ISSUE 91

NEWSLETTER ’21 invest.gov.tr

TURKISH ECONOMY GROWS 21.7 PERCENT IN Q2 2021 Page 3

TURKEY MARKS 99TH PRESIDENT ERDOĞAN ANNIVERSARY OF ATTENDS OPENING CEREMONY OF 26 NEW FACTORIES IN ANKARA

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PRESIDENT PRESIDENT LAUNCHES ERDOĞAN ERDOĞAN SPEAKS NATIONAL AI ADDRESSES AT STRATEGY IDEF’ 21 AT AKINCI UCAV CEREMONY

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BOEING AND TURKISH HIGLIGHTS OF THE TURKISH AEROSPACE SIGN CONTRACT ENERGY SECTOR TO MANUFACTURE BOEING 737 ENGINE COVER

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TRENDYOL BECOMES TURKEY'S WEBINARS FIRST “DECACORN” & EVENTS

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Message from TURKEY TURKISH ECONOMY GROWS the Investment MARKS 99TH 21.7 PERCENT IN Q2 2021 Office The Turkish economy’s robust recovery basis, showing that it maintained its On the 30 Victory Day, Turkey ANNIVERSARY continued apace, with GDP growing by strong growth momentum despite marked the 99th anniversary of its 21.7 percent year-on-year in Q2 2021, Covid-19 lockdowns in May. victory at the Battle of Dumlupınar OF VICTORY DAY marking the country’s highest-ever in 1922. On this historic day, we expansion since 1999 and ranking A close analysis of GDP's activities respectfully commemorated Mustafa President Recep Tayyip Erdoğan second in the world after the UK. indicated that, with the exception Kemal Atatürk, the founder of the attended a ceremony held of stock changes, all components th Republic of Turkey, and gallant soldiers at Anıtkabir to mark the 99 The Turkish Statistical Institute positively contributed to Turkey’s of our military. anniversary of the August 30 (TurkStat) also revised upwards recent economic growth. Private and Crowning our glorious army, President Victory Day. Turkey’s Q1 2021 growth to 7.2 percent government consumption contributed Recep Tayyip Erdoğan attended Laying a wreath to the mausoleum of from 7.0 percent. According to data 13.7 and 0.7 percentage points to the course completion and delivery the Republic's founder Mustafa Kemal released on September 1, GDP at Turkey’s growth respectively, while ceremony of the Bayraktar Akıncı Atatürk, President Erdoğan said, “We current prices reached USD 188,566 investment expenses and net exports’ Unmanned Combat Aerial Vehicle million in Q2 and the Turkish economy contribution stood at 5.4 and 7.0 (Akıncı TİHA), which will help Turkey once again stand here before you on the th expanded by 0.9 percent on a quarterly percentage points respectively. boost its efforts to achieve global 99 anniversary of the Great Victory, one peace, justice, and trust. of the glorious turning points on the path towards our independence. On this historic With the global disruption of the day, we remember you and our gallant coronavirus pandemic now past us, martyrs with grace.” Turkey's economy has been rebounding rapidly and is stronger today than it was After the ceremony, President Erdoğan before. The Turkish economy recorded a 21.7 percent growth in the second received top state officials and chiefs quarter of the year, ranking second in of foreign missions at the Presidential the world. Complex in Ankara. Concordantly, Turkey posted the fastest President Erdoğan also issued a message rise in industrial production in the on the occasion of the August 30 Victory past 10 months during June, rising by Day, saying, “We are happy to celebrate 2.3 percent monthly and 23.9 percent the 99th anniversary of the great victory, annually, while the number of people employed rose a record high to 28.6 which is the cornerstone of our centuries- million, the highest in the last 33 old glorious history. I congratulate our months. nation, the Turkish Cypriots and each one of our citizens living in different countries Furthermore, Turkey's Manufacturing of the world on the August 30 Victory Day. Purchasing Managers' index (PMI) reached a six-month high in July, climbing to 54 from 51.3 in June. President Recep Tayyip Erdoğan bar in economy, manufacturing, PRESIDENT attended the opening ceremony of agriculture and trade, despite the Meanwhile, as a result of the Turkish 26 new factories and infrastructure pandemic conditions.” Emphasizing government's ongoing support, the projects in the Ankara Chamber of that investments, employment, Turkish startup ecosystem continues to ERDOĞAN Industry’s Second Organized Industrial manufacturing and exports are draw significant investments. Trendyol Zone. prioritized in Turkey’s agenda, President became the first Turkish technology ATTENDS Erdoğan added, “The entire world is company to be defined as a "decacorn" During his address at the inauguration currently faced with uncertainties. with a valuation of USD 16.5 billion in ceremony, President Erdoğan said, There are disruptions in global supply addition to Turkey's "billion-dollar club" OPENING “A total of TRY 1.6 billion has been chains. The commercial life in many invested in these factories where countries has virtually come to a halt. members of Getir, Peak Games, Dream 1,670 people will be employed. We The Turkish business community, Games, and Hepsiburada. CEREMONY OF 26 have always stood by our investors by on the other hand, is pushing ahead providing them with a wide range of with new investments. I would like NEW FACTORIES supports and incentives.” to thank each and every one of our industrialists for their investments President Erdoğan stated, which demonstrate their confidence in A. Burak DAĞLIOĞLU IN ANKARA “Turkey never ceases to raise the the Turkish economy.” President, Investment Off ice

