8TH YEAR EXCLUSIVE INTERVIEW Chairman of TİM, İsmail Gülle, Answered the Questions About Many Issues and Evaluated the Current State of Turkish Economy

YOUR COMPLIMENTARY COPY 8TH YEAR EXCLUSIVE INTERVIEW Chairman of TİM, İsmail Gülle, answered the questions about many issues and evaluated the current state of Turkish economy.

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www.tim.org.tr/en/inosuit-innovation-focused-mentorship-program.html The Turkish Perspective 1 Contents

05 FIRST 36 COVER

12 EXCLUSIVE INTERVIEW 50 INDEPTH Chairman of TİM, İsmail Gülle, 48 50 | TURKEY&SOUTH answered the questions about KOREA“BLOOD BROTHERS” FOR many issues and evaluated the 60 YEARS current state of Turkish economy. During the Korean war between 17 BRIEFING South and North, the participation of Turkish troops led to the 17 | BRICS: OPPORTUNITIY FOR formation of a strong relation TURKEY between the two countries. President Recep Tayyip Erdoğan attended the 10th BRICS Summit 55 BRANDS held in South Africa and drew attention to the turbulent period the 60 | DOGUS TEA: DIVERSIFYING world is going through in his speech. THE BUSINESS Dogus Tea reached the large 20 | FIRST-EVER PRESIDENTIAL 26 | ISTANBUL IS READY FOR TAKE-OFF masses thanks to the slogan “The VISIT TO ZAMBIA Most Beautiful Tea is Dogus The frst phase of İstanbul New Tea” and became one of the most President Recep Tayyip Erdoğan Airport is due to open in October important actor in the market. proceeded from South Africa to the 2018. Zambian capital city of Lusaka for 62 AGENDA a one-day offcial visit. 30 | “ALL EYES WILL BE ON TURKISH AIRLINES” FAIRS, EXHIBITIONS, SUMMITS, 24 | ROBUST GROWTH IN THE MEETINGS IN THE NEXT MONTH INDUSTRY Turkish Airlines Chairman of the Board and the Executive Chemical industry’s export has been Committee M. İlker Aycı addressed 63 FIGURES increased by 12.34% in June and the ambassadors on the 10th has moved up to the second place. THE BASIC INDICATORS OF TURKEY 19 Ambassadors Conference. IN THE JULY 2018 2 Online

MANAGEMENT PUBLISHER ON BEHALF OF TURKISH EXPORTERS ASSEMBLY/ CHAIRMAN OF theturkishperspective.com THE TURKISH EXPORTERS ASSEMBLY Online İSMAİL GÜLLE STRATEGIC PARTNER PRESIDENT OF INVESTMENT SUPPORT AND PROMOTION AGENCY ARDA ERMUT MANAGER IN CHARGE THE TURKISH PERSPECTIVE DIGITAL H. BADER ARSLAN PhD PUBLICATION BOARD The Turkish Perspective website is to be launched soon. M. İLKER AYCI BİLAL EKŞİ A NEW MEDIUM TO LEARN, ANALYZE AND MONITOR EVERYTHING ABOUT TURKISH ECONOMY ENİSE DİDEM ELMAS MEHMET FATİH BİLİCİ AND BUSINESS, IS BORN. THE TURKISH PERSPECTIVE DIGITAL WILL SHARE THE LATEST MUSTAFA KAMAR NEWS, INTERVIEWS WITH DECISION MAKERS, PROVIDE IN-DEPTH ANALYZES AND WILL BE THE FURKAN KARAYAKA FOREIGNER’S GUIDE IN TURKEY REGARDING REGULATIONS AND LEGISLATIONS. PUBLICATION MANAGEMENT PRESIDENT MEHMET MÜCAHİD DEMİR [email protected] VICE PRESIDENT YAŞAR MAMATİ PROJECT COORDINATOR AHMET DAMGACIOĞLU [email protected] EDITORIAL EDITORS MUSTAFA YİĞİT [email protected] RAMAZAN GÜZYURDU [email protected] EUROPEAN COORDINATOR BUSINESS İNANÇ ATILGAN CULTURE CONTRIBUTING REPORTERS INVESTMENT İLHAN ALPAY OGAN İBRAHİM AVCI INNOVATION AND SCIENCE SERAP KAYA VIDEO OF THE DAY NEWS DESIGN CREATIVE DIRECTOR BRAND MARKETING AHMET SAİD ÇELİK [email protected] GRAPHIC DESIGNER UMUT DURUTUNA JR. GRAPHIC DESIGNER

YOUR COMPLIMENTARY COPY YOUR COMPLIMENTARY COPY YOUR COMPLIMENTARY COPY TH 8TH BRIEFING Soda Ash: The 8TH PANORAMA Global Trade 8 Largest Producer in Europe On The Rise YEAR EXCLUSIVE INTERVIEW YEAR YEAR Nihat Zeybekci, Minister IN DEPTH Turkey: Global Player BRIEFING Major Actor of of Economy, shared the current state of Turkish ÖZCAN AYHAN in Defense Humanitarian Aid economy with Turkish Perspective. BRANDS ölen: Re-Establishing IN DEPTH the Chocolate Candy Rules Invest in Greece

FEBRUARY 2018 ISSUE 55 ECONOMY BUSINESS FOREIGN TRADE ANALYSIS MARCH 2018 ISSUE 56 ECONOMY BUSINESS FOREIGN TRADE ANALYSIS APRIL 2018 ISSUE 57 ECONOMY BUSINESS FOREIGN TRADE ANALYSIS THE More than a magazine, PRINTING YEAR OF PROMAT BASIM YAYIN SAN. VE TIC. A.Ş. RE CORDS the Turkish Perspective ORHANGAZI MAH. 1673 SOK. NO.34 ESENYURT- ISTANBUL / TURKEY will now be more T. +90 212 622 63 63 F. +90 212 605 07 98 [email protected]

TuRkEy iS REaDy fOR ThE yEaR Of RECORDS afTER interactive and responsive, ThE bREakThROugh yEaR, 2017. as expected from YOUR COMPLIMENTARY COPY YOUR COMPLIMENTARY COPY YOUR COMPLIMENTARY COPY 8TH PANORAMA Lorem 8TH BRIEFING Feres eost, sit 8TH YEAR Ipsum Dolor Amet YEAR velic temquidem aut late YEAR EXCLUSIVE INTERVIEW Chairman of TİM, İsmail BRIEFING One Festival, IN DEPTH Feres eost, sit Gülle, answered the questions Two Continents velic temquidem aut late about many issues and evaluated the current state of IN DEPTH Bridging The BRANDS Feres eost, sit Turkish economy. Energy Gap velic temquidem aut late

MAY 2018 ISSUE 58 ECONOMY BUSINESS FOREIGN TRADE ANALYSIS JULY 2018 ISSUE 60 ECONOMY BUSINESS FOREIGN TRADE ANALYSIS SEPTEMBER 2018 ISSUE 62 ECONOMY BUSINESS FOREIGN TRADE ANALYSIS Turkey’s main voice for Turkey on the international audience. Move CONTACT T. +90 212 216 19 48 [email protected] [email protected] www.medyatr.com.tr Turkey has long been a country shaken by chronic From the foreign-dependent banks in the late Ottoman Era economic and fnancial crises (1959, 1969, the 1970s, to the national banks of the Republic of Turkey, Turkish 1994, 2000-2001), but it has risen, in the last decade, banking system improved itself with structural to rank 17th among global economic powers. changes and resisted roughest financial crisis. 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.

AUGUST 2018 ISSUE 61 The Turkish Perspective 3 Editorial İSMAİL GÜLLE CHAIRMAN (TİM)

FOCUSING ON EXPORTS IS CRUCIAL FOR PARRYING THIS TURMOIL We are all witnessing the pressure on Turkey and our currency in the international markets. Both fnancially and politically Turkey is facing diffcult times for the last couple of weeks.

SPECIALLY THE HIT ON TURKISH and create and unstable environment trap, is increasing our export value. ELIRA on 8th of August caused a in the market to freeze the business Turkey’s fnancial structure and huge volatility on Turkish Lira resulting operations. If we stop making new banking sector is far better than many almost a 30% fall out. investments or shrink our production, countries in the world. However we Regarding to the large corporate our economy will suffer a worse need to produce value added products debt payments for the incoming recession. Therefore the measures to increase our value per unit and to months of Turkish private sector, the taken by our ministries and other lower our trade defcit. Our capacity hit on Turkish Lira suffers the frms for public institutions, resulted positively utilization has reached %79 on average making new investments. Therefore our with stabilizing Dollar – Lira parity in 2017. This means it is too hard for us Banking Regulation and Supervision on 6 Liras average. It is important to step forward in international trade Agency relieved the sudden pressure on protect stability of our local currency with the same old production strategy. lira with putting restrictions on dollar- to continue our trade relations while Therefore we need to transform our lira swaps actions to make it harder to to continue with new investments on production on value added products. bet against Turkish Lira. value added products. As TIM we will continue to support the Within the following week, as the In every platform, I underline that projects on R&D, design, education and administrative board of TİM, we also the only way out of middle-income branding. decided to allocate our reserve funds to Turkish Eximbank for the use of exporters not to face the risk of being in a hard situation regarding to the volatility in Turkish Lira. Moreover, Ministry of Finance announced that Turkish Banks will continue to provide commercial credits to the companies who suffer the speculative boost of US dollars against Lira. Also Ministry of Technology and Industry announced, they will continue to support the investments on R&D and Design projects of SME’s. As an addition, they will also support the investments which directly related to exports. These policy actions relieved the market and lowered USD from its peak level. This kind of speculative attacks supposed to depreciate the value of Lira

The Turkish Perspective 5 Content: Investment Drive to Continue P05 Great Increase in Steel Export P06 Production Facility in Turkey by Bosch P07 Boosting Renewable Power Generation P08 Tailor-made Strategies from Turkey P09 Super Incentive for TF-X Project P10 Editor: Ramazan Güzyurdu

First DEFENSE, EXPORT, ENERGY, BUSINESS, ECONOMY, TOURISM, EXPORT, AUTOMOTIVE, TECHNOLOGY...

President Recep Tayyip TURKEY Erdoğan unveiled the 100-day action plan at an event at the Beştepe Erdoğan’s frst 100-day plan: People’s Culture and INVESTMENT DRIVE TO CONTINUE Convention Center. The action plan for the frst 100 days of the new Cabinet includes 400 projects to be accomplished with a budget of TL 46 billion in diverse sectors including energy, tourism, fnance, transportation and agriculture.

RESIDENT focused on economic The frst 100-day The execution of President Recep P Recep Tayyip projects, Turkey action plan includes 400 projects with Tayyip Erdoğan noted Erdoğan disclosed is determined to numerous goals an investment value that each one of the the action plan that continue investments including but not of TL 46 billion 16 ministries have includes 400 projects in numerous sectors limited to energy, ($9.1 billion) in the prepared a list of to be accomplished while diversifying economy, industry, frst 100 days will prioritized projects in during the frst 100 the borrowing foreign trade, be coordinated and due consideration of days of the new instruments, for environment and monitored by Vice budgetary discipline presidential governance instance with Chinese urbanization, defense, President Fuat Oktay. and a total of 1,000 system that took effect bonds, the renminbi- education, health, Speaking at a projects have been on July 9 when the denominated bonds technology, tourism ceremony at the determined, with 400 President took the from a non-Chinese and agriculture as Presidential Palace of them listed in the oath of offce. Heavily issuer. well as public fnance. Complex in Ankara, 100-day action plan. 6 First

EXPORT ENERGY NATURAL GAS GREAT INCREASE IN STEEL EXPORT TRADE WITH Steel export in the sector grew by 26.7 percent to $8.4 IRAN billion in the frst seven months of this year. Despite U.S. sanctions, Ankara will continue purchasing natural gas from Iran on the basis of a long-term supply DEFENSE deal, due to end in 2026, Energy and Natural TURKEY’S T625 Resources Minister Dönmez has said. COMPLETES Turkey will be GROUND TESTS continuing its natural gas trade with Iran in The prototype accordance with a long- of Turkey’s term contract inked T625 Multirole with Tehran, Energy Helicopter and Natural Resources has completed Minister Fatih Dönmez ground tests and said, adding that Ankara is on schedule for espite the U.S. tariffs on steel, In the January-July period this expects talks with year, steel exports experienced Washington to resolve its frst test fight. D exports in the sector grew by 26.7 percent to $8.4 billion in the highest increase to Italy with the issue. Minister The Turkish Aerospace the frst seven months of this year $351.8 million compared to the Dönmez’s remarks came Industries (TAI)’s compared to $6.6 billion in the same period in 2017. The greatest a day after U.S. President Original Helicopter same period of 2017. In this period, decline in that period, on the other Donald Trump warned Program, under the the highest increase in steel sector hand, was to the United States, at countries of doing coordination of the exports was recorded to Italy, $250.4 million. business with Iran after Undersecretariat for while the biggest decrease was In the same period, the other Washington reimposed Defense Industries experienced in the U.S. market. countries with the highest stiff economic sanctions (SSM), is progressing According to Turkish Exporters increase in exports in quantity on Iran, ratcheting up on schedule to complete Assembly (TİM) data, exports to were to Spain with $208.8 pressure on the country its frst fight later this the European Union led the way million, Belgium with $185.9 despite statements of deep year and begin serial reaching $3.6 billion, an increase of million and Romania with $165.5 dismay from European production after 2021. 62.9 percent compared to last year. million. The countries with the allies. The helicopter Exports of $1.4 billion to highest decrease after the U.S. He emphasized that prototypes have been Middle Eastern countries in this were Singapore with $104.2 energy security is an transferred to the period came second on the list, an million, Turkmenistan with $90.1 extremely important facilities where the increase of 9.9 percent annually. million and Iraq with $64.8 issue, noting that Turkey ground tests were carried Meanwhile, exports to African million. and Iran had trade out and where fight countries surged by 33.6 percent to Evaluating the sector’s relations dating back tests will be launched $1 billion. Thus, the steel exports to performance in a statement, many years. after extensive system the EU, Middle Eastern and African Adnan Aslan, chairman of and ground tests. countries exceeded $1 billion in the the Turkish Steel Exporters The T625 Multirole frst seven months of the year. Association (ÇİB), said that Helicopter is a twin- In terms of quantity, the steel Turkey’s steel exports reached engine, six-ton-class sector realized the highest exports 11.1 million tons in the January- aircraft designed for in seven months of the year to Italy July period of this year with high mission fexibility with $659.9 million, followed by an increase of 2.4 percent in even in the toughest the U.S. with $552.1 million, Spain quantity compared to the same of geographical with $488.8 million, Israel with period of the previous year. environments and $443.3 million, Romania with The value-based exports of the adverse weather $426.2 million, and Germany sector also rose by 6.7 percent to conditions. with $399.6 million. 8.4 billion, Aslan said.

