YOUR COMPLIMENTARY COPY BRIEFING Türkiye’s exports to improve in 2020

INDEPT Creative cuisine of Gaziantep INTERVIEW The Nestle Türkiye CEO Turkish Ansgar Bornemann

PerspectiveMARCH 2020 ISSUE 80 ECONOMY I BUSINESS I FOREIGN TRADE I ANALYSIS

Third Largest Superyacht Builder in the World Türkiye, being one of the top three superyacht manufacturers of the world, continues to make a mark of itself with the superyachts it launches.

The Turkish Perspective

TheTurkish Perspective Contents MARCH 2020 ISSUE 80

Creative cuisine of 48 Gaziantep Türkiye, Uzbekistan aim to Turkish Airlines Come walk on the clouds in 08 boost bilateral trade to 5B USD 22 adds Malabo 54 Pamukkale to its flight network Zorlu Energy establishes 11 Kazakhstan branch

KPMG: 2020 Starts with a 24 degree of relaxation

Galataport to welcome Türkiye: Third Largest 13 its first ship in April 30 Superyacht Builder in the World

Carnival enthusiasm Turkish exports Türkiye enters global 58 comes to Türkiye with orange 16 jump-starts 2020 with 42 gastronomic competition scents 6.1 pct. annual increase

Istanbul hosts Tourism Hot springs; historical and Art and culture events in March 19 Investment Forum 44 natural richness 60

MARCH 2020 ISSUE 80 3 TheTurkish Perspective MARCH 2020 ISSUE 80

THE TURKISH PERSPECTIVE RENEWED Management Publisher on Behalf of Turkish Exporters Assembly Chairman of The Turkish Exporters Assembly The Turkish Perspective continues publishing İsmail GÜLLE Strategic Partner with its renewed content in 2020. President of The Presidency of The Republic of Türkiye Investment Office Burak DAĞLIOĞLU

Manager in Charge ✓ Türkiye’s riches waiting to be discovered Prof. Dr. Kerem ALKİN ✓ Türkiye from foreign investors’ eye Publication Board M. İlker AYCI ✓ Bilal EKŞİ Industry evaluations Enise Didem ELMAS Mehmet Fatih BİLİCİ ✓ Türkiye’s brands expanding to the world Senem SANAL SEZERER Furkan KARAKAYA

Publication Management

Executive Editor Selda YEŞİLTAŞ

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Editor-in-Chief Peri ERBUL

Editor M. Can EMİR, Ebru PAKSOY, Edip ÜÇOK, Zeynep TÜTÜNCÜ GÜNGÖR

Art Director Ercan YAVUZ, Erkan ALTINDAĞ, Yılmaz MERMER To keep up with the The Reporter NEWS Gizem İRİS Turkish Perspective monthly Photo Editor ECONOMY Ergün ÇOLAKOĞLU

BUSINESS and follow the recent Contact Address Rumeli Cad. Rumeli Pasajı Yunus Apt. CULTURE developments you can send No:45 Kat:3 Nişantaşı Şişli / İstanbul INNOVATION Tel: 0212 236 00 50 your address to: www.viyamedya.com BRAND MARKETING [email protected] [email protected] /viyamedya Printing Turkuaz Basım Neither text nor photographs from this publication may be reproduced in full or part without acknowledging the source and securing permission from the publisher

4 MARCH 2020 ISSUE 80 The Turkish Perspective Editorial

İsmail GÜLLE Chairman of Turkish Exporters Assembly (TİM) Türkiye is a safe haven Türkiye has once again demonstrated that it is a safe haven. Global companies set their eyes to Türkiye once again.

