Erdogan, Netanyahu to meet to talk trade in Turkey-Israel thaw

ISTANBUL – Turkish President Recep Tayyip Erdogan and Israeli Prime Minister Benjamin Netanyahu will meet next week to discuss energy and trade to advance a nascent thaw after more than a decade of tensions.

Both are seeking a broader rapprochement with Middle Eastern states as Russia’s invasion of Ukraine triggered a geopolitical shift in the region by disrupting supply chains and commodity markets.

Mr Erdogan is expected to meet Mr Netanyahu in Ankara on July 28 – three days after hosting Palestinian Authority President Mahmoud Abbas – and discuss the Israeli-Palestinian conflict, the Turkish president’s office said late on Thursday. 

“All dimensions of bilateral relations between Turkey and Israel will be reviewed and steps that could be taken to improve cooperation will be discussed,” Mr Erdogan’s office said in a statement on Twitter.

They’re seeking to expand cooperation in tourism and business and are also exploring gas exports from a field off the Gaza Strip to Europe via Turkey, officials who spoke on condition of anonymity told Bloomberg last month.

It is unclear how much gas there is and distributing it likely remains years away due to a lack of export infrastructure.

Turkey and Israel remain divided over the status of Palestinian territories and Israel accuses Ankara of supporting Hamas, the militant group that runs the Gaza Strip, but a gas deal may heal the rift, the officials said. 

Ties hit a low after a 2010 Israeli raid on a Turkish flotilla headed to Gaza. They resumed full diplomatic relations in August 2022.

Both counties have also sought to repair relations with Arab countries in the region.

Earlier this week, Mr Erdogan clinched defence and economy cooperation deals with Saudi Arabia and the United Arab Emirates during a Gulf tour.

Israel established diplomatic ties with the UAE and Morocco in 2020, and is pushing to do the same with Saudi Arabia.

A tourism boom is supporting growing Turkish-Israeli trade, as cruise lines resume trips and Israeli companies start direct flights to Turkish resorts such as Antalya and Bodrum.

The number of Israeli tourists visiting Turkey is expected to top 1 million this year, up 19 per cent from 2022.

Turkish exports to Israel increased 11 per cent to US$7 billion (S$9 billion) last year, while imports were around US$2.5 billion, according to Turkish government data.

Israel’s imports from Turkey are mainly steel, iron and other construction materials. BLOOMBERG