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The United Arab Emirates announced plans to establish a $10 billion fund to assist investments in Turkey as the two countries signed a slew of agreements on Wednesday during one of the largest meetings between the old Middle Eastern foes in years.
According to the UAE’s state-run WAM news agency, the fund will concentrate on strategic sectors such as energy, food, and healthcare. The United Arab Emirates, a small but powerful oil and business powerhouse in the Persian Gulf, and Turkey also signed accords for their wealth funds, stock exchanges, and central banks.
Sheikh Mohammed Bin Zayed Al Nahyan, the de facto ruler of the UAE, was received in Ankara by President Recep Tayyip Erdogan, who is facing currency market discord as he seeks lower interest rates and fading popularity ahead of the 2023 elections.
During the visit, the lira strengthened, signaling the clearest indication yet of efforts to mend tense relations that have influenced parts of the Middle East. At 7:18 p.m. in Istanbul, the currency was up 4.8 percent at 12.2380 per dollar, after falling as much as 15 percent the previous day.
The UAE has attempted to de-emphasize regional conflicts in order to focus attention on the economy. Its relations with Turkey had been affected due to Islamist groups’ role in the chaos that followed the Arab Spring uprisings in 2011.
In addition to supporting opposing sides in Libya’s conflict, the two countries have clashed on other issues such as gas exploration in the Eastern Mediterranean.