DEAR FRIENDS, postponed, and delays in shipping In this respect, Türkiye is in a of goods began. condition in which the world will While making our future fore- This situation also negatively convert opportunities in exports. casts, even though we consider affected global trade, where China Global companies that choose the unpredictable risks, we can constituted a significant share Türkiye instead of the Far East sometimes face situations that do of 16 percent. In the industry of will continue to trade without a not pass through our minds. countries that are dependent on grievance. As you know, 2019 has not China in raw materials and in- As we always say; no one loses been a good year in terms of glob- termediate materials, the wheels who trusts Türkiye. This process al trade and the world economy. start to slow or stop. Global com- was an example of confirming There were predictions that the panies producing in China started Türkiye’s biggest Türkiye. year 2020 would not be very dif- to experience serious problems in strengths are its Our hope is to find a solution ferent. As we entered the new year product supply. For this reason, to the epidemic that restricts with these predictions, we faced the world has accelerated the ability to respond human health as soon as possible. a very painful situation that was search for alternative supply quickly to the In a short time, we want people not on account and influenced centers. Türkiye has once again demands of the to return to their normal daily life the whole world, Corona virus demonstrated that it is a safe ha- productive forces and the normal flow of trade. outbreak. ven. Because of the demand from I would like to express once Unfortunately, so far, approx- China was quickly vacated the and logistical more, as Turkish Exporters imately 2,000 people have lost first country that comes to mind, advantages. Assembly we are ready to support their lives due to the epidemic Türkiye is among the countries China in every way we can in this that started in China and spread able to meet those demands. dire struggle. Our priority is and to many countries. The city of Global companies set their eyes to always human. Wuhan, where 60 million people Türkiye again. Türkiye is a country that em- live, was quarantined. Although Türkiye's biggest strengths are braces the losses of the occupying scientists were mobilized to its ability to respond quickly to forces, a country of tolerance. eliminate the disease and prevent the demands of the productive We invite you to Gallipoli on the epidemic, there was no clear forces and logistical advantages. March 18, where we will celebrate solution to its outbreak in the past Our manufacturers can respond the 105th anniversary of our two months. As such, the flight quickly and proactively to the Çanakkale Victory, where you can to China was canceled, fairs were changing conditions of the world. see our tolerance and friendship. MARCH 2020 ISSUE 80 5

First Glance The Turkish Perspective March 18th to be commemorated together with Anzac descendants

Türkiye is going to commemorate March 18th Çanakkale Victory and Martyrs’ Day and 105th anniversary of the Çanakkale Land Battles held at Gallipoli Peninsula in Çanakkale on March 18th.

ÇANAKKALE is also visited by thousands of Anzac descendants from New Zealand and Founder Mustafa Kemal Atatürk has penned a Australia every year to mourn after their losses tribute for the Anzac soldiers: in World War I. The year 2020 marks the 105th anniversary of “Those heroes that shed their blood and lost the battle in the Çanakkale (Dardanelles) Strait their lives... You are now lying in the soil of in Çanakkale’s Gelibolu district, which served a friendly country. Therefore rest in peace. as a turnaround in favor of the Turks fighting in There is no difference between the Johnnies World War I against the Allied Forces. and the Mehmets to us where they lie side The Allied Forces, however, encountered strong by side here in this country of ours... You, the and courageous resistance from the Turks and mothers who sent their sons from faraway the campaign turned out to be a costly failure. countries, wipe away your tears; your sons are Tens of thousands of Turkish nationals and now lying in our bosom and are in peace. After soldiers died, along with tens of thousands having lost their lives on this land they have of Europeans, plus around 7,000 - 8,000 become our sons as well.” Australians and nearly 3,000 New Zealanders.

