Türkiye–UAE swap deal seen boosting Gulf investments

The currency swap deal signed Thursday between the central banks of Türkiye and the United Arab Emirates (UAE) is expected to boost Türkiye’s digital banking sector and draw fresh Gulf investments, according to economists.

The Turkish Central Bank (TCMB) and the Central Bank of the UAE (CBUAE) signed three agreements aimed at deepening financial cooperation and expanding trade by introducing a Turkish lira–UAE dirham bilateral swap.

The swap deal has a nominal value of 198 billion Turkish lira ($4.7 billion) and 18 billion dirhams ($4.9 billion). Additionally, the two banks signed separate agreements to promote the use of national currencies in cross-border transactions and to integrate their payment and messaging systems.

Ismet Demirkol, an economist at Istanbul’s Bahcesehir University and founder of consultancy firm Pariterium, told Anadolu the deal will accelerate digital banking adoption in Türkiye and help integrate the country’s financial sector into the “new world order.”

He expects a more digital future and says the swap agreement will attract investment in digital technology and banking innovation. He added that future swap deals could also spur investment in green, wind, solar and hydrogen energy.

Demirkol added that agreements such as the Türkiye–UAE swap could reduce Türkiye’s foreign dependency and potentially help the country move toward a current account surplus.

Filiz Eryilmaz, associate professor of economics at Bursa Uludag University, told Anadolu that the swap will help strengthen the TCMB’s foreign exchange reserves, supporting financial stability.

“Türkiye and the UAE already have strong trade relations — this deal is a positive step to attract more capital from Gulf countries,” she said. “It is a win for both trade and capital inflows.”