2 3 NEWSLETTER September’21 NEWSLETTER September’21 PRESIDENT ERDOĞAN PRESIDENT ERDOĞAN SPEAKS ADDRESSES AT IDEF’ 21 AT AKINCI UCAV CEREMONY

President Recep Tayyip Erdoğan alliance, develop our national defense delivered a speech at the opening industry, the more we will contribute to ceremony of the 15th International the regional and global peace.” Defence Industry Fair (IDEF'21) held at the TÜYAP Fair and Congress Center in 1,236 companies and representatives President Recep Tayyip Erdoğan President Erdoğan congratulated Istanbul. took part in the four-day event delivered a speech at course completion everyone who contributed to the organized under the auspices of the and delivery ceremony of Bayraktar design, development and production of In his address, President Erdoğan Presidency of the Republic of Turkey emphasized Turkey was delighted in coordination with the Ministry of Akıncı Unmanned Combat Aerial the Akıncı UCAV, earning Turkey a place to share with its allies all the means National Defense, the Presidency Vehicle (Akıncı UCAV) developed by among the first three countries to have and skills it has gained in the defense of Defense Industries (SSB) and the Turkish drone manufacturer Baykar this technology. industry, adding, "We believe that Turkish Armed Forces Foundation Makina. the more we, as a leading member of (TSKGV). President Erdoğan also expressed NATO, the world’s greatest defense In his address at the Tekirdağ facility of confidence that the Akıncı will help Baykar, President Erdoğan underlined Turkey boost its efforts to achieve that Akıncı UCAV is the new symbol of global peace, justice, and trust, saying, TURKEY LAUNCHES Turkey’s engineering prowess and the “In Turkey, our principle is to use every new token of our independence in the technology we develop for the benefit sky, adding, “Our defense industry has of the entire humanity. We act with MILGEM-CLASS CORVETTE played the leading part in the success the same perspective and feelings in story Turkey wrote in the past 19 years. defense industry as well.” FOR PAKISTAN NAVY The level we have reached in UCAV technologies symbolizes the success of our globally recognized defense industry capabilities.”

The first MILGEM-class (National Ship between the two countries in the Project) corvette built in Turkey for defense industry to reflect on our the Pakistan Navy, PNS Babur, was trade relations as well,” said President launched in a ceremony honored by Erdoğan at the ceremony, adding that President Recep Tayyip Erdoğan on Turkey and Pakistan have expanded August 15. their cooperation in the defense industry. “We want our strong relations with Pakistan and the collaboration

4 5 NEWSLETTER September’21 NEWSLETTER September’21 INDUSTRIAL PRODUCTION IN TURKISH ECONOMY RALLIES ON TURKEY AT HIGHEST LEVEL OF THE BACK OF STRONGER GROWTH LAST 10 MONTHS PERFORMANCE AND STRUCTURAL INDUSTRIAL PRODUCTION IN TURKEY INDICATORS (monthly % change) Treasury and Finance Minister Lütfi Elvan said at the meeting where he

5 met with the business world, "We expect a growth of over 8 percent for 4 2021 unless there is an external shock 3 2.3 related to the epidemic." Minister 2 1.6 1.5 Elvan added that they are committed

1 to preserving the central government

0 budget deficit to national revenue ratio at 3.5 percent, saying, "There is not the -1 slightest hesitation in this subject. Our Jan’21 Oct’20 Feb’21 Apr’21 Sep’20 Dec’20 Mar’21 Nov’20 June’21 May’21 top priority is to reverse the inflation trend as soon as possible. Inflation “Low government deficits and debt,

