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Can Turkey Resist Saudi Arabia and the UAE economically? – Dr. Sa’ad Al-Faqih

TRANSCRIPT:

[Dr. Sa’ad Al-Faqih] A question in the same context: Is Turkey capable of resisting Saudi Arabia and the UAE economically? [Answer] What is it that Saudi Arabia and the UAE have so that they can cause any trouble for Turkey? They tried, by buying a bank, and that’s it, and this can’t be done repeatedly. You can’t buy a bank everyday. Buying a bank is extremely costly. You buy a bank just so you can buy the (Turkish) Lira, and then you suddenly sell the Lira. That’s extremely costly.

On the contrary, this has blown back in Saudi Arabia and UAE’s faces. No. The Turkish economy is a comprehensive one, with manufacturing and a complete cycle. There’s industrial, agricultural and services production. There’s technology as well as heavy industries, and a comprehensive infrastructure. This is what differentiates Turkey, like the other advanced nations which have comprehensive and self-reliant economies. Even if the value of the Lira goes down, it benefits from the lower value of the Lira by expanding exports, i.e., its exports would be cheaper for foreign markets, and tourism would be cheaper domestically. It will attract more tourists, and it will attract more importers of its goods. Yes, it will be affected, in terms of the goods that it imports, but it will balance out.

This is why I mentioned the example of the UK, where Brexit caused the pound to lose 1/5th of its value or more, 1/4th of its value, i.e. 25%. It wasn’t affected by that, because it has a comprehensive and self-reliant economy. Yes, the price of the products that are imported into the UK became higher, but the products that are exported were in a much better position. The production of exported goods experienced a boom because they gained a larger share of foreign markets.