As President Recep Tayyip Erdoğan prepares for his visit to Italy on April 29, business leaders in both Turkey and Italy are eager to capitalize on the anticipated opportunities for collaboration. High expectations surround the visit, with particular focus on defense, aviation, cybersecurity, energy, and the automotive sectors. The four-day summit, which will be co-chaired by Erdoğan and Italian Prime Minister Giorgia Meloni in Rome, will address diplomatic, political, and economic ties between the two nations.
A Platform for Expanding Bilateral Trade
The visit holds significant promise, as the Türkiye-Italy business community looks to strengthen economic ties further. At the heart of the summit, a business forum will be held to discuss expanding trade and forging new partnerships, especially in sectors such as defense, energy, and infrastructure. Discussions are also expected to explore opportunities for joint ventures in third-party countries, particularly in Africa and the Middle East.
Bilateral trade between Turkey and Italy reached an impressive $32 billion last year. This includes $12.9 billion worth of Turkish exports to Italy and $19.3 billion in imports from Italy. These figures demonstrate the solid foundation on which both countries aim to build more ambitious goals, particularly in sectors that have seen increasing demand and technological advancements.
Key Sectors on the Radar: Defense, Automotive, and Cybersecurity
The growing collaboration in the defense sector is especially noteworthy. The two countries have established a solid partnership in various defense initiatives, particularly in the unmanned aerial vehicle (UAV) market. A prime example of this cooperation is the recent deal between Türkiye’s Baykar and Italy’s Leonardo, focusing on UAV technology. This deal is expected to enhance Türkiye’s position in the European UAV market, worth an estimated $100 billion, through joint production facilities and greater integration of technology and supply chains in both countries.
In addition to defense, Italy and Turkey are increasingly eyeing advancements in other sectors, such as automotive, machinery, textiles, chemicals, pharmaceuticals, and energy. Turkish businesses are making significant strides in Italy’s automotive and textile industries, while Italian firms, which have invested over $5 billion in Turkey, are making inroads in sectors like energy, logistics, and banking.
Growing Investments and Opportunities for the Future
Lale Cander, chair of the Türkiye-Italy Business Council at the Foreign Economic Relations Board (DEİK), emphasized the potential in several high-growth sectors. According to Cander, Italy is one of Turkey’s top five export markets, and opportunities abound in areas like digital transformation, the green economy, and energy cooperation. Furthermore, there is a notable shift in the nature of investments, with both countries moving towards high-tech and research and development (R&D) efforts.
In terms of direct investments, about 1,610 Italian companies, with a collective investment of $5 billion, currently operate in Turkey. These investments span various industries, including automotive, energy, infrastructure, and food. Conversely, Turkish firms are making strong inroads in Italy’s textile, food, and automotive sectors, further solidifying the bilateral trade relationship.
A Growing Focus on Green Economy and Technological Collaboration
One of the key focal points of the business forum will be the green economy and the potential for joint projects in sustainable energy. As both nations face increasing pressure to reduce carbon emissions and transition towards renewable energy sources, collaborations in green technologies and energy efficiency are gaining momentum.
Additionally, the Türkiye-Italy Business Council is pushing for more cooperation in the digital transformation sector. With technology playing a central role in future economic growth, there is a strong push to enhance bilateral collaboration in areas such as cybersecurity, digital infrastructure, and smart technologies. This emphasis on digitalization and innovation is expected to set the stage for new avenues of cooperation between Turkish and Italian businesses in the coming years.
Strategic Partnerships Beyond National Borders
Both countries are also looking at joint ventures in third-party markets, with a particular focus on regions like Africa and the Middle East. These regions present vast opportunities for expansion, as both Turkey and Italy look to enhance their global reach and deepen their influence in emerging markets.
The business forum, which will bring together 500 representatives from both countries, will be an important venue for solidifying these partnerships. With the event expected to generate new agreements and projects, business leaders are optimistic about the lasting impact of Erdoğan’s visit.
