Over the past five years, the economic relations between Turkey and Kazakhstan have evolved significantly, characterized by deepening strategic partnerships and increased trade volumes. This article explores the multifaceted economic ties between these two nations, highlighting key areas of cooperation, investment trends, and future prospects.
Historical Context and Diplomatic Foundations
The diplomatic relationship between Turkey and Kazakhstan dates back to the early 1990s, with Turkey being the first country to recognize Kazakhstan's independence on December 16, 1991. This foundational act set the stage for a robust and enduring partnership built on shared historical, cultural, and linguistic ties. Over the past three decades, both nations have worked to institutionalize their relations through numerous agreements and high-level visits, which have provided a solid framework for economic cooperation.
Bilateral Trade Dynamics
Trade between Turkey and Kazakhstan has seen a remarkable increase in recent years. In 2022, Kazakhstan exported goods worth $5.01 billion to Turkey, primarily consisting of crude petroleum, refined copper, and refined petroleum. This marked a significant growth from $80.7 million in 1995, reflecting an annualized increase of 16.5%. Conversely, Turkey's exports to Kazakhstan in 2022 amounted to $1.67 billion, with key exports including packaged medicaments, cars, and hand-woven rugs. Over the past 27 years, Turkey's exports to Kazakhstan have grown at an annualized rate of 9.35%, from $150 million in 1995.
Strategic Partnership and High-Level Engagements
The relationship between Turkey and Kazakhstan was elevated to an "enhanced strategic partnership" in recent years, marked by the signing of a joint declaration during President Kassym-Jomart Tokayev's visit to Turkey in 2022. This agreement underscored the commitment to expand cooperation across various sectors, including politics, military, defense, security, economy, trade, investment, and tourism.
During this visit, both nations emphasized their goal of increasing bilateral trade to $10 billion. High-level meetings have been pivotal in driving this agenda forward, with Turkish President Recep Tayyip Erdoğan expressing strong support for Kazakhstan's political and economic reforms. Erdoğan's support was evident in his praise for President Tokayev's efforts to modernize Kazakhstan's economy and improve the investment climate.
Investment and Business Cooperation
Turkey is a significant investor in Kazakhstan, with Turkish companies investing more than $4.2 billion over the past 16 years. The presence of nearly 4,000 Turkish companies in Kazakhstan, including major players like Yildirim Group and Tiryaki Holding, highlights the depth of this economic partnership. Notably, Turkish businesses have implemented 61 major projects worth over $2 billion, with an additional 25 projects valued at more than $2.5 billion currently underway.
One of the landmark projects includes the joint production of the Anka unmanned aerial vehicle (UAV) in Kazakhstan, the first such production base outside Turkey. This project, along with other ventures in manufacturing, agriculture, healthcare, and tourism, illustrates the strategic areas where both nations are focusing their collaborative efforts.
Author of the article: Deniz Alkan/AITU
Additionally:
Экономические отношения между Турцией и Казахстаном: инвестиции и перспективы