SEPTEMBER 2018 ISSUE 62 The Turkish Perspective 7

ECONOMY BUSINESS TOURISM 2ND IN TOP 250 GLOBAL Production Facility in CONTRACTORS Turkey by Bosch Turkey remained A new-generation, high-pressure petrol injector in second place production facility to be built by Bosch in Bursa after China for province will achieve $185 million in annual exports. the number of contracting companies in the Top 250 Global Contractors List 9M FOREIGN for 2017. TOURISTS IN Engineering News ANTALYA Record (ENR), an international The number of construction industry tourists coming magazine, prepares to Turkey’s the list based on the holiday resort companies’ income city Antalya through overseas approached 9 activities. A total of 46 million as of Turkish companies August. were named in the 2017 NDUSTRY AND Technology “We aim for this investment to list, the same as in the I Minister Mustafa Varank’s contribute $230 million to the Around 8.66 million previous year. remarks came after he received reduction of the current account foreign passengers The top 250 Bosch Turkey and Middle East defcit,” Varank continued. “We arrived at Antalya international President Steven Young in his are pleased that Bosch has chosen Airport and Gazipaşa contractors reported offce. Turkey for new investments. Airport, a new all-time almost $482.4 billion Varank said Bosch Turkey’s All companies that contribute high, the data said. in contracting revenue production facility, to be completed to our economy by investing in Often called Turkey’s last year from projects in fve years, would play an Turkey, developing technology tourism capital, outside their home important role in reducing the and creating employment are our Antalya is expected to countries. The amount current account defcit, adding this companies. We do not distinguish hit an all-time high was up 3.1 percent, new high-pressure gasoline injector between foreign and domestic and host around 14 from $468.12 billion, in production facility in Bursa, which investors. We hold all of them in million foreigners this 2016. This rise comes would be worth $1.2 billion, would high esteem.” year. after three straight years achieve $185 million in annual “Nearly 4,500 people will According to the of revenue declines exports, thus getting ahead of the be employed (within the new data, the record for among the Top 250, the $45 million in imports. incentive system),” Varank noted. 2014, which is seen magazine said. as the best year in China topped the list, Antalya, has also been while the U.S. ranked HUGE INVESTMENT FROM BOSCH surpassed. third with 36 companies, The incentives aimed at encouraging more investment in the country, as well as supporting There were about the Turkish Contractors frms in several areas including health, defense, automotive, mining and metal sectors. 8.22 million tourists Association (TMB) said in the same period in a statement. of 2014, while the Despite the number was nearly downsizing in the global 6.72 million last year. contracting sector in 4500 $185 $1.2 During this period, recent years, the number PEOPLE MILLION BILLION the number of arriving of Turkish frms on the foreign passengers WILL BE EMPLOYED WITH THE ANNUAL EXPORT BY THE TOTAL COST OF PRODUCTION ENR list rose from 40 to NEW SYSTEM FACILITY FACILITY increased by 21 percent 46 in 2016. The fgure compared to the same was unchanged in 2017. period last year. 8 First

AUTOMOTIVE ENERGY TECHNOLOGY ENGINEERING TURKEY’S FIRST CONFERENCE Boosting Renewable INDIGENOUS IN ISTANBUL Power Generation MICROSATELLITE The movers and Turkey revised its renewable energy target for 2023, Lagari, Turkey’s shakers of the with additional steps to increase the share of clean frst indigenous global automotive electricity production to more than 50% by 2023. microsatellite, industry will will be complete attend IAEC’18 this year and being held for launched in the the third time in second half of İzstanbul. 2019. According to the written The satellite, unveiled statement released by at the International the Uludağ Automotive Defense Industry Industry Exporters’ Fair (IDEF 2017), Association (OİB), is designed to meet the “International Turkey’s geographical Automotive Engineering imaging requirements Conference” will be and provide more held at Swissotel The fexibility in the area at a Bosphorus from Nov. low cost. 1-2 to discuss future A subcontract for the automotive trends microsatellite has been and address the latest N MAY 2018, Turkey’s energy renewable electricity share was 29 signed with Berlin Space developments in I watchdog the Energy Market percent and the share of installed Technologies GmbH. automotive electronics Regulatory Authority (EMRA) clean energy capacity was around The project is now in the and software. said that the installed electricity 40 percent. detailed design phase The event is designed capacity increased by 181 percent After hitting 31 percent of after the preliminary to facilitate discussion from 32,000 megawatts (MW) renewable electricity production in design phase was about the necessary over the last 15 years up to 90,000 August 2018, Turkey’s authorities completed successfully. steps to be taken by the MW. The share of renewable took concrete investment steps to The microsatellite was automotive industry electricity capacity out of total revise its renewable target for 2023. developed by the Turkish in engineering in the installed capacity reached 46 As part of the plan, the country defense contractor current dynamics of the percent in May while renewable aims to use more renewables Defense Technologies sector while taking into power generation was around 30 through a series of tenders for solar Engineering and Trade account the opinions of percent. power plants with a total capacity Inc. (STM), which for international specialists In 2013, in accordance with of 3 gigawatts (GW) and with an the frst time this year from a technical point Turkey’s National Renewable estimated investment of nearly $4.8 entered the “Defense of view. Energy Action Plan, Turkey’s billion. News Top 100” list.

POWERFUL ACTIONS IN ENERGY On Aug. 3, President Recep Tayyip Erdoğan announced that the country’s 100-day action plan to develop the domestic energy sector with domestic energy sources including wind, solar and geothermal power. $4.8 55 3 $23 181% BILLION THE NUMBER OF GIGAWATTS BILLION INSTALLED ESTIMATED ACTIONS IN THE ESTIMATED CAPACITY ALLOCATED FOR ELECTRICITY ELECTRICITY CAPACITY INVESTMENT IN 100-DAY ACTION PLAN OF SOLAR POWER DISTRIBUTION AND PRIVATIZATION INCREASED OVER THE RENEWABLE ENERGY IN ENERGY PLANTS AIMS TO USE OVER THE LAST DECADES LAST 15 YEARS

SEPTEMBER 2018 ISSUE 62 The Turkish Perspective 9

ENERGY TECHNOLOGY BLOCKCHAIN EXPANDING TRANS-BALKAN LINE CENTER IN The line will have the capacity to carry 15.75 billion cubic ISTANBUL meters of natural gas per annum. Turkey’s frst university ulgaria’s decision to increase meters to 15.75 billion cubic meters. blockchain center, the B the capacity of the Trans- Speaking at the opening Istanbul Blockchain Balkan pipeline shows the country’s ceremony, Minister of Energy and and Innovation Center intent to capture the entire gas Natural Resources Fatih Dönmez (BlockchainIST Center), BUSINESS volume of the TurkStream natural said that the pipeline will carry was inaugurated at gas pipeline project’s second line, natural gas to Europe - which Bahçeşehir University TAILOR-MADE according to Jonathan Stern, will both contribute to natural (BAU). founder of the Natural Gas gas supply security of Turkey and The center aims STRATEGIES Research Program at Oxford Bulgaria and boost the importance to close the expertise FROM TURKEY Institute for Energy Studies. of both countries in the European gap in the market Stern said that Bulgaria is not natural gas market. in order to make Turkey will necessarily the most powerful Pointing to investments that blockchain technology, implement tailor- candidate for TurkStream’s second Turkey has made in strong natural a cryptographic data made strategies line to transfer gas to Europe. The gas infrastructure, the minister base that ensures secure to increase line will have the capacity to carry noted, “Turkey is taking frm steps tracking of digital exports to Russia, 15.75 billion cubic meters of natural not only toward satisfying its own transactions, be used in Mexico, India gas per annum. demand, but also responding to all areas. and China. Turkey and Bulgaria offcially regional energy requirements.” The center, which launched the new Lozenets- The Turkish minister noted that aims to simultaneously In a bid to enlarge its Nedyalsko pipeline, paving the way the pipeline would also enable use the same export destinations and for natural gas exports to Bulgaria reverse fow gas transmission technologies as the volume, Turkey has and natural gas fow to Europe via from Turkey to Bulgaria with rest of the world in the developed strategies to Turkey. The new line will increase the possibility of Bulgaria blockchain area, will expand into the $2.8 the current Trans-Balkan pipeline’s receiving Russian gas through the work with students and trillion import market capacity from 14 billion cubic TurkStream natural gas pipeline. entrepreneurs who want of China, Mexico, to conduct academic Russia and India by studies in this area. exporting goods that TOURISM Istanbul Blockchain are in high demand. and Innovation The size of the Center Director Bora import markets in Tourist Attraction for Erdamar said that a China, Mexico, Russia very competent team of and India, identifed experts from Turkey and by Turkey as priority Egyptians the world will carry out countries for exports in With breathtaking scenery, convenient hotel prices and worldwide projects in the new period. Turkey quality services, Turkey has been attracting a growing blockchain technologies will set specifc strategies number of tourists from Egypt. at the center. Expressing for these countries in that they will also work order to get a greater espite political Around 101,000 with many important share of this cake. D tension between Egyptian tourists fgures from the business President Erdoğan Cairo and Ankara visited Turkey in world, Erdamar stated, gave the frst signals since the military coup 2017, up from 94,000 “The purpose of the of export-expansion against democratically in 2016, according BlockchainIST project is strategies in the 100- elected President Mo- to offcial Turkish to be the most important day action program, hamed Morsi in Egypt estimates. The center of research and announcing that exports in 2013, holidaymak- rise comes despite development and to China, Mexico, ers from Egypt are restrictions imposed by innovation in Turkey in Russia and India are increasingly favoring Egyptian authorities which scientifc studies among the priority Turkey for their vaca- on people aged 18 to and publications are issues under the Trade tions and continue to 40 years old who are made in blockchain Ministry’s objectives. trust Turkey. willing to visit Turkey. technologies. 10 First

ECONOMY ECONOMY All of the money for İstanbul According to the Istanbul Development Agency’s 2018 Financial Support Programs project evaluation results, 89 projects will be realized.

DEFENSE SUPER BOOMING INCENTIVE FOR RELATIONS TF-X PROJECT WITH MOSCOW Government Trade between Turkey aid will be and Russia increased 37 provided to the percent year-on-year, National Combat reaching $13.3 billion. Aircraft Project As ultimately all trade production barriers between the two facility by Turkish countries were lifted, Turkey’s exports to Russia Aerospace soared 47 percent, while Industries. CCORDING TO a statement Yavuz said. “With our Financial imports from Russia rose Accordingly, the duration A released by the İSTKA, a Support Programs, we aim to 36 percent. of this investment is total of TL 124.9 million worth of increase the added value through China remained estimated to be 15 collaborations will be established the digital transformation of the Russia’s main partner years. If the investment in 89 projects with public existing industrial production in the frst half of the cannot be completed institutions, nongovernmental structure and university co- year with $50 billion in within this period, the organizations and institutions, operations. The companies trade volume, followed Ministry of Industry and including universities. and software set up by the by Germany, the Technology will grant All of the money will be entrepreneurial youth on the Netherlands and Belarus. a time extension up to used for projects aimed at the computer are now shaping the In the aftermath of half of this period. The social, economic and cultural world economy. For sustainable the jet-downing crisis total fxed investment for development of Turkey’s key development, we also work to of November 2015, the project is TL 5,650 growth-driving city, create conditions for today’s political ties and business billion. An additional Istanbul. children and youth to connections between 3,000 people will be Some 35 projects will be become the entrepreneurs Turkey and Russia employed as part of supported in the “Children and industrialists of were severely affected, the project, while 300 and Youth Financial tomorrow.” with Moscow imposing qualifed personnel will Support Program,” A total of 37 projects restrictions on Ankara, work for it. 17 projects in the will be developed in the including banning The investment will “Entrepreneurship Financial “Innovative and Creative the exports of certain have VAT exemption, Support Program” and 37 projects Istanbul Financial Support agricultural products, customs tax exemption, in the “Innovative and Creative Program,” which has a total revoking visa-free travel VAT refund, a corporate Financial Support Program.” budget of TL 66.38 million. for Turkish citizens and tax cut, 10-year income “Every day we wake up to a new As part of these projects, levying restrictions on tax withholding, qualifed change. Now all sectors are fed infrastructure for innovation, Turkish businessmen in personnel support of a by technology. In an increasingly research and application the country. maximum of TL 660 competitive environment, we centers, laboratories and In May 2017, Turkey million, interest support need to invest more in innovation, technology transfer offces in and Russia signed a joint that can’t exceed TL 440 technology, improvement and whereby university-industry co- declaration to remove all million or proft share entrepreneurship,” İSTKA operations will be developed and trade restrictions between support. Secretary-General Özgül Özkan established. the two countries.

SEPTEMBER 2018 ISSUE 62

12 Exclusive Interview / İsmail Gülle

“WE WILL ACT WITH Chairman of Turkish Exporters 7/24 EXPORT Assembly İsmail Gülle: PHILOSOPHY” Chairman of TİM, İsmail Gülle, answered the questions about many issues and evaluated the current state of Turkish economy.

The trade wars started between the United presented our new strategy and new projects for States and China transformed international increasing our export. We continue to work with trade environment where all countries began to enthusiasm and courage. pursue protectionist policies on customs walls. The declaration published right after the frst As Turkish exporters, even within the current “Advisory Committee Meeting of the Ministry of international trade atmosphere, we achieved an Trade”, which was held under the supervision of export increase of 11.8% on July, 2018. Compared Trade Minister Mrs. Pekcan, unity and solidarity to the same month of the previous year, our exports in the economy were emphasized. reached 14 billion 106 million US dollars in total Within the scope of our high level visits, hitting all-time high record among all July’s since we conducted signifcant meetings with our the foundation of our Turkish Republic. Ministries of Industry and Technology and To protect our exporters from the US sanctions National Education. We also evaluate that these and speculative movements in exchange rates, we ministries’ statements in the context of the 100- have signed a protocol with Eximbank subjecting day action plan are also very important. allocation of the reserve funds of TİM and We want to strengthen our cooperation with Exporters’ Associations. the Ministry of National Education on the new We have organized coordination meetings with generation of labor force and felds that our our Exporters’ Associations to see what strategies exporters need. We are in the process of signing a could be followed for the development of exports protocol with our Ministry. in the new period under the auspices of Ministry In the new period, we want to establish a of Trade. We aim to enhance our cooperation with structure which is more active, more effective and our Exporters’ Associations. result-based activities in Turkey’s exports. Our Vice President Mr. Fuat OKTAY accepted We will provide the delegation of TİM in his offce. We have Turkey has made a fresh start after the country mentoring support presented our projects to increase our exports to offcially switched to a new government system. to frms that have him. We also presented our opinions on increasing As the chairman of TİM, could you please briefy never exported exports, unit values and our world share and evaluate the results of last elections and the frst and are currently discussed our new strategies to Mr. ALBAYRAK, 100-day action plan that was recently unveiled exporting but want Minister of Treasury and Finance. by President Recep Tayyip Erdoğan? We visited Mrs. PEKCAN, Minister of Trade, It is a comprehensive program that responds to all to increase their last month as the new administration of TİM. We our necessities we have been waiting for months. exports.

SEPTEMBER 2018 ISSUE 62 The Turkish Perspective 13

We should continue to export strategy focused on R&D, innovation, brand and design as usual.

Chairman of Turkish Exporters order to reduce the loss of time Assembly İsmail Gülle: in Customs. Turkey Trade Centers will be in service in 365 days for with fair logic to all exporters and all of them will also be able to beneft from e-trade facility. We are also organizing Export Compass events in order to inform our exporters about trade opportunities for new countries and signifcant information how to access their target markets.

Turkey’s export has a considerable contribution to the growth of its economy. What more steps should be taken to improve our export fgures? Could you please explain your strategies for increasing our export volume? First of all, we should continue to export strategy focused on R&D, innovation, brand and As TİM, a signifcant part How would you describe design as usual. of our expectations that will the importance of TİM for As a result of this strategy, enable us to move our exports Turkish exporters? What we will organize our annual further and in fact to moving steps should be taken by TİM organizations with a strong exports further will move our to increase the number of emphasis on innovation and country further according exporting companies? R&D such as Innovation to the program. This is the As seventy-one thousand Summit and Entrepreneurship most important indicator of of exporters; we stand Week. what our government and our with unity and solidarity, We will provide mentoring President attaches importance with determination, with support to frms that have to exports. The most important our country and with our never exported and are task for us in these 100 days is future. It is our job to currently exporting but want to contribute to our economy create a solution-focused to increase their exports. with record export fgures like environment and solve We will match the experts monthly record in July. the problem of exporters. in foreign trade with frms in After the announcement of Therefore, we will run the We want to strengthen order to provide Mentoring Medium-term Programme, Assembly more actively, we our cooperation with support for export. Therefore we will have a much stronger will listen to our delegates the Ministry of National we plan to extract the needs economy with the harmony of continuously. We will act with Education on the new analysis of our companies the two programs. Fluctuations 7/24 export philosophy. So what does this need in the recent exchange rates Our exporters will be able generation of labor analysis cover? and the rising infation will be to make customs clearance of force and felds that • Export tariffng and restrained in this respect. goods at their own facilities in our exporters need. contracts 14 Exclusive Interview / İsmail Gülle

• Certifcates of Origin and departments before the As TİM, a signifcant e-commerce platforms. The Circulation of Goods trade delegations organized interest of our companies • Government Supports in to facilitate the access of our part of our in e-commerce platforms is market research exporters into new markets. expectations that will increasing day by day. • The country procedures Sector Desk is at service to enable us to move according to export type and help 71 thousand exporters our exports further What kind of projects do you product operating in all sectors, to and in fact to moving consider to apply in order • Export Compass collect problems and requests exports further will to integrate technology We will increase the related to their sectors. into the export? In this number of our trade Thus, we aim to help them move our country respect, do you believe that delegations so that in the shortest time for further according to Turkey Innovation and our exporters can get export obstacles and proceed the program. Entrepreneurship Week information about the smoothly export operations. makes a positive contribution target and alternative In brief, we are mobilizing to succeed it? markets better. Our all our resources to keep our We believe that now consists Country Desks department companies informed and to of the innovation ecosystem in guides the frms and direct them to new markets to them to offer their products to Turkey. provide them important increase our exports. the target markets We will make the Innovation information about the In this way, we aim to and Entrepreneurship Week trade and economy of the E-trade is radically provide our companies with which we have organized countries where they want transforming the global a fast adaptation to digital since 2012 more compact this to export. We inform them economy on a practical level. commerce in addition to direct year. We are not going to do about general economic What is Turkey’s road map to trade in goods. organize for the whole week and commercial data, increase its share in e-trade? Our Assembly has signed hereinafter and it will be held export potential, competitor In the global economy, collective membership on 5th of October this year. analysis, custom tariffs, e-commerce has gained great agreements with trading Now, more value-added and prefential tariff and importance. We, as Turkey, do platforms AliBaba, Kompass results-based with an event, technical barriers, bilateral not miss this trend and we got and Turkish Exporters. Our professionals in the innovation agreements and Free Trade all our measures in order to Government is encouraging that makes a difference in the Agreements (FTA) of their support our business people. our frms to 80% of the world and Turkey, will meet target country. Our companies are able to cost of membership in such with qualifed business people Additionally, join e-commerce platforms platforms. and researchers. comprehensive economic with the serious supports of Up to now, 14,467 As a new management, and foreign trade reports Ministry of Commerce and companies have benefted we attach special importance on the target country are our Assemblys’. We made the from this incentive and to entrepreneurship. That’s prepared by our relevant membership process easier for have become members of why we distinguished

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entrepreneurship from innovation. Entrepreneurship Week will also be organized as a separate event in a single day. We want to contribute to the goal of becoming Istanbul’s global entrepreneurship center. We aim to organize this event as one of the most important meeting points of startup and technology companies.

