Investment Climate in TR52 Region (-KARAMAN) MEVKA INVESTMENT SUPPORT OFFICES 2013 Konya and Karaman; Combination of contemporary and traditional values…

OUR VISION

“Becoming a leader region that utilizes resources in an effective and environment- sensitive manner, employing strong socio- cultural structure and constantly develops under competitiveness basis” .... AGENDA

TOP REASONS TO INVEST IN TR52 (KONYA&KARAMAN)

FOCUSED SECTORS

ORGANIZED INDUSTRIAL ZONES

UPCOMING PROJECTS

MEVLANA DEVELOPMENT AGENCY

WHY TR52(KONYA&KARAMAN) ? Top Reasons to Invest in Konya&Karaman Overview

Konya and Karaman has a population of 2.287.705 (Konya : 2.052.281, Karaman: 235.424) Konya and Karaman has an area of 47.724 km2 (Konya: 38.873, Karaman: 8.851 km2 )

ANKARA

- - Child population rate is %30 in . It is %31,4 in TR52 region. - Konya and Karaman region has one of the lowest Earthquake risk in Turkey.

OUR REGION, is larger than almost 60 countries in the World.

Some of them; Belgium, Netherlands, Denmark, Switzerland, Moldova, Taiwan, Albania, Armenia, Macedonia, Israel, Slovenia, Estonia, Dominican Republic, Slovekia, Kuwait, Qatar, Jamaica, Lebanon, Kosovo, Luxemburg, Hong Kong, Bahrain, Dominica, Singapore, Malta, Monaco ....

Source: http://en.wikipedia.org/wiki/List_of_countries_and_dependencies_by_area OUR REGION’s population is higher than over 50 countries in the World.

Some of them; Bahrain, Qatar, Latvia, Estonia, Luxemburg, Malta, Iceland, Liechtenstein, Monaco

....

Source: http://en.wikipedia.org/wiki/List_of_countries_by_population

Logistics Advantage Access to Multiple Markets Total 1,5 Billion People - $ 25 trillion GDP – $ 8 trillion Trade

RUSSIAN FEDERATION EUROPE GDP –2 trillion USD GDP – 19 trillion USD Population - 142 million Population – 670 million

MIDDLE EAST AND NORTH AFRICA CENTRAL ASIA AND CAUCASIA GDP – 3,8 trillion USD Population – 675 million GDP – 390 billion USD Population – 82 million Top reasons to invest YOUNG POPULATION in Turkey and in Konya&Karaman Population-Age Groups Graph

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58.4 % of the population is below 35 Source: TURKSTAT CENTER OF ANATOLIA… Ability to reach more than 10 million people in 3 hours by land… (Ankara, Antalya ,) Railway connection to major cities…(, Ankara, İzmir, , Mersin)

Konya-Ankara travel takes 1 hour 45 minutes; Konya-Eskişehir travel takes 2 hours with high speed train…

2 hours to the biggest harbour (Mersin) of Turkey… AIRWAY CONNECTION -Daily Flights between İstanbul-Konya with 3 airline companies -Ability to reach abroad with connecting flights from İstanbul -Seasonal direct flights to abroad.

İSTANBUL

1 HOUR 1 HOUR

İZMİR

KONYA “Konya and Karaman” is a very important agricultural, industrial and commercial area

Konya is the granary of Turkey.

Konya is Turkey’s leader in milk, wheat, sugar-beet, barley, carrot, flour, salt , dry bean, chicken egg and sugar production. Also, comes second in red meat production.

Konya has Small and Medium Sized Enterprises (SMEs) more than 30.000 firms.

Karaman is the top biscuit producer and comes 2nd in apple production of Turkey. -Hosts over 30% of Automotive Supply Industry Companies in Turkey. -Konya has one R&D center . -And it is in the one of the Automotive Supply Industry company. - Dry air favoring metal resistance.

The only Primary Aluminium Production in Turkey. Konya 35000 civarında firmasıyla Küçük ve Orta Büyüklükteki İşletmelerin (KOBİ’ler) başkenti olarak bilinmektedir.

