An unofficial embargo imposed by Saudi on Turkish goods undermines Turkey’s exports to other Gulf and Arab countries. This becomes the latest feud since relationships between the two countries worsened after the murder of journalist Jamal Khashoggi inside the Consulate General of Saudi Arabia in Istanbul. Relationships deteriorated further after Turkey’s supported Qatar when other Gulf countries severed ties with the emirate and imposed a total blockade. Recently, Ankara criticized the US-brokered deals to normalize relationships between the UAE and Israel.
Data from the Turkish Exporters Assembly (Türkiye İhracatçılar Meclisi - TİM) showed Turkey’s exports to Saudi Arabia fell 16.1% in the first nine months of 2020. In the first eight months, Turkey’s exports also decreased to Gulf and other Arab countries such as Bahrain (-17.71%), the UAE (-16.9%), Morocco (-13.68%), Egypt (-11.89%), Jordan (-10.89%), Iraq (-7.29%), and Kuwait (-4.18%). The decrease was mostly attributed to the coronavirus pandemic, but TİM said a Saudi-led campaign to boycott Turkish goods led to lower exports to other Arab countries.
Ajlan Al Ajlan, the head of Saudi Arabia’s Chamber of Commerce, is said to be the one who launched the campaign, saying that every Saudi trader and customer has a responsibility to respond to Turkey’s hostility toward Saudi Arabia. Saudi state media reported that authorities have no restrictions in place on Turkish goods. However, Some supermarkets in Riyadh placed signs urging customers to avoid Turkish products. These supermarkets said they would no longer sell Turkish goods once the current stocks are sold off.
Merih Kepez, deputy secretary-general of the Foreign Economic Relations Board of Turkey (Dış Ekonomik İlişkiler Kurulu - DEIK), said that the ban on Turkish textile products could harm not only Turkish manufacturers but also efforts by the US and European countries to diversify supply chains. Turkey is the world-sixth largest exporter of garment and ready-wear clothing. Raw materials availability and geographical location provide Turkey with competitive edges as a textile supplier to Europe and North America. This can help these markets to reduce dependence on Asian suppliers.
Recently, representatives of the Turkish business community, including TİM, DEIK, and the Union of Chambers and Commodity Exchanges of Turkey (ürkiye Odalar ve Borsalar Birliği - TOBB), urged Saudi Arabian authorities to resolve the issue by lifting the informal ban on Turkish products because it can harm industries in both countries.