As the chairman of TİM, what are your expectations for the next year, as well as 2023 and 2071 targets? What will be your strategy to achieve these goals? We are witnessing a new round of international trade, in which protectionism is in full swing, and trade wars have gained a great depth. At such a time, we believe that believe that these funds will opportunities will be can raise our unit price of the removal of these barriers return to our exporters in 10 evaluated to protect the value $ 1.36 in exports by doing is a great opportunity for times. of the Turkish lira. value-added production. It facilitating trade. In the process we have As TİM, we attach is expected that the “Project First of all, we aim to been through, we will use importance to the support Based Incentive Package” facilitate the credit access all our resources for export provided by our Ministries announced in 2018 will play of our exporters due to campaign to be benefcial to of Industry and Commerce a big role in the closing of fuctuations in the fnancial the economy of Turkey. All on R & D and Design as our current account defcit markets. At this point, we economic and commercial TİM. It is possible that we by decreasing our external dependency in product groups such as “Petro- Chemistry”, “Advanced technology” which are major items in our current account. Another issue is that we can increase our share of world trade. We are aiming to increase our share from 0.9% to 1.5% until 2023. Especially we are working to increase our trade volume with these countries by improving our trade relations with Africa, Latin America, Middle East and Far East countries. We will continue to work determinedly in the export mobilization that we have started to reach our national targets much faster.

TİM has signed a protocol with Eximbank on allocating its reserve funds and a portion of the resources of Turkey Promotion Group to exporters. Turkey’s New Entrepreneur Force TİM-TEB Global Houses are intended to encourage, develop and strengthen innovative entrepreneurs and start-up businesses that generate high added value and have export potential. The Turkish Perspective 17 Content: Regional Cooperation On The Rise P18 First-Ever Presidential Visit To Zambia P20 Export Will Soar With The 100-Day Action Plan P23 Robust Growth In The Industry P24 Istanbul Is Ready For Take-Off P26 “All Eyes Will Be On Turkish Airlines” P30 Arda Ermut Appointed As The Head Of Presidential Investment Offce P32 Editor: Ramazan Güzyurdu

Briefng INTERNATIONAL RELATIONS, EXPORTERS DIARY, AUTOMOTIVE, AVIATION, INVESTMENT...

INTERNATIONAL RELATIONS BRICS: OPPORTUNITY FOR TURKEY President Recep Tayyip Erdoğan attended the 10th BRICS Summit held in the South African city of Johannesburg and drew attention to the turbulent period the world is going through in his speech.

oting that his of economy, trade, investments Bank will be fnalized in a Nparticipation in and development. short span of time. “We can the BRICS Summit as the Expressing his thought also collaborate regarding President of Turkey constitutes that cooperation can be the works, conducted under the frst high-level contact forged between the BRICS the roof of the BRICS and between Turkey and the New Development and in Turkey separately, for BRICS, President Recep Tayyip Business Council and the the establishment of a new Erdoğan stated that he sees the relevant institutions in international credit rating summit as an opportunity for Turkey, President Erdoğan Turkey desires to agency which is more just and the deepening of cooperation highlighted Turkey’s hope that cooperate with BRICS- more impartial. We want to between Turkey and the the ongoing membership talks member countries in further our cooperation with BRICS and that Turkey desires between Turkey’s Ministry of the felds of economy, BRICS-member countries to cooperate with BRICS- Treasury and Finance and the trade, investments in the feld of energy, as well,” member countries in the felds BRICS New Development and development. President Erdoğan said. 18 Briefng

“We closely follow the role the BRICS seeks to assume in the South-South Cooperation.

countries of the world in terms of development aids, one of the most important element of the South-South Cooperation. Last year, we were one of the top countries in this area with the $8.2 billion offcial development aid we provided. And we are GREAT NEED FOR THE Recalling the almost by far the leader in terms STRENGTHENING OF OIC-BRICS decennial recurrence of of humanitarian aid. We COOPERATION economic crises up until are today hosting over 4 Highlighting that he has $7.3 today, President Erdoğan million refugees, 3.5 million been invited to the BRICS BILLION stated: “It is impossible of whom are from Syria Outreach Session in his TURKEY’S for the current structure and Iraq. Turkey has spent capacity as the OIC Summit EXPORT TO BRICS to continue without being $32 billion for refugees at a Chair and that he represents overhauled and amended in time when many developed not only Turkey but also all line with today’s conditions. Western countries condemn the OIC-member Islamic It is a must that the refugees to barbed wires. countries at the BRICS %40 increasing weight of the What is more, our country Summit, President Erdoğan emerging economies are put the issue of development OF WORLD’S POPULATION said: “There is a great need refected in the system.” at the top of G20 agenda for the strengthening of MADE UP BY BRICS during its G20 term OIC-BRICS cooperation. TURKEY: TOP DONOR OF presidency in 2015. We We can beneft from the AID IN ALL CATEGORIES IN inaugurated the Technology South-South cooperation PROPORTION TO GDP Bank for Least Developed processes within this President Erdoğan Countries on June 4. It is framework for a more just $5.9 continued: “We closely extremely important that world. The opportunities TRILLION follow the role the BRICS Africa has been determined for cooperation between BRICS’S FOREIGN TRADE seeks to assume in the as the main theme of the the Islamic Development WITH THE REST OF South-South Cooperation. 10th BRICS Summit.” Bank and the BRICS WORLD Turkey is among the leading Turkey’s direct New Development Bank, investments in Africa especially those aimed at amount to more than $6 contributing to Africa’s billion, President Erdoğan development efforts, should underscored, describing be seized.” the works Turkey has been Drawing attention to the carrying out in Somalia turbulent period the world since 2011 as an important is going through, President example that manifests Erdoğan underlined Turkey approach to the that wars, terror attacks, African continent. economic crises and natural Expressing his pleasure disasters have recently to come together with the inficted deep wounds on leaders of BRICS-member the humanity and said: countries on the occasion “Current global system of the summit, President satisfes no one other than Erdoğan thanked the a minority whose interests Republic of South Africa at have been guaranteed.” the end of his speech.

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ONE SINGLE TARGET: MUSLIMS AND THE BROTHERHOOD OF ISLAM Commencing his speech by thanking President Cyril Ramaphosa of the Republic of South Africa for inviting him to the BRICS Summit as the Summit Chair of the Organization of Islamic Cooperation (OIC), President Erdoğan pointed out that he considers foreign visits not only a means for boosting bilateral relations between two countries, but also a means for consolidating the brotherhood and solidarity with those countries. Stating that he will determinedly maintain his struggle for REGIONAL COOPERATION rights and justice, which he has symbolized by saying, “The world is bigger than ON THE RISE fve,” President Erdoğan President Recep Tayyip Erdoğan attended the inauguration of noted: “We, with this intention and passion, stand the chancery of the Turkish Embassy in Pretoria, the capital of by the Africans, Palestinians, South Africa. Bosnians, Syrians, Rohingya Muslims and Turkestanis. peaking at the “TURKEY IS IN SOUTH AFRICA We will maintain this Sinauguration of the WITH ITS UNIQUE HISTORICAL struggle until oppression in chancery of the Turkish EXPERIENCE” the world comes to an end, Embassy in Pretoria, Continuing his speech by the innocent is happy and President Erdoğan pointing out that Turkey’s tears of the wronged stop.” said: “We attach special history in African lands is “We have paid special importance to boosting the not new, President Erdoğan attention to boosting our diplomatic representation stated that their ancestors cooperation with Africa over of Turkey abroad in recent had had a presence in the past 16 years,” President years. We seek to increase many areas in Africa, from Erdoğan also underscored. the number, capacity and Sudan to Nigeria, with their representation capability of services, mosques, madrasas our missions, in particular and social complexes. in African countries. We “Despite ups and downs, have covered great distance this process has never been in our relations with Africa interrupted,” President since 2005 as a result Erdoğan noted, adding: of our joint efforts with “Today, Turkey is in South African countries. The Africa not only with its number of our embassies governmental agencies and in Africa, when we took businesspeople, but also office, was 12. Now, it is with its unique historical 41. Turkey, which used to experience. We, as the be visible in only certain country and the nation, regions up until 10-15 have never sought to build years ago, now has the prosperity for ourselves on 6th most widespread the natural resources, labor diplomatic network in the or blood of other geographies world.” or communities.” 20 Briefng

President Erdoğan said: “We FIRST-EVER PRESIDENTIAL are ready and determined to advance our relations with Zambia in every feld including VISIT TO ZAMBIA political, military, economic, President Recep Tayyip Erdoğan proceeded from South Africa commercial and cultural areas.” to the Zambian capital city of Lusaka for a one-day offcial visit. PARTICULAR IMPORTANCE TO THE 12 AGREEMENTS “I attach particular importance to the 12 agreements the two countries signed,” President Erdoğan underlined, describing them as an important step toward consolidating the contractual basis of the bilateral relations. Highlighting commercial and economic relations as the feld in which the biggest improvement can be achieved given the two countries’ potentials, President Erdoğan said: “We stand ready to share with Zambia our experience in economy within the framework of projects that will serve our mutual interests.” Turkey and Zambia had an annual bilateral trade volume resident Erdoğan, in a “WE ARE DETERMINED TO of 22 million dollars in 2017, Pstatement following his ADVANCE OUR RELATIONS WITH President Erdoğan recalled, tête-à-tête with President ZAMBIA IN EVERY FIELD” stressing the importance of Lungu of Zambia, highlighted Thanking President Lungu of keeping up the efforts to add commercial and economic Zambia for his participation momentum to the bilateral relations as the feld in which in the ceremony held to mark economic relations. President the biggest improvement his election to second term as Turkey and Zambia Erdoğan also expressed can be achieved given the president, President Erdoğan had an annual Turkey’s desire for the frst- two countries’ potentials and stated that they addressed bilateral trade volume ever Turkey-Zambia joint said: “We stand ready to share bilateral relations during their of 22 million dollars economic commission to be with Zambia our experience talks. in 2017. convened without delay. in economy within the Since the day it won framework of projects that will independence, Zambia has serve our mutual interests.” been a model country for President Recep Tayyip African nations with its Erdoğan, who is in the democratic institutions, Zambian capital city of Lusaka environment of peace and for an offcial visit, made stability, development efforts a statement following his and important potential, one-on-one meeting with his President Erdoğan said, Zambian counterpart, Edgar praising the critical role Lungu. President Lungu of Zambia Emphasizing the historic has played in this success. importance of his visit to Noting that Turkey Zambia in that it is the frst-ever sees Zambia as a friendly presidential visit from Turkey nation and as a political and to Zambia, President Erdoğan economic partner with which expressed his gratitude for the the bilateral relations can be hospitality displayed. diversifed and advanced,

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“WE CAN ACHIEVE OUR GOALS WITH YOUR LEAD” Chairman of TİM, İsmail Gülle requested support from the Ambassadors to develop the export of Turkey at the 10th Ambassadors’ Conference held in the capital Ankara.

HE TURKISH TAMBASSADORS from all over the world have met with exporters of Turkey at the dinner of Turkish Exporters Assembly (TİM) and the Foreign Economic Relations Board of Turkey (DEİK) at the tenth annual Ambassadors’ Conference organized by Ministry of Foreign Affairs. Minister of Foreign Affairs of Turkey, Mevlüt Çavusoğlu and Minister of Trade, Ruhsar Pekcan attended and spoke at the dinner. Chairman of TİM, İsmail Gülle stressed diplomatic way. Despite that Turkey’s 2023 goal is to everything, we are open to take place among the top 10 discussing everything as an economies of the world and equal partner in order to said “Export is the duty of all resolve all existing problems, of us.’’ but on one condition: There They have some will be no threatening expectations from the language.” Ambassadors as the top Turkey’s Minister of Foreign representatives of Turkey in the Affairs said also that Ankara world, said İsmail Gülle, “We agrees with Russia in principle need an information platform on its lifting of visas for includes the current economic We will continue to work with businessmen, truck drivers and political developments of all our power to make the Turkey has made a and service passport holders. the countries we export. In this brand of Turkey exist at every major breakthrough On visa-free travel for Turkish sense, we expect your precious point in the world,” he said. citizens in EU countries, support to access to market, Speaking at the dinner in both the political Çavuşoğlu said ongoing efforts to settle in the markets and to on the sidelines of the 10th and economic areas would be intensifed on the develop customer relations, “ Ambassadors’ Conference, over the last 15 years. matter. he said. However, we expect Turkish Trade Minister Ruhsar from our ambassadors to Pekcan said that Turkey invited support the visa process of the U.S. to a panel in the World our businessmen in some Trade Organization (WTO) countries. about doubling tariffs on steel Noting that Turkey has and aluminum imports. She made a major breakthrough added that Turkey’s invitation in both the political and was at 17.40 the local time in economic areas over the last Turkey (1440GMT) and it was 15 years, Ismail Gülle said received by the U.S. that this success occasionally Turning to relations with disturbed some strategic the U.S., Mevlüt Çavuşoğlu, partners. Ismail Gülle stressed Minister of Foreign Affairs that exporters will not stop of Turkey, said that despite their production in such a differences between the period. “We will look for ways two sides, Turkey is open to increase our exports more. to resolving matters in a 22 Briefng

THE FIRST STEP CAME FROM TİM

Fine Food Australia 2018: “DISCOVER THE POTENTIAL OF TURKEY” UHSIN ÇAKICI, Chairman Mof Istanbul Dried Fruit and Products Exporters Association (KUMİB), “As being Turkish food exporters, it is a great İsmail Gülle, the President which works night and day by TİM itself and exporters’ opportunity for us to meet with of TİM, said that they have in order to bring foreign associations to Eximbank in our counterparts from Australia decided to activate the currencies into Turkey, will order to be at the side of our and near abroad countries for the resources that TİM and not remain unresponsive exporters during this period, third time. I am confdent that all Exporters’ Associations to this situation and in which exchange rates are partners will continue to beneft have for exporters not to be continued by saying rising.” from our ongoing cooperation.” negatively affected by the “Under the leadership of speculative fuctuations of our President Recep Tayyip THE TURKISH PAVILION IS LED BY Turkish Exporters’ currency exchange rates. Erdoğan, we are taking on ISTANBUL EXPORTERS’ ASSOCIATIONS Turkish Exporters’ Assembly the responsibility against Assembly (TİM) is Çakıcı emphasized, “This is the (TİM) is taking the action this speculative action. In taking the action third time that we organize the against the rapidly rising US this context, we are ready to against the rapidly national participation of Turkish Dollar. TİM is getting prepared allocate all the funds held rising US Dollar. companies to the Fine Food to provide Eximbank with the Australia, under the coordination funds held by TİM itself and of Ministry of Trade of Republic its exporters’ associations for of Turkey”. exporters not to face the risk “Turkish Pavilion is including of being in a diffcult situation leading companies in food sector due to the rising exchange and Exporters Associations, rates. İsmail Gülle, the also. We will host our high-level President of TİM, who made guests at our prestigious stand for a statement about the subject, “TURKEY”. Visitors is going to set that TİM itself and its 61 fnd a wide range of food products Exporters’ Associations have in Turkish Pavilion, from all kinds already started to move against of dried fruits to nuts including the rising dollar. hazelnuts, from dried tomatoes to Reminded that Turkey almost all sorts of canned foods is going through a diffcult and processed fruit and vegetable period, Gülle expressed products and so on.” that they believe that the Çakıcı thanked the relevant sudden rises in currencies parties for their efforts and by are not related to the market addressing all businesspersons, conditions and there are some “I kindly invite everybody to other reasons of it. Emphasized visit Turkish Pavilion for trade that the exporting community, opportunities.

