Turkish Exports to Saudi Arabia Plummet

In December 2020, imports from Turkey amounted to 50.6 million riyals ($13.5 million), down 95% from 1.02 billion riyals the previous year. Moreover, Turkey also experienced a 78% decline in its exports to Saudi Arabia in the same month.

The COVID-19 pandemic, politics, and religion are all responsible for this decline. While Turkish President Recep Tayyip Erdogan supports Islam, the Gulf monarchies see it as a challenge to their rule. The murder of Saudi government critic Jamal Khashoggi at the kingdom's embassy in Istanbul has further worsened relations between the two as well.  

Over the years, President Erdogan's assertive foreign policy has forced Turkey to reach out to Israel and align with Qatar. In 2017, Saudi Arabia and the UAE accused Qatar of terrorism offenses and led a regional alliance to cut off Qatar economically. Turkey came to Qatar's aid by deploying troops and supplies to its military base. Moreover, during the Libyan conflict, Turkey and Qatar supported the UN-backed Government of National Accord (GNA), while Saudi Arabia, the UAE, and Egypt backed the Libyan National Army (LNA).

As a result, many Turkish businesses have experienced a sharp decline in trade with Saudi companies. They believe that Saudi authorities are blocking made in Turkey goods from entering the country. Key business associations in Turkey, including TİM (an exporters' assembly) and YASED (a global investors association), highlighted the effects of the deteriorating relationship and alleged trade block in a letter stating, "global logistics companies have been warning their customers about the obstacles that Turkish companies face in Saudi Arabia, that they should be prepared for long waiting times at Saudi customs for goods arriving from Turkey and that imports from Turkey might even be blocked. Thus, this issue has gone beyond bilateral economic relations and become a problem for global supply chains." 

Meanwhile, an unofficial Saudi trade boycott prompted by the head of Saudi Arabia’s Chambers of Commerce has also led to the closing of Turkish schools. Eight of them were closed in 2020, as Turkish Ministry of Education officials struggled to keep the schools open and overcome Saudi bureaucratic obstacles.

Benefit from Export Portal

Export Portal works to provide a platform where our partners from different parts of the world can network, communicate, and do business together. Join us today to learn from our experts and boost your experience in international trade!