Viewpoint: Gulf states hold key to Turkey’s grand vision

By Georges Elhedery and Selim Kervanci

Middle East countries in a position to help out Ankara

Turkey has a $350bn investment list. On top of the list, is a new airport in Istanbul, at an estimated $9bn, and $106bn to upgrade the Turkish electricity sector

Ankara, however, has comparatively little in the way of domestic resources to fund these ambitions by 2023, the 100th anniversary of the modern Turkish Republic.

But there is an abundant source of funds close to home in the form of the assets held by the Gulf states.

These countries’ cumulative current account surpluses over the past few years (2000-2012) reached $1,800bn. There are of course many calls on these funds but in Riyadh, Doha, Kuwait City and Abu Dhabi there are ample pools of assets looking for a profitable home.

Infrastructure is one of the sectors targeted by the sovereign wealth funds. In the case of Turkey, they generally see added benefits of being able to benefit from growth and potential credit re-rating.

via Viewpoint: Gulf states hold key to Turkey’s grand vision – FT.com.