We do not really need water pipeline , we have enough distillation plants for drinking water , but I am more concentrating on agriculture . You know gulf countries now invest in various farms around the world for food production .
For instance we have agreements with Egypt where he financed irrigating fields and developing the required agricultural infrastructure there in return we and egypt divide the food production where they export half the agriculture output to our countries.
Same can be done in Turkey , investing in Southearn Eastern Turkey in agriculture sector would employ thousands of kurds and help regions such as sirnak and hakkari , these regions have rich agriculture land and could produce high food output .
This is more of mutual benefit for both sides and I am sure the Gulf and Turkey will have a free trade agreement at some point in future , Just like how Turkey has free trade agreement with other Arab countries like Egypt, Jordan , Morroco , and tunisia .
Good you brought northern cyprus up , I am sure if Turkey asked Arab countries for recognizing north cyprus no one will object , After all we do not give a crap about greece.
North Cyprus could become a free trade zone and I am sure many would invest there once Turkey decides to end up the Cyprus unity talks .