There has been a long-standing rivalry between Riyadh & Ankara over power in the Middle East, with marked differences in foreign policy goals and initiatives, as well as a whole range of other issues. But the tensions between the two largest economies in the Gulf are now affecting both regions’ ties and trade relations. More than that, they are now complicating their business relationships with other major actors throughout the world.
For more than a month now, Turkish producers have noticed delays at Saudi customs. The Saudi authorities have denied any imposed delays, declaring that no restriction has been officially put in place, and that the country is committed to free trade.
Whether there is an official or an informal boycott of Turkish imports in Saudi, consequences might have a big impact on both economies, declares a variety of Turkish business groups, including the Turkish Exporters' Assembly (TIM), the Foreign Economic Relations Board (DEIK), and the Union of Chambers and Commodity Exchanges of Turkey (TOBB).
"Any official or unofficial initiative to block trade between the two countries will have negative repercussions on our trade relations and be detrimental to the economies of both countries. […] We deeply regret the discriminatory treatment that our companies face in Saudi Arabia... We expect Saudi authorities to take concrete initiatives to resolve the problems," declared the business groups in a statement.
It seems that the intensified rivalry between Saudi Arabia and Turkish has impacted all international brands that have stores in Saudi Arabia that sell products made in Turkey, which may impact sales in the country, and by extension their global earnings and the price of their shares in the stock market.
The best way to succeed in online stock trading is to be aware of what can impact economic sectors, and therefore companies you might want to invest in. For example, the unofficial Saudi ban on Turkish products is a big hit to retail companies in the fashion sector that have manufacturing sites in Turkey. Among the most popular brands impacted are Mango, H&M, and Marks and Spencer.
The Financial Times reported that Mango might be considering relocating its manufacturing sites due to this unofficial embargo from Saudi authorities impacting imports of products made in Turkey. While Turkey is one of the leading producers of clothes in Europe and in the Middle East, the Spanish firm still needs to find a way to keep offering its products in its almost 50 stores in Saudi Arabia.
These diplomatic tensions are also impacting air traffic, with popular routes between Dubai/Abu Dhabi and Istanbul being subject to approval from the authorities, even though airlines around the world are slowly trying to get their global flight networks back to pre-Covid conditions.
Worsening relations between the two countries have influenced the traffic of airlines such as Emirates, Etihad, and Turkish Airlines, as services between these cities remain curtailed, even though these journeys are some of the most popular and busiest for these airlines.
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