Last Updated on 09/06/2023
This week, Saudi Aramco met with several Turkish construction companies to discuss a $50 billion collaboration in possible projects in the Gulf kingdom. it highlights the strengthening trade ties between the two countries after they put a diplomatic feud behind them.
What is Saudi Aramco?
Saudi Aramco is the biggest oil producer in the world. The corporation, which is formally Saudi Arabian Oil Corporation, is situated in Dhahran, Saudi Arabia. It belongs mostly to the government. Besides, it surpasses even tech behemoths like Apple (AAPL) and Alphabet’s Google (GOOGL) in terms of profitability.
In April 2019, financial information about the long-secretive business was official by credit rating agencies. ıt was right before Saudi Aramco’s first international bond sale, which garnered $12 billion,
Previously, Saudi Crown Prince Mohammed bin Salman announced intentions to list 5% at a valuation of over $2 trillion in what became the largest initial public offering (IPO). Thus, Saudi Aramco started gaining more investor interest including many Turkish construction companies.
Aramco seeks Turkish Contractors for building projects
This week, Saudi Aramco met with a large group of Turkish construction companies to explore potential projects worth $50 billion in the Gulf state.
In workshops held in the Turkish capital Ankara on Tuesday and Wednesday, executives from about 80 building companies met with representatives of the state-controlled oil company. Ithas the aim to pre-qualify them for projects to begin in 2025, according to Erdal Eren, head of the Turkish Contractors Association.
As many Turkish contractors as feasible should involve in Aramco’s initiatives, according to Eren. “They are preparing to invest $50 billion in the construction of refineries, pipelines, management buildings, and other infrastructure.”
He added that the two sides would meet once more shortly in Saudi Arabia. The corporation, which is the third-most valuable in the world after Apple and Microsoft, would soon compile a list of contractors who are eligible to compete in bidding for the projects.
Importance of Turkish Construction Companies
The Turkish construction industry expanded significantly in recent years, becoming popular on a global scale. The industry grew to become one of the most respected entities in the industry. Even though the most profitable portion of the business is actually foreign construction projects rather than domestic activities. It also grew to be a significant part of Turkey’s economy.
Turkish construction companies demonstrated a talent for employing innovative ADR techniques to prevent disputes, settle them, and lessen their effects in the future. The resolution of disputes in the construction industry appears by the genuine potential that a contractor would jeopardize its chances of acquiring future employment. Turkish construction companies will therefore continue to need a practical approach to conflict resolution. In fact, they they deal with regional upheaval and an unclear future in Russia, one of the key international markets for local business.
Connect with our experts for further details about the Turkish construction sector.
Turkey-Saudi trade relations are improving
In June of last year, Erdogan and Saudi Crown Prince Mohammed Bin Salman decided to strengthen their defense and commercial ties.
Moreover, earlier this year, Turkey and Saudi Arabia discussed and inked agreements in several sectors that serve as a benchmark for how much their bilateral relations have improved following years of hostility.
The agreements were made within the Saudi-Turkish Business Forum in Riyadh, which was attended by prominent figures and over 450 businesses from both countries including leading Turkish Construction companies.
“With a high level of participation, we were able to realize this fair, which had been one of the objectives of the road plan we created last year for enhancing our bilateral trade relations”, The Turkish trade minister then affirmed to focus on the two countries’ improvement of their communication and ties.
Moreover, Majid bin Abdullah Al Qasabi, the Saudi trade minister, stated during his speech at the event that the forum will help open up new chances for commercial collaboration between The two countries.
