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- Cooperation between the UAE and Turkey in the field of energy is an important pillar of the MoUs.
- The memorandums of understanding reflect the joint commitment of the two countries to achieving energy security and sustainable economic growth.
- The MoUs highlight the strategic value of energy cooperation.
- Türkiye relies mainly on imports to cover its energy needs.
- The UAE is a major oil supplier and a pioneer in renewable energy projects.
Energy relations between the UAE and Turkey are heading towards a new turning point. President Recep Tayyip Erdogan’s visit to Abu Dhabi strengthened bilateral relations between the two countries, and resulted in important agreements worth $50 billion.
Cooperation in the field of energy – between Abu Dhabi and Ankara – has received clear interest, through the signing of several memorandums of understanding that formalize the partnership of the two countries in this vital sector.
The agreements, which represent the two countries’ commitment to a broad partnership, cover a variety of areas; Including defense, investment, technology, healthcare and tourism.
The recently signed Comprehensive Economic Partnership Agreement aims to increase bilateral trade between the UAE and Turkey to $40 billion over 5 years, as Turkey is an important trading partner for the Gulf state.
important collaboration
The signing of new memorandums of understanding regulating energy relations between the UAE and Turkey on July 19, 2023, during President Erdogan’s visit to the UAE, is very important for both countries and the region.
These agreements – with a total value of $50.7 billion – demonstrate the UAE’s interest in helping Turkey achieve its national goal of energy transition and promoting the diversification of its sources.
In addition, the memoranda of understanding regulating energy relations between the UAE and Turkey confirm the two countries’ joint commitment to achieving energy security and sustainable economic growth by focusing on renewable energy, green hydrogen, hydroelectric power, nuclear energy, and technology development.
The MoUs focus on the strategic value of energy cooperation and convey an unwavering commitment to mutual cooperation and win-win for both countries.
The memoranda of understanding regulating energy relations between the UAE and Turkey seek to improve their cooperation in oil and gas production, distribution and exploration. This guarantees the stability of energy supplies and the diversification of its sources for both countries.
The energy relations agreements between the UAE and Turkey focus on cooperation in projects that use renewable energy, encourage sustainable behaviors and exchange knowledge to move towards greener business models.
A stable power grid will be established, logistics efficiency will be improved, and energy security will be enhanced thanks to the focus on infrastructure improvement; Including pipelines and ports.
Both countries will benefit from the geopolitical and economic results of this $50 billion investment, which will help them achieve energy security and reduce their dependence on a single source of energy.
Collaboration challenges
Although the signing of memorandums of understanding on energy relations between the UAE and Turkey, worth $50.7 billion, during Erdogan’s visit to the Gulf country located on the Asian continent, represents an important step towards cooperation in the field of energy; A number of obstacles may arise in the way of its successful implementation in the long term.
– Geopolitical tensions: The geopolitical dynamics of the region in which the two countries are located are complex, and some global problems or local conflicts may take different directions; This may affect the smooth implementation of cooperation initiatives and the strengthening of energy relations between the UAE and Turkey.
Geopolitical turmoil may cause delays, uncertainties and even disruptions in energy projects. This may affect investments and energy security in general.
– regulatory and policy frameworks: The two countries have separate legal and regulatory systems that control the energy project. This may make it difficult to harmonize and coordinate their policies for effective cooperation.
The chart below – prepared by the specialized energy platform – monitors the volume of crude oil production in the UAE during the years from 2019 to 2023:
Various laws and regulations can lead to delays and increase operational complexity by creating bottlenecks in project approvals, authorizations, and compliance.
– Divergent energy strategies: Both the UAE and Turkey have their own energy programs and strategies.
Turkey relies mainly on imports to cover its energy needs, in contrast to the United Arab Emirates, which is a large oil supplier and a pioneer in renewable energy projects.
It will be difficult to align their agendas and create common ground so that their energy sectors can be successfully integrated, and this will require a lot of coordination and negotiation.