Main production sectors include Machine Production Industry, Automotive Spare Parts Industry, Crane Building, Metal Casting, Agricultural Machinery, Shoe Industry and Food Industry. THERE ARE 12 INDUSTRIAL ENTERPRISES IN TOP 500 IN TURKEY Also, There 25 industrial enterprises in top 1.000 in Turkey

1- Konya Sugar Co. 2- Biscot Biscuit Co. 3- Not allowed 4-Pakpen Co. 5- Bifa Biscuit Co. 6-Tümosan Motor 7- Konya Cement Co. 8- Akova Milk Co. 9- Ova Flour Co. 10-Şimsek Biscuit Co. 11- Helvacızade Food Co. 12- Enka Milk Co. 3rd biggest technocity in Turkey is in our region. Konya hosts the biggest computer land in Turkey .

There are 6 universities in the region. There are almost 100.000 students in the Region.

3rd most visited museum of Turkey, which is Konya Mevlana Museum , is in the region (2011)

“Come, come again, whoever you are, come! VerilerHeathen, girilecek fire worshipper or idolatrous, come! Come even if you broke your penitence a hundred times, Ours is the portal of hope, come as you are.”

BU SLAYDA BÖLGENİN TURİZM POTANSİYELİNİ GÖSTEREN BİR FOTOĞRAF There VE BİLGİare 2 EKLEYİNİZ.Hotels with 5 stars in the region. Source: TURKSTAT and WTO Mosaic of cultural tolerance, economic prosperity and historical assets.

Catalhoyuk (World’s First City B.C. 7000-8000) dig site is the largest and best preserved Neolithic site found to date. Catalhoyuk has been added to World Heritage Tentative List.

R&D- TECHNOLOGY STATISTICS / Konya

Trademark Registration 5th in Turkey with 1.554 trademarks Patent Registration 7th with 28 patents Industrial Design 6th with 238 designs Utility Model Registration 5th with 105 useful models

THE TOP CAPACITY in SOLAR ENERGY

Total allowed capacity in Turkey for solar energy is 600MW. Konya has 92 MW Karaman has 38 MW The region has the highest allowed capacity values One of the most feasible regions in Turkey for renewable energy investments, especially solar and wind energy. Karapinar and Ayranci districts are important.

Solar Energy Potential Map Mineral Deposit Map

Wind Energy Potential Map

One of the richest lignite coal mine reserve (almost 1,8 billion tonnes) is found in the Region. KARAPINAR INDUSTRIAL ZONE SPECIALIZED in ENERGY

Annual solar insolation in Karapinar is nearly 2 2.100* kWh/m Karapinar District Map of Possible Places for Energy Investments Annual Sunshine Duration in Karapinar is nearly 3.000 hours/year

*taken from PVGIS

CLUSTERING

There are 5 Clusters in our Region Automotive Spare Parts Cluster Metal-Casting Cluster Shoe-Making Cluster Agricultural Macninery Cluster Woodworking and Furniture Cluster

What about the investment opportunities...

KONYA IS THE CITY OF FOREIGN DIRECT INVESTMENT IN THE FUTURE …

Konya was chosen second in the category of Cities with best economic potential by fDi Magazine (2006-2007)

Konya was the 4th city on category of the Best Large City for FDI Strategy (2010-2011) in FDI Magazine.

KONYA IS ONE OF THE EUROPEAN CITIES AND REGIONS IN THE FUTURE

- Konya is the 6th city on category of FDI Strategy in Southern Europe, 10th in Large cities Category and 10th in cost effectiveness. (European Cities and Regions in the Future 2012/13 in FDI Magazine Report) REGIONAL INCENTIVE SYSTEM

ZONES The Incentives Granted to Regional Investments: Corporate Tax Privilege Customs Tax Exemption Value Added Tax Exemption Social Security Premium Contribution Allocation of Investment Locations Konya is in the 2nd Zone Government Support for Credit Interests Karaman is in the3rd Zone (In Karaman)