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MORE PARTICIPATORY AND MORE PROACTIVE TİM and Exporters’ Associations’ Consultancy Meeting was held with the participation of the Minister of Trade.

ENTIONING ABOUT Explaining her expectations Mthe rising tension in and objectives, Minister of relations with the US, Turkish Trade, Ruhsar Pekcan, who Exporters’ Assembly (TİM) also attended the meeting, Chairman Ismail Gülle said; said: “As the Ministry of Trade, “As exporters, we are ready our short-term objective to make efforts to infuence is to have 120 thousand the politics of trade. This is exporters. We also want to EXPORT WILL SOAR WITH our frst consultancy meetings increase high technology and as the new administration. design-based exports’ share in Our aim is to change the Turkey’s export composition. THE 100-DAY ACTION PLAN structure of TİM to become In this new era, Ministry of Chairman of Turkish Exporters Assembly more participatory and more Economy and the Ministry proactive. We will create a of Customs and Trade were (TİM), İsmail Gülle, evaluated the 100- common mind with different merged under the roof of day action plan announced by President viewpoints, we know very the Ministry of Trade. As Recep Tayyip Erdoğan. well that only one person’s the new management, we effort is not enough to carry will start with simplifying İM CHAIRMAN SAID our exports to the targets foreign trade procedures. We T THAT: “Today, the plan of 2023. We are gathered will equip Eximbank with put forth by the President in the framework of these stronger fnancial instruments. of the Republic of Turkey thinkers, we are gathered to We will work with local, is a very complete plan that get to know each other better, demand-oriented countries in “We believe that this plan responds to all expectations. will enable us to increase to listen to one another, to accordance our targets and we This plan aims to achieve our exports further and exchange ideas, and to discuss will open 35 new Turkish Trade help the economic growth 100 months’ worth of of Turkey.” our projects.” Centers.” action in just 100 days. The Treasury and Finance Minister Mr. Albayrak also announced that they will create a solid footing for the new Medium-Term Program. Hopefully, with the harmonization of these two programs, we will have a much stronger economy. We believe that, the fuctuations in the exchange rates and the rising infation will be restrained with these two comprehensive programs.” Stating that TİM’s suggestions have entered the program, Gülle also said that; “We believe that this plan will enable us to increase our exports further and help the economic growth of Turkey.” 24 Briefng

CHEMICAL an export of 92 million 712 made in June, when most thousand dollars, Germany industry had losses, have with an export of 77 million been increased by 30.81% 655 thousand dollars. and reached to 92 million 712 ROBUST GROWTH The export of chemical thousand dollars compared industry, the third sector of to the same month of the Turkey’s most exporting, has previous year. The top ten IN THE INDUSTRY taken the second place after countries other than USA in Chemical industry’s export has been automotive in June. While chemical product export are; Egypt, USA and Germany, Germany, Greece, Iraq, Italy, increased by 12.34% in June and has the top three countries of England, China, Romania moved up to the second place. chemistry export in June, and India. have come into prominence, BY RAMAZAN GÜZYURDU the industry’s export fgure in THE MOST EXPORTED PRODUCTS CCORDING TO THE June has reached to 1 billion IN THE CHEMICAL SUB-SECTORS ADATA of Istanbul 424 million dollars. ARE “PLASTICS AND PLASTIC Chemicals and Chemical PRODUCTS” Products Exporters EGYPT AND THE USA WERE THE Export of plastics and Association(İKMİB), in June COUNTRIES TO WHICH EXPORT plastic products made in 2018, chemical products WAS MADE THE MOST IN JULY the sub-sectors continues export has been increased by Egypt was the country to to be the driving force of 12.34% compared to June which export was made the chemical export. The most 2017 and became the second most in June. While the exported products (plastics largest industry with an chemical product exports to and products) made in June export of 1 billion 424 million Egypt were 70 million 259 have taken the frst place with dollars. The countries to The export of chemical thousand dollars in June an export of 484 million 96 which export was made the industry, the third 2017, this fgure has increased thousand 238 dollars. While most in June, respectively, sector of Turkey’s most by 41.04% and reached to 99 exports of mineral fuels, oils are as follows: Egypt with exporting, has taken million 95 thousand dollars and products have taken the an export of 99 million 95 the second place after in June 2018. Chemical second place with an export of thousand dollars, USA with automotive in June. products exports to USA we 256 million 248 thousand

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CONTINUE TO RISE JUNE 2017 JUNE 2018 2017 -2018 most signifcant industries, VALUE ($) VALUE ($) DIFFERENCE (%) VALUE continues to rise. Our export WITH STRONG STEPS fgure has increased by 12.34% and reached to 1 billion 424 million dollars in June 2018 compared to June 2017, which enables this industry 446 250 86 184 77 to have risen to the most MILLION MILLION MILLION MILLION MILLION second exporting industry of PLASTICS AND PLASTIC MINERAL FUELS, MINERAL INORGANIC RUBBER AND RUBBER PHARMACEUTICAL Turkey. We believe that this PRODUCTS OILS AND PRODUCTS CHEMICALS PRODUCTS PRODUCTS noteworthy development is due to the increase in exports to the US, China and 484 256 160 107 85 India we made. Chemical MILLION MILLION MILLION MILLION MILLION products exports to USA we made in June, when most industry made losses, have 8.54% 2.11% 85.43% 2.89% 10.52% been increased by 30.81% compared to the same month 844 dollars, inorganic has increased by 6.38% of the previous year and risen chemicals exports have taken and reached to 8 billion 431 to the second place after the third with an export of million dollars in the period Egypt. The countries to which 160 million 389 thousand of January-June compared to we export the most in June 118 dollars. Following the the same period of year 2017. are: Egypt, USA, Germany, inorganic chemicals, the top The countries to which export Greece, Iraq, Italy, England, ten sectors are as follows; was made in this period are China, Romania and India. “rubber, rubber products, as follows: Germany, USA, Another important factor is “pharmaceutical products”, Egypt, Spain, Iraq, Italy, that our export to Greece is “dye, varnish, composite and England, Netherlands, Greece almost twice. I congratulate its preparations”, “essential and Iran. all of chemical exporters oils, cosmetics”, “soap and Evaluating performance for delivering us to second washing preparations”, of the chemical industry for place this month and I wish “organic chemicals” and Export of plastics June, Adil Pelister, Chairman them a continued success. “various chemical substances “ and plastic products of Istanbul Chemicals and We continue to support our Having looked at the semi- made in the sub- Chemical Products Exporters exporting companies with our annual export performance sectors continues to Association (IKMIB) said, innovative projects and we of the industry, it is clearly be the driving force of “Our export of the chemical will move our chemistry sector seen that the export fgure chemical export. industry, one of Turkey’s forward together. “

“Our export of the chemical The countries to which chemical products export was industry, one of Turkey’s most signifcant industries, made the most in June 2018 continues to rise.” JUNE 2017 JUNE 2018 VARIATION COUNTRY VALUE ($) VALUE ($) VALUE (%) 70 99 EGYPT MILLION MILLION 41.04% 70 92 USA MILLION MILLION 30.81% 67 77 GERMANY MILLION MILLION 15.88% 31 65 GREECE MILLION MILLION 111.31% 26 Briefng

AVIATION PARTICULAR IMPORTANCE TO THE 12 AGREEMENTS İstanbul New Airport aims to become one of the biggest ISTANBUL IS READY cargo HUBs on Earth through ever increasing investments of domestic- FOR TAKE-OFF foreign companies thanks The frst phase of İstanbul New Airport is due to open in to our country’s strategic location. İstanbul New October 2018, and once it is complete, it is expected to become Airport project will make the world’s busiest airport. great contribution to the BY İBRAHİM AVCI national economy in air cargo transport’s gaining URKEY, WHICH HAS BEEN people. In 2018, 40 million İstanbul New Airport that importance. TTHE MOST IMPORTANT tourists are expected to visit is the world's largest airport The Cargo/Logistic connection point of trade in Turkey. terminal under one roof will Center will be built on an between the East and The New Airport that will have a capacity of serving area of 1.4 million square the West for centuries, is make İstanbul, from where 90 million passengers meters for the first phase of combining the modern Silk the fights are performed in the first phase. It is the project, and enlarged to Road with air traffic. Turkey, to the highest number of going to be opened on 29 1.6 million square meters which has been one of the destinations in the world, one October 2018, the 95th with its additional zone of fastest growing aviation of the most important hubs anniversary of the Turkish 200,000 square meters to markets of Europe thanks of the global aviation market Republic, with its two 3,750 be built in the subsequent to its average annual growth is being constructed on an and 4,100 meters long phases. Numerous performance exceeding 10% area of 76.5 million square parallel runways that can important domestic and for the last decade, hosted meters in the northern part of be operated independently foreign companies serving 87 million local and foreign the city. İstanbul New Airport of each other, cargo city, in the cargo, logistics and passengers in 2016. The will host more than 100 maintenance facilities, temporary storage areas will number of foreign visitors airline companies and will be hangars, general aviation get involved in this project. arriving in Turkey in 2017 able to reach more than 300 and other support The Cargo/Logistic Center amounted to 32.41 million destinations. buildings. will serve with an air cargo

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Turkey made a signifcant contribution to this growth. Cross-border trade is predicted to grow faster than the global gross domestic product (GDP) in the foreseeable future. As a result, economies are becoming more interactive and connected to foreign trade, and they also need more reliable global networks,” Carrera said. “With this new investment, businesses in Turkey can access UPS’s intelligent global logistics network, taking advantage of export opportunities to grow.” Turkey is only fve hours away from Europe, the tonnage capacity of 2.5 of the persons who will use facility at Istanbul Atatürk Middle East, Central Asia, million tons a year in its this region for business International Airport and North and Eastern Europe, first phase, and this capacity purposes. In the usage area set to open before the end of said Kadri Samsunlu, General has been planned so as to of 456 thousand square 2018. Manager and Chief Executive be capable of rising to 5.5 meters in total planned The company recently Offcer of İGA Airport million tons a year in the for all support areas where invested in Paris, London Operation, stressing that second and third phases. circulation is high, car parks and Eindhoven. By better Turkey’s geographical location For this center with where 18 thousand big and linking Turkey to UPS’s offers a strategic advantage which more than 30 wide small vehicles can park have advanced European network, for logistics as proven by UPS body aircraft can dock been planned. Besides, an it provides customers with and other global shipping simultaneously, the parking alternative access road has attractive access to new companies’ plans to operate positions are in front of been planned in order to markets in the rest of Europe, in Istanbul. the warehouses; a perfect enable the passengers and Asia Pacifc, Latin America, “Our aim is to increase our operational infrastructure employees to access the the Indian subcontinent, the cargo and freight handling has been contemplated, cargo city without being Middle East and Africa. capacity by utilizing our which will not be affected stranded in traffic in rush Daniel Carrera, the strategic position and by the aircraft traffic as it hours. president of UPS East cutting-edge technology will use the air side service Europe District, said UPS’s to reduce transit times. tunnels reaching to the UPS TO EXPAND CROSS-BORDER export volume in Europe Istanbul will be a hub for passenger terminals and TRADE CAPACITY WITH ISTANBUL has increased by more than both passenger and cargo and remote parking stands by NEW AIRPORT 15 percent last year, adding freight transport,” Samsunlu passing through beneath the United Parcel Service (UPS), that their operation in said. runways and taxiways. a world-known American In the Cargo City to be multinational package established in Istanbul New delivery and supply chain Airport, the warehouses, management company will agency buildings, customs expand its air operations in office, and all cargo/logistic Turkey with a new facility to operations will be together. be established at the Istanbul There will be service points New Airport. such as banking services, The U.S. giant said the cafes and restaurants, dry new facility will effectively cleaning, hair dresser, PTT, connect customers in Turkey prayer areas, veterinary, with the regions in the medical center, and test rest of the world via UPS’s laboratories that will both intercontinental air hub in serve the personnel of all Cologne, Germany. The new firms to operate in the cargo facility is planned to be four city and facilitate the works times larger than the UPS 28 Briefng

Automotive sector is one of the robust sectors in Turkish economy, taking into consideration the high added value it creates.

automotive sector is also closely connected with the marketing, dealers, after-sales service, fuel oil, fnance and insurance sectors, which provide raw materials and subsidiary products at the same time. Turkish automotive sector has increased its production capacity by 31% and production by 48% over the last decade. Introduction of new models that are primarily produced for export markets, improvement in economic activity in Europe which is the main export market and the positive course in domestic demand have all contributed to this growth. In 2017, the total automotive AUTOMOTIVE production increased by 13 percent to 1.7 million compared to 2016, while automobile production SUPER POWER OF reached 1.1 million with an increase of 18 percent, providing the sector with the EXPORTS highest levels in both total automotive and automobile Turkey’s automotive industry continues to keep the title of the production. best performing export sector in 2018 as it is in the last 11 years. In January-June 2018, total automotive exports increased BY SERAP KAYA by 15% in dollar terms and by HE AUTOMOTIVE SECTOR share of producer countries R&D work shows that the 3% in Euro terms compared Thas an important place in in world production has tools will become data centers to the same period of the the economy’s development. changed radically. Along with at the same time. previous year. In this period, New trends have emerged this change, new trends such total automotive exports in this development process. as zero emission plan, electric SHINING SECTOR OF TURKEY amounted to $16.77 billion, Many countries have made vehicle and autonomous Automotive sector is while automobile exports breakthroughs in this regard. vehicles have emerged. one of the robust sectors in increased by 7% to $6.55 There need to fnd solutions The automotive sector, Turkish economy, taking billion. automobile exports to the problems especially in which owns most of the into consideration the high have reached €5.4 billion in big cities. world R&D investments, added value it creates. The the Euro-based. Looking at the last 16 years occupies an important place industry supplies the motor In the commercial vehicle of automotive production in the R & D activities of the vehicles needed by sectors group, production increased in the world, market growth producers for zero accidents such as agriculture, tourism, by 7% in January-June 2018, in North America, Western and less fuel usage. As a result construction, infrastructure, while it increased by 5% in Europe and Japan has lagged of these efforts, compacted transportation and defense, the light commercial vehicle behind developing countries. environmental regulations as well as being the buyer of group and 31% in the heavy As a result, automotive speed up the development the products produced by commercial vehicle group. production has accelerated of hybrid and electric sectors such as iron and steel, In the January-June period to developing countries from vehicles. The development petrochemicals, plastics, glass, of 2017, the market for heavy developed countries and the of digitalisation along with textile and electronics. The commercial vehicles was 6%.

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TURKEY AS AN INTERNATIONAL CENTER OF EXCELLENCE FOR AUTOMOTIVE GIANTS

! Foundation of ﬁrst factory was laid in 1959 ! Has total capacity of production of 415,000 cars per year ! Commercial vehicle manufacturing hub of Ford Europe ! Has Turkey’s largest R&D center located in a single campus in Istanbul ! Exports worth $ 3.8 billion in 2016 to83 countries ! One of the 3 largest R&D centers of Ford Global

! The facility was established in 1968 ! Has the capacity of 450,000 vehicles per year ! Employs more than 7000 workers ! Only factory in the country that manufactures both passenger and light commercial vehicles ! R&D center in Bursa is the only center of Fiat outside ! Italy serving the European market

! Invested almost $2 billion since entering the country ! Over 3500 staf, 280,000 annual production capacity ! Almost 85% of the production exported to more than 50 countries ! Started the production of ﬁrst hybrid vehicle in Turkey, C-HR, with an investment worth EUR 350 million

! Operational in Turkey since 1992 ! Production of Civic model started in 1997 ! Izmit factory, 50,000 annual production capacity with over 1000 employees ! Invested almost $ 500 million since the beginning ! Exports ‘Civic’ to 46 countries throughout the World

! One of the biggest factories of Renault with annual production capacity of 360,000 cars and 750,000 engines ! Total exports in last 15 years exceed$30 billion ! Flagship company in passenger car production for years ! 6300+ employees, almost 1500 of which are white-collar

! Stepped into Turkish market in 1990 ! Started to manufacture in 1997 in Izmit factory ! Has production capacity of 245,000 vehicles annually ! 3000+ employees ! Positioned as the manufacturing hub for European markets

! Operational since 1967 ! First production in 1968, ﬁrst export in 1970 ! Has two facilities: Bus factory in Istanbul, Truck factory in Aksaray ! Almost EUR 1 billion total investment with 6000 employees

! The German giant began operations in Turkey in 1966 ! MAN’s ﬁrst factory outside Germany ! Largest integrated bus company of MAN Global ! Has 2000 annual bus production capacity, 2000+ employees ! Production base of premium Neoplan bus brand ! Exports to 41 countries including European ones. Data: ISPAT 30 Briefng

AVIATION “All Eyes Will Be On Turkish Airlines” Turkish Airlines Chairman of the Board and the Executive Committee M. İlker Aycı addressed the ambassadors on the 10th Ambassadors Conference and underlined the fag carrier’s role in expanding Turkey’s reach and infuence.

