(Reuters) – Abu Dhabi sovereign wealth fund ADQ said on Wednesday it signed two memoranda of understanding to finance up to $8.5 billion of Turkey earthquake relief bonds and $3 billion in credit facilities to support Turkish exports.
The bonds, agreed with Turkey’s finance ministry, will fund “comprehensive reconstruction efforts in southern and central Turkiye,” ADQ said in a statement.
Two massive earthquakes in February devastated the area and neighbouring Syria, killing more than 54,000 people between them and causing damage estimated in tens of billions of dollars.
The funds will focus on building residential units for displaced people, said ADQ, which also signed an MoU with the Export Credit Bank of Turkiye for up to $3 billion of export credit financing for Turkish companies to boost trade with the United Arab Emirates and other markets.
The deals come as Turkish President Tayyip Erdogan visited the UAE on Wednesday as he toured wealthy Gulf Arab nations for investment and funds, hoping to revive Turkey’s economy which has struggled with a weakened lira, heavy deficits and chronic inflation.
The Turkish leader has worked to repair diplomatic ties with Abu Dhabi and Riyadh over the last two years after a decade of strained relations over Ankara’s support of political Islam and pro-democracy movements.
Abu Dhabi has also shifted to deploy more economic diplomacy, often using ADQ.
ADQ, chaired by Sheikh Tahnoun bin Zayed, the UAE’s national security adviser and a brother of President Sheikh Mohammed, last year launched a $300 million technology fund with Turkey’s sovereign wealth fund to invest in venture capital opportunities in Turkey.
IHC, also chaired by Sheikh Tahnoun, bought a 50% stake in Turkey’s Kalyon Enerji for $490 million last August.