MARCH 2020 ISSUE 80 7 Headlines

“Interest rate cut improves markets” THE CENTRAL Bank of Republic of the Türkiye’s decision supports Türkiye’s development strategy says head of Foreign Economic Relations Board of Türkiye. Central Bank’s decision on Wednesday to cut interest rates provided leverage for markets, employment Türkiye, Uzbekistan aim to and investments, said the head of the Foreign Economic Relations boost bilateral trade to 5B USD Board of Türkiye (DEIK). Türkiye and Uzbekistan to improve trade in transportation, The bank’s total reduction of 13.25 energy, health, tourism, education and defense industry. points over the last six monetary policy TÜRKIYE appreciates reform million, rich natural resources, meetings supports process in Uzbekistan under industrial potential and Türkiye’s development leadership of Mirziyoyev and aims agricultural production. strategy, Nail Olpak said. to increase the bilateral trade “We encourage our “As DEIK, we volume to 5 billion dollars, says entrepreneurs to invest in support every step Turkish president. Uzbekistan. According to Uzbek of our economic Speaking at a joint news statistics, last year, 430 Turkish administration to conference with his Uzbek companies started operating in strengthen our counterpart Shavkat Mirziyoyev Uzbekistan and the number of our economic activity,” he in Ankara, Recep Tayyip Erdoğan companies rose to 1,306.” added. said: “We have exceeded 1 Erdoğan said that they billion dollars in both exports exchanged views on how they and imports for the first time in can improve cooperation in bilateral trade relations, but there transportation, energy, health, Private sector is still a long way to go. We define tourism, education and defense our relations with Uzbekistan industry. foreign debt fell as a strategic partnership based The leaders also signed a THE CENTRAL Bank of on strong brotherly ties with our joint declaration following the Republic of the Türkiye common history, language and High-Level Strategic Cooperation says the private sector’s culture.” Council in Ankara. short-term overseas Erdoğan said Uzbekistan Mirziyoyev, said the first loans, excluding trade has taken firm steps towards meeting of the High-Level credits, were 9.5 billion becoming a center of attraction Strategic Council opened a dollars in December, in its region, with its young and new page in the history of both down by 5.8 billion dynamic population near 34 countries’ friendly relations. dollars compared to the end of 2018. On the long-term side, the private sector’s Türkiye ICI Export Climate Index rose to 51.1 in January external loans totaled ISTANBUL Chamber of Industry by the ICI range of 50.3 Türkiye 191.5 billion dollars last (ICI) Türkiye Manufacturing Sector Manufacturing Sector Export December, down by 17.2 Export Climate Index, in January, Climate Index rose to 51.1 in billion dollars against which realized over 50 threshold January. The latest data pointed the end of 2018. and rose to 51.1. to a moderate improvement in the On a basis of the index that measures export conditions of the Turkish remaining maturity the operating conditions in manufacturing sector due to the at year-end, the the manufacturing sector, the most significant strengthening of private sector’s total main export markets of Türkiye export conditions since August of outstanding loans from announced the results of the last year. abroad summed 50.7 January 2020 period. The increase of the index at the billion dollars the bank According to data disclosed as beginning of 2020 reflected the anounced. seasonally adjusted, as measured improvement trend.

8 MARCH 2020 ISSUE 80 The Turkish Perspective

Türkiye, Kenya set to ink new Swiss International cooperation agreements in March to open boutique hotels in Istanbul

SWISS International has taken action to open 10 boutique hotels at the Historical Peninsula with a total investment of 20 million euros. Underlining the prominence of Istanbul among the cities of the world, CEO of Swiss International Henry W. R. Kennedie said, “We Agreements include avoidance of double taxation, cooperation shall access the Turkish in agriculture, says Turkish ambassador to Kenya. market with Istanbul.” Initial step of the project is set to be TÜRKIYE and Kenya are set to cooperate in a number of fields, 2. Vakıf Han, that sign new cooperation agreements including security. Ankara established ties is planned to be a aimed to avoid double taxation Türkiye and Kenya also enjoy with Nairobi in 1967 and 32-roomed boutique and improve cooperation in the good trade relations and their opened an embassy hotel. field of agriculture next month, trade volume has increased many in East Africa’s largest Kennedie noted that said the Turkish envoy in Nairobi. folds from 52 million dollars in economy in 1968. they were excited to “Once these agreements are 2005 to 235 million dollars in invest in Türkiye and concluded, we hope they will 2019, the Turkish ambassador added, “We will be help further boost our trade and said. serving under the Swiss economic cooperation,” Ahmet Some of the goods that Türkiye Boutique brand, our Cemil Miroğlu said. exports to Kenya include home boutique hotel concept. Türkiye enjoys good bilateral appliances, processed foods, We will offer the relations with Kenya. Ankara construction materials, and mixture of the cultures, established ties with Nairobi in periodically it exports petroleum cuisine and hospitality 1967 and opened an embassy in products among others, while of Switzerland East Africa’s largest economy in Kenya exports mainly agricultural Expressing that 1968. products to Türkiye, including the company aims Miroğlu said Türkiye has coffee, tea, and fresh fruits, to own 10 boutique extended invitations to Kenyan Miroğlu said. hotels at the Historical President Uhuru Kenyatta and The Turkish government Peninsula, Kennedie Cabinet Secretary for Foreign encourages companies to invest in said that following Affairs Raychelle Omamo to attend Kenya to create jobs and boost the the completion of the the annual Antalya Diplomatic local economy, Miroğlu said. phases they will be Forum scheduled for late March. A number of Turkish hosting guests in a total According to the ambassador, companies have opened of 200 rooms. the two countries currently businesses in Kenya. Greece and Türkiye to promote Aegean together GREECE Ambassador Michael- General of Greece, Ambassador planned sea line between İzmir Christos Diamessis, said that Diamessis, met with Chairman and Thessaloniki. Thessaloniki’s city of İzmir where of Board of İMEAK Chamber of between deep historical ties Shipping İzmir Branch Kenan COMMON PACKAGE FOR marine transportation and marine Yalavaç, Chairman of the Board CRUISE SHIPS tourism with the linking and Yusuf Öztürk, Board Member Diamessis and Öztürk said that cruise tourism in the Aegean of Hakkı Deniz and Branch Manager two countries could prepare a both Greece in the interests of Halil Hatipoğlu. In the meeting, joint package to promote the Türkiye and the marketing world it was decided to speed up the Aegean together and called together. works for the preparation of for cooperation in the field of Visiting İMEAK Chamber a joint package for the cruise gastronomy, stating that the of Shipping İzmir Branch ships to promote and market Turkish and Greek cuisines are with Argyro Papoulia, Consul the Aegean, and to establish the very similar.