Source: TurkStat trend will decrease in the last quarter stronger growth performance and of the year." structural indicators, such as GDP per The Turkish economy continues to of the last 10 months climbing up by capita and human development” were experience a robust recovery in the 2.3 percent monthly and 23.9 percent In its recent review, Fitch Ratings lined up as the upsides of the Turkish aftermath of the novel coronavirus annually in June 2021 compared to increased its growth forecast for Turkey economy. pandemic. market estimates of 2.1 percent and to 7.9 percent for 2021 from 6.3 percent 21.7 percent, respectively. in its June assessment, due to the Fitch has affirmed Turkey's rating at “BB-” with a “Stable” outlook in the The Turkish Statistical Institute remarkable performance in the first latest assessment. (TurkStat) unveiled the latest industrial Meanwhile, calendar adjusted industrial quarter of 2021 and continued resilience in economic activity. production data in Turkey. Accordingly, production rose by 41.1 percent year-on- the data recorded the fastest increase year in the second quarter of 2021. TURKEY RECORDS ALL-TIME HIGH JULY EXPORTS TURKEY’S EMPLOYMENT DATA Turkey's exports reached an all-time high of USD 16.4 billion in July, up 10 REACHES 33-MONTH HIGH IN JUNE percent year-on-year, announced the Minister of Trade Mehmet Muş at a press conference held with the Turkish LABOR FORCE DEVELOPMENTS IN TURKEY (JUNE 2021) Exporters’ Assembly (TİM) on August 2. Minister Muş also revealed Turkey's

16.0 29,000 12-month rolling export total surpassed 28,586 USD 200 billion for the first time in its 14.0 28,000 13.8 history, reaching USD 201.5 billion in 12.0 27,000 July. 10.0 10.6 8.0 26,000 “Our exports rose by 35 percent in the same period of last year, reaching USD 6.0 121.4 billion," the Minister added. 25,194 25,000 January-July period compared to the 4.0 24,000 2.0 23,000 MANUFACTURING PMI IN TURKEY 0.0 Jul-20 Jul-19 Oct-20 Oct-19 Apr-21 Apr-20 Apr-19 Feb-21 Feb-20 Feb-19 Jan-21 Jan-20 Jan-19 Jun-21 Jun-20 Jun-19 Sep-20 Sep-19 Dec-20 Dec-19 Mar-21 Mar-20 Mar-19 Nov-20 Nov-19 Aug-20 Aug-19 May-21 May-20 May-19 RECORDS 6-MONTH HIGH IN JULY Unemployment rate (%), left Employment (thousand), right Source: TurkStat Turkey's Manufacturing Purchasing TURKEY-MANUFACTURING PMI Managers' Index (PMI) peaked to its JULY 2021 highest level in six months in July, 54 The Turkish Statistical Institute The data revealed that the employment announced IHS Markit’s monthly PMI 51.3 (TurkStat) revealed the labor force rate in Turkey increased to 44.9 percent report prepared in collaboration with statistics of June 2021. Accordingly, the in June, while the unemployment rate the Istanbul Chamber of Industry. number of people employed reached fell by 2.5 percent compared to the The figure rose to 54 in July 2021 up Jan’21 Feb’21 Apr’21 July’21 Oct’20 Apr’20 July’20 Sep’20 Dec’20 Aug’20 Mar’21 Mar’20 Nov’20 June’21 June’20 May’21 28.6 million in June, the highest level in previous month and receded to 10.6 from 51.3 in June and the report said May’20 the last 33 months. Thus, employment percent, the lowest level since May the result signals an improvement in Source: Istanbul Chamber of Industry & IHS Markit in Turkey reached and exceeded the 2018. customer demand with the relaxation levels before the pandemic. of COVID-19 restrictions, giving rise to a new orders rallying across the sector. positive impact on manufacturers with

6 7 NEWSLETTER September’21 NEWSLETTER September’21 TURKEY AND SOUTH KOREA SIGN A TURKEY LAUNCHES NATIONAL AI BILATERAL SWAP AGREEMENT STRATEGY

