EU-like community between Turks, Arabs becoming a reality

Foreign Minister Ahmet Davutoğlu said on Thursday, the first day of the Fifth Turkish-Arab Forum in İstanbul, that Turkey aims to create a free trade zone without visa restrictions with Syria, Lebanon and Jordan. “We eventually want a vehicle to be able to leave Turkey and reach Morocco without stopping at any border gates,” said the minister.

The issue was at the top of the agenda on the second day of the forum. Turkey’s Finance Minister Mehmet Şimşek said, answering questions at the closing session of the two-day forum, that only free trade that will trigger the development of the region.

“In free trade agreements, the transition periods really matter, because one country is surely more developed than the others,” he said. The trade volume between Arab nations is only a small fraction of total global trade, Şimşek said and remarked: “Deepening regional integration is the path that we must take. If you can balance your rules with each other, if you can ensure the free movement of persons, goods and services, your trade will of course increase. This region needs more stability, peace and prosperity.”

Answering a question on whether the Arab-Turk Economic Forum was a search for an alternative to Turkey’s weakening economic relations with Israel, Şimşek said the forum should be perceived as an important event on the grounds that it offers an important platform for gathering Arab and Turkish entrepreneurs together. These relations existed long before the problems with Israel erupted, he noted. Şimşek went on: “There are countries with excess capital in this region. This capital may float to international funds and state bonds or, alternatively, to joint projects in the region.”

He also responded to the claims that Turkey is turning its back on Europe and shifting its axis more towards the Middle East. “This is not true. For decades, Turkey neglected its neighbors. This was a flawed policy. You don’t need to turn your back on someone to improve your relations with others. We need to have a regional perspective, too. Regional security and prosperity is an extremely important target for us all. We all benefit from this and we sustain damage in its absence.”

Central Bank of Lebanon Third Vice-Governor Muhammad Baasiri underlined in his speech the necessity of strengthening interregional cooperation in the financial sector by opening branches and striking strategic partnerships as a means to increase cooperation between Turkey and the Arab world.

“Turkish banks must open branches in Arab countries and Arab banks must enter the Turkish market,” he said.

The banks should be more involved in supporting joint projects between Turks and Arabs, which have grown in certain sectors such as electricity, natural gas and highway construction, Baasiri asserted, adding that the central banks of countries in the region may provide special incentives to encourage more engagement of the banks in building up cooperation.

The Lebanese central banker explained his remarks, saying: “I suggest regular cooperation between the bankers. For instance, banking regulations in Turkey are in compliance with the bylaws in Lebanon, Syria and Jordan. Diagnosing any conflicting points, gathering periodically every three or six months and increasing interregional banking applications are of the utmost importance. Besides, the private sector’s acting in collaboration with us also carries a big weight.”

He also underlined the significance of mutual training activities and the establishment of special teams to foster cooperation in the banking area with the participation of the public and private sectors in all involving countries.

Meanwhile, Syrian Finance Minister Mohammad al-Hussein said his government and Turkey’s state-run Ziraat Bank, the country’s biggest lender, may meet in two weeks to continue discussions on setting up a lender in Syria. Ziraat’s stake in the venture will be up to 60 percent, while the Syrian stake will be 40 percent, Hussein said.

Privatization Administration (ÖİB) Deputy President Ahmet Aksu also delivered a speech to provide information about Turkey’s privatization strategy and its upcoming tenders. “We know the Arab investors quite well. The largest-ever privatization tender in Turkey was won by an Arab company. We would be extremely glad to see the participation of Arab companies in our upcoming tenders. I invite you to join Turkey’s promising future,” he said.