Saudi Arabia deposits $5 billion in Turkey's central bank

[AA_]

The biggest enemy of Pakistan are the completely useless, visionless, corrupt, incompetent, addicted to nepotism, ignorant etc. "Pakistani elites". Here I include the neutrals, our useless political mafia dynasties and most political parties (PTI and IK was a fresh breathe of new winds emerging in Pakistan, even though IK and PTI were not perfect or without faults naturally, many faults were committed, but look at how that has ended so far - albeit luckily the jin is out of the bottle), ignorant "Islamic" scholars etc.

Look at where they have taken Pakistan. The country is probably the biggest disappointment in the world compared to the potential since 1948.

Arabs know that investing/giving more handouts to the neutrals, is throwing money away once again.

Arabs have been giving/donating/loaning billions to Pakistan since 1948. The West/USA as well. China as well. Where has most of that money gone to? Gated communities, private hospitals, schools, golf courses etc. in FC Faujistan and GHQ in Pindi?

Call me crazy, I have no evidence on my claim, but I would not be surprised if most of the private progress in wealth, private infrastructure (housing), much of the private consumption etc. is the result of Pakistani remittances from abroad (West and Arab states)........and a minority of smart Pakistanis with business acumen but even those people need to operate in a nest of corruption and nepotism that is Pakistan.

No need to mention the ridiculous bureaucracy in Pakistan, everything takes ages to fix. In KSA almost everything is done online nowadays (if not everything) and takes at most a few days and usually is fixed within 24 hours. Same things in Pakistan takes weeks if not months. It is beyond ridiculous.

You’re not wrong. But don’t simp hard for the Arabs for tomorrow they can pass a law to send many Pakistanis back. Pakistan need a draconian leader to fixed its issues.

I was telling my Gora friend about this when he simping for the Arabs. They were fortunate to have large oil reserves, small population - homogeneous religiously and socially, and smart enough not to shit where they eat, unlike us. I get and support the hostility with India, but to cut off Afghanistan and Iran via official trade? That’s nuts.

The west cleverly integrated its economies so less friction of war and someone doing their own thing. We OTH have issues with all of our neighbors, like a lost puppy dependent on others far away to assist/help us.

 

[Corruptistan]

You’re not wrong. But don’t simp hard for the Arabs for tomorrow they can pass a law to send many Pakistanis back. Pakistan need a draconian leader to fixed its issues.

I was telling my Gora friend about this when he simping for the Arabs. They were fortunate to have large oil reserves, small population - homogeneous religiously and socially, and smart enough not to shit where they eat, unlike us. I get and support the hostility with India, but to cut off Afghanistan and Iran via official trade? That’s nuts.

The west cleverly integrated its economies so less friction of war and someone doing their own thing. We OTH have issues with all of our neighbors, like a lost puppy dependent on others far away to assist/help us.

On the contrary I expect KSA under MbS to eventually give Saudi Arabian citizenship to foreigners, whether fellow Arabs or non-Arabs. It makes sense given the other social and economic developments within KSA and also makes the most sense economically. Most of those people born and breed in KSA/GCC states are more attached to local culture anyway. Or at the least they have feet in both cultures. I know this from myself.

Many don't know this but KSA is already one of the most diverse nations on the planet. You have communities from every Muslim country from Bosnia to Indonesia to Nigeria to Uzbekistan that are now Saudi Arabian citizens due to Hajj, Umrah and KSA/Arabia being a refugee for Muslims for centuries. Pakistani ethnic groups as well.

Of course I suspect that mostly highly educated/people willing to integrate fully/adopt Arabic/relinquish their original passport will be given citizenship. Anyway I think that it is inevitable. Look no further than the West. GCC Arabs don't have demographic problems with growing populations and next door Arab countries booming demographically, but eventually they could have such problems.

Also my idea of MbS is that he wants KSA to turn into a "Muslim USA" in the sense of attracting Muslim minds from across the entire Muslim world. Hence all the social, economic, religious etc. changes.

Well, I am specifically talking about the GCC here. Rest of the Arab world has many of the same problems like Pakistan (even though they are better off than the vast majority of Muslim majority countries overall), even the other resource rich Arab nations (non-GCC states).

The main point here is that Pakistan is the story of incompetent elites and wasted potential. That and Turkey being the more natural choice to invest in for Arabs than Pakistan of today. As I wrote in post 5.

 

[SQ8]

I wonder what Shahbaz Sharif's face looked like when he was told $ 5 billion was deposited, and you've not gotten a single penny.