Turkey and South Korea have signed a The swap agreement, signed by CBRT currency swap agreement on August Governor Şahap Kavcıoğlu and his 12. The swap agreement signed by the South Korean counterpart Lee Ju-yeol, Central Bank of the Republic of Turkey aims to promote bilateral trade through (CBRT) and the Central Bank of South a swap-financed trade settlement Korea allows for the exchange of local facility and financial cooperation for Turkey unveiled its first National Turkey aims to increase the share of AI currencies worth up to TRY 17.5 billion the economic development of the two Artificial Intelligence Strategy (NAIS) in its GDP to 5 percent, create 50,000 or KRW 2.3 trillion between the two countries, said CBRT in its statement. 2021-2025, prepared in cooperation jobs in the sector, and become one of central banks. with the Presidency of the Republic the top 20 nations in this field, Minister of Turkey Digital Transformation Varank said. Office and the Ministry of Industry EBRD INVESTS IN TURKISH ENERGY and Technology, on August 24 with a Varank also stated, "We will further ceremony in IT Valley in Kocaeli, with activate our support with the measures FIRM BIOTREND the attendance of President of the determined in our Artificial Intelligence The European Bank for Reconstruction Digital Transformation Office Ali Taha Strategy and we will launch new and Development (EBRD) announced Koç and Minister Mustafa Varank. unicorns in this area," emphasizing that that it has invested in a minority the country's startup ecosystem has stake in Turkish waste-to-energy firm Speaking at the ceremony, Industry managed to attract the attention of Biotrend Çevre ve Enerji Yatırımları AS and Technology Minister Mustafa the entire world with the "unicorns" it on August 23. Varank noted that the coronavirus has recently released. "In 2021, we continue to grow in line pandemic has boosted worldwide with our targets. We are pleased that “As a shareholder in one of Turkey’s digital transformation efforts, with the Developed in line with the "Digital the cooperation with the EBRD has leading private waste management market for these technologies totaling Turkey" Vision and the "National brought us one step closer to achieving companies, the EBRD intends to USD 50 billion in 2020 and is expected Technology Initiative", NAIS serves our goals," Biotrend Energy chair Ilhan promote private-sector participation in to double within five years. as Turkey’s first national strategy Dogan said. municipal waste management,” document on AI. EBRD says in its official statement. Artificial intelligence (AI) is poised to Biotrend’s primary operations are contribute USD 13-16 trillion to the Within the scope of these strategic integrated solid-waste management Arvid Tuerkner, the EBRD's managing global economy and grow by 13 percent priorities, 24 objectives and 119 and renewable energy generation under director for Turkey, highlighted the by 2030, explained Varank. measures were determined. challenges municipalities face in municipal concessions of up to 20 waste management, saying: "Private years. With a total installed capacity companies with know-how, such as of 72.6MW, the firm runs 18 waste-to- MINISTRY OF INDUSTRY AND Biotrend, can help cities address the energy facilities in the Turkish towns waste challenge while increasing the of Izmir, Bursa, Balıkesir, Hatay, Uşak, TECHNOLOGY UNVEILS SUPPORT installed capacity of renewable energy.” Sivas, Aydın, Çanakkale, and Malatya. CALL FOR HEALTH AND CHEMICAL BANKING SECTOR ASSETS SOARED IN PRODUCTS The Ministry of Industry and Petrochemical intermediate products JUNE Technology revealed the “Health and and additives, development and The total assets of the Turkish banking trillion, with respective increases of 9.5 Chemical Products Call” within the production of biotechnological sector edged up to TRY 6.7 trillion as percent and 11.3 percent, BRSA said in scope of the Tech-Driven Industry medicines, regenerative medicine and of June 2021 with 10.2 percent increase its official statement. Initiative. artificial tissue/organ technologies, compared to end-2020, announced the vaccine and immunological products, Banking Regulation and Supervision The non-performing loans (NPL) ratio Accordingly, investments in diagnostic kits and robotic surgery Agency (BRSA). and the capital adequacy ratio (CAR) 421 products and 80 innovative technologies are among the categories of the sector stood at 3.66 percent and technologies will be supported within covered within the support program. Loans accounted for the largest share 18 percent respectively as of the same the call, where applications will be in assets, amounting to TRY 3.9 trillion, period. submitted until September 13 through while securities trailed with TRY 1.1 “hamle.gov.tr”.

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HIGHLIGHTS OF THE BOEING AND TURKISH AEROSPACE SIGN CONTRACT TO MANUFACTURE BOEING 737 ENGINE COVER Turkey has created a solid action plan to ensure a smooth transition to self-sufficiency, robustness, diversification, supply security, competitiveness, and environmentally-friendly energy as a high-profile OECD country in terms of energy demand.

Turkey's first ever drillships set on a drilling mission, eventually discovering proven reserves of 540 billion cubic meters of natural gas in total in the Black Sea. The first Turkish-flagged FSRU, BOTAŞ Ertuğrul Gazi, was commissioned in June 2021. Turkey's İnstalled capacity has reached 96 GW, scoring a threefold increase in 10 years.

Out of USD 225 billion FDI, attracted between 2003 and 2020, USD 18.2 billion was solely channeled into the energy sector. The Turkish Aerospace Industries (TAI) believe the country has tremendous and Boeing signed a contract for the potential to contribute to the global production and supply of engine covers aerospace industry as an industrial of the single-aisle family of the Boeing and technology partner. Boeing has 100 95.9 737s. expanded its investments, footprint, th Turkey's rank in European electricity market. (2020) and supply chain in Turkey since the Under the contract, TAI will cover half launch of the “National Aviation Plan” 75 of the monthly engine cover production by Boeing and Turkey several years ago. th Turkey's rank in energy consumption in Europe. for all Boeing 737 aircraft produced The award of the 737 fan cowl work (2020). starting in 2025. package to TAI reflects our continued commitment to Turkey and the th Turkey's rank in global geothermal power 50 The close cooperation of the two world-class capability of our industrial generation capacity (2020). companies will increase the aviation partners in Turkey.” 31.8 giant’s performance and enhance its th Turkey's rank in gas consumption in Europe (2020). 25 longstanding relationship with the The production of the Boeing 737 Turkish aviation industry. engine covers will take place at the