Focused Sectors Supported Sectors in KONYA According to the New Incentive Law

◊Mining and Stone Quarry, ◊ Electrical Machines and Devices ◊Food and Beverage Sector, Production ◊Integrated Livestock Investments, ◊Radio, Television, ◊Fisheries/Aquaculture, Communication Devices ◊Clothing Investments, Production, ◊Bag and Shoe Industry, ◊Medical Devices, Sensitive and ◊Wood and Cork Products, Optical Devices Production, ◊Paper and Paper Products ◊Motor Land Vehicles and Supply Industries, Industry, ◊Chemicals and Chemical Products ◊Motorcycle and Bike Industry, Production, ◊Furniture Industry, ◊Non-metallic Mineral Products ◊Hotels, Production, ◊Student Dormitories ◊Base Metal Industry Excluding ◊Cold Storage Services Iron and Steel, Metal Casting ◊Licensed Warehousing, Industry ◊Education Services, ◊Metallic Goods ◊Hospital Investments, Eventide ◊Machine and Apparatus Homes, Production ◊Dangerous Waste Recovery and Disposal Facilities. Focused Sectors Supported Sectors in KARAMAN According to the New Incentive Law

◊Integrated Livestock Investments, ◊Radio, Television, ◊Fisheries/Aquaculture, Communication Devices ◊Clothing Investments, Production, ◊Bag and Shoe Industry, ◊Medical Devices, Sensitive and ◊Wood and Cork Products, Optical Devices Production, ◊Paper and Paper Products ◊Motor Land Vehicles and Supply Industries, Industry, ◊Chemicals and Chemical Products ◊Motorcycle and Bike Industry, Production, ◊Furniture Industry, ◊Concrete products for ◊Hotels, construction purposes Production ◊Student Dormitories ◊Base Metal Industry Excluding ◊Cold Storage Services Iron and Steel, Metal Casting ◊Licensed Warehousing, Industry ◊Education Services, ◊Metallic Goods ◊Hospital Investments, Eventide ◊Machine and Apparatus Homes, Production ◊Dangerous Waste Recovery and ◊Office, accounting and computing Disposal Facilities. machinery Production ◊Greenhouse Investments ◊Electrical Machines and Devices Production

Focused and Promising Sectors

WHAT ARE THE IMPORTANT Focused Sectors CHARACTERISTICS OF THE REGION?

 One of the foremost sectors in Konya is Machine Production Industry. Especially, the Metal Processing Machines Sector’s proportion of Konya in the Turkish market is 70 %  Another branch in the machine sector, that is the Vehicle Mounted Equipment Industry, has achieved a notable stage. Besides the imports to many countries it also holds 70% of the Turkish market of Vehicle Mounted Equipment.

 In Agricultural Machinery and Equipment Sector, Konya produces tractors using 90% domestic components and agricultural machines using approximately 100% domestic components. Konya has 65 % of Turkey market in this sector and owns 45% of Agricultural Machinery and Equipment exportation.

 Konya Automotive Supply Industry, have started in small enterprises with the production of various parts.

 Spare parts of every brand and models of automobiles are produced and exported, foremost to EU countries, as well as South America, Africa, Middle East, Turkic Republics and Far East. WHAT ARE THE IMPORTANT Focused Sectors CHARACTERISTICS OF THE REGION?

 Konya is the top wheat producer in Turkey.

 Konya is Turkey’s leader in Milk, Barley, Dry Bean, Carrot, Chicken Egg, Flour, Salt and Sugar production. 65% of Turkey’s salt demand is supplied from Konya.

 By producing 15 million shoes each year, Konya owns %15 of Turkish market, placing it 3rd, nationally.

 The leading firms in plastic packaging material production is established in Konya, as well as the sectoral leading firm in PVC production.

 Konya is one of the important centers of metal casting industry. There are 450 casting firms established in Konya with the production capacity of 180.000 tones, and that is %18 of Turkey’s total casting production.

 Turkey’s leading exporter of office furnitures is in Konya.

WHAT ARE THE IMPORTANT Focused Sectors CHARACTERISTICS OF THE REGION ?

 Karaman is the leader Biscuit Production in Turkey

 20% of Turkey’s apple demand is supplied from Karaman

 Karaman provides 20% of the bulghur production in Turkey

 Karaman is also an important region of milk and milk products, food sector (as wafer. Chocolate,…), also food machine industry

 Biscuit, Wafer, Chips, Cake, Candy, Gum, Chocolate and etc. are produced around 450 thousand tonnes per year in Karaman.

