ISSUE 54 AUGUST '18 INVEST IN NEWSLETTER

PRESIDENT ERDOĞAN SWORN IN AS TURKEY’S FIRST EXECUTIVE PRESIDENT

After taking the majority of the votes in the presidential elections held on STATE OF EMERGENCY PRESIDENTIAL June 24th, President Recep Tayyip LIFTED IN TURKEY IN JULY INVESTMENT OFFICE Erdoğan was sworn in at the Grand National Assembly in Ankara on July The State of Emergency In line with the transition to 9th. (SoE), declared by the Council the presidential government After the swearing-in ceremony, of Ministers following the system, Investment Support coup attempt against the an inauguration was held at the and Promotion Agency of democratically elected Turkish Turkey was repositioned as Presidential Complex. In his speech Government on July 15, 2016, was President Erdoğan said “We will the Presidential Investment lifted as of July 18, 2018. Office. make major moves in every area The main purpose of the SoE Attached directly to from macroeconomic balances to was to remove the threats of the the Prime Ministry since investments to make Turkey one of failed coup attempt and to hold its establishment in 2006 the 10 largest economies in the world”. the coup plotters accountable, and focused on attracting 22 world leaders as well as vice ensuring that those involved sustainable and value-added presidents, parliament speakers, were identified and brought to FDI into Turkey, Invest in prime ministers of several countries justice swiftly. The SoE provided Turkey will continue its and representatives from six for the recovery of free and civil efforts by directly reporting to democratic order in Turkey. international organizations attended the President beginning from The SoE did not impose any July 2018. the ceremony. ban on movement, gatherings, or The inauguration was followed free press, and did not impact the by a dinner hosted by the President day-to-day lives of individuals. Erdoğan at the Presidential Complex. PRESIDENT ERDOĞAN ANNOUNCES HIS CABINET

On July 9th, after the inauguration at the Presidential Complex, President Recep Tayyip Erdoğan unveiled the first cabinet of the new executive presidential system. THE NEW CABINET INCLUDES A VICE PRESIDENT, ALONG WITH: As the number of ministries has • Minister of Agriculture and • Minister of Interior been reduced to 16 from 26 to create Forestry • Minister of Justice a more streamlined structure, • Minister of Culture and Tourism • Minister of Labor, Social Services, the number of economic affairs • Minister of Energy and Natural and Family related ministries has also been Resources • Minister of National Defense reduced to 3 from 6, creating a more • Minister of Environment and • Minister of National Education effective and efficient economic Urbanization • Minister of Trade administration. • Minister of Foreign Affairs • Minister of Transportation and Turkey’s first vice president along • Minister of Health Infrastructure with the newly appointed ministers • Minister of Industry and • Minister of Treasury and Finance were sworn into office at the Grand Technology • Minister of Youth and Sports National Assembly on July 10th.

TURKEY SETS UP NEW TREASURY INCENTIVES FOR VALUE-ADDED AND FINANCE MINISTRY, EYES INVESTMENT PROJECTS NOW MORE EFFICIENT ECONOMY ATTACHED TO MINISTRY OF INDUSTRY AND TECHNOLOGY The first major event on newly appointed Treasury In line with the restructuring of ministries, the General and Finance Minister Berat Albayrak’s agenda was Directorate of Incentive Implementation and Foreign the G20 Meeting of Finance Ministers held in Buenos Investment has been repositioned under the Ministry of st nd Aires, Argentina on July 21 -22 . Upon his return, Industry and Technology. on the 23rd and 24th of July, Minister Albayrak held Right after his appointment, Minister of Industry meetings with economists and business people in and Technology made his first visit and discussed with the participants a range to Teknopark Istanbul, which boasts over 4,500 highly of issues on the Turkish economy including inflation, qualified R&D employees and over 1,200 local high-tech growth, and fiscal discipline. projects. In a press statement, Albayrak said that the The Minister stressed that they will endeavor to take purpose of these meetings was to consult with all the Turkey’s immense potential in innovation and R&D counterparts of the Turkish economy to prepare the further. The Minister also underlined that Turkey today Medium-Term Program. He added that as the Minister has 57 technoparks in operation, in addition to 24 more of Treasury and Finance, he will continue to hold such that are currently in the establishment phase. In 2002 meetings regularly in the future. there were only five technoparks in all of Turkey. TURKEY BECOMES THE 7TH MOST POPULAR FDI DESTINATION IN EUROPE