state-of-the-art Turkish Aerospace IN TURKEY (GW) CAPACITY INSTALLED TOTAL Annual growth rate of energy demand in Turkey 0 Ayşem Sargın, the Managing Director facilities in Ankara, where the company since 2002. and Country Executive of Boeing currently produces the 787 Dreamliner % 2002 2020 Turkey, said; “Turkey is a strategic elevator, cargo panel, tailplane and 737 growth country for Boeing, and we elevator for Boeing for many years.

Share of private sector in power SHARE OF SOLAR PLANTS generation as of 2020. INCREASES IN TURKEY’S POWER GENERATION The share of solar power in Turkey's at 98,263 MW, with renewables total installed electricity capacity accounting for around 52,000 MW. rose to 7.5 percent by the end of %42.4 30.984 GW Share of renewables in Turkey's Turkey's hydro power installed July. According to data compiled by During the January-July period, the total electricity in 2020. capacity as of 2020. the Ministry of Energy and Natural overall power generation reached 188.8 Resources, Turkey added 658 billion kWh, with solar representing 4.2 megawatts (MW) of solar capacity this percent of total electricity generation 8.832 GW 6.667 GW Turkey's wind power installed Turkey's solar power installed year, elevating the country's total solar at 8 billion kWh. capacity as of 2020. capacity as of 2020. power capacity to 7,325 MW at the end of July, accounting for 14 percent of Turkey's installed solar power capacity total renewables capacity. rose from 5,595 MW in 2019 to 6,667 $30.2 Billion $11 Billion Total savings by 2033 as a result of Investments to be made by 2023 MW by the end of 2020, the data the National Energy Efficiency Action within the scope of the National By the end of July, Turkey's total revealed. Plan, which was adopted in 2018. Energy Efficiency Action Plan. installed power capacity stood Source: Ministry of Energy and Natural Resources 11

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FDI NEWS TRENDYOL BECOMES TURKEY'S FIRST “DECACORN” Trendyol became the first Turkish States and SoftBank Vision Fund 2, technology company to be defined as a which is based in Japan and managed Investor’s Notepad "decacorn", with a valuation of USD 16.5 by SoftBank Investment Advisers. The billion, getting USD 1.5 billion financing tour was also attended by Berlin-based Turkey, with its entrepreneurial in a new investment round. Princeville Capital, the UAE-based ADQ “GERMANY IS FACING business culture, young and tech A RUSH OF TURKISH savvy population have been attracting and the Qatar Investment Authority The fresh round of financing was (QIA). UNICORNS” significant investments from global led by General Atlantic of the United Germany’s Gründerszene published a players. According to Financial Times, news titled “Germany is Facing a Rush “This year’s hottest new idea in online of Turkish Unicorns” on the Turkish retail started not in Silicon Valley but startup ecosystem on August 20. in Istanbul. Tech investors have poured ROVIO ACQUIRES TURKEY’S RUBY According to Gründerszene, Turkey billions of dollars into startups delivering already provides a sizable market for groceries in just 10 minutes and its GAMES new tech companies with a population pioneer, Getir, is now valued at USD 7.5 of 82 million. However, many well- billion.” Finnish game developer giant Rovio audience base, and offering our players funded startups are also expanding In the last year, apart from Getir, the Entertainment Corporation, best a more diverse portfolio of titles. Ruby abroad. “Germany in particular is Turkish entrepreneurship sector has known as the team behind the Angry Games has launched several successful becoming more and more attractive as raised four unicorns including online Birds franchise, announced its plan for games and their hit-ratio is impressive. an expansion destination for Turkish gaming companies Peak Games and a staged all-stock buyout of Turkish Expanding Rovio's family with the founders,” it says. Dream Games, and e-commerce hyper-casual game studio, Ruby Games. talented and highly-agile developers of Getir's success story, Turkey's first platforms Trendyol and Hepsiburada. Ruby Games is exciting," he added. unicorn Dream Games, and Turkey's Also, many other startups were able to As part of the deal, Rovio will acquire first decacorn Trendyol are all listed in get funding from investors during the the Izmir-based game developer’s equity ‘’Becoming part of a company that has the article. pandemic. in tranches over the next five years. created one of the most beloved mobile The article also highlights Investment “E-commerce penetration in Turkey is ''With the acquisition of hyper-casual gaming brands in the world, Angry Birds, Office President A. Burak Dağlıoğlu’s estimated to have risen from 3.5 percent game studio Ruby Games, we are taking is exciting and we are very proud of remarks on the Turkish startup three years ago to about 10 percent an important step forward in our growth joining Rovio. This acquisition opens up environment. "When it comes to today, driven by the pandemic effect strategy," says Alex Pelletier-Normand, a new chapter for us, and Rovio’s long entrepreneurship, Istanbul, with its that has supercharged online retail all CEO of Rovio. history and expertise in free-to-play 15 million residents, is on par with over the world. But while the flurry of games will help us reach higher levels,” London and Berlin. Trendyol and Getir investment has put Istanbul on the map "By entering the rapidly growing hyper- says Mert Can Kurum, CEO of Ruby have only lately begun operations in alongside other European tech clusters casual market, we are enriching our Games. Germany. They inspire other Turkish such as London, Paris and Berlin, its entrepreneurs. Turkish startups have newfound success has been many years proven that their products and services in the making.” are competitive worldwide. What they The article also included promising ARTHUR J. GALLAGHER & CO. need is access to capital and good comments from executives of Zynga, support,” according to Dağlıoğlu. General Atlantic, Earlybird, Tripledot ACQUIRES TURKEY’S BROKERS' HOUSE Studios, and Index Ventures on the Turkish startup ecosystem. Stephane Arthur J. Gallagher & Co., a US insurance lines, energy, engineering and marine “HOW TURKEY BECAME A Kurgan, a partner at Index Ventures, the brokerage and risk management and cargo. STAR OF EUROPEAN TECH” venture capital firm that backed Dream, consulting services firm, announced Financial Times drew attention said: “You have a community of game the acquisition of a majority stake in Headquartered in Illinois, US, Arthur to the Turkish entrepreneurship developers in Turkey who are world-class Turkish specialty broker Brokers' House J. Gallagher & Co. provides customer ecosystem’s rising power in its news now.” – a member of the Gallagher Global services in over 150 countries and titled "How Turkey Became a Star of Network since 2014. operates in 57 countries through its European Tech" on August 12. network of correspondent brokers and Based in Istanbul, Brokers' House is a advisors. commercial insurance and facultative reinsurance broker offering clients a The deal has been completed under broad range of commercial and specialty the consultancy of Singapore-based coverages, including property, financial Huntington.

