significantly impact outcomes.