Technically, it should be the face of every Pakistani because it was for Pakistan. They were just told you are no longer a worthwhile investment for ANY reason.

 

[AA_]

On the contrary I expect KSA under MbS to eventually give Saudi Arabian citizenship to foreigners, whether fellow Arabs or non-Arabs. It makes sense given the other social and economic developments within KSA and also makes the most sense economically. Most of those people born and breed in KSA/GCC states are more attached to local culture anyway. Or at the least they have feet in both cultures. I know this from myself.

Many don't know this but KSA is already one of the most diverse nations on the planet. You have communities from every Muslim country from Bosnia to Indonesia to Nigeria to Uzbekistan that are now Saudi Arabian citizens due to Hajj, Umrah and KSA/Arabia being a refugee for Muslims for centuries. Pakistani ethnic groups as well.

Of course I suspect that mostly highly educated/people willing to integrate fully/adopt Arabic/relinquish their original passport will be given citizenship. Anyway I think that it is inevitable. Look no further than the West. GCC Arabs don't have demographic problems with growing populations and next door Arab countries booming demographically, but eventually they could have such problems.

Also my idea of MbS is that he wants KSA to turn into a "Muslim USA" in the sense of attracting Muslim minds from across the entire Muslim world. Hence all the social, economic, religious etc. changes.

Well, I am specifically talking about the GCC here. Rest of the Arab world has many of the same problems like Pakistan (even though they are better off than the vast majority of Muslim majority countries overall), even the other resource rich Arab nations (non-GCC states).

The main point here is that Pakistan is the story of incompetent elites and wasted potential. That and Turkey being the more natural choice to invest in for Arabs than Pakistan of today. As I wrote in post 5.

I’m trying to move there - to the Gulf. I’m in the US and looking for something in my field. The U.S. is a spend force culturally and socially. I love when cultures take the best of both East and west. MBS is right in this regard. He made a lot of enemies within the CIA.m because he did what IK couldn’t do - lock up all the mofos on uncle Sam’s payroll, and extract their money sitting in western banks

 

[SaadH]

Technically, it should be the face of every Pakistani because it was for Pakistan. They were just told you are no longer a worthwhile investment for ANY reason.

Elites' especially neutrals' screw ups for the past 70 years cannot be pinned on common folk. They are incapable of improving their lot and have been this way for at least a couple of millennia. But the elites had the capability and wherewithal to improve matters and they only used it to destroy the country.

I’m trying to move there - to the Gulf. I’m in the US and looking for something in my field. The U.S. is a spend force culturally and socially. I love when cultures take the best of both East and west. MBS is right in this regard. He made a lot of enemies within the CIA.m because he did what IK couldn’t do - lock up all the mofos on uncle Sam’s payroll, and extract their money sitting in western banks

That's because MBS has absolute power in Saudi whereas absolute power in Pakistan lies with CIA agents AKA neutrals AKA colonial sepoys. As it is one of the biggest pain points for Mir Bajwa and company was the POS tax that IK had imposed on retailers and this was one of the ways Mir Bajwa accused IK of destroying the country.

 

[Azadkashmir]

Dude, you need to take your medicine regularly. To you not insulting Arabs 24/7 is "worship". What is your problem if most Pakistanis have a positive/cordial view of Arabs? Arabs have hosted millions of Pakistanis for decades, helped Pakistan in every way (since 1948) and overall not hurt Pakistan or Pakistanis. Not going to talk about the ancient historical ties since IVC, religious, cultural, linguistic, people to people etc Prefer Arabs over your bharat and gora "masters" every day of the week. I am talking about the average people here, not regimes.

Saudi Arabia pumps $5bn into Turkish economy​

SPECIAL

A man leaves the Central Bank of the Republic of Turkiye (CBRT) headquarters, Ankara, Turkiye, Apr. 19, 2015. (Reuters)

MENEKSE TOKYAY
March 06, 2023 23:59

• The deposit will provide a major boost to the Turkish economy – struggling in the wake of February’s devastating earthquakes and rising inflation
• Ankara has been working to consolidate its economic and business ties with the Gulf region by securing foreign currency inflows

ANKARA: Saudi Arabia and Turkiye on Monday concluded a long-awaited agreement for the Kingdom to invest $5 billion in the central bank in Ankara.

The deposit will provide a major boost to the Turkish economy – struggling in the wake of February’s devastating earthquakes and rising inflation – ahead of the parliamentary and presidential elections on May 14.

