Türkiye seems to be positioning itself to benefit from a war that has shaken confidence in the Gulf as a haven for business. President Recep Tayyip Erdoğan said this week that the crisis, like the pandemic, would create an opportunity to make the country a regional base for multinational companies and a trade transshipment hub, and could elevate the Istanbul Financial Center among the ranks of global hubs.
Although he didn’t name the Gulf states as competitors, Erdoğan appears to be pitching Türkiye as an alternative to Abu Dhabi, Dubai, Doha, and Riyadh. Like them, his country offers modern infrastructure and extensive aviation links, and it also has a large military and a growing domestic air defense system. But it still lacks what has made Gulf cities magnets for investors: trillions of dollars in sovereign wealth funds, vast oil and gas resources, business-friendly regulations, and zero income taxes.