12 13 NEWSLETTER September’21 NEWSLETTER September’21

INVESTMENT OFFICE WEBINARS & EVENTS FDI INCREASED BY 13 PERCENT IN INVESTMENT OFFICE PRESIDENT JANUARY-MAY THIS YEAR SPEAKS PHARMABOARDROOM In an exclusive interview with GDP growth among G20 countries in PharmaBoardroom, Investment Office 2020 as well as the vital role of life President A. Burak Daglioglu outlines sciences during the pandemic and Turkey’s current economic outlook after the opportunities for international the country posted the second-highest investors in the sector.

INTERVIEW WITH NIKKEI SANGYOU SHIMBUN Investment Office President A. Burak negotiations. "If it is realized, it will Daglioglu spoke to Nikkei magazine bring about an increase of at least 50 Investment Office President A. Burak production bases established in Turkey about the Economic Partnership percent in direct investment in about Dağlıoğlu said FDI inflows into Turkey by Chinese mobile phone makers Oppo, Agreement (EPA) with Japan, which five years," stated A. Burak Dağlıoğlu. increased by 13 percent in the January- Xiaomi, TCL, Realme, and Tecno Mobile. is currently in the final stages of May 2021 period, compared to the Dağlıoğlu also highlighted the USD same period of the previous year, and 100 million investment of the Italian reached USD 3.35 billion, in his speech to automotive parts supplier Eldor in the Hurriyet Newspaper. Aegean Free Zone in Izmir as one of the recent FDI inflows into Turkey. Among the recent investments, AUGUST 13 – WEBINAR WITH PROCOLOMBIA Dağlıoğlu mentioned the USD 2.3 billion According to the data of Startups.watch, electric car and battery plant investment Turkish technology companies received Investment Office and the Invest- of Ford Otosan, a joint venture of the USD 1.26 billion early stage investments ment Promotion Agency of Colombia US automobile maker and the Turkish in the first half of 2021 and the number (ProColombia) held a video confer- conglomerate Koç Holding. He also cited of unicorns in the country reached four, ence on August 11 to exchange expe- PSA International and IFM Investors' including Peak Games, Trendyol, Getir riences in promotion and attraction USD 375 million investment in Mersin and Dream Games. International Port, as well as the of #FDI. INVESTMENT OFFICE PRESIDENT SPEAKS WITH AL JAZEERA AUGUST 18 – MEETING WITH SINGAPORE MUBASHER INDIAN CHAMBER OF COMMERCE AND Investment Office President A. Burak “In addition, there are a number of INDUSTRY Dağlıoğlu spoke with Al Jazeera subsectors of the real estate industry Mubasher in August. that cater to corporate investors. Investment Office and the With its unique geographical location, Singapore Indian Chamber of A. Burak Dağlıoğlu commented on the Turkey is one of the major players in the Commerce and Industry (SICCI) reasons why corporate and individual region’s tourism sector as you know,” jointly hosted the “Turkey: The investors from all over the world prefer Dağlıoğlu added. Regional Hub to Connect Europe Turkey as an investment destination, saying, “Turkey has a population of He also noted that Turkey is regarded and Asia” webinar, providing the 84 million people. It also boasts well- as a regional logistical and industrial participants with the most up-to- date information about investment developed commercial infrastructure powerhouse, with several prospects for in the post COVID-19 era with a climate and business practices in and industrial infrastructure, as well investment. Individual investors favor specific focus on the agrofood as a powerful services sector. All these Turkey as well due to its strength in Turkey, as well as an overview of the industry. advantages attract many investors.” retail, trade and dynamic demographics. Turkish economy and opportunities