The Saudi Fund for Development said the deal was “not only the proof of close cooperation and historical ties between the two countries and its brotherly people, but also a demonstration of the commitment of the Kingdom of Saudi Arabia to support Turkiye’s efforts to strengthen its economy.”

Ankara has been working to consolidate its economic and business ties with the Gulf region, including the UAE and Saudi Arabia, by securing foreign currency inflows.

Enver Erkan, an economist from Dinamik Yatirim, in Istanbul, told Arab News: “The $5 billion deposit to be invested in the CBRT is expected to critically contribute to the Turkish economy in recovering financial damages after the earthquake and in preparing for the approaching parliamentary and presidential elections.”

Initial estimates put the cost of quake damage in Turkiye at around $34 billion – approximately 4 percent of its annual economic output. The Turkish Enterprise and Business Confederation has calculated the figure to be $84.1 billion, mainly in relation to the housing sector.

“Since Turkiye’s current account deficit will probably be in the range of $30 billion to $40 billion this year, financing resources are of critical importance. The reconstruction efforts in the earthquake-hit region of the country will also require financial backing for financing the economic damage and keeping the exchange rate stable in this period,” Erkan said.

The Turkish lira lost 30 percent of its value against the dollar last year and the country has faced a serious shortage of foreign currency reserves for the last five years.

The nation was also hit hard by soaring energy prices after Russia’s invasion of Ukraine, due to being heavily dependent on imports. The depreciation of the Turkish lira coupled with ongoing high inflation rates has hit living costs in the country.

Robert Mogielnicki, senior resident scholar at the Arab Gulf States Institute in Washington, told Arab News: “Saudi Arabia has been shoring up relations with regional actors for some time now – it’s not surprising that Turkiye is now in focus. Saudi Arabia is willing to throw some of its financial largesse around the region to secure a regional leadership status.

“Yet this economic support comes at a time when Turkiye is the much weaker partner and in desperate need of assistance. To the degree that this may be the beginning of better relations, these new ties will be determined largely on Saudi terms,” he said.

On March 3, Turkiye and the UAE signed a comprehensive economic partnership agreement to cut 93 percent of tariffs on non-oil trade and increase bilateral trade from $19 billion to $40 billion in the next five years. The deal with the UAE is expected to be ratified in the second quarter of this year.

Timothy Ash, a London-based emerging markets strategist at BlueBay Asset Management, said foreign exchange deposits at the CBRT would not have much impact in terms of earthquake support, but would help toward supporting Turkiye’s currency and political stability.

“I think there are much more direct and effective ways to provide earthquake relief with the money,” he added.

Ash pointed out that the latest financial deal would assist the CBRT to support the lira while providing a sense of stability in the run up to elections, thereby helping Turkish President Recep Tayyip Erdogan secure another term in office.

Saudi Arabia pumps $5bn into Turkish economy

ANKARA: Saudi Arabia and Turkiye on Monday concluded a long-awaited agreement for the Kingdom to invest $5 billion in the central bank in Ankara. The deposit will provide a major boost to the Turkish economy – struggling in the wake of February’s devastating earthquakes and rising inflation –...

www.arabnews.com

audi Arabia deposits $5 billion in Türkiye’s central bank​

BY DAILY SABAH WITH AGENCIES​

ISTANBUL MAR 06, 2023 - 3:19 PM GMT+3


Saudi Arabia's Tourism Minister and Chair of the Saudi Fund for Development (SFD) Ahmed Aqeel Al Khateeb (L) and Central Bank of the Republic of Türkiye (CBRT) Governor Şahap Kavcıoğlu meet in Ankara, Türkiye, March 6, 2023. (Courtesy of SFD)

Saudi Arabia on Monday announced it had signed an agreement with Türkiye to deposit $5 billion (TL 94.57 billion) in the country’s central bank, in a significant boost as the economy grapples with inflation emerging from last month’s massive earthquakes ahead of presidential elections.

The kingdom described the move as “a testament to the close cooperation and historical ties between the Kingdom of Saudi Arabia and the Republic of Türkiye and its brotherly people.”






It also marks “a demonstration of the Kingdom of Saudi Arabia’s commitment to supporting Türkiye’s efforts to strengthen its economy and to promote social growth and sustainable development,” the Saudi Fund for Development (SFD) said in a statement.

Saudi Minister of Finance Mohammed bin Abdullah Al-Jadaan announced his country’s intention to deposit in December.






The statement offered no details on how the cash would be used or if the kingdom could call for the sum to be returned. However, such deposits can help firm up exchange rates for a nation’s currency against other currencies internationally.