HE TENTH ANNUAL of Government”. said that Turkish Airlines TAmbassadors’ Turkey’s Minister of is a source of pride for Conference, bringing Foreign Affairs Mevlüt our nation with its service together Turkey’s Çavuşoğlu presented quality and wide reach. ambassadors all over M. İlker Aycı, Turkish Stating that the airline’s the world together to Airlines Chairman of the current coverage of 304 discuss events relevant to Board and the Executive destinations in 122 countries Turkey’s foreign policy, Committee, with a plaque in made it a crucial partner to convened in Ankara and appreciation of the airline’s “Turkish Airlines is a the country’s Ministry of Konya under the theme support to the Ministry of Foreign Affairs, the Minister of “Entrepreneurship and Foreign Affairs. Delivering source of pride for our thanked Turkish Airlines Humanitarian Foreign a speech at the conference, for supporting the Ministry’s Policy in Presidential System Turkey’s Foreign Minister nation.” efforts.

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Turkish Airlines will move to its new hub, Istanbul New Airport, with a colossal operation involving thousands of vehicles within a period of 45 hours.

destinations served in 122 countries. We wish to become a world leader in air cargo as well”, Aycı said, adding that transporting Turkish goods and services to world markets was among the priorities of Turkish Airlines.

are increasing the number of “THE GREAT MIGRATION WILL our routes to assist the growth BEGIN ON OCTOBER 29TH “ of Turkey’s tourism industry”, Turkish Airlines will run the he noted. “largest operation” of civil aviation history to move its TURKISH CARGO’S STRONG base to İstanbul New Airport GROWTH by 15,000 ground vehicles Turkish Airlines Chairman and 5,000 trucks in 45 hours also touched upon the subject on Oct. 29-31. The frst of the airline’s fast-growing fight by the national fag cargo business, carried out carrier will be made to the by its highly successful sub- capital city of Ankara in the brand Turkish Cargo. “We afternoon of Oct. 31. are now among the world’s Turkish Airlines Chairman top 8 air cargo companies. stated the importance of TURKISH AIRLINES Turkish Airlines will We frst aim to enter the the relocation operation by EXCEEDING TARGETS top 5 in air cargo and then saying, “This colossal move Turkish Airlines Chairman run the “largest the top 3. When it comes to will be completed in less of the Board and the passengers, Turkish Airlines than two days and will be Executive Committee M. operation” of civil is the world’s leading airline watched by the entire world. İlker Aycı began his speech in terms of international All eyes will be on Turkish by extending his thanks to aviation history. fight destinations with 304 Airlines.” Minister Mevlüt Çavuşoğlu, and said that Turkish Airlines, fying to more countries than any other airline in the world, helped to cement cultural, social and economic ties between countries. Stating that Turkish Airlines has revised its year- end target upwards to 75 million passengers, Aycı said that Turkish Airlines carried 76 percent of tourists that travel to Turkey via air. “Our guests, as we like to call our passengers, get to know our culture and our country. We 32 Briefng

ARDA ERMUT APPOINTED AS THE HEAD OF PRESIDENTIAL INVESTMENT OFFICE

rime Ministry Investment investors and promoting the PSupport and Promotion investment environment of Agency of Turkey (ISPAT) Turkey across international has been restructured as platforms. The offce will the Presidential Investment also ensure coordination Offce under Turkey’s new and cooperation among all presidential system of relevant Turkish entities government. Arda Ermut, responsible for the promotion formerly the President of of the investment climate and ISPAT, has been appointed as generate related data to boost the head of the Presidential investments. Investment Offce and will Investment Offce continue leading efforts to President Ermut is also attract FDI to Turkey. the president of the World The investment offce, Association of Investment redesigned and renamed Promotion Agencies under the presidential (WAIPA), an umbrella agency governance system, will that covers 170 national and operate under the presidency regional investment support by supporting foreign agencies from 130 countries. NEW INCENTIVES FROM MINISTRY OF INDUSTRY AND TECHNOLOGY

inister of Industry and Technology Mustafa MVarank introduced new project-based incentives for 4 strategic investments worth TRY 8 billion in total. • Turkish Aerospace Industries production of national combat aircraft • Bosch production of new-generation high-pressure fuel injector • BMC production of various rail system vehicles • BMC production of diesel engines, transmissions, and sub-systems These projects will create a total employment of 4,500, said Minister Varank. Furthermore, these projects are also expected to reduce the current account defcit by USD 1.2 billion. Minister of Industry and Technology Mustafa Varank also announced the launch of a new support program worth TRY 1.2 billion for industrialists. “We will support the domestic development of widely used products and technologies in our country. We think that this new support program will make a signifcant contribution to the production of products with high added value, while at the same time contribute to the reduction of the current defcit,” said Varank.

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STRATEGIC INVESTMENT BY BOSCH IN AUTOMOTIVE INDUSTRY

erman giant Bosch “We are pleased that Gannounced plans to Bosch has chosen Turkey build a new-generation, for new investments. All high-pressure fuel injector companies that contribute production facility in to our economy by Turkey’s Bursa. This “We are pleased that investing in Turkey, investment, worth USD developing technology, 1.2 billion, is expected to Bosch has chosen and creating employment achieve USD 185 million are our companies. We do in annual exports and Turkey for new not distinguish between decrease the current investments,” said foreign and domestic account deficit by USD investors. We hold all of 230 million, according Mustafa Varank, them in high esteem,” to Minister of Industry Minister of Industry said Minister Varank, and Technology Mustafa in regard to Bosch’s Varank. and Technology. investment. TURKEY’S M&A VOLUME EXCEEDS USD 8 BILLION IN H1 2018, INVESTOR APPETITE RIGHT ON TRACK

nternational investors leading investment funds Icontinue to show and corporations show a strong appetite for great interest in M&A opportunities in Turkey with Turkish companies,” as the M&A volume since said Kotan, commenting the beginning of 2018 has on the six-month reached USD 8 billion, performance in company with a number of deals M&As. still pending closure. Kotan also stressed These frst half that the sustainability of numbers suggest that structural reforms and Turkey will outpace the the decisive steps taken full year numbers of 2017, in Turkey to facilitate the which saw around 300 processes for international M&A transactions at a investors will signifcantly total value of USD 10 support M&A volume. billion. Accordingly, the economic Kerim Kotan, policies employed by the Kerim Kotan Managing Director Managing Director of Turkish government are of Pragma Corporate Pragma Corporate Finance “The leading being closely monitored Finance, an Istanbul- by international investors based investment banking investment funds and and fnance institutions. company, is projecting These will ensure stability, that M&A value by the corporations show and the rising confdence end of 2018 could easily interest in M&A with will provide further surpass 2017’s level of momentum to interested USD 10 billion. “The Turkish companies. ” international investors. 34 Briefng

ISTANBUL HOSTS ALIBABA’S STARTUP CONTEST AS GROUP SEEKS NEW UNICORN

hina’s Alibaba Group by the Alibaba Group, East Venture Partners Cchose Istanbul for offers Turkish startups Partner Rabith I. Khoury, the first time as a host an opportunity to get Fiba Group Executive city for the Middle East/ funding from Chinese Board Member Murat Africa regional final of the investors, a chance Özyeğin, Citibank Turkey Create@Alibaba Cloud to become the next President Serra Akçaoğlu, Startup Contest (CACSC). unicorn of the Alibaba and Allianz Turkey CACSC is a global Group, and future cloud President Cansen Başaran entrepreneur olympics infrastructure support Symes. platform held in 12 programs, including up Fazla Gıda, a countries across the globe to USD 216,000 worth of startup that provides to grow startups to the cloud resources. technological solutions next level as part of efforts This year’s Middle to curb food waste, was to empower China’s Belt East/Africa regional named the winner of and Road Initiative. final in Istanbul featured the contest. In addition The primary objective of key executives from the to a USD 50,000 award CACSC is to pick the most Alibaba Group, SoftBank that it can use towards promising and innovative Group, the Consulate of cloud resources, the startups in select regions China in Turkey, and jury Fazla Gıda team will and invite them to China members such as Invest travel to Nanjing, China for the global final to be Invest in Turkey was in Turkey President to compete in the final. held at the Alibaba Cloud Arda Ermut, Doğan Rounding out the top headquarters. the most successful Group Owner Arzuhan five and also joining The regional contest, investment promotion Doğan Yalçındağ, the winner in China which also stands out as Akbank President Suzan are Kimola, Park Palet, the largest startup event agency in the region. Sabancı Dinçer, Middle TIRPORT, and Piri. AUGUST 2018 ISSUE 61 The Turkish Perspective 35

RECENT CURRENCY DEVELOPMENTS EXCEPTION GIVEN TURKEY’S SOLID MACROECONOMIC FUNDAMENTALS

he recent fuctuations sustainable production and Tin the Turkish Lira and investment-oriented export-led 0 the depreciation in emerging growth strategy. market currencies were mainly -3 the circumstance of a globally 2. IMPROVING CURRENT strong USD, increases in US -6 TURKEY EU 28 bond rates, a tightening cycle ACCOUNT BALANCE of advanced economies, and Excluding gold and energy, uncertainties arising from the current account dynamics -7 protectionist trade measures. and its fnancing have BUDGET BALANCE AS % OF GDP Against this backdrop, improved recently in Turkey. -12 Turkey’s macro fundamentals Growth recovery in trading are strong enough to weather partners such as the EU, the -15 such temporary developments. contribution of competitive

real exchange rates, and 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1.ROBUST GROWTH downward expectations in Turkey achieved an average imports can be considered the 90 annual growth rate of 5.7 main factors that will support percent in the 2003-2017 the current account of Turkey 80 period and 6.8 percent for the near future. With regard 70 TURKEY in the 2010-2017 period, to fnancing of the current 28.4 which proved resilient against account defcit in Turkey, an 60 GROSS PUBLIC DEBT STOCK % OF GDP domestic and international important part is fnanced by 50 shocks. With this FDI and long-term sources. 40 EU 28 performance, the Turkish 81.5 economy outperformed other 3. FISCAL DISCIPLINE 30 emerging countries despite Turkey also has a strong negativities such position in public fnance. as the 2008 Global Financial The recovery in the Turkish 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Crisis, the European Sovereign economy after the 2001 Debt Crisis, the Taper Tantrum Crisis has been characterized 4. MANAGEABLE cumulative rollover ratio of this period, an infux of refugees, by the restructuring of the CORPORATE DEBT type of liabilities is above 100 a failed coup attempt, Brexit, banking system and, more percent, demonstrating the regional conficts, and recent importantly, restoring the While corporate debt in Turkey banking sector’s ability to pay protectionist moves and healthiness of its fscal position. has recently increased, it has back without any diffculties. trade war expectations. The In this context, Turkey has been successfully managed by 65 percent (over USD 48 composition of the growth achieved lower public debt and companies and banks. Private billion) of the remaining debt has also evolved into a more decreased the budget defcit by sector’s overall liabilities due is the commitments against balanced position in recent pursuing tight fscal policies. within a year are USD 180.6 goods and services that may quarters. Along with domestic Over the past 15 years, budget billion. increase or decrease in parallel demand, an important driver of defcit to GDP ratio in Turkey Out of this total, the share with economic activities, not Turkey’s growth performance, a has drastically decreased of the banking system is USD posing any risk to the banking rebound has been observed in from over 10 percent to levels 102 billion, half of which is system. the contribution of net exports varying between 1 to 3 deposited by non-resident The record of the 12-month thanks to competitive exchange percent and the public investors hence not recognized cumulative roll-over ratio for rates, debt to GDP ratio has also as debt. The remaining half, the remaining debt (USD 25 Rising tourism revenues, been reduced from over 70 roughly USD 50 billion, is the billion) is around 137 percent, restored relations with neighbors, percent to below 30 percent, amount to be paid back as indicating no diffculty has and trade diversifcation policies. outperforming the Maastricht liabilities. been experienced to honor this Thus, Turkey has achieved a criteria of 60 percent. Turkey’s 12-month type of debt. 36 Cover / FellowshipA New Era for of Energythe Twenty

SEPTEMBER 2018 ISSUE 62 TheThe TurkishTurkish PerspectivePerspective 37 A NEW ERA FOR ENERGY BY DAVE TURK, LAURA COZZI, LUIS MUNUERA AND GEORGE KAMIYA -- (IEA)

Over the decades to come, digital technologies are set to make energy systems around the world more connected, intelligent, efficient, reliable and sustainable. Stunning advances in data, analytics and connectivity are enabling a range of new digital applications such as smart appliances, shared mobility and 3D printing. Digitalized energy systems in the future may be able to identify who needs energy and deliver it at the right time, in the right place and at the lowest cost. But getting everything right will not be easy. 38 Cover / FellowshipA New Era for of Energythe Twenty

Digitalization is already Digitalization: A new era in improving the safety, energy? productivity,D accessibility The energy sector has been an early adopter and sustainability of energy of digital technologies. In the 1970s, power systems. But digitalization is also utilities were digital pioneers, using emerging raising new security and privacy risks. It technologies to facilitate grid management and is also changing markets, businesses and operation. Oil and gas companies have long employment. New business models are used digital technologies to model exploration emerging, while some century-old models and production assets. may be on their way out. Recent technological advances and trends Policy makers, business executives and are truly astounding. Data are growing at an other stakeholders increasingly face new and exponential rate – internet traffc has tripled complex decisions, often with incomplete in only the past fve years. There are now more or imperfect information. Adding to this mobile phone subscriptions than people in the challenge is the extremely dynamic nature world. of energy systems, which are often built on Advancing technology, falling costs, and large, long-lived physical infrastructure and ubiquitous connectivity are opening the door assets. ADVANCING to new models of producing and consuming The International Energy Agency (IEA) TECHNOLOGY, energy. Digitalization holds the potential to has published a first-ever comprehensive FALLING COSTS, build new architectures of interconnected report on digitalization and energy (iea. energy systems, including breaking down org/digital) to provide more clarity for AND UBIQUITOUS traditional boundaries between demand and decision makers on what digitalization CONNECTIVITY ARE supply. means for energy – shining a light on OPENING THE DOOR The impact of these tremendous digital both its enormous potential and most advances and their rapid deployment across pressing challenges. It is also intended to TO NEW MODELS the energy landscape raise the fundamental serve as a springboard for future work, OF PRODUCING question of whether we are on the cusp of a including deeper analysis in two key areas: AND CONSUMING new digital era in energy and, if so, what are digitalization of the electricity sector and the emerging trends. This report attempts to automated and shared mobility. ENERGY. answer these questions.

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THE IMPACT OF THESE TREMENDOUS DIGITAL ADVANCES AND THEIR RAPID DEPLOYMENT ACROSS THE ENERGY LANDSCAPE RAISE THE FUNDAMENTAL QUESTION OF WHETHER WE ARE ON THE CUSP OF A NEW DIGITAL ERA IN ENERGY AND, IF SO, WHAT ARE THE EMERGING TRENDS.