14 15 TURKEY: HUB FOR INNOVATION AND GROWTH

Within 4-hours flight, easy access to multiple markets of USD 25.55 trillion GDP, USD 7.9 trillion trade, and 1.3 billion people.

Booming economy reaching USD 717 billion in 2020, up from USD 236 billion in 2002.

Over USD 225 billion of FDI between 2003-2020, while the total amount of FDI attracted between 1980-2002 stood at USD 15 billion.

ACCESS TO Russia MULTIPLE GDP: $1.70 trillion Import: $257 billion MARKETS Population: 144.4 million

Europe

GDP: $19.9 trillion Import: $6.8 trillion Central Asia & Caucasus Population: 601.1 million GDP: $0.3 trillion Import: $76.6 billion Population: 90.5 million

MENA

GDP: $3.65 trillion Import: $755.6 billion Population: 456.7 million

TOTAL GDP: $25.55 trillion Import: $7.8 trillion Population: 1.3 billion

Source: World Bank, 2019 Comtrade, 2019 WHY TURKEY? NEWSLETTER September’21 NEWSLETTER September’21

AVERAGE ANNUAL REAL GDP GROWTH (%) HIGHLIGHTS (2003-2020)

Turkey 5.1 The fastest growing economy in Europe and one of the 3.5 fastest growing economies in the world with an average annual

S. Korea 3.3 GDP growth rate of 5.1% over the past 18 years. Sweden 1.9 (2003-2020, TurkStat)

United States 1.7

Canada 1.5

Norway 1.5 SOPHISTICATED CONSUMER BASE Netherlands 1.2

Germany 1.1 A population of 83.6 million, Turkey half of which is under the age of 32.7. United Kingdom 0.9 was the (2020, TurkStat)

France 0.7 fastest growing economy of the Spain 0.7 Largest youth population OECD members compared with the EU. Japan 0.5 during (2020, Eurostat) 2003-2020,

Source: IMF World Economic Outlook, 2020 with an average 80.9 million annual growth fixed and mobile broadband rate of internet subscribers. (2020, Q3) 5.1%

SKILLED AND 225 DEDICATED LABOR FORCE • Investment incentives as well as R&D support. CUMULATIVE FDI INFLOWS • Equal treatment to national and global investors TO TURKEY (USD guaranteed by law. BILLION) Over 31 million Around • 7 days to set up a company young, in Turkey, while it takes an 900,000 students average of 8,5 days in OECD 15 well-educated graduate annually from

high-income countries. (World (USD BILLION) and motivated professionals. 211 universities. Bank Doing Business 2020) 1980-2002 2003-2020 (2020, TurkStat) (2019, CoHE) Source: CBRT

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TURKEY’S INFRASTRUCTURAL DEVELOPMENT

According to the European Investment Bank, Turkey ranks 1st in Europe in total value of Public-Private Partnership (PPP) projects during the 2015-2019 period. 8,200 km Total length of motorways in Turkey by 2035 once the 320 km currently under construction and the 4550 USD km planned projects are 132 billion completed. Total value of PPP contracts 2003-2020 period. 4,700 km Total length of high-speed railways in Turkey by 2023 once the planned projects with the total length of 3500 179 km are completed. Total number of PPP projects in Turkey during the 2003-2019 period.

44,350 35% 65% Expected growth in Turkey’s Number of hospital beds to be introduced Targeted share of renewable total installed power once 31 integrated health campuses are put sources in Turkey’s total generation capacity from into operation across Turkey. Of those, 20 installed power generation 2018 to 2023 (from 88 GW will be PPP city hospitals with a total bed capacity (planned increase to 110 GW). capacity of 30,750. from 59% (52 GW) in 2018 to 65% (72 GW) in 2023).