Türkiye’s net foreign exchange reserves rebounded from over $6 billion last summer, when it was at its lowest in at least 20 years, while they have declined some $8.5 billion since devastating earthquakes hit the country’s southern region early in February, killing more than 45,000 people and leaving millions homeless.

The Central Bank of the Republic of Türkiye’s (CBRT) net international reserves fell some $1.4 billion to $20.2 billion in the week of Feb. 24, data from the monetary authority showed on Thursday.

The deposit will shore up Türkiye’s foreign reserve and is likely to help further firm up the Turkish lira. The currency depreciated 30% against the U.S. dollar last year and 44% in 2021.






The decision, which is also expected to help Türkiye combat inflation, was made on the order of King Salman and Crown Prince Mohammed bin Salman (MBS), the statement said.

“The deposit will bolster the Turkish economy by addressing economic aspects across various sectors. By making this deposit, the Kingdom of Saudi Arabia is expressing its strong support for the Turkish people and its confidence in the future of the Turkish economy,” it noted.

The Saudi deposit follows joint efforts by Ankara and Riyadh to mend ties following years of tension, which escalated significantly after the 2018 murder of dissident Saudi journalist Jamal Khashoggi in Saudi Arabia’s Istanbul Consulate.

President Recep Tayyip Erdoğan’s visit to Saudi Arabia in April last year marked the first high-level visit in years. His trip was followed by MBS’s trip to Türkiye in June.

The two leaders also met in November on the sidelines of the G-20 summit in Bali, Indonesia.

The deposit was signed between SFD Chairperson Ahmed Aqeel Al Khateeb, who is also Saudi Arabia’s tourism minister, and CBRT head Şahap Kavcıoğlu, the SFD statement said.

Türkiye has been struggling with high inflation, which has been in a downward trend and fell to 55.18% in February, marking a fourth straight month of slowdown and the lowest level in a year.

Heading into presidential and parliamentary elections, scheduled for May 14, Erdoğan has pledged to ramp up spending in a swift campaign to rebuild the regions flatted by the February quakes within a year.

Close to 204,000 buildings collapsed or were severely damaged, leaving hundreds of thousands homeless.

According to the World Bank, the quakes and their aftershocks caused an estimated $34 billion in damage. The estimate does not include the eventual costs of reconstruction that are “potentially twice as large,” the Washington-based institution said.

Saudi Arabia deposits $5 billion in Türkiyeâs central bank

Saudi Arabia on Monday announced it had signed an agreement with Türkiye to deposit $5 billion (TL 94.57 billion) in the countryâs central bank, in a...

www.dailysabah.com

plz bro stop sucking them off they are not paying your bills. they are ciminals put there to stop true khalifat system. they overthrow a legitimate leader like gaddafi who did everything for his ppl and was blocking the dollar by siwtching to gold dinar. they are gatekeepers for the west and that is to control resources and make sure it flows to west's benefit.

 

[VCheng]

I wonder what Shahbaz Sharif's face looked like when he was told $ 5 billion was deposited, and you've not gotten a single penny.

 

[SQ8]

Elites' especially neutrals' screw ups for the past 70 years cannot be pinned on common folk. They are incapable of improving their lot and have been this way for at least a couple of millennia. But the elites had the capability and wherewithal to improve matters and they only used it to destroy the country.


That's because MBS has absolute power in Saudi whereas absolute power in Pakistan lies with CIA agents AKA neutrals AKA colonial sepoys. As it is one of the biggest pain points for Mir Bajwa and company was the POS tax that IK had imposed on retailers and this was one of the ways Mir Bajwa accused IK of destroying the country.

Why not? If you didn’t object then you are complicit. If you objected and were jailed or killed - at least you tried .

 

[Dalit]

I mean, you are a foreign investor, who are you going to pick, a notoriously self-imploding/self-harming country led by an utterly incompetent "elite" that is begging for handouts for the 1 billionth time (Pakistan) or Turkey even though Erdogan has made his fair share of mistakes? With all due respect, Turkey and Pakistan are not on the same wavelength economically and in terms of being an reliable investor destination, sadly. There is also geography at play here, Arabs and Turks are direct neighbors and have a long shared history. They cannot ignore each other.

Same thing could be said about Pakistan to be fair from the perspective of the GCC (Arabian Sea being the sole "border") but the Arabs have learned it the hard way that investing/funding the neutrals in Pakistan, is basically throwing your money away.

