Prime Highlights:
- Saudi Arabia and Turkiye have signed a major agreement to collaborate on large-scale solar power projects, strengthening their strategic partnership in the energy sector.
- The projects will generate clean electricity for over two million Turkish households, supporting sustainable energy and local job creation.
Key Facts:
- The agreement includes solar projects with a total capacity of 5,000 MW in Turkiye, to be completed in two phases.
- Saudi exports to Turkiye reached SR92.6 billion, while imports from Turkey were SR48.3 billion, giving Saudi Arabia a trade surplus of SR44.3 billion.
Background:
Saudi Arabia and Turkiye have signed a major government-to-government agreement to work together on large renewable energy projects. The deal was made during Turkish President Recep Tayyip Erdogan’s visit to Saudi Arabia and shows both countries’ commitment to closer cooperation, especially in clean and sustainable energy. It was signed by Saudi Arabia’s Minister of Energy, Prince Abdulaziz bin Salman, and Turkiye’s Minister of Energy and Natural Resources, Alparslan Bayraktar.
The first phase includes two major solar power plants to be built in the provinces of Sivas and Karaman, with a combined capacity of 2,000 MW. A second phase will add a further 3,000 MW through additional projects, to be developed under frameworks agreed by both governments.
According to officials, electricity generated in the first phase will be produced at highly competitive prices compared to other renewable energy projects in Turkiye. The initial phase represents an estimated investment of around $2 billion and is expected to provide power to more than two million Turkish households.
A Turkish state-owned entity will purchase the electricity generated by the plants under a long-term power purchase agreement lasting 30 years.
The renewable energy deal comes amid expanding economic ties between Saudi Arabia and Turkiye. Trade between the two countries rose by about 6 percent year on year during the first 11 months of last year, reaching approximately SR28.2 billion ($7.5 billion), according to data from the Financial Analysis Unit at Al-Eqtisadiah newspaper based on figures from the General Authority for Statistics.
Saudi exports accounted for 58 percent of total bilateral trade during the period, compared to 42 percent for imports, resulting in a trade surplus for the Kingdom of SR4.4 billion. During the same period, Saudi exports were about SR92.6 billion, while imports of Turkish goods
reached SR48.3 billion. This resulted in a trade surplus of SR44.3 billion in favor of Saudi Arabia.
At the Saudi-Turkiye Investment Forum 2026, Sami Al-Osaimi, Chairman of the Saudi-Turkish Business Council, said that around 1,400 Saudi companies are operating in Turkiye with investments of over $18 billion. In comparison, about 390 Turkish companies have invested in Saudi Arabia, showing growing business and investment ties between the two countries.
