Türkiye emerges as a safe investment haven amid Middle East turmoil, say experts

In 2017, an economic blockade isolated Qatar and led to a severe shortage of food items.

At the time, Türkiye stepped in to ease Doha’s troubles as its cargo planes delivered food and essential items. Within months, Turkish exports to Qatar surged by 90 percent, filling empty shelves in supermarkets and helping stabilise the economy.

The episode solidified Türkiye’s role as a reliable ally that remains committed to regional peace.

Fast forward to 2026: the Middle East is in crisis again.

US-Israeli strikes on Tehran have provoked Iranian retaliation against American bases in neighbouring countries. Missiles and drones have hit Gulf countries, resulting in chaos, economic disruption, and political uncertainty.

Once again, Türkiye has stepped up to provide its neighbours with diplomatic lifelines in turbulent times. Traders in Iraq’s KRG region again look towards Türkiye for relief as a full-blown war ravages neighbouring Iran, creating inevitable shortages of food items and fuel.

Gulf states are worried about prolonged disruptions to oil revenues. They seek to pull investments from the West, freeing capital to meet any crisis-like situation amid widespread uncertainty in the region.

Analysts say Turkish companies are ready to fill the void, just like they did over the past decade, as conflicts ravaged the Middle East from Syria to Yemen.

Thanks to Ankara’s resilient industrial base, Turkish companies exported machinery, automotive parts, iron, and steel to rebuild war-torn areas despite regional challenges. They provided essential goods when others hesitated.

The same pattern is likely to continue amid the current Iran-Gulf clashes, analysts say.

“Unlike many countries aligned with a single bloc, Türkiye maintains open communication with all parties,” Mian Waqar Badshah, assistant professor in the Faculty of Economics at Istanbul University, tells TRT World.

During the Russia-Ukraine war, Ankara balanced NATO ties with Moscow relations, he says. It facilitated the Black Sea Grain Initiative, easing global food shortages.

President Recep Tayyip Erdogan is known for offering mediation in the world’s most tense spots. For example, he proposed talks between the US and Iran. Similarly, he aids dialogue in the Horn of Africa and South Caucasus.

Erdogan's approach has a global appeal among Muslims.

Based on Arab Barometer data, British publication The Economist recently said Erdogan’s political style has the strongest draw in the Muslim world.

His direct ties to leaders like Russian President Putin, Ukrainian President Zelenskyy, and Western figures like US President Trump make Türkiye a “trusted intermediary” for countries across the political spectrum, Badshah says.

This neutrality can attract foreign investments. Amid Iran risks, Middle East nations see Türkiye as a secure haven for capital.

On sound economic footings

Badshah says that Gulf countries are actively building institutionalised ties with Ankara.

For example, the UAE launched a $10 billion investment fund in Türkiye and aims to boost trade to $40 billion.

Similarly, Saudi Arabia signed $2 billion in renewable energy deals.

Both Ankara and Riyadh condemned Israeli attacks on Iran.

Türkiye promotes a regional order shaped by local powers, not outsiders, says Badshah. This resonates deeply with regional powers.

As a result, Türkiye's foundations remain strong despite regional mayhem.

In 2025, Türkiye's GDP hit $1.6 trillion, growing 3.6 percent despite regional tensions. Per capita income reached $18,040, which places the country among high-income countries per the World Bank.

The country has had 22 straight quarters of growth, while manufacturing has expanded for nine months straight. Construction is growing at a rate of more than 10 percent.

Meanwhile, an educated workforce ensures steady economic growth, thanks to a steady supply of STEM graduates from Turkish universities.

Türkiye is building regional connectivity at a rapid pace, owing to transportation hubs like the Istanbul Airport, one of the busiest in the world, along with a vast network of pipelines and roads that link Europe, Asia, and the Middle East.

Gulf nations recognise this as an opportunity to invest, Badshah says. Western markets seem risky, but Ankara offers safety.

“Factors like strategic geopolitical position outside the immediate Persian Gulf conflict zone and strong governance under President Erdogan will sustain Türkiye’s status as a rising economic power and reliable mediator,” Badshah says.