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The Turkish Perspective 1 Contents YOUR COMPLIMENTARY COPY EXCLUSIVE INTERVIEW The President of the Republic of Turkey Prime Ministry Investment Support and Promotion Agency expresses his views on the investment climate in Turkey. SEPTEMBER-OCTOBER 2013 ISSUE 18 ECONOMY BUSINESS FOREIGN TRADE ANALYSIS ATTRACTION Through stable politics and successfully implemented economic policies, Turkey has become a star in its region. This success draws in×ows of money and investors to Turkey. The Turkish Perspective 1 Contents 06 | Turkey–Guinea Partnership 07 | Hyundai Turkey’s Capacity Rises to 200,000 08 | Possible Record in Employment 09 | 70% of Home Appliance Production Export Bound 10| Capacity Utilization Rate Increases 12 PANORAMA 34 COVER WHY IS TURKEY ATTRACTIVE TO INVESTORS? ATTRACTION :ith its disciplined oscal Through stable politics and successfully implemented administration, Turkey economic policies, Turkey has become a star in its stands out among the world’s region. This success draws inpows of money and developing countries as investors to Turkey. a very attractive draw for 05 international investors. 14 BRIEFING 14 | A LAND ILLUMINATED BY MUSEUMS 24 | TURKEY: A REGIONAL HUB Museums are among the top tourist IN CHOCOLATE attractions in any country. Besides Per capita consumption of chocolate and 26 displaying items of cultural and historical confectionery in Turkey has been on the value relating to the peoples who lived in rise for the past several years. the past, they also contribute to the host country’s economy. 26 | EUROPE’S BEST SCORES A HAT TRICK 17 | THE EXPORT OF WOOD AND Turkish Airlines once again obtained FORESTRY PRODUCTS Skytrax’s title for Best Airline in Europe, Turkey’s wood and forestry product winning for the third year in a row. export in 2012 was worth $4.3 billion. Between January and June 2013, the 28 | A SEASON OF OPPORTUNITIES IN 14 cumulative sum for the year to date was TURKEY: PRIORITY INDUSTRIES FOR announced as $2.3 billion. INVESTORS 19 19 | AN INDUSTRY WITH A PROMISING As a booming economy with global FUTURE: TOYS inpuence, Turkey offers international 28 The toy market in Turkey exhibited companies a multitude of investment growth of over 6%, with that for branded opportunities in a variety of industries. toys growing by more than 10%. 31 | CENTENNIAL CELEBRATION FOR 22 | TURKEY CLIMBS UP IN VITICULTURE THE FOUNDATION OF THE REPUBLIC OF According to a report issued by the US TURKEY Department of Agriculture, Turkey ranks Turkey has ambitious targets for 2023. as the world’s second most important To this end, ISPAT is working to increase producer of fresh grapes—after China— foreign participation in domestic and as the fourth-largest exporter. investment projects. 2 Content MANAGEMENT PUBLISHER ON BEHALF OF TURKISH EXPORTERS ASSEMBLY/ CHAIRMAN OF THE TURKISH EXPORTERS ASSEMBLY 42 IN DEPTH MEHMET BÜYÜKEKŞİ 42 | ON DOING BUSINESS IN MANAGER IN CHARGE TURKEY MUSTAFA MENTE PUBLICATION BOARD Turkey has set ambitious goals M. İLKER AYCI, BÜLENT AYMEN, in a large number of oelds for 42 İBRAHİM BURKAY, MUSTAFA ÇIKRIKÇIOĞLU 2023. Investment Support and PhD, ALİ NEDİM GÜRELİ, AHMET KELEŞ, TEMEL KOTİL PhD, ŞAHİN OKTAY, Promotion Agency President ülker 48 TAHSİN ÖZTİRYAKİ, METİN TABALU Ayc is conodent that the country PUBLICATION MANAGEMENT will emerge as a strong global PRESIDENT player. Ayc provided his evaluation SERKAN ÜNAL of the investing climate in Turkey GROUP COORDINATOR to The Turkish Perspective. MEHMET MÜCAHİD DEMİR FINANCE COORDINATOR 48 | THE REGION’S ENERGY FLOWS SELİM KARA THROUGH TURKEY EDITORIAL With its growing energy market EDITOR IN CHIEF and its status as an energy transit 54 SERDAR TURAN country, Turkey is a prime choice EDITORS AYNUR ŞENOL ALTUN, CAN GÜRSU, among investors’ favorite markets. NESRİN KOÇASLAN, ALTAN ORHON 54 | BOSCH GOES BEYOND THE NEEDS OF THE TURKISH MARKET DESIGN Bosch has invested over ø100 DESIGN DIRECTOR ÖZKAN ORAL million and employs more than DEPUTY DESIGN DIRECTOR 300 engineers and staff solely for AHMET ÇELİK R&D activity. Bosch’s R&D not PINAR GÜVEN only beneots the company’s local PHOTO EDITOR activities but is also exported from ŞEREF YILMAZ Turkey to Germany. CONTRIBUTORS 60 63 SÜLEYMAN YAŞAR PhD, GİZEM GÜZEY, 60 BRAND GÜZİN GÜZEY, CAN CENGİZ, Castell Anadolu in Russia, through 68 AGENDA BARAN KARAKUZU, MEHMET ERDOĞAN ELGİN, 60 | HAMAM OPENS THE TURKISH which it hopes to accelerate its FAIRS, EXHIBITIONS, SUMMITS, AND MELEK CEVAHİROĞLU ÖMÜR BATH FOR THE WORLD growth in the world’s largest MEETINGS IN THE NEXT TWO MONTHS Hamam expanded its retail country. PRINTING network from 45 to 200 over the BİLNET MATBAACILIK BİLTUR 65 | INNOVATION IN CHEESE: 70 FIGURES BASIM YAYIN VE HİZMET A.