Not the case with Turkey though.

Money talks essentially.



The US are not going anywhere. Forget oil and gas and mineral resources here. The strategic location of the Arab world is enough for a superpower to want to have a permanent presence or at least a political/economic etc. presence. We have been hearing about this for decades but the Americans are still very much involved. You can add the UK and France here as well.

‘Saudi-US relationship is a Catholic marriage,’ says Wall street banker and former White House official Anthony Scaramucci

DUBAI: The American financier and entrepreneur Anthony Scaramucci has reiterated that he considers the US-Saudi relationship a “Catholic marriage” in the latest episode of “Frankly Speaking,” the weekly current-affairs talk show of Arab News that engages with leading policymakers and business...

www.arabnews.com

But yes, the regional powers in the region will have to learn to live in peace irrespective of USA, China, Russia etc. and other external powers.

As for KSA-Iran relations, there is a lot of work on this front before genuine trust can be established but naturally both countries are shooting themselves by not working together and benefiting from mutually benefiting relations. They are both losing 10's of billions of dollars on an annual basis if not more if you include the Iranian support for proxies in the region.

We will have to see but I see a clear trend of rapprochement in the region. This is one of many such steps.

Relations nowadays evolve around money first and foremost.

Ever wondered why China-USA are the biggest trade partners on the planet despite all the rivalry and political hostilities? Actually this relationship is a good case study of financial interests (so far) triumphing geopolitical ones. Taiwan might change that though.

BTW it looks like the GCC (just Qatar, KSA and UAE alone) has deposited roughly 20 billion USD into Turkey.

The Turks are politically and otherwise exponentially more mature than Pakistan. GCC countries have quite a few investments in Turkey.

 

[Corruptistan]

The Turks are politically and otherwise exponentially more mature than Pakistan. GCC countries have quite a few investments in Turkey.

I know, the Arabs have bought a lot of Turkish assets as well as tons of housing/land/firms etc. fully or partially. Much like in the UK and the West as a whole. Many parts of the East, Africa etc. too. You would be surprised how much agricultural land they own in Africa and elsewhere. Even in the US.

You know when you have so much money that you don't know what to do with it, when small Qatar is willing to pay 6 billion USD for a freaking football club (Manchester United).

 

[Baburfromsarmarkand]

Jokes on him, reminds me of the guys who ditched Bitcoin in the early days. After 10 years when Bilawal is PM he will see Pakistan become a global power. And this "prince" will regret choosing a losing horse.

 

[Corruptistan]

Jokes on him, reminds me of the guys who ditched Bitcoin in the early days. After 10 years when Bilawal is PM he will see Pakistan become a global power. And this "prince" will regret choosing a losing horse.

Because investing in Turkey equals not investing in Pakistan or never investing in Pakistan? What kind of logic is that?

Have Arabs, in particular KSA, not been investing/giving/loaning 10's of billions of USD to Pakistan throughout the decades?

If you are 36 as stated, you must surely remember this era.

A Pakistan ruled by capable people would be able to attract investors from the entire world by itself just solely due to potential and nothing less would be needed (almost).

Even more funnier you thinking that the most useless and corrupt party PPP, with freaking Bilawal of all people, is the solution for Pakistan.

If Turkey is a losing horse, I would like to know what PPP, Bilawal and current day Pakistan is? More like a dead horse in comparison.

Unless you are joking, in such a case, ignore my post.

 

[PakFactor]

Technically, it should be the face of every Pakistani because it was for Pakistan. They were just told you are no longer a worthwhile investment for ANY reason.

A sad reality for a nation of 220 million people.

 

[INS_Vikrant]

I’m trying to move there - to the Gulf. I’m in the US and looking for something in my field. The U.S. is a spend force culturally and socially. I love when cultures take the best of both East and west.

If you are looking for that you should move to UAE, as Saudi Arabia is a lil bit extreme on conservative side. Although looking like it, things might change in near future.

 

[AA_]

If you are looking for that you should move to UAE, as Saudi Arabia is a lil bit extreme on conservative side. Although looking like it, things might change in near future.

thanks for the advice, but I prefer a conservative environment, and it’s either Saudi or Qatar for me.
And I don’t think Saudi will drastically change like that so fast. I’ve spend extensive time in the region and understand them at their intimate, personal level.
Don’t make the mistake of watching few photos/videos online and thinking that behavior represents the full society.
Those women protest in Iran only compromise like .02% of the Iranian population, same as the aurat movement in Pakistan. Just fyi