All energy demand sectors are feeling the effects Digital technologies are already widely used in energy end-use sectors, with the widespread deployment of potentially transformative technologies on the horizon, such as autonomous cars, intelligent home systems and + machine learning. While these technologies % could improve efficiency, some could also 5 induce rebound effects that increase overall The widespread adoption of digital technology in energy use. the oil and gas industry could result in an increase In the transport sector, cars, trucks, planes, in technically-recoverable oil and gas resources ships, trains and their supporting infrastructure by about 5 percent worldwide, with the largest are all becoming smarter and more connected, increases predicted in shale gas. improving safety and efficiency. Digitalization could have its biggest impact on road transport, where connectivity and automation (alongside further electrification) could dramatically reshape mobility. Meanwhile, the overall net impacts on energy use are highly uncertain. Over the long term, under a best-case scenario of improved efficiency through automation and $ ride-sharing, energy use could halve compared 1 BILLION with current levels. Conversely, if efficiency improvements do not materialise and rebound In the residential sector alone , 1 billion effects from automation result in substantially homes and 11 billion smart appliances could more travel, energy use could more than double. make use of interconnected electricity In buildings, our analysis shows that systems, making it possible to vary their digitalization could cut energy use by about demand for electricity from the grid. 10% by using real-time data to improve 40 Cover / FellowshipA New Era for of Energythe Twenty

operational efficiency. Smart thermostats can anticipate the behaviour of occupants (based on past experience) and use real-time weather forecasts to better predict heating and cooling needs. Smart lighting can provide more than just light when and where it is needed; LEDs can also include sensors linked to other systems, for example, helping to tailor heating and cooling services. In industry, many companies have a long history of using digital technologies to improve safety and increase production. Further cost-effective energy savings can be achieved through advanced process controls, and by coupling smart sensors and data analytics to predict equipment failure. 3D printing, machine learning and connectivity could have even greater impacts. For example, 3D printing can be used to make aircraft lighter, reducing both the materials to build the plane and the fuel to fly it. Energy suppliers will reap greater productivity and improve safety The oil and gas industry has long used digital technologies, notably in upstream, and signifcant potential remains for digitalization to further enhance operations. Widespread use of digital technologies could decrease production costs between 10% and 20%, including through advanced processing of seismic data, the use of sensors, and enhanced reservoir modelling. monitor thousands of kilometres of transmission Technically recoverable oil and gas resources lines over rough terrain. could be boosted by around 5% globally, with the greatest gains expected in shale gas. Digitally interconnected In the coal industry, digital technologies are systems could fundamentally increasingly being used in geological modelling, transform electricity markets process optimisation, automation, predictive $80 The greatest transformational potential for maintenance, and to improve worker health and BILLION digitalization is its ability to break down safety. Specifc examples include driverless trucks boundaries between energy sectors, increasing and tele-remote equipment operated from the In the electicity sector fexibility and enabling integration across control room. Digitalization’s overall impact, digitization could entire systems. The electricity sector is at however, may be more modest than in other potentially achieve the heart of this transformation, where sectors. saving of $ 80 billion digitalization is blurring the distinction In the power sector, our analysis shows that per year, reducing between generation and consumption, and digitalization has the potential to save around 80 management and enabling four interrelated opportunities: billion USD per year, or about 5% of total annual maintenance costs, •”Smart demand response” could power generation costs. This can be achieved improving the efciency provide 185 GW of system fexibility, roughly by reducing operation and maintenance costs, of electrical power equivalent to the currently installed electricity improving power plant and network effciency, stations and the grid, and supply capacity of Australia and Italy reducing unplanned outages and downtime, and reducing shutdowns. combined. This could save USD 270 billion extending the operational lifetime of assets. One of investment in new electricity infrastructure example of this is the use of drones to cheaply that would have otherwise been needed.

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In the residential sector alone, 1 billion Direct energy consumption of households and 11 billion smart appliances digital technologies could actively participate in interconnected Digital technologies that make all these electricity systems, allowing these households potential benefts possible also use energy. As and devices to alter when they draw electricity billions of new devices become connected over from the grid. the coming years, they will draw electricity at •Digitalization can help integrate variable the plug while driving growth in demand for – renewables by enabling grids to better and energy use by – data centres and network match energy demand to times when the sun services. However, sustained gains in energy is shining and the wind is blowing. In the effciency could keep overall energy demand European Union alone, increased storage and growth largely in check for data centres and digitally-enabled demand response could networks over the next fve years. reduce curtailment of solar PV and wind Data centres worldwide consumed around power from 7% to 1.6% in 2040, avoiding 30 194 TWh of electricity in 2014, or about 1% of million tonnes of carbon dioxide emissions in total demand. Although data centre workload 2040. is forecast to triple by 2020, related energy •Rolling out smart charging technologies demand is expected to grow by only 3% for electric vehicles could help shift thanks to continued effciency gains. charging to periods when electricity demand is low and supply is abundant. This would provide further fexibility to the grid while saving between USD 100 billion and USD THE GREATEST 280 billion in avoided investment in new electricity infrastructure between 2016 and TRANSFORMATIONAL 2040. POTENTIAL FOR •Digitalization can facilitate the DIGITALIZATION development of distributed energy resources, such as household solar PV panels IS ITS ABILITY and storage, by creating better incentives and TO BREAK DOWN making it easier for producers to store and sell BOUNDARIES surplus electricity to the grid. New tools such as blockchain could help to facilitate peer- BETWEEN ENERGY to-peer electricity trade within local energy SECTORS. communities. 42 Cover / FellowshipA New Era for of Energythe Twenty

Data networks, which form the backbone of the digital world, consumed around 185 TWh globally in 2015, or another 1% of total demand, with mobile networks accounting for around two-thirds of the total. Depending on future effciency trends, by 2021 electricity consumption from data networks could increase by as much as 70% or fall by up to 15%. This large range highlights the critical role of policy in driving effciency gains. Beyond the next fve years, providing credible assessments of energy use by digital technologies is extremely diffcult. Direct energy use over the long run will continue to be a battle between data demand growth versus the continuation of effciency improvements. Building digital resilience to prepare for inevitable cyber-attacks While digitalization can bring many positive benefts, it can also make energy systems more vulnerable to cyber-attacks. To date, the disruptions caused to energy systems by reported cyber-attacks have been relatively small. However, cyber-attacks are becoming easier and cheaper to organise. Moreover, the growth of the Internet of Things (IoT) is 185 increasing the potential “cyber-attack surface” TWH in energy systems. In 2015, data networks , the backbone of the digital world, consumed about Full prevention of cyber-attacks is 185 TWh of energy worldwide, equal the 1 percent of total demand, with mobile impossible, but their impact can be limited if networks, responsible for arounda two-third of the total. countries and companies are well-prepared. Building system-wide resilience depends on all actors and stakeholders frst being aware of the risks. Digital resilience also needs to be included in technology research and development efforts as well as built into policy $280 and market frameworks. BILLION International efforts can also help governments, companies and others to build The implementation of smart recharging technology for electric veicles could up digital resilience capabilities. A variety of result in saving, between 2016 and 2040, of between USD 100 and 200 billion in organisations are involved, each contributing invsetments not made in new electricity infrastructure. its comparative strengths, including to share best practices and policies as well as to help mainstream digital resilience in energy policy making. $1.1 Managing privacy concerns and impacts to jobs BILLION Privacy and data ownership are also major Digital technology could contribute to the supply of electricity to 1.1 billion people concerns for consumers, especially as more who currently have no access to it. detailed data are collected from a growing number

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of connected devices and appliances. For instance, data on energy use in households collected by smart meters can be used to tell when someone is home, using the shower, or making tea. At the same time, aggregated and anonymised individual energy use data can improve understanding of energy systems, such as load profles, and help lower costs for individual consumers. Policy makers will need to balance privacy concerns with these other objectives, including promoting innovation and the operational needs of utilities. Digitalization is also affecting jobs and skills in a variety of energy sectors, changing work patterns and tasks. This is creating new job opportunities in some areas while causing losses in others. Policy makers in the energy feld should participate in broader government-wide deliberations about these effects and how to respond to them. Government policy design is critical Policy and market design are vital to steering digitally enhanced energy systems onto an effcient, secure, accessible and sustainable path. For example, digitalization can assist in providing electricity to the 1.1 billion people who still lack access to it. New digital tools can promote sustainability, including satellites to verify greenhouse gas emissions and technologies to track air pollution at the neighbourhood level. Policy-making processes can also beneft from more timely and sophisticated collection and publication of energy data that greater access to digital data could facilitate. Emerging low-cost digital tools, such as online registries, web-crawled data and quick response codes, can lead to more targeted and responsive policy regimes. • Focus on the broader, overall system While there is no simple roadmap to show POLICY AND benefts. how an increasingly digitalized energy world • Monitor the energy impacts of digitalization will look in the future, report outlines ten no- MARKET DESIGN on overall energy demand. regrets policy actions that governments can ARE VITAL TO • Incorporate digital resilience by design take to prepare: STEERING DIGITALLY into research, development and product • Build digital expertise within their staff. manufacturing. • Ensure appropriate access to timely, robust, ENHANCED ENERGY • Provide a level playing feld to allow a variety and verifable data. SYSTEMS ONTO AN of companies to compete and serve consumers • Build fexibility into policies to better. accommodate new technologies and EFFICIENT, SECURE, • Learn from others, including both positive developments. ACCESSIBLE AND case studies as well as more cautionary tales. • Experiment, including through “learning by SUSTAINABLE PATH. doing” pilot projects. Reference: IEA 2017. Digitalization and • Participate in broader inter-agency Energy. International Energy Agency, OECD, discussions on digitalization. Paris. 44 Cover / FellowshipTurkey: Followıng of the Twenty the Digitalization Trend

TURKEY: FOLLOWING THE DIGITALIZATION TREND With the digitalization of energy, digital technologies will make energy systems more intelligent, more reliable and more sustainable around the world in the upcoming years. Smarter applications and more flexible systems help to make clear that how much energy is needed by both the world and Turkey.

BY RAMAZAN GÜZYURDU

SEPTEMBER 2018 ISSUE 62 TheThe TurkishTurkish PerspectivePerspective 45

Turkey has become one of the fastest growing energy markets in the world, paralleling its economic growth over the last 15 years. The success of a privatization program that has been ongoing since 2002 has resulted in power distribution now completely in private sector hands, while the privatization of power generation assets is set to be completed within the next few years. This privatization program has given the country’s energy sector a highly competitive structure and new horizons for growth. Economic expansion, rising per capita income, positive demographic trends, and the rapid pace of urbanization have been the main drivers of energy demand, which is estimated to increase by around 6 percent per annum through 2023. In order to satisfy the increasing demand in the country, the current 80-GW installed electricity capacity is expected to reach 120 GW by 2023 through further investments to be commissioned by the private sector. As an increased share of private entities in the part of its efforts to provide sustainable and electricity generation sector, from 32 percent in reliable energy to consumers, Turkey offers 2002 to 75 percent in 2017. Another step taken investors favorable incentives, such as feed- by the Turkish government towards a more in-tariffs, purchase guarantees, connection competitive energy sector is the establishment priorities, license exemptions, etc., depending of an energy stock company, EXIST, which is on the type and capacity of the energy responsible for managing and operating energy generation facility. markets, including power and gas commodities. In the last 15 years, the Turkish government 120 In addition to having a huge domestic has made significant reforms in the provision market, Turkey occupies a strategic location of energy. Turkey has moved forward the GW between a number of major energy consumers participation of private entities, and thus and suppliers, and thus serves as a regional created a more competitive energy market. installed electricity energy hub. The existing and planned oil/ The privatization of energy generation assets, capacity is expected by gas pipelines, the critical Turkish straits, and coupled with a strategy to clear the way for 2023 promising finds of hydrocarbon reserves within more private investments, has resulted in the country itself give Turkey increased leverage over energy prices and reinforce its gateway status. Digitalization for Sustainability The IEA’s first comprehensive report on the interaction between digitalization and energy, and how the digitalization transforms the energy system, enables a range of new digital 75 % applications, including dramatic advances in data, analytics and connectivity, smart devices, hare of private entities in shared mobility and 3D printing. By means the electricity generation of digitalized energy systems it is possible to sector in 2017 determine who needs energy in the future and this need can be met at the right time, in the right place and at the lowest cost. With the digitalization of energy, digital technologies will make energy systems more intelligent, more reliable and more sustainable 46 Cover / Turkey: Followıng the Digitalization Trend

GE and Gama Energy home platforms will launch a new era with signed an agreement to operate the frst digital radically different consumption patterns that power plant in Turkey. focus on automation and remote control. Turkey’s energy targets are producing 60 billion kilowatt-hours of energy using indigenous coal reserves until 2019. Digitalization can reduce emissions by 62% in gas and 47% in coal. In this regard, dependence on energy outdoors can be seriously reduced. Turkey’s First Digital Power Plant Helping Turkey increase its sustainable energy supply and digitalization process, GE and Gama Energy signed an agreement to operate the first digital power plant in Turkey. This deal marks the first use of industrial cloud software applications in a power plant in Turkey to improve efficiency and productivity. GE will install GAMA’s 840 megawatt İç Anadolu around the world in the coming years. Smarter Natural Gas Combined Cycle Power Plant applications and more flexible systems help in city of Kırıkkale with its advanced digital to make how much energy is needed both the solutions, Asset Performance Management world and Turkey clear. In addition, digital and Operations Optimization solutions using networks that can direct real-time energy will Predix™, the operating system for the Industrial become more important. Internet. In accordance with this purpose, The Turkish government focuses on energy $1.3 trillion value from technology research and development (R&D) digital transformation of the and innovation with a view to develop its Electricity Industry manufacturing industry towards a high value- The global power generation industry is added and internationally competitive and preparing for a more efficient future with energy-efficient production. The country has digital transformation. The World Economic a solid foundation for energy engineering and Forum in 2016 estimated the digital research and a well-educated workforce at transformation of electricity represents a $1.3 technical universities and institutions. trillion opportunity by 2025. Equipping power Digitalization, which has become plants with service platforms and utilizing increasingly influential every passing day, has cloud computing and Industrial Internet enabled systems to be re-glanced throughout facilities there offer significant advantages the world in the last 10 years. In the face of in terms of efficient power generation and the digitalization trend, most of countries, DIGITALIZATION, uninterrupted delivery to customers. especially Turkey, need to adapt this change GE’s Industrial Internet platform Predix™ as soon as possible. Because the digitalization WHICH HAS supports digital transformation with its of the energy system and the appearance of BECOME solutions in energy as with many others. smart meters can benefit all energy players. INCREASINGLY Predix™ has already established an ecosystem In the short term, consumers will have more for digitalization with more than 19,000 control over energy use and additional services INFLUENTIAL EVERY developers onboard. This ecosystem is will be available. Suppliers will optimize PASSING DAY, HAS expanding continuously with customers’ their business, adapt new proposals and demands and GE’s collaborations. strengthen their communications. As system ENABLED SYSTEMS GAMA Energy’s İç Anadolu Natural Gas operators benefit from new tools to manage TO BE RE-GLANCED Combined Cycle Power Plant, based in their networks more efficiently, more and THROUGHOUT THE Kırıkkale with a capacity of 840 MW, can alone more renewable energy will be integrated into provide 2.5% of power consumed in Turkey the system. In the long term, the interaction WORLD IN THE LAST and more than 50% of power consumed in the between smart devices, smart networks and 10 YEARS. capital Ankara.

SEPTEMBER 2018 ISSUE 62 Marathon of Innovation InovaLIG is offering the companies to leave their competitors behind by strengthening the organizational innovation management.

www.inovalig.com 48 Cover / Can We Digitize the Meaning?

CAN WE DIGITIZE THE MEANING?