MARCH 2020 ISSUE 80 9 Headlines

Turkish airports serve almost 14 million passengers With a full capacity of 200 million passengers annually after the completion of all four phases with six runways by 2028, Istanbul Airport is set to become a global aviation hub hosting more than 100 airlines and flights to over 300 destinations around the world. DHMİ data also showed that a total of 2.94 million passengers used Sabiha Gökçen, the second largest airport in Istanbul. Esenboğa Airport in the capital Ankara saw a 14 percent decline in passenger traffic to 1.05 million in the TÜRKIYE’S airports served domestic traveler tally declined by first month of 2020. a total of 13.93 million Istanbul Airport served 9.1 percent to 7.8 million in the Passenger traffic at Adnan passengers in January, a slight 5.3 million passengers month. Menderes in İzmir, the 0.8 percent decline from a year since April 6th. Istanbul Airport, whose first country’s third-largest city and ago, data from the airports phase officially opened in October a popular holiday destination, authority (DHMİ) have shown. 2018 and which took over air declined 9 percent on an The number of international traffic from the former main annual basis. International passengers, who went through Atatürk Airport on April 6, served passengers soared 39 percent the country’s airports, jumped 5.3 million passengers (4 million to 147,100, while domestic 12.1 percent on an annual international and 1.3 million passengers dropped 15 percent basis to 6.13 million, while the domestic). to 741 thousand.

Turkish Treasury posts 3.8 Billion dollars cash surplus

THE TURKISH Treasury’s cash balance posted a surplus of 3.84 billion dollars in January, according to the Ministry of Treasury and TAV provides services Finance announcement. in 100 airports in 30 The Treasury’s cash countries, and in airports 764 million euros turnover from TAV revenues amounted operated by other airport TAV Airports achieved a turnover airport management. Today, to 20.2 billion dollars, operators. of 764 million euros in 2019, with we operate 14 airports in seven up by 23 percent on a an increase of 8 percent, excluding countries. Together with our yearly basis. Istanbul Atatürk Airport. service companies, which make Türkiye’s Türkiye is the world’s leading up 59 percent of our turnover, expenditures, including brand in airport operations, TAV we also provide services in 100 interests of 1.27 billion Airports served 89.1 million airports in 30 countries, and in dollars, increased 2.85 passengers, an increase of airports operated by other airport percent to 16.4 billion 7 percent compared to the operators. dollars annually. previous year. Net profit from “2019 was quite a good year In January, the the company’s ongoing activities in terms of organic growth for Treasury’s non-interest increased by 5 percent. Türkiye, especially for the tourism expenditures were 15.1 TAV Airports Chief Executive sector, which is the first pillar of billion dollars and non- Officer Sani Şener said; “As TAV our growth strategy. interest cash balance Airports, we are happy to create “We expect an increase in both was 5.1 billion dollars. a globally preferred brand in a Türkiye and other countries we competitive industry such as operate in the tourism sector.” 10 MARCH 2020 ISSUE 80 The Turkish Perspective

