Turkey’s exports to GCC dropped 35% in March

• Iran war slashes Gulf exports
• Europe demand rises for Turkish goods
• New routes via Iraq, Jordan and Saudi Arabia

Turkey’s exports to Gulf countries fell in March as disruptions from the Iran war cut shipments by 35 percent to $1.5 billion, trade minister Ömer Bolat said.

Demand from other markets, particularly Europe, rose as countries sought alternative suppliers, the Daily Sabah newspaper reported, citing the minister.

Turkey is the European Union’s fifth-largest trading partner, with total trade of $233 billion.

Regional transport corridors are being reshaped, he said, pointing to new routes through Iraq, Saudi Arabia and Jordan, as well as work under the $17-billion Development Road project.

“One thing is clear: the Gulf and Hormuz will not be the same as before,” the minister said.

Bolat said a 10-year transit visa issue that allowed Turkish truck drivers to travel through Saudi Arabia to Gulf countries had been resolved, but gave no further details.

Since mid-April, transit routes have been operating both via Jordan and Saudi Arabia and via Turkey, Iraq and Saudi Arabia, he said.

Bolat said Turkey is pursuing a multidimensional trade and transportation strategy through various routes and projects.

These include the Zangezur Corridor, connecting Azerbaijan and Nakhchivan, the Development Road, the Middle Corridor, the Baku-Tbilisi-Kars Railway, the Habur and Syria transit lines, and new logistics routes linking the Gulf and Europe.

Further reading:

• Turkey makes ambitious pitch for Gulf business
• Turkey says free-trade talks with GCC are underway
• UAE invested $95m in Turkey at beginning of year

The Development Road project includes a 1,200km railway and parallel motorway linking Iraq’s Grand Faw Port in the oil-rich south to the Turkish border, where it will connect to Europe via Turkey’s rail network.

Last month Ankara secured €1.7 billion ($1.9 billion) from the World Bank for the planned Istanbul North Rail Crossing (Inrail), which aims to strengthen freight and passenger links between Asia and Europe.

The country had already been assured of around $6.75 billion from six international financial institutions in February to help fund the project.