FDI is a lifeblood for economies. Investment decisions such as establishing plants, R&D centers, and developing other assets are signs of confidence in a country. EY’s “Europe Attractiveness Survey” has been tracking these investment decisions Source: EY Attractiveness Survey Europe June 2018. since 2000. Analysis based on IBM database, 2017; EY European Investment Monitor, 2016 According to the EY Attractiveness Survey Europe - June 2018, Turkey became the 7th most popular FDI destination in Europe in 2017 (+3 places CHINA’S from previous year), was home to 229 projects (+66 percent y-o-y) and enjoyed ALIBABA INVESTS a 3 percent share in all FDI projects across Europe. IN TURKISH These figures once again prove that international investors are confident in E-COMMERCE the Turkish economy and investment COMPANY environment at a time when global FDI flows fell by 23.4 percent in 2017 and China-based internet giant Alibaba Group Authority approved the deal on July 24th. show fragile growth in 2018. declared that it has decided to invest in Previously, President Recep Tayyip Turkish e-commerce company Trendyol Erdoğan received founder of Alibaba Jack at the end of June 2018. Ma on the occasion of his official visit Trendyol is one of the leading to New York to attend the 72nd United e-commerce companies in Turkey and Nations General Assembly meetings in TURKVEN INVESTS holds a leading position among online September 2017. IN TURKISH ELIF fashion retailers. The Competition PLASTIC Turkven, the leading private equity company in Turkey with a track record US-BASED of billions of dollars of FDI inflow into the country, has bought a majority ENTERPRISE CAR stake in the Turkish packaging company Elif Holding. RENTAL SET TO Established in 2000, Turkven is the first independent private equity INVEST IN TURKEY company in Turkey. It currently US-based car rental company Enterprise Turkey CEO Ozarslan has USD 2 billion of assets under Enterprise is set to invest TRY 1 billion Tangun stated that the company management, and funds advised by (USD 210 million) in Turkey this year. currently operates with around 10,000 Turkven have led 20 investments The US giant, which has the largest fleet vehicles in Turkey, with plans to triple in Turkey, including equity and debt in the car rental industry with around 2 this figure, as well as the number of financing. The international investors million vehicles in 95 countries, signed offices, within the next 5 years. CEO in funds advised by Turkven provide an agreement with the national flag Tangun added that Enterprise has plans the company with a unique global carrier Turkish Airlines last year. in the works for Istanbul’s new airport. network. 5 TOKYO JULY INVEST IN TURKEY HOLDS AUTOMOTIVE SEMINAR IN JAPAN To give an insight into Turkey’s current outlook of the automotive such as large domestic market and rapidly-growing automotive industry industry by Invest in Turkey Country lucrative export opportunities, Turkey and business opportunities available Senior Advisor in Japan Yuichi Aoki, is a manufacturing home to Ford, to investors, Invest in Turkey and Invest in Turkey Project Director Fiat, Hyundai, Renault, Toyota, Honda, JETRO organized a joint seminar on Ethem Tokgözlü, Aisin Turkey and several other leading automotive July 5th in Tokyo. President Murat Ayabakan, and Itochu companies. These brands use the The seminar featured presentations GM Ryutaro Mashiko. Turkish market as a hub to export to on Turkey’s investment climate and Given its unique advantages Europe and Asia.

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EUROPEAN INSTITUTE TURKEY’S STARTUP FOR EURASIAN DIALOGUE ECOSYSTEM RECOGNIZES INVEST IN PROMOTED IN PARIS TURKEY’S SUCCESS Italy-based European Institute for Eurasian Dialogue Invest in Turkey Country Advisor in UK Murat Özdemir (EIEAD) carried out a comparative study of the FDI and Hackquarters Startup Accelerator CEO Kaan Akın incentive schemes of several countries in the Eurasia presented on Turkey’s startup ecosystem at the MCAA region (namely, Azerbaijan, Armenia, Iran, Israel, Lebanon, Workshop on Driving Solutions for Science in Business and Turkey) so that entrepreneurs could assess the best held in Saclay University in Paris by the Marie Curie location for their investments and for establishing their Alumni Association in conjunction with Université presence in the area. The result of this research revealed Paris-Saclay, Université Paris-Sud, the European that Turkey is the country with the most advantageous Commission, and supported by Invest in Turkey. incentives system and that Invest in Turkey was the most Among the nearly 100 attendees were management of successful investment promotion agency in the region. the Saclay ecosystem, companies and institutions such The award ceremony held in Lerici, Italy, on June 22nd. as Thales, Nokia, CEA, startup accelerator SATT (Sociétés EIEAD aims to increase the political and economic/ d'Accélération du Transfert de Technologie), and PHD and industrial cooperation between the EU countries (Italy in post-doctoral candidates. particular) and the Eurasian region.

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