– Differences in technology and infrastructure: The technological capabilities and infrastructure needs of Turkey and the UAE may differ in the energy sector.
Cooperation in projects such as nuclear energy and green hydrogen may make it difficult to integrate different technologies and ensure compatibility. In order for cooperation to succeed, the development of infrastructure to support these advanced technologies must be funded.
– Economic considerations: Financial constraints and economic fluctuations in any country may have an impact on the way projects are financed and implemented, and the rate and size of investments may be affected by market fluctuations, currency exchange rates, and the availability of funds; This may affect the overall development of cooperation efforts and energy relations between the UAE and Turkey.
– environmental issues: Although a focus on green technology and renewable energy is desirable; Türkiye and the UAE should ensure that these initiatives are implemented in an environmentally sustainable manner.
Large-scale energy projects may require careful planning and investment in green solutions to comply with environmental regulations and mitigate potential environmental impacts.
An important step was taken to encourage investment in energy infrastructure in Turkey and to enhance energy security for both countries thanks to the recent signing of strategic agreements and memorandums of understanding between the UAE and Turkey, with a total value of $50.7 billion.
In light of this, the UAE, a major player in the energy industry, can make a significant contribution to Turkey’s ambitious national energy transition programmes, which require significant investment and knowledge.
Diversifying energy sources
On the other hand, it is expected that the energy relations between the UAE and Turkey will enhance the first’s assistance to the second in its efforts to diversify its energy sources and reduce its dependence on traditional fossil fuels, by focusing on renewable energy, green hydrogen, hydroelectric power, and cooperation in the field of nuclear energy.
In addition to aligning with international sustainability goals; This improves Turkey’s energy security by making it less vulnerable to supply disruptions and changes in energy market prices.
The joint exploration of the Turkish Petroleum Corporation and the UAE’s ADNOC for exploration, production and petrochemical projects has boosted the country’s energy sector.
The following infographic – prepared by the specialized energy platform – reflects the most prominent features of the energy transition plan in Turkey:
It should be noted that Turkey is a desirable investment opportunity for the UAE and other international players due to its strategic location at the intersection of Europe, Asia and the Middle East, as well as its expanding economy and increasing energy consumption.
Investing in exploration and production and petrochemical projects can help extract and process local resources, boost domestic electricity generation and potentially reduce dependence on imports. This will improve energy security in both countries and promote a more stable energy market in the region.
Deepening partnership and cooperation
Recent strategic agreements and memorandums of understanding to boost energy relations between the UAE and Turkey at a value of $50.7 billion show serious commitment to deepening the two countries’ partnership and cooperation in many industries, particularly energy.
The UAE’s financial support for Turkey’s ambitious national energy transition strategy is evident in its investments in Turkey’s energy projects, which range from nuclear cooperation to renewable energy.
This cooperation aims to improve Turkey’s energy infrastructure while enhancing energy security and long-term development in the country.
In addition, the agreements reached in the fields of military and space technology show that the cooperation of the two countries goes beyond the energy sector, and by promoting regional stability and protecting critical infrastructure, these agreements may have an indirect impact on energy security.
The focus on information exchange, technology transfer, and joint research and development initiatives is key to economic ties and innovation, and is beneficial to energy relations between the UAE and Turkey.
In general, the MoUs for energy relations between the UAE and Turkey reinforce the two countries’ shared commitment to cooperation and sustainable development, and make them key players in the changing global energy environment.
Strategic partnerships have laid the foundation for lasting bilateral cooperation in a variety of areas outside of energy while promoting economic growth and regional stability.
* Dr. Umud Shoukry, senior advisor on foreign policy and energy geopolitics, is the author of U.S. Energy Diplomacy in the Caspian Basin: Changing Trends Since 2001“.
*This article represents the opinion of the author, and does not necessarily reflect the opinion of the energy platform.
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