BY DR. İNANÇ ATILGAN

Human versus Technology in a understand this very complicated and in another digitized World interwoven relationship between society and Digital The Digital World is an arena where the human World. What does that relationship bring people and the technology are challenging each other. in using digital technologies and how does this What does it mean from the perspective of a social infuence the people? scientist? The question is whether the digital THE TERM To understand or achieve that, a scholar needs technologies are connecting information or people to be able to adopt a more analytical thinking in the world. Let me explain it in more detail. What OF DIGITAL (algorithms, abstractions, decomposition etc.), is the starting point of any decision in daily our HUMANITIES which would allow the scholar interpret knowledge lives? The answer is quite easy: our reactions to (DH) AS A NEWLY in digital terms (OCR/Scans, databases, encoding our needs as human beings. It can still be a huge etc.). Since every respectable application has its discussion whether we should accept that the EMERGING SCIENCE roots in science, DH too has to understand social information offered by digital technologies infuence ACTUALLY ACTS behaviour and develop or, at least embark on ideas the human needs or not. Well, exactly this dilemma for applications using digital technologies. Here, I should be the subject of this short essay. AS A CATALYST would like to point at “visualisation” as one of the BETWEEN DIGITAL many examples. Digital Humanities and its added TECHNOLOGIES value for Economy A Scenario for a Digital Economy is one of the main activity areas of societies AND HUMANITIES Visualization and, can simply be defned as “management of AS AN ACADEMIC The American futurologist, John Naisbitt, said once money and goods in a household”. That again leads DISCIPLINE, WHICH “We are drowning in information but starved for to another social activity, where production, trade knowledge.” and consumption occur as refections of human SEARCHES THE Due the tremendous achievements of digital behaviour in both simple daily life and complicated MEANING OF LIFE. technologies, we, the people are sometimes lost business life. We should not forget that, we are either while looking at this big soup of data and thus, we heroes or victims of our decisions in both private try to collect information in the Digital World very and business environments. often without exactly understanding the context The term of Digital Humanities (DH) as a newly and interconnections within information in this emerging science actually acts as a catalyst between digital technologies and Humanities as an academic discipline, which searches the meaning of life. In other words, DH simply tries to produce scientifc results by using digital technologies as instruments. It interlaces digital techniques with traditional humanities. I hereby need to emphasise that unfortunately humanities has been late adopter of digital technologies. Scholars using words had often compatibility issues with scientists using numbers. This could be overcome by intermingling the subjects, objects and methods of DH in BIG DATA, while reorienting society’s needs towards these new technologies. DH has a dual role between Humanities and the digital technologies: it uses technology for humanities related research and considers technology as an instrument for Humanities research and questioning. In researching digital applications for society’s needs, we need to

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jungle of BIG DATA. Let me here formulate a scenario: You are a CEO and want to understand relationships among entities or, things – whether persons, companies, assets, etc. , these relationships could be displayed in a single view or, not? If you were an old-fashioned CEO, you would say “no” and ask for collecting information and preparation of a report. You would then have to plough through this report and fnd results to take your business decision. But, if you were a CEO of the new generation, you would say “yes” and, you would know that you could get information displayed in a single view! Understanding BIG DATA: Visualization Until now, there has been some but hardly truly • Expand/collapse research via visualization user-friendly solutions for visualization of traceably with one click (for example, retrieval of additional interlinked personal and company data. On the function owner and company profles), one hand, the output of a creditworthiness or • Have the ability to visually display and organize functional ownership inquiry is usually a collection search results directly in your browser, of individual online searches?? or PDF forms; • Filter and display/hide individual entities and the information is there but it requires a great links in your browser , deal of effort on the part of the user to flter out, • Compile and analyze highly complex networks, properly display and process the important and • Search networking of persons, functions and relevant information. On the other hand, network companies focused and targeted, visualization features offered by some services often • Spend massive time and costs, lack performance and/or fail to adequately represent • Use 1-click transfer of the visualized results in an the overall picture and, as a result, fall short of internationally-recognized analysis and compliance expectations not only of the providers but also of tool, and customers. Whatever your organization’s network • Display information directly on the connectors visualization requirements may be, the digital themselves, even in multiple directions. technologies can support you. So, you manage your decision making process in Here, the perceptions of a social scientist who making your network visualization a positive and, uses digital technologies, join the game. The social ideally proftable user experience. behaviour in this context becomes the starting point. Moral of the story is that digital technologies Why? Because a human being wants to understand are only instruments for simplifying the decision pre conditions for a right business decision. Here, making process of human beings or, in our case he can ask for the support of a digital application, businesses. Therefore, we frst have to determine which can facilitate visualising databases. As a our positions in the Digital World: Man creates new-generation-CEO, you never lose sight of technology to get through the digitized world of security for example of your company’s database: BIG DATA. No-Compromise Database Communication! So, you fnd a visualization supplier, which makes MORAL OF Institutional contribution is no assumptions when it comes to the security of essential your data. Therefore, no unauthorized access to THE STORY IS In this very simple scenario, positioning the your database should be allowed. Another security THAT DIGITAL human being at its centre, Turkey should add new issue might be whether this visualization supplier TECHNOLOGIES instruments and methods by shaping the Digital asks you to migrate your data to their servers or World within the country. I am pretty sure that anywhere else or, not ARE ONLY the social scientists acting in the feld of DH will The visualization technology has to be designed INSTRUMENTS have added value in this process. Correct policy to be under the complete control of the information FOR SIMPLIFYING and correct market structure are vital for steering provider – that is you. Simply, this would digitally enhanced economic systems on an mean that you’ve asked for a Full On-Premise THE DECISION understandable and sustainable path. Implementation! Since, we all are lazy and want MAKING PROCESS For example, it becomes an essential necessity to to have every information available, you need also OF HUMAN BEINGS have a visualized Turkish Credit Reference Agency the advantage of fexibility to be able to process and a Trade Registry Gazette! that information easily. What would that mean? In OR, IN OUR CASE Digital World is not that inhuman as it is some short bullet points, you would want to BUSINESSES. generally perceived. 50 In Depth / Super Incentive System

TURKEY& SOUTH KOREA “BLOOD BROTHERS” BY İBRAHİM AVCI South Korea and Turkey FOR have long been friendly countries over the years. During the Korean war between South and North, the participation of Turkish troops led to the formation of a strong relation between the two countries. The relationship 60 between the two countries has developed into a YEARS strategic partnership as they expanded cooperation in various areas, such as the political, economic and cultural sectors, over the past 60 years. Political relations between Turkey and the Republic of Korea (South Korea) were established on August 11, 1949, with Turkey’s recognition of the Republic of Korea as an independent state. Turkey’s participation in the Korean War had a positive impact on our bilateral relations and diplomatic relations were established in 1957. SEPTEMBER 2018 ISSUE 62 The Turkish Perspective 51

ccording to South Korean sources, Turkey is ranked third (966) in terms of the number of martyrs Aamong 16 countries that participated The 2002 FIFA in the Korean War. The UN Memorial World Cup also served as another Cemetery in Busan/Korea honors our 462 consolidating factor soldiers that were killed during the war. between the Turkey- Korea brotherhood. South Korean people describe Turkish people as “blood brothers”. The roots of tune-in to Korea again. 2002 was the has accelerated its investments in Turkey. the strong ties between the two countries year when the Turkish national football To the world, the country is known for go back to the Korean War that ended team enjoyed its frst major international its export-oriented development model on July 27, 1953. The friendship, which success. With the incredible support of and social and economic development began with the war that contributed to Korean fans during the matches, Turkey it provided in the Far East. According to the strengthening of the bilateral ties, reached the semi-fnal. What surprised the data compiled from the South Korean was also on the economic relations of many was that the third-place playoff Embassy in Ankara, the Foreign Economic the two countries. Turkey joined the match ended up between South Korea Relations Board (DEİK) and the Turkish Korean War under U.N. Command and Turkey. The overwhelming feeling Statistical Institute (TurkStat), the total during 1950 and 1953 in efforts to of friendship in that game made it one amount of the investments carried out by support South Korea in its struggle for of the most memorable sports matches Korean companies in Turkey from 1980 to freedom, democracy and independence, ever. Masses of Korean fans, whose 2017 reached $2.63 billion. Korean frms where a total of 741 Turkish troops were cheers echoed across the home ground made investments totaling approximately killed during the war. The heroic fght of stadium, were also waving the Turkish $1.73 billion only in the last fve years, Turkish soldiers during the Korean War colors to show support for the Turkish which corresponds to 66 percent of the was not only effective in winning the national team. The two teams celebrated total investments made in the 38 years. war, but it also enabled our deep-rooted together and showed exemplary images of In the mid-80’s, Korean entreprises friendship with the Korean people to friendship. The fags of both nations were began taking an interest in investing in evolve into a unique “blood brotherhood.” seen side by side on the stands and both Turkey. Turkey’s growing population The 2002 FIFA World Cup also teams’ players saluted the crowds arm and domestic market, geographical served as another consolidating factor in arm, creating a friendly atmosphere importance between the Europe and between the Turkey-Korea brotherhood. that continued long after the match. the Middle East, the export promotion This international competition was Aside from football the relationship policy for Turkish bussinesses, and the a reminder of how close the two had between the two countries exists in the Turkish government’s initiative to attract become as the Turkish people began to world of business as well as South Korea foreign investors and investments were all 52 In Depth / Turkey & South Korea

advantageous to Korean entrepreneurs. The frst investment from South Korea in Turkey was realized in 1987, when Goldstar created a joint investment company with Vestel and began manufacturing microwaves and color TVs at a factory in Manisa in June 1988. The same year, Samsung Electronics collaborated with Tatiş Holding and manufactured color TVs and videos at a factory in İzmir. Beginning with Samsung Electronics, and followed by LG Electronics, Hyundai, Daewoo, Samsung, Sunkyung, etc., most of Korea’s main large companies had opened branch offces in Turkey in the 1980’s. Hyundai Motors began to export their automobiles to Turkey in 1990, and constructed an automobile factory in İzmit in November 1995, consequently improving images of Korean goods and products in Turkey. Today, Hyundai Assan employs more than 2,500 people and manufactures the i10 and i20 hatchback models in its Izmit factory. The company sells these vehicles in the domestic market and also exports to more than 40 countries, goods totaling around $584.1 million to including Germany, France, Italy, Spain, THE INVESTMENTS South Korea last year, while its imports and the UK. This factory is Hyundai’s AND MEGAPROJECTS totaled $6.6 billion in the same period. small car production hub for Europe, South Koreans have also contributed while also serving the Middle Eastern and IMPLEMENTED BY TURKEY to the development of tourism between African markets and even Australia. The the two countries. The number of Korean company achieves a total annual export HAVE, ESPECIALLY IN THE tourists who visited Turkey in 2017, the revenue of around EUR 1.5 billion, and RECENT PERIOD, ATTRACTED 60th anniversary of the establishment the added-value provided by Hyundai of the diplomatic relations between the Assan to the Turkish economy and the GREAT INTEREST OF SOUTH two countries, stood at 120,622. The Turkish people is increasing every year. same fgure was 106,904 a year before. KOREAN FIRMS. The number of Koreans that visited TRADE VOLUME UP Turkey in frst fve months of this year 10 PERCENT IN 5 YEARS reached 59,208. On the other hand, Turkey’s main exports groups consist 26,541 Turks visited South Korea in of electrical and electronics products, 2016. The same fgure totaled around vehicles, machine, mineral fuels to South 27,272 in 2017, while it reached 12,174 Korea while it purchases mineral fuels, in the frst fve months of this year. electrical and electronics products, machine, iron-steel from South Korea. KOREANS’ INTEREST IN TURKEY’S Wholesale and retail trade, automotive, MEGAPROJECTS IT and electronics, mining, tourism and The investments and megaprojects manufacturing industries stand as the implemented by Turkey have, especially in most common areas where the number the recent period, attracted great interest of South Korean companies operating in of South Korean frms. Hyundai and SK Turkey stood at 312 by the end of 2017 E&C were among the contractors of the while it was 134 in 2007, according to Yavuz Sultan Selim Bridge, and the latter is data from Turkish Economy Ministry. also currently engaged in the construction Over a decade, the trade volume of the Çanakkale 1915 Bridge with between Turkey and South Korea other South Korean frms and Turkish surged nearly 60 percent to reach $7.2 contractor Limak. SK&EC was also one of billion in 2017 according to the Turkish the contractors of the Eurasia Tunnel, an Statistical Institute. Turkey exported undersea tunnel project that connects the

SEPTEMBER 2018 ISSUE 62 The Turkish Perspective 53

Palestinian and Syrian issues, said the statement, adding that both leaders stressed more joint efforts from the international community for a lasting political solution in Syria. The two leaders agreed to increase contact and cooperation between their governments and the private sector. They also agreed on cooperation on counter- terrorism, the refugee crisis, world peace, and stability, along with some other issues. On bilateral issues, they agreed to expand bilateral cooperation on transport, infrastructure, and the energy and defense industry sectors. During the visit, the two countries inked four bilateral agreements on European and Asian sides of Istanbul, with TWO COUNTRIES AGREE ON cooperation in higher education, its Turkish partner Yapı Merkezi. Holding 2023 VISION information, telecommunication, space the market leader position in solar panel President Moon Jae-in welcomed and satellite technologies, industry sales in Turkey, Hanwha Q-cells made Turkish President Recep Tayyip and energy and health and medical its most signifcant investment in Turkey Erdoğan to Seoul in May 2018. science. Erdoğan had stressed during in March 2017 when the company was President Recep Tayyip Erdoğan was the visit that the participation of South contracted for the 1-gigawatt (GW) accompanied by a large delegation of Korean companies in Turkey’s Kanal Konya-Karapınar Renewable Energy ministers and Turkish businesspeople. Istanbul project, a canal parallel to the Resource Areas (YEKA) solar power 2 countries’ leaders agreed on Bosporus that is planned to connect the plant project with its Turkish partner close cooperation for successful Black Sea and Sea of Marmara, will be Kalyon Energy. As part of the project, implementation of Turkey’s 2023 a source of pride for the country. Lastly, which is estimated to cost $1.3 billion, Vision agenda, according to a joint South Korean construction company a solar panel facility with a production statement from the two countries’ SK Engineering & Construction capacity of 500-megawatt photovoltaic leaders. Erdoğan and Moon also had expressed plans to partake in module and a research and development discussed the latest developments the construction of one of Turkey’s (R&D) center will be established. in the Middle East, including the biggest projects, Kanal Istanbul. 54 Briefng Together We Innovate

novaTİM is a ail o 2256 students full of spirit of development and change who puts innovation in the center in Turkey’s 156 different departments of 150 universities in 72 cities.

www.inovatim.org PHOTOGRAPHBYLOREM IPSUM JUNE 2016 ISSUE 35 The Turkish Perspective 55 Content: From Beyoğlu To A World Brand P55 Seramiksan: Ceramic That Combines Technology With Aesthetics P58 Dogus Tea: Diversifying The Business P60 Buka: Liven Up Your Home With Buka P61 Editor: Serap Kaya

TEXTILE, CERAMIC, FOOD, FURNITURE...

TEXTILE

FROM BEYOĞLU TO A WORLD BRAND Kiğılı is one of the leading ready wear sectors in Turkey since 20th century thanks to steps taken with a futurist, innovative and progressive perspective.

İLHAN ALPAY OGAN 56 BrieBrandsfng /Kiğılı

Kiğılı attracts attention as one of the brands contributing so much to development of ready- wear sector in Turkey with its leading steps in 20st century. As a result of steps taken with a progressive perspective, the company takes contemporary steps today. With top quality, diversity, style and affordable prices for every one of the collections, Kiğılı has advantages in the sector. CEO of Kiğılı, Hilal Suerdem gave important information about the Kiğılı’s future expectations, vision and mission, export fgures and R&D works…

WE HAVE A LARGE in heart of men, and has a Anti-bacterial products, NUMBER of target groups. A special place in ready-wear non-sweaty products keeping great number of Turkish men sector. cool by enabling the body have absolutely a memory Kiğılı provides all products to breath, fabrics used with with Kiğılı in their life. a man needs ranging from nanotechnology, stain proof Though generations change, suit, jacket, coat, shoes, or non-iron materials are we continue to be near accessories, beach products among them. Of course, the them taking contemporary to perfumery. We prepare power of our experience is steps. Our product diversity two main collections and undeniable. Through our supports this case. We have intermediate collections in broad experience in retail in our collections the product a year. There are chic and One of the biggest sale, we plan processes from groups which men from any comfortable products that advantages of supply chain to customer in age and any pleasure can can be worn comfortably the best way and realize this comfortably wear in any every day and place in our Kiğılı in foreign formula successfully. Thus, moment of the day and which collections prepared in a we are appreciated not only appeal to different styles. We large range from classics, investments is that in Turkey but also abroad. We are always with the men even casual and sportive styles. We it always works continue to integrate latest from weddings, receptions, renew our color range every innovations into designs in invitations where one must season according to trends. as having stocks our collection. We have also wear the most elegant to a We produce our products and thus provides oversize models. Functional weekend picnic or a business with the highest technology and adaptable designs in our meeting. We offer lifestyle in textile industry, we make customers abroad collections provide men with collection for both weekday a difference in the sector with new orders combining the same parts and weekend. Within this thanks to our functional in different way no matter context, I think Kiğılı is frstly and innovative products. every month. it is weekend, work day, day

SEPTEMBER 2018 ISSUE 62 The Turkish Perspective 57

80 years in retail and product fashion and quality to the quality. This experience world with our practices. makes us powerful both Thus, as a Turkish brand, we in Turkey and abroad. We compete in global area. At the are willing to open to new center of our development markets. We sustain our strategy, there are countries works with no stop for of Balkans, because we think markets there is demand this region has such a large and need. We are separated range potential for Turkish from our rivals in all markets ready wear investors. In this we serve thanks to the fact region, there are less branded that we provide qualifed, frm compared to Western chic and modern products in Europe, and their population affordable prices. is younger compared to In the future, we see brand the West. Purchase power and night. We use natural and thus provides customers Kiğılı so advanced abroad. increases. Integration materials such as cotton, abroad with new orders Our vision on this matter is process of Europe continues. wool, cashmere and silk in every month. In countries so broad. In next fve years, There is a positive perception approximately 90% of the where our shopping and sale we will open total 150 shops for Turkish brands. On the products in our collections. points are available in such and 100 of them will be other hand, our cultural as France, Azerbaijan, Saudi abroad. and geographical closeness FOCUS ON EXPORT Arabia and Austria, we get a We have 225 stores in 67 makes us powerful in As Kiğılı, we export most great deal of demand. We get provinces in Turkey, and understanding local markets to Middle East, Balkans 8% of our annual turnover 26 sale points in France, and determining appropriate and Middle Asia. We have from export. Austria, Macedonia, strategies accordingly. In the carried out more researches One of the most important Azerbaijan, Georgia, Iraq, light of all these elements, on clothing habits in those criteria in our success is Iran, Kosovo, Turkmenistan, we plan to enter into these areas, and thus have more that we always focus on our Saudi Arabia and Turkish markets rapidly, increase command of those regions. customer frstly. In whatever Republic of Northern Cyprus popularity of the brand Our geographical and market we serve, we observe in international area. With with new investments, and cultural connections are expectations of consumers its annual production of broaden our abroad network effective in our higher export in related place with no stop. 6 million 500 hundred beginning from these to those regions. We try to do our best for thousand, weekly product regions. We have total 26 sale best service in every stage of delivery of 150.000, total In this process, we aim to stores in 15 countries. We sale process in ranging from store area of 50 thousand open to new markets and opened the latest store in product quality to customer square meter and 2200 enlarge our present markets. Cyprus. One of the biggest services. employees, we are the leading The preliminary points where advantages of Kiğılı in As Kiğılı, we keep carrying in the sector. we increase number of sale foreign investments is that it out our services with our As Kiğılı, we introduce stores are Turkish Republics, always works as having stocks experience of approximately our understanding of man Balkans and Middle East. 58 BrandsBriefngBrands /Seramiksan / Seramiksan

CERAMIC CERAMIC THAT COMBINES TECHNOLOGY WITH AESTHETICS Seramiksan has been the frst in Turkey to introduce stain-proof, bacteria-proof and easily cleanable nano-tech granites, lappato and full lappato porcelain tiles with soluble salt technology into the sector.

