Turkey and Saudi Arabia signed a landmark $2 billion agreement on February 3, 2026, to develop 2,000 megawatts of solar power capacity across southern Turkish provinces. The deal, brokered by Saudi's Public Investment Fund (PIF) and Turkish energy firm Kalyon PV, will fund multiple photovoltaic plants expected online by 2028, boosting Turkey's renewable target to 50% by 2035. Turkish Energy Minister Alparslan Bayraktar called it a “win-win for regional sustainability.”
The partnership aligns with Saudi Vision 2030 diversification and Turkey's post-earthquake reconstruction needs, creating 5,000 jobs and cutting carbon emissions by an estimated 2.5 million tons annually. PIF, managing $925 billion in assets, views it as a gateway to Europe's green market via Turkey. Details include state-backed guarantees and tech transfer from Saudi's ACWA Power.
Both nations hailed strengthened ties after years of strains, with trade volume hitting $10 billion last year. Critics question financing amid Turkey's inflation woes, but analysts predict it accelerates Ankara's shift from coal dependency (35% of power mix). Environmental groups welcomed the scale, urging faster grid upgrades.
