Analysis: Turkey and UAE rein in dispute that fuelled conflict and hurt economy

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  • UAE could invest in health, transport, energy sectors
  • Both reviewed cost of rivalry, Turkish official says
  • Aim to calm tensions, but disagreements remain

ANKARA, Sept 5 (Reuters) – A truce between bitter regional rivals Turkey and the United Arab Emirates has calmed tensions that fuelled conflicts including Libya’s war, officials and diplomats say, after years of animosity and insults.

But with political differences still running deep, the two countries are expected to focus on building economic ties and de-escalating, rather than resolving, an ideological rift that has drawn a faultline through the Middle East.

Turkish President Tayyip Erdogan and the UAE’s de facto leader, Crown Prince Mohammed bin Zayed al-Nahyan, spoke by phone last week following contacts between intelligence and government officials.

Erdogan, who a year ago said Turkey could cut diplomatic relations with Abu Dhabi after it set up ties with Israel, also discussed UAE investment in…

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