Economic Confidence Index Türkiye, Croatia seek to boost trade volume to goes up in January 5 billion dollars

TURKISH trade minister meets Croatian economy minister in Zagreb, Croatia, aiming to reach a trade volume of 5 billion dollars. INDEX posts rose for the fourth ECONOMIC CONFIDENCE AT “We are working on consecutive month in January THE PEAK OF 20 MONTHS The economic confidence new areas to improve by 0.6 percent compared to Economic confidence index index went up 0.6 cooperation, and boost December 2019, hitting 21-month continued to increase in January percent compared with mutual investments high. with an increase of 14.6 points the last month to 97.1 in and the trade volume,” Confidence in the Turkish compared to the same month of January. said Ruhsar Pekcan economy rose on a monthly basis the previous year, reaching the in Zagreb, for an to hit a 21-month high in January, peak of 20 months. The economic economic roundtable The Turkish Statistical Institute confidence index surveys meeting. (TurkStat) announced. consumers’ and producers’ “Our goal is to The economic confidence index evaluations, expectations and boost the bilateral went up 0.6 percent compared tendencies about the general trade volume, which with the last month -- to 97.1 economic situation. stands at 664 million in January from 96.5 points in TurkStat also revised the dollars, to 2 billion December, TurkStat said. reading for December to 95.6. dollars initially and then 5 billion dollars,” she said after meeting with Darko Horvat, Zorlu Energy establishes Kazakhstan branch Croatia’s economy, entrepreneurship, and crafts minister. Pekcan said, “Towards this end we find mutual visits, efforts, and the active participation of the business world extremely important.” For his part, Horvat said, “In the future, the Zorlu Energy opens its trade volume will go ZORLU ENERGY will establish a by conducting EPC activities and Almaty branch to invest much higher than 600 branch in Almaty to carry out its to work on all matters within the in solar energy. million dollars..” activities in the field of renewable company’s field of activity. Türkiye has close energy and to increase its Among the CIS countries, relations with Croatia investments. Kazakhstan, which is one of the and has supported its Pioneer of Türkiye’s renewable most economically developed NATO accession. energy Zorlu Energy continues to countries, provides 50 percent of Bilateral high-level add value to the regions where its its installed power from renewable visits, which gained services will continue to improve. energy sources within the scope momentum with the Zorlu Energy opens its of 2050 targets. Zorlu Energy also signing of a strategy Almaty branch in Kazakhstan acts in this direction to invest in document in 2009, in order to invest in the capacity renewable energy in Kazakhstan; have contributed to the of investors to operate in solar especially aims to reach solar and development of bilateral energy, renewable energy and wind projects to at least 250 MW relations. other energy, to sign EPC contracts capacity. MARCH 2020 ISSUE 80 11 Headlines Cruise ships directed to the Mediterranean

Giant cruise ships turned their routes to the Mediterranean again.

