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Is Gulf money really a lifesaver for Turkish economy?

Despite assertions of impending major Gulf investment in Turkey, Europe continues to provide the bulk of external funds in the country
Saudi King Salman (R) meets Turkish Foreign Minister Mevlut Cavusoglu and Turkish Economy Minister Nihat Zeybekci (L) in Riyadh, Saudi Arabia October 13, 2016. Saudi Press Agency/Handout via REUTERS ATTENTION EDITORS - THIS PICTURE WAS PROVIDED BY A THIRD PARTY. FOR EDITORIAL USE ONLY. NO RESALES. NO ARCHIVE.  - RTSS3FP
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Talk of large inflows of Arab investment has been a recurring theme in Turkey since the 1980s, starting during the tenure of the late Turgut Ozal, who served first as Turkish premier and then president from 1983 until 1993. Such hype about “Arab capital” has seemingly developed into something of a complement to political efforts to promote conservatism and to Islamize Turkey, a trend that also began under Ozal and continues today under President Recep Tayyip Erdogan.

“Arab capital” refers to money from the Gulf, in particular from Saudi Arabia, Kuwait, Qatar and the United Arab Emirates (UAE). Investments from these countries, including real estate purchases by their nationals, have not only been exaggerated, but are also portrayed as an alternative to investment from the West.

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