Ş. past ove years. We had a chat with DUDULLU ORGANİZE SANAYİ BÖLGESİ 1. CADDE NO: Eke Tekstil CEO Haluk Eke on MURATBEY 16, ESENKENT – ÜMRANİYE 34476 - İSTANBUL TIM EXPORTER TENDENCY SURVEY TEL: (0216) 444 44 03cwww.bilnet.net.tr how the Hamam brand was born, Muratbey is one of the orst brands RESULTS FOR Q2 2013 the success it Tuickly attained, and to come to mind in Turkey on plans for the future. mention of cheese. We had a talk with CEO Necmi Erol on the 63 | A HANDWRITTEN BRAND change undergone by the industry STORY: ADEL in recent times and the process of ADE/ has achieved rapid turning companies into brands in growth both domestically and CONTACT Turkey. [email protected] internationally. In 2011, ADE/ www.infomagyayincilik.com founded the company )aber- Neither text nor photographs from this publication may be reproduced in full or part without acknowledging the source and securing prior permission from the publisher. SEPTEMBER-OCTOBER 2013 ISSUE 18 The Turkish Perspective 03 Editorial MEHMET BÜYÜKEKŞİ PRESIDENT (TIM) DESPITE REGIONAL UPHEAVALS, TURKEY CONTINUES TO CREATE VALUE The economies of the US, Japan, and the EU, having grown 1.7%, 0.9%, and 0.3% respectiveer in J+ +013, are showing the Örst signs that a graduae recoverr in the world’s economies has begun. We believe that the recovery in the EU economy, which is predicted to grow after a siq&juarter&long recession that has slowed for the very Örst time, will have a positive impact on Turkey’s exports. EVELOPMENTS ON THE US Federal Partnership. The negotiation process is We are pinpointing the possible inpu- D Reserve front especially strengthen expected to reach an end in 2014 and ences that a Turkey–US FTA could have the likelihood that the American econ- lead to the signing of a tremendous trade on our economy over the next decade, omy’s recovery might happen sooner agreement that could yield a trade volume whether in the goods and services sectors, than expected. In light of these develop- of up to $650 billion. and we are developing policy suggestions ments, the possibility that the Fed could Turkey, meanwhile increasing its share that might be of use in upcoming nego- start to draw away from its expansionary in world trade each day, is pursuing new tiations. This soon-to-be-released study monetary policy grows. Following the efforts toward securing an FTA with the will draw a path for an FTA that would be Fed’s announcements, the search for a US so as not be left out of the dynamic signed between Turkey and the US. new center of balance was seen in all process mentioned above. As TIM, With increases in industrial produc- the world’s economies. After the Fed which represents Turkey’s 57,000 active tion and diminishing unemployment declared that it could cut down on bond exporters, we are evaluating a proposed ogures in the single digits, Turkey’s purchases starting in 2014, interest rates Turkey–US FTA that would be signed economy is holding on to the momen- shot up worldwide, as did onancing simultaneously with the EU–US FTA tum of its growth. Turkey is now giving expenses. We thank the Central Bank of through a comprehensive effect analysis. more focus to an export-based growth Turkey for doubling the rediscounting model through which it aims to attain credit volume for exporters and believe it even higher growth. Turkey’s economy is will continue to practice proactive mon- creating more value. Through the giant etary policies to minimize puctuations in steps it routinely takes, Turkey continues the exchange rate. to compete in every area with the aim of On the trade front, the downward revi- creating value. sion of predicted growth in the worldwide For our part, we, as TIM, see innova- exchange of goods to 3% remains valid. tion as the most important element in the Global exports exhibited 1.4% growth in equation of competitiveness. To this end, the orst half of the year, but discounting we will be holding Innovation Week Tur- China’s contribution, they actually shrank key November 28–30 (last year’s edition 0.2%. We believe a limited increase in took place December 6–8) with a much global export quantity will signal a recov- broader scope of activities than before. We ery near year-end. believe that Turkey, which ranks 43rd out Last month, after two years of technical of 144 countries on the Global Competi- preparations, the US and EU completed tiveness Index, must invest more human initial negotiations on their proposed and material capital in innovation to Transatlantic Trade and Investment climb to ever-higher levels in all oelds. 05 Content: 22% Increase in Olive Oil Exports P6 Turkey–Guinea Partnership P6 Hyundai Turkey’s Capacity Rises to 200,000 P7 Possible Record in Employment P8 70% of Home Appliance Production Export Bound P9 Capacity Utilization Rate Increases P10 .otil Reelected to IATA Board of Governors P11 Editor: Can GËrsu First EXPORTS, CONFERENCES, AGREEMENTS, AVIATION, CONSTRUCTION, TOURISM, DEVELOPMENT, FILM, INDUSTRY Certain data suggests a perception that the second quarter of 2013 followed a “stationary” progres- sion with regard to exporters.
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