CORONA virus has deeply passengers. Öztürk said, “We serve with 17 ships, and this affected the tourism industry. are sad about this epidemic that number is going to increase to 29 Especially, the presence of the threatens humanity. Our greatest in 2027 and added, “This means virus on cruise ships on the Far wish is that this epidemic can be an investment of 13.6 billion East voyages reduced the interest prevented without further damage euros. We need to fill so many in the voyages in the region. Those to humanity and the global ships. We also need new ports and who visit Barcelona or Rome are economy. However, it is pleasing destinations. There is a beautiful also looking for new places. Cruise that they see the Mediterranean harbor, a beautiful airport and a companies, which are organizing and our country as safe ports in demanded city. The formula is voyages to Istanbul after about 5 the current table. It is stated that ready, now it is necessary to start years, due to port shortages and other cruise operators will follow the operation.” other problems, are very pleased Norwegian Cruise in the near with the interest. The tourism future.” 2021 CAN BE REPLANNED Norwegian Cruise Line, one movement not The most important agenda Royal Caribbean, which has 41 of the leading cruise companies item worldwide is the corona cruise ships, Türkiye General in the world, has canceled its only to China but virus and the subsequent Manager Alper Taşkıran says, “We flights in the Far East and turned also to many Far developments. The virus had a will bring about 120 thousand the direction of its ships to the East countries great impact on tourism as well persons in Türkiye. Due to what Mediterranean. as on world trade. Especially happened in the Far East, Eastern Yusuf Öztürk, the Chairman has slowed down quarantine of some cruise ships Mediterranean and Istanbul may of the Izmir Branch of the İMEAK considerably. and the virus on the passengers come up again. The light is now Chamber of Shipping, announced on board have decreased the brighter for Istanbul.” that the Norwegian Cruise interest in the Far East and the company directed its ships to ship tours in that region. It is 58 TURKISH PASSENGERS the Mediterranean instead of the stated that Istanbul, which is HAD A HOLIDAY BUDGET OF Far East due to the corona virus out of route for about 5 years, 90 THOUSAND LIRAS outbreak. has a great advantage this year, General Manager of MSC Cruises Öztürk stated that the cruise especially Istanbul’s cruise Türkiye Necla Tuncel, which has company had 12 scheduled passengers are in serious demand. 4-month world tour, said, “The voyages to Ege Ports Kuşadası tour started in January. There are Port in 2020 and said that the FORMULA READY, NEED TO 58 Turks on the ship. The tour to company canceled the Far East OPERATE be held next year will include 62 voyages due to the concern Angelo Capurro, Executive Director Turkish passengers. The lowest of corona virus and put an for Emerging Markets Australia, price of the tour is 13 thousand additional 30 voyages to Kuşadası Portugal, Mexico and South Africa 500 euros per person which is with a capacity of 60 thousand of MSC Cruises stated that they about 90 thousand liras.” 12 MARCH 2020 ISSUE 80 The Turkish Perspective

UK business leader calls Türkiye ‘gateway’ for trade

INVESTORS interested in long-term commitment with Türkiye, says chairman Türkiye hosts over of British Chamber of Commerce in Türkiye. Türkiye continues to 52m tourists in 2019 be a major gateway for Türkiye became the sixth most visited country in the world companies interested in trading with the Eastern by hosting over 52 million tourists in 2019. Europe and Central Asian Network (EECAN) HAVING hosted the highest Meanwhile, France remained region, a top business number of tourists ever in 2019, the most-visited country with The number of tourists leader said. Türkiye became the sixth most more than 90 million tourists visiting Türkiye has The EECAN region visited country in the world, followed by Spain and the United increased by 14 percent comprises of 14 according to recently revealed States, which had 83.8 and 78.7 annually in 2019. countries including figures by the United Nations million arrivals respectively, Armenia, Azerbaijan, World Tourism Organization according to UNWTO figures. Belarus, Georgia, (UNWTO). China and Italy also made it to the Kazakhstan, Kyrgyzstan, Accordingly, hosted over 52 top five with both receiving over Moldova, Mongolia, million visitors last year, a 14 60 million visitors. Russia, Tajikistan, percent increase annually. The rate Alongside with Türkiye, Türkiye, Turkmenistan, made Türkiye the 14th country Mexico, Thailand, Germany and Ukraine and Uzbekistan. with the highest annual growth. the United Kingdom also managed Chris Gaunt, chairman The new tourism strategy to enter the top 10 most popular of the British Chamber targets over 75 million tourists tourist destinations worldwide. of Commerce in Türkiye, and 65 billion dollars in tourism According to Turkish Statistical said: “Because Turkish revenue by 2023, the 100th Institute, tourism revenues in companies are also anniversary of the foundation of Türkiye hit 34.5 billion dollars last already having a strong the Turkish Republic. The figures year, a record high. This is a 17 business relation with were revised from 50 million percent increase compared with Central Asia, North tourists and 50 billion dollars in the sector’s revenue of 29.5 billion Africa, Middle East, tourism income. dollars in 2018. Russia, and we see that as a distinct advantage to strengthen our WITH TÜRKIYE’S good reputation, it can help trade and attract more countries like Slovenia make inroads in 3rd country investment.” Türkiye, markets, says the head of the Foreign Economic Gaunt, pointing Relations Board of Türkiye (DEIK) Nail Olpak. to the importance of Slovenia Türkiye offers opportunities in making inroads the close relationship in the automotive and health tourism sectors in between Türkiye and eye joint various regions, the head of the Foreign Economic England said, “We want Relations Board of Türkiye (DEIK) said Tuesday. to maintain the current “I would like to remind our Slovenian friends that agreement with Türkiye, businesses the perception of our country in those markets is and we would like to rd important,” he underlined. improve it.” in 3 Fatih Canpolat, the head of DEIK’s Türkiye- Gaunt said that Slovenia Business Council, stressed that in 2019 the they were extremely countries trade volume between the two countries had risen optimistic regarding 20 percent annualy basis to top the 2 billion dollars.” Türkiye.

