Learn about Qatari investments in the Turkish real estate sector

As is known, the relations between Turkey and Qatar are very close and strong at all levels, and Turkey has become the preferred choice for Qatari capitals and a major attraction for them in many sectors and fields, especially the economic sector. Turkey can attract many Qatari investments, especially real estate, and Turkey is the best destination for Qataris because of the laws and facilities it offers them that have contributed to the development of relations between them in a significant and striking way.

• The nature of relations between the two countries.

Ankara and Doha are working to increase the volume of trade exchange and mutual investments between them, especially since the number of economic, military, and cultural agreements signed between the two countries amounted to more than 62 agreements. The value of the currency exchange agreement between Turkey and Qatar increased from $5 billion to $15 billion in May 2020 This helped Turkey support its stock exchange and capital markets and ease the recent pressures caused by the depreciation of the Turkish lira, in addition to Qatar's pledge to invest $15 billion in Turkish markets.

• Qatar's investments in Turkey?

Qatar is the second-largest investor in Turkey, with direct investments amounting to $22 billion in 2019. Qatari investments in Turkey are distributed in the tourism, real estate, agricultural, and food industries sectors. Qatari businessmen are also active in the real estate sector in Turkey, where many of them prefer to invest in buying real estate. Lands and hotels in several Turkish states and there are about 200 Qatari companies in Turkey.

• The most important Qatari investments in Turkish real estate

Most notably, the partnership agreements between Qatar's Tanmiyat Holding Company and Sarvas International Real Estate Investment Company in Turkey.

In terms of real estate investments, they included private real estate that Qataris buy for the purpose of housing or real estate, tourism, or commercial investment.

Qatari real estate investment in Turkey included all types of real estate, including apartments - villas - palaces - land - restaurants.

The percentage of real estate in Turkey owned by Qataris increased by 175.

• Why are Qataris interested in buying palaces in Turkey?

Many Qataris turn their attention to owning palaces in Turkey for many reasons, the most important of which are:

• The historical significance of these palaces
• Its unique geographical location
• Unique engineering designs
• The price of the competing palaces is in Turkish lira, not in US dollars.
• The great competition among the wealthy of the Gulf over the purchase of palaces, especially in Istanbul.
• The legal facilities that Turkey provides in real estate ownership for Qataris, especially palaces.

• What is the size of Qatari investments in Turkey?

Official figures indicate that the volume of Qatari direct investments in Turkey amounted to $22 billion in 2019.

Press reports confirm that it is expected to increase, especially after the signing of new agreements in 2020 between the two countries. The agreements included a memorandum of purchase for a share of the “Istinye Park” commercial complex, a memorandum of understanding between the Qatar Investment Authority and “Halik Altun Company” for potential investment in the “Golden Horn Project” in Istanbul, and a memorandum of purchase of a share from the Istanbul Stock Exchange.

It also included a sale and purchase agreement for the port of "Ortadugo Antalya" between "Global Lehman" and "CuTerminals", and a memorandum of understanding between the Free Zones Authority and the Turkish Ministry of Trade.

• What is the reason for the increase in the percentage of Qatari investors in Turkey?

With the necessary facilities for investment, more Qatari investors want to invest in Turkey due to the following factors:

• Good legislation facilitated the process of Qatari investment in many areas within Turkey and Istanbul
• The activity of large Qatari tourists in Turkey, and therefore this requires an apartment or housing, and tourists often go to Turkey to learn about investment opportunities in it
• Increasing investment opportunities in Turkey due to encouraging government plans for investment
• Real estate in Turkey is priced in Turkish lira, and this allowed Qatari investors to buy real estate in Istanbul, which was offered for sale in foreign currencies such as dollars.

• What is the future of Turkish-Qatari relations?

Two countries are working to achieve the highest levels of economic integration by playing on the factor that Qatar is one of the largest exporters of natural gas in the world, while Turkey is one of its largest importers, which is of course reflected in the rest of the other economic sectors, especially since Turkey is today an important investment environment for official Qatari investments. And the private sector, at a time when Turkish companies find a great and special welcome from the Qatari government to invest in several sectors, especially the infrastructure sector.

Hence, we can discern that the relationship between Qatar and Turkey is heading towards a more strategic partnership at the bilateral, regional, and international levels, which contributes to the two countries' plans to reserve an advanced position in the global economy as a whole.