Promising Sectors Sectors That Have Potential Opportunities and Strategic Importance For The Region

 Automotive Industry  Plastic and Rubber Products Manufacturing Investments  Renewable Energy Investments  Close System Irrigation and Drip Irrigation Equipment Production Investments  Railway and Tramway Locomotives and Wagon Production Investments  Organic Agriculture and Greenhouse Investments  Defense Industry Investments  R&D and IT Investments Organized Industrial Zones

Organized Industrial Zones

5.OSB

3.OSB

2.OSB

4.OSB

TÜMOSAN

1. Konya Organized Industrial Zone 2. Konya 1st Organized Industrial Zone 3. Karaman Organized Industrial Zone 4. Akşehir Organized Industrial Zone 5. Beyşehir Organized Industrial Zone 6. Çumra Organized Industrial Zone 7. Ereğli Organized Industrial Zone 8. Karapınar Organized Industrial Zone 9. Kulu Organized Industrial Zone 10.Seydişehir Organized Industrial Zone There exists 10 OIZ in the region, Konya and 1st OIZ are near Konya city center,Karaman is near Karaman city center, Organized Industrial Zones

5.OSB

3.OSB

2.OSB

4.OSB

TÜMOSAN

Konya Organized Industrial Zone

Karaman Organized Industrial Zone Organized Industrial Zones

Konya Organized Industrial Zone Konya 1. Organized Industrial Zone (2. ve 3. Org. Ind.): Year of Establishment 1971 Total Area Year of Establishment 1976 / 1996 1.344.404 M2 Total Area 16.000.000 M2 Area Being Used as of 1.344.404 M2 Area Being Used as of Current 12.000.000 M2 Current Total Number of 3500 Total Number of Employees 15.000 Employees Number of Firms 177 Number of Firms 522 Number of Active Firms 150 Number of Active Firms 316 13 Sectors Present 85% Occupancy Rate 28 Sectors Present. Occupancy Rate: 90% Source: 1. OSB Management Source: KOSB Management Karaman Organized Industrial Zone

Year of Establishment 1990 Also, the infrastructure Total Area 5.610.000 M2 of 4. Organized Area Being Used as of 3.360.000 M2 Industrial Zone is Current Total Number of almost completed. One 7000+ Employees of the first investors will Number of Firms 191 be Unilever Number of Active Firms 98

14 Sectors Present. %50 Occupancy Rare. Source: Karaman OSB Management

Organized Industrial Zones KONYA ORGANIZED INDUSTRIAL ZONE

407 MW 65 KM ELECTRICITY ASPHALT WAY SUBSTRUCTURE

70 KM NATURAL GAS 300.000 m2 SUBSTRUCTURE BORDURE AREA

SCADA SUBSTRUCTURE RAIN WATER SYSTEM: 44 KM

56 KM WASTEWATER SYSTEM 70 KM DRINKING AND Source: KOS, 2009 USING WATER SYSTEM

Organized Industrial Zones KARAMAN ORGANIZED INDUSTRIAL ZONE

56 MW ELECTRICITY 29 KM SUBSTRUCTURE ASPHALT WAY

160 KM TO WASTEWATER MERSIN HARBOR SYSTEMS

27.500.000 SM3/YEAR NATURAL GAS SUBSTRUCTURE 375.725 M3/YEAR Source: Karaman OSB, 2009 WATER CONSUMPTION

Upcoming Projects

Upcoming Projects

I. HOSPITAL PROJECTS:  Konya Numune Hospital Project (500 beds)

II. HIGH SPEED RAILWAY CONNECTIONS AND REHABILITION PROJECT:  Konya-Mersin Railway Rehabilitation Project  Konya-Antalya High Speed Train Project  Konya-Ankara-Izmir High Speed Train Project  Konya-Cappadocia-Kayseri High Speed Train Project