BY SERAP KAYA

he long-established and in Turkey and in the world T innovative company with its high production of the ceramics sector, capacity, manufactures foor Seramiksan was founded tiles, wall tiles, enameled in 1990 by Demirdöver granite, technical granite, family, being the leading facade coating, vitrifed industrialists of Manisa. products and construction Seramiksan, having started chemicals. Our brand, production in 1994, has combining the technology Seramiksan introduce full lappato porcelain tiles stain-proof, bacteria- been conducting its activities required for quality life with proof and easily with soluble salt technology with a vision of a world aesthetic designs, provides cleanable nano-tech into the sector. It also started granites, lappato and brand since its foundation. a wide range of products for full lappato porcelain production of porcelain tiles Seramiksan, having started all living and public areas. It tiles. with large sizes at the facility production of ceramics with provides its customers with that it took over in 2016. an area of 1.5 million m2, products with numerous Seramiksan, making now has a factory established color and pattern options investments above the on 500,000 m2 outdoor area in various sizes from 10 x with 150,000 m2 indoor area 20-wall tile to the unglazed and an annual production porcelain 120 x 180 tile with capacity of 33 million m2 20 mm thickness which was in Turgutlu Organized produced in Turkey for the Industrial Zone. Seramiksan frst time by Seramiksan. provides its wide range of Seramiksan, conducting products meeting the needs strong R&D works for a of customers with numerous product range outscoring color and pattern options its competitors in Turkey through its more than 200 and in the world, also comes stores and more than 1000 to the forefront with its dealers across Turkey. pioneer works in the sector. Seramiksan has been the ITS PRODUCTIVITY AND frst in Turkey to introduce WORKS IN TURKEY stain-proof, bacteria-proof Seramiksan, being among and easily cleanable nano- the leading manufacturers tech granites, lappato and SEPTEMBER 2018 ISSUE 62 The Turkish Perspective 59

of the contribution of Innovation to life. Our superior technology allows us to be free in design. We have introduced many firsts in the sector so far. We shall continue providing quality products to our customers with the “Everyone Deserves a Good Design” motto. We continue extending our dealer network also in 2018. We will establish 20 new dealerships in İstanbul, Ankara, Kayseri, Antalya and Adana regions. Today, we continue ensuring unconditional customer satisfaction across Turkey through our dealers. We also work for our new investments and new projects.”

FIGURES AND DESTINATIONS OF EXPORT Seramiksan, having a wide range of products for all living areas and public areas, also increases its sales channels every year together with its increasing sector average every year, high temperatures as well products with several capacity. Today, it provides its started production of as complete resistance to patterns. products produced with its unglazed porcelain with 10 salt, chlorine and cleaning Seramiksan, having environmentalist production mm and 20 mm thickness agents, together with the state-of-art modern philosophy to a wide foreign with only a few examples high breakage and tearing technology vitrifed customer portfolio including in the world in 2017. The strength. production facilities, large-scale wholesale dealers, Outdoor collection having Seramiksan, being high provides the new generation retailers, construction market frst been produced by above the standards with stylish vitrifed products in chains and construction Seramiksan with 120 x respect to technology architecture and interior companies which conduct 120, 40 x 120 dimensions in Turkey, once again, architecture decoration activities abroad. Seramiksan, and 20 mm thickness, becomes the pioneer trends to its customers. Our exporting to 57 countries increases the standards with its new UNISTONE environmentally friendly including particularly with its functionality and product in the 2018 vitrifed series functioning Azerbaijan, Georgia, Canada colored body production. collection. UNISTONE, with 2.5 - 4 liters water and the UK, can meet the The collection attracting allowing architects and and providing a substantial demands of countries in attention with its long life designers to create aesthetic water saving produced to Americas, Europe, Africa and high-performance and functional areas, is contribute to fresh water and Asia continents with characteristics provides preferred by those who needs, have fawless cleaning its products with varying professional solutions in wants innovation in all characteristics. technical characteristics public and commercial areas living areas. UNISTONE is its numerous size, color where functionality is of manufactured with 120 x Seramiksan Turkey Sales and pattern options. top priority. These products 180 dimensions with 11 mm Manager Süreyya Çağlar: Seramiksan, exporting 30% maintain their frst-day and 20 mm thickness which “We manufacture special of its products, provides appearance even under can be cut and processed design products at our its ceramics and vitrifed harsh conditions thanks to in shapes as desired, also state-of-art manufacturing products to foreign markets their resistance to fre and enables use with other facilities by being aware with its own brand. 60 BrieBrandsfng / Dogus Tea

exports. In the category of chips, it realized a big exporting attack in the 3 years. The total share of chips exporting in the total sale increased from 7% to 15%, the exporting amount of chips, which was below 25 Million TL in 2013, increased to approximately TL 50 Million. Dogus Tea, which exports to only to Europe and Asia in the previous years, is currently exporting to Asia, Europe and North Africa. Over the past three years, the number FOOD of countries where the exporting has made increase Dogus Tea: to 43. This increase is not limited to just the tonnage and the number of countries; signifcant progress has DIVERSIFYING THE BUSINESS also been made in terms of product diversity. For Dogus Tea reached the large masses thanks to the slogan “The example; with Patos, a corn Most Beautiful Tea is Dogus Tea” and became one of the most chips brand, it became the important actor in the market. frst company in Kosovo and Macedonia and introduce BY SERAP KAYA these markets to Corn Chips. he company has grown steadily every While only potato chips are T year since the year it was established sold in these countries, it and realized its rapid growth after the created a new space with year of 2008. This growth consists of two the sales of corn chips. It important factors; one of them is that the gets a market share of 7% consumers are more aware of the taste, thanks to chips, produced quality and diversity of the products which from only corn in Turkey. are put on the market as a result of the One of the most important marketing investments and the other one moves in this increase was is the fact that the production volume has to examine and take into been increased further each year thanks to account regional tastes. It additional investments. produces chips mixed with vinegar for only Middle East TURKEY’S THE BIGGEST TEA INSTITUTION IN THE Market. It used Arabic for Patos becames PRIVATE SECTOR the frst facility was established with the packaging and fronts Dogus Tea meets 35000 tons of total tea company in an investment of 35 million sides of the products sold Kosovo and production of about 220000 tons in Turkey. Macedonia and TL in İzmir and the product to the Middle East Market. introduce these As a frm established with 100% local markets to Corn met with consumers as of The chips with thyme was capital, it ranks frst in terms of production Chips. April 2016. launched to the market for volume among private sector organizations. Albania. Special television In recent years, because of the fact that the DOGUS TEA DOESN’T WANT TO advertisements have been interest in ice tea has increased as well as LEAVE A BLANK IN THE MAP IN launched for Iraq, Jordan, the classical black tea, herbal and fruit teas, THE CHIPS MARKET Albania, Macedonia and Doguş Tea, transfers its expertise about Dogus Tea, having big Kosovo. The brand, which hot tea into the ice tea category. Doguş Ice impact after purchasing carries out promotional Tea, which is produced from 100% sugar salty products department activities in their own beet that does not contain preservatives of Kraft, was the third language in these countries, and colorants, has been launched to the company among the 500 big gains recognition and market. In 2015, an ice tea production companies which increases increases its sales. SEPTEMBER 2018 ISSUE 62 The Turkish Perspective 61

the commercial where Buka product range includes Gupse Özay played. Buka sofas, armchairs, experience excitement coffee-tables, dining room. of bringing together our original concept with whole Turkey and received nice feedbacks. Following Buka’s stores in Istanbul Avcılar, Masko and Modoko, Ankara Turan Güneş and Çayyolu, Izmir, Adana, Bodrum, Izmit, Alanya and Konya, company launched the frst store out of Turkish borders in Northern Cyprus. Number of stores reached 13 together with Northern Cyprus. The target is reaching 25 stores before end of the year. Buka is working very hard for this. Buka are a growing trademark and target is growing at domestic market FURNITURE at the outset. In 2016, Buka’s to company covering system, international operations they offer products in the started with various projects. product groups in modular Cyprus, Greece, Germany, LIVEN UP YOUR HOME structure that comply with France, Algeria, Morocco your changing life. and Palestine are among Today, customized, countries to which company WITH BUKA functional and modular exports. Company received products where consumers dealership requests from Buka focused or activities on both can be involved in design Gulf Countries that give close increasing the brand recognition across come into prominence. Even attention to country. Soon though company is a very Buka’s store in Bahrain will Turkey and expand the network of stores in recent trademark, capture open. Firm is continuing Turkey. such trend by promising negotiations related to consumers products they opening a store in Riyadh. BY İBRAHİM AVCI imagine and want. Firm uka, trademark design products suitable for Buka are a growing Blaunched in 2015 with speed and comfort of city life. trademark and the philosophy “Smart Understanding expectations target is growing at domestic change” which takes its of new generation well, market. name from color change offer both innovative and properties of chameleon and price options. All sitting functional products at continues operations with groups included in collection affordable prices. Together accessible quality, fne has covering system. with change of consumption design and customizable Company provides their habits and consumer furniture collection. Buka customers with opportunity preferences in Turkey, product range includes sofas, to create many combinations tendency to design and armchairs, coffee-tables, with coverings in hundreds of functional products is also dining room, bedroom, different colors. In addition increasing. decorative pillows, carpets, Buka advances rapidly rugs and home accessories. despite being a very recent The most signifcant trademark. Buka focused or characteristic of trademark Buka continues to activities on both increasing is that it sets free consumers rapidly disseminate the brand recognition across. at furniture preferences; our concept of smart Company started at model, color, dimension change across Turkey. season this year with 62

Agenda FAIRS, EXHIBITIONS, SUMMITS AND MEETINGS IN THE NEXT MONTH

SEPTEMBER ISTANBUL CONSTRUCTION SHOW 13-16 CNR EXPO YESILKOY

06 - 09 SEPTEMBER 2018 GAMEX 2018 TÜYAP EXHIBITION AND CONGRESS CENTER This event will be organized with the aim of becoming one of the Ronesans Fuarcılık is an expert in technology fair which started it’s journey biggest organizations in its feld, by organizing CompeX in 1981. Since 2000, with the start of organizing with the expertise gained from GameX fairs, it has been an important mission and vision to contribute to CNR Holding ‘s unicera, natural the development of the digital gaming industry. GameX Digital Gaming stone, cnr real estate and cnr and Entertainment Fair is the highest participating festival in the EEMEA European elevator fair organized by the Turkish construction and region. With a renewed face, GameX will take a place in TUYAP Fair and construction sectors with the aim Congress Center on 06 September 2018 and it will be full of the excursion of making more export. and It will give a perfect experience for 4 days.

AESTHETICSTANBUL 2018 DISCOP 2018 SEPTEMBER İSTANBUL FAIRMONT QUASAR HALIÇ CONGRESS CENTER 20-23 30 AUGUST 05- 07 SEPTEMBER 02 SEPTEMBER The 6th edition of DISCOP ISTANBUL will focus on Turkey, CEE, MENA and CIS countries, one of the world’s most dynamic marketplace combination already contributing to 20% of all global Film, TV content CLOTHING MACHINERY 2018 and adaptation rights sales with in the TÜYAP EXHIBITION AND CONGRESS CENTER Aestheticstanbul 2018 is one of foreseeable future an estimated 200 a kind meeting in plastic surgery million TV households with possible Clothing Machinery Fair will be held feld where the participants will access to digital services and 500 for the 26th time in 2018, September be able to experience a total of 31 million mobile subscribers. 20-23. The same fair took place at live surgeries with direct access Tüyap Istanbul Exhibition Center of simultaneous Q&A sessions in 1986 to which 18 companies had with the operating surgeons. participated, in 2018 the center All surgical procedures will be will be hosting the world’s biggest conducted with a step-by-step Clothing Machinery Fair. The examination and analysis of the Clothing Machinery Fair achieved operations. We pledge to provide great success this year with its 25th the scientifcally enthusiastic edition. It was the largest fair in the participants with the knowledge world organized on the subject of of most recent and succesful Clothing Machinery in 2016. techniques. SEPTEMBER 2018 ISSUE 62 63 $ 8.07 billion Turkey’s humanitarian assistance according to the Global Humanitarian Figures Assistance Report 2018. INCREASE IN TOURISM REVENUE Turkey’s total tourism income increased by 30.1 percent, year-on-year, reaching $7.04 billion in the second quarter of 2018, according to the report.

TOURISM INCOME NUMBER OF VISITORS 2017 2017 II. QUARTER $ 5.5 billion II. QUARTER 8,86 million 2018 2018 II. QUARTER $ 7.04 billion II. QUARTER 11,06 million

30.1% UP 24.9% UP

AVERAGE EXPENDITURE OF THE VISITORS II. QUARTER 2017 2018 $611 $636

SOURCE: TURKSTAT

EXPORT GROWTH FROM EASTERN FROM BURSA TO THE WHOLE WORLD ANATOLIA Bursa, hosting the automotive giants OYAK Renault, Eastern Anatolian Exporters Association (DAİB), Tofaş and Karsan, produced 2 thousand 41 vehicles per members frm of the 17 provinces exported 879 million day in the frst half of the year. 796 thousand dollars in January-June period. TOTAL Production and Export THE MOST EXPORTED COUNTRIES IN THE REGION ($) TOTAL Automotive Exports Shares of Automotive Firms in 688,81 Units Countries Bursa (units) Iraq 210 million Production 367,401 %43.57 Azerbaijan Nakhchivan 62 million Iranian 50 million Export Germany 40 million 289,124 %42.02

PRIMARY EXPORT ITEMS FROM THE REGION ($)

Agricultural Products 139.3 million Chemicals 112.8 million TOTAL Automotive Production (Excluding tractor) Machine 108.9 million January-June 2018 Ready-to-wear and Apparel 95.4 million Mining sector 44.5 million 843,193 UNITS

Source: DAIB Source: Anadolu Agency 64 Figures

GERMANY 9,98 BELGIUM 2,42 SHARE OF TOP 20 COUNTRIES IN TOTAL EXPORT (%) NETHERLANDS FRANCE 2,95 4,76 Turkish exports shares

UK to most prominent in 6,59 the frst seven months of USA 2018. 4,95 SPAIN 4,80

ALGERIA 1,24

POLAND 2,06

ROMANIA

2,40 RUSSIA 2,09

ITALY 6,08

BULGARIA

1,61 CHINA GREECE IRAN 1,86 1,25 1,59

ISRAEL 2,39 EGYPT 1,75 SAUDI IRAQ ARABIA 4,29 1,59

Data: TIM

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