The Place of Arab Investors in the Energy Sector

Arab Investors and Turkey

Quite a lot of foreign investments have been made in Turkey over the past five years. These investments, especially realized from European and Near-Middle Eastern countries, create high rates of employment and added value in Turkey. These investments show a serious orientation towards the financial sector with 33%, followed by the manufacturing sector with 24% and the energy sector with 11%. The inflow of foreign direct investment realized in the last five years has been recorded as 33.3 billion dollars. In recent years, serious investments have been made in the energy sector in Turkey. One of the most important reasons for this is that Turkey is a country with serious potential, especially in renewable energy production, and reliable regulations on energy investments.

The vast majority of energy investments made in Turkey are carried out by Arab investors. Because recently, a serious volume of trade between Turkey and Arab countries has been formed within the framework of the Arab-Turkish investment and trade relationship. It is stated that the volume of trade and investment carried out between Turkey and about 20 Arab countries before the pandemic averaged $ 50 billion. The fact that the trade volume of Qatar and Turkey alone will be at the level of 1.3 billion dollars in 2021 is an indication of these tight relations. Investments in the energy sector constitute a significant part of all this trade volume. In the energy sector, the energy investments that Arab investors especially prefer are solar energy and wind energy investments.

Due to the fact that Turkey is a geopolitically favorable country for the production of many energy sources and has the technical and physical capabilities to carry out these energy activities, the energy investments made for Turkey are quite reasonable and low-risk investments. In addition, the Republic of Turkey is one of the leading countries in the grants and incentives it offers for energy investments in the world. These supports for the energy sector give confidence to foreign investors and increase investment rates. Many leading Arab companies in the energy sector in the world are also aware of this potential of the energy sector in Turkey and continue to invest more and more every day.

 

The EIF World Energy Congress and Exhibition and the Interest of Arab Investors

As mentioned above, energy investments in Turkey are increasing every day. Energy congresses and fairs that bring together energy producers in this sector with investors have become very important in recent dec. One of the most important and comprehensive of these fairs and congresses is the EIF World Energy Congress and Exhibition.  The EIF World Energy Congress and Exhibition is the largest energy event in Turkey, usually held in the first week of November of each year.

EIF World Energy Congress and Fair is a very important event where investors and participants, i.e. those operating in the energy sector, can communicate with each other and have the opportunity to meet under a common roof. A total of 305 companies, including 247 domestic and 58 foreign companies, participated in the fair held in 2019 and laid the groundwork for large-scale energy projects and investments thanks to this fair. After the fair was held online in 2020 due to the pandemic, the interest in the 14th EIF World Energy Congress and Fair, which was held in Antalya on 13-15 October 2021, has been at a very high level.

EIF World Energy Congress and Fair, which will be held for the 15th time this year, will be held in Istanbul on 12-14 October 2022 at IFM Istanbul Expo Center. Organized with the leadership and support of the Ministry of Energy and Natural Resources of the Republic of Turkey, this energy fair and congress is Turkey’s most comprehensive energy fair and congress, which gathers the entire energy sector through an international platform. Arab investors, among the investors who participated in this event at the highest rate, are increasing every year. In this event, where Arab investors met and made investments with many energy companies, Arab investors’ investments in the field of renewable energy have been quite high, especially in the last 5-6 years.

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