III. IRRIGATION PROJECTS  Lowlands Irrigation And Blue Tunnel Projects (KOP)

PROJECTS

IV. DAM PROJECTS:  Dam 4582 hm3 water capacity 1047 Gws/Year electric energy production

 İbrala Dam Irrigation area 8700 hectare 123,5 Milyon Dollars

 Deliçay Dam Irrigation area 3690 hectare 38 Milyon Dollars

V. OTHER PROJECTS:  Konya Kayacık Logistics Village Project  Konya Science Center Project (First in Turkey - Supported by TUBITAK)  Urban Transformation Projects

Upcoming Projects OLYMPIC SPORTS FACILITIES

- Olympic village and new stadium - Olympic Swimming Pool - Velodrom - Indoor Sports facilities for 10.000 persons Upcoming Projects LOGISTIC VILLAGE

Goverment Railways Institution continues its works in Konya Organized Industrial Zone. In current situation, while Carriage amount is 634.000 tonnes per a year, it is going to reach 1.679.000 tonnes Upcoming Projects

Karaman Centre Land Consolidation Project MEVLANA DEVELOPMENT AGENCY Operates in TR52 Konya ve Karaman cities. Works under the coordination of Ministry of Development Works under the regulations of private law.  Technical Support to the Planning Studies of Local Authorities,  Supporting the Activities of Rural Development and Local Development,  MEVLANA Preparing Strategies about Regional Development, DEVELOPMENT AGENCY  Supporting and Developing Entrepreneurship,  Developing the Cooperation between public, private sectors and NGOs,  Research about Business and Investment Opportunities, Advertising Them and Directing External Resources to the Region,  Coordinating the permission and/or license procedures of investors or other administrative task and transactions are some of the duties of the agency.

ORGANIZATIONAL STRUCTURE of AGENCY

Administrative Board Development Board (Decision Maker) (Consultation)

General Secretariat (Executive Body)

Legal Adviser Internal Auditor

Planning and Program Karaman Monitoring and Konya Administration Coordination Management Investment Evaluation Investment Office Unit Unit Unit Support Office Support Office Investment Support Offices was established under the Mevlana Development Agency in the Provinces of Konya and Karaman.

For investors who will invest in Konya and Karaman, INVESTMENT SUPPORT support is provided through the Investment Support OFFICES Offices.

Main Duties In the provinces of the region, •to follow and coordinate the permission and licence procedures of investors in private sector and to monitor the investments •to inform and guide the investor in accordance with the application conditions and required documents within the framework of the related legislation •to carry out pre-examination about the applications •to inform the Governorship and the Secretary General about the works, transactions and bottlenecks.

All services provided by Investment Support Offices are free of charge.

WHY KONYA & KARAMAN ? WHY KONYA & KARAMAN? WHY KONYA AND KARAMAN?

● Capital of SMEs, (more than 30.000 Small and Medium Sized Enterprises), ● Growing Export Capacity (more than 1,5 billion dollars export value), ● Wide Range of Export Network (Exports to more than 150 countries), ● Historical and Cultural Riches (Çatalhüyük, Karaman Castle, Taşkale Grain Silos,Sille, Mevlana Museum,…), ● Developed Industrial Infrastructure (Organized Industrial Zones and Small Industrial Areas), ● Well Educated and Dinamic Young Population (There are almost 100.000 students),

● Fertile and cultivated land suitable for Organic and Good Agricultural Practices, ● Areas with High Potential of Renewable Energy (Wind, Solar…), ● Notable ongoing projects (High Speed Train Project, Modern Lowland Irrigation Projects (KOP), Clustering Projects, Science Center, Logistic Village…). And we call the investors who are from all sectors with Mevlana’s invitation:

“Come, come again, whoever you are, come!”

( - Hz. Mevlana)

THANK YOU FOR YOUR ATTENTION

MEVLANA DEVELOPMENT AGENCY KONYA and KARAMAN INVESTMENT SUPPORT OFFICES

www.mevka.org.tr

[email protected]

www.investinkonya.org.tr

www.investinkaraman.org.tr

Investment Climate in TR52 Region (KONYA-KARAMAN) MEVKA INVESTMENT SUPPORT OFFICES 2013