Qatar to purchase stake in Istanbul inventory trade

0
87

Qatar has agreed to purchase a stake in Istanbul’s inventory trade in one in all a number of offers that reaffirm the rich Gulf nation’s standing as one in all Ankara’s most vital monetary backers at a time when Turkey’s financial system is underneath pressure.

Sheikh Tamim bin Hamad al-Khalifa, Qatar’s emir, used a go to to Ankara on Thursday to announce that the Qatar Funding Authority, the nation’s sovereign wealth fund, would purchase a ten per cent share in Borsa Istanbul from Turkey’s personal wealth fund for an undisclosed sum.

The QIA additionally agreed to purchase a stake in a luxurious Istanbul procuring centre from the troubled Turkish conglomerate Dogus Holding. Dogus, which has been compelled to restructure loans price billions of {dollars} and promote belongings after a pointy drop within the worth of the Turkish lira lately, will obtain round $300m for the 30 per cent stake, in keeping with Bloomberg.

Though the worth of the offers is comparatively small, they provide a lift to Turkey at a time when the nation is affected by dwindling overseas direct funding. FDI fell to $5.6bn final 12 months, its lowest stage in 15 years, round 10 per cent of which got here from Qatar.

Writing on Twitter, Sheikh Tamim stated the agreements would consolidate the “rising partnership” between Qatar and Turkey. Recep Tayyip Erdogan, Turkish president, stated the 2 nations would proceed to strengthen their “unbreakable” bond.

Sheikh Tamim and Mr Erdogan have solid a detailed friendship lately.

Ankara despatched navy help to Qatar in 2017 in a present of help after its Gulf neighbours imposed a punishing air, land and sea blockade on the emirate. Doha has returned the favour a number of occasions, coming to the rescue of Turkey at occasions of economic pressure. 

In 2018, within the midst of a extreme forex disaster, Doha promised to take a position $15bn in Turkey. Whereas little direct funding has materialised, the announcement was considered as an vital present of help, and Qatar additionally bolstered Turkey’s dwindling overseas forex reserves by way of a swap settlement price $5bn.

This 12 months, as a contemporary slide within the lira and the fallout from the coronavirus pandemic positioned renewed stress on Turkey’s $750bn financial system, Doha expanded its support for the central financial institution’s coffers to $15bn.

The alliance between Qatar and Turkey has strengthened as regional rivalries have escalated, with Doha and Ankara within the opposing camp to the UAE and Saudi Arabia.

Thursday’s agreements additionally included commitments to extend co-operation between a number of of the 2 nations’ ministries and a deal to purchase a Turkish port.

QTerminals, a partly state-owned Qatari port operator, signed a $140m deal to purchase a terminal in Turkey’s Mediterranean province of Antalya from International Ports Holding, which is part-listed on the London Inventory Change.