For more info 200 million invest.gov.tr/en/sectors/pages/infrastructure.aspx Annual passenger capacity once all stages of the newly commissioned Istanbul Airport in Turkey are completed.

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“ is Turkey’s third largest trade partner and second largest import partner. As two major emerging economies in the world, it is our wish that the two countries will learn from each other Following the Toyota Way, we implemented and strive towards win-win goals based on mutual the Toyota Production System to needs in various fields.” produce high-quality

ICBC Turkey is a full-license bank provided a wide array of high-quality holding commercial bank, investment financial services for the Turkish motor vehicles bank, and asset management licenses economy. In the future, it will provide with 44 branches and 21 securities a greater contribution to promoting business offices with around 860 economic and social development, and in Turkey.​​ employees. Its branch network covers will continue to contribute more to the areas where the economy and banking deepening of the mutually beneficial and industry are active in Turkey (these areas win-win economic and trade cooperation cover nearly 70 percent of GDP of Turkey). between China and Turkey through As the world’s largest commercial the implementation of the “Belt and bank, ICBC attaches tremendous Road Initiative”. In the process, ICBC importance to the Turkish market. ICBC Turkey will continue to devote effort to Turkey is a young member of the ICBC building the links of economic and trade Group. Based on the growth potential exchanges between China and Turkey, of the regional market and the support playing the role of a think-tank, putting of local regulators and the ICBC group, forward strategic and forward-looking we aim to become the leading bank of suggestions, taking tangible integrated the “Belt and Road Initiative” and the financial services to promote investment preferred bank of “Chinese elements”. and trade contacts between China and Toshihiko KUDO As a key international subsidiary Turkey, and improving Turkey’s global President & ​CEO, Toyota Motor Manufacturing Turkey of the group, ICBC Turkey has already position in the finance industry.

Gao XIANGYANG Chairman, ICBC Turkey

Turkey is very There is a huge need for tires in and The core of the Turkish national “ around Turkey, as well as in Europe,

45 years of economic agenda, and the key value Russia, the Middle East, and North

for investors, is a dedicated effort attractive for Africa. Turkey has great advantages to promote innovation, enhance such as customs duty exemption experience as competitiveness, and encourage production and “ to the Customs Union agreement, investment in global value chains. and also the location of Turkey is Dow has over 45 years of experience very convenient for transportation a domestic as a domestic manufacturer in Turkey, exports to these markets. Considering and our new joint venture with AKSA all, Turkey is very attractive for manufacturer is a key example of how we can bring production and exports. together raw materials, a high-skilled workforce, and most importantly In addition, the Turkish government in Turkey a booming downstream customer supports foreign and local investors industry. With a strong, pro-business from different aspects such as government in Turkey, the investment Norifumi FUJIMOTO incentives. At the same time, with environment makes sense. And it is Former President & CEO, the help of the Investment Office, Andrew N. LIVERIS also easy to operate, thanks to the Sumitomo Rubber Industries Turkey we managed to team up with AKO, Former Chairman & CEO, DOW Investment Office President and his one of the biggest tire distributors in entire team. Turkey, and built a joint venture.

22 23 NEWSLETTER September’21 NEWSLETTER September’21

• Presenting investment opportunities to the investors and providing assistance during all the WHO WE ARE WHAT stages of their investments. • Serving as the reference point for international investors and the point of contact for all institutions WE engaged in promoting and attracting investments at national, Investment Officeis the official organization that: regional and local levels. • Offering free-of-charge services • Promotes the investment environment of Turkey and DO including market information provides assistance to investors. and analyses, site selection, B2B meetings, coordination with relevant governmental institutions, • Reports directly to the President of the Republic of Turkey. and facilitating legal procedures and applications such as establishing business operations, incentive applications, obtaining licenses OUR and work permits. WE ARE HERE TO FACILITATE YOUR GLOBAL INVESTMENT IN TURKEY LOCATIONS HOW

WE UK GERMANY

ITALY JAPAN USA SPAIN S. KOREA HELP TURKEY CHINA

• Multilingual (Turkish, English, German, S. ARABIA French, Italian, Arabic, Spanish, Chinese, UAE Japanese and Korean) QATAR • One-Stop-Shop approach

SINGAPORE • Result-oriented

• Private sector approach with full confidentiality

• Focusing on high-tech, value-added and employment generating investments.

invest.gov.tr

24 25 VISIT invest.gov.tr

WEB SITE BRAND NEW LOOK

Investment Office, the official investment advisory body of Turkey, is a knowledge-center for foreign direct investments and a solution partner to the global business community at all stages of investments. It provides customized guidance and qualified consulting before, during and after entry into Turkey.

/investturkey /invest-in-turkey /InvestTurkey invest.gov.tr