MARCH 2020 ISSUE 80 13 Headlines

Galataport to welcome its first ship in April

Galataport, newest showcase of Istanbul launched with an investment of 1.7 billion dollars, is getting ready to host its first cruise on April 5th.

FOR THOUSANDS of years, a to compete with world’s major more passengers, a focus on port city on the shores of the Sea As of April 2020, Türkiye ports. improved technology will make of Marmara served as one of the will add Galataport to embarking and disembarking most important economic centers its large investments GALATAPORT ISTANBUL; A NEW from Galataport Istanbul a more in all the world. Known then as after the masterpiece of AGE OF CRUISING TO ISTANBUL streamlined process. As a result, Constantinople, today as Istanbul, aviation Istanbul Airport. A commitment to making Istanbul visitors will spend more time few cities across the world boast a a top cruise destination is clearly exploring everything the city more unique culture and history. It evident thanks to a new and of Istanbul has to offer and can became the capital of the Roman improved Galataport Istanbul continue to benefit from the Empire under Constantine the opening in 2020. A new cruise coastline of Galataport Istanbul, Great and for hundreds of years terminal aims to bring in 1.5 which will be surrounded on the after, reigned supreme as one million new cruisers per year ground level by cafes, restaurants, of the largest and wealthiest when it’s fully operational. Since boutiques and two contemporary settlements in all the world. an influx of new ships means museums. As of April 2020, Türkiye will add Galataport to its large investments after the masterpiece of aviation Istanbul Airport, Turkish, U.S. businesses to meet in Washington in April counting down to achieve a similar beauty in maritime BILATERAL meeting to focus infrastructure and construction, industry. on energy, infrastructure and digital economy, tourism and Modern day Istanbul offers construction, digital economy, defense industry, Yalçındağ stressed. visitors the chance to immerse tourism, defense industry. “We will seek ways to maximize themselves in the region’s history, A conference between Turkish our bilateral trade volume by but also enjoy what’s grown into a and U.S. firms will be held in focusing on targeted sectors during contemporary city with so much Washington in April, the head of the meeting,” he noted. to see and do. Galataport Istanbul, Türkiye-U.S. Business Council (TAIK) Khush Choksy, the U.S. Chamber the city’s main cruise port, is said. of Commerce senior vice president coming off a fresh restoration “The Trade volume target of for Middle East and Türkiye Affairs, which adds to Istanbul’s standing 100 billion dollars set by the two underlined that the trade volume as a center of culture and tourism. countries’ leaders [in June 2019] target illustrated the importance of The port serves as the entry point will be our top priority during the the partnership between the two into Türkiye and all the country conference on April 14-16,” said countries. has to offer the many new visitors Mehmet Ali Yalçındağ, the chairman The meeting, on behalf of U.S. coming via cruise ship. of TAIK within the Foreign Economic and Turkish businesses, hopes to Galataport established with Relations Board of Türkiye (DEIK). send a message of cooperation, an investment of 1.7 billion The American Turkish Choksy said. dollars, including the tender Conference, organized by TAIK and He highlighted that a total of price, and covering a coastline the U.S. Chamber of Commerce, 110 giant companies from both of 1.2 kilometers at Bosphorus. will address trade and investment sides were expected to attend the Being one of the world’s major potential in the field of energy, conference. destination projects, the port aims 14 MARCH 2020 ISSUE 80 The Turkish Perspective

“Machinery exporters started 2020 with an increase in both price and quantity” Machinery sector, managed to reduce the foreign trade deficit by 5 billion dollars in 2019. THE MACHINERY Exporters Union explained what they deem necessary for the increase of the brand value of the sector, the increase of technology development capacity, easier access to finance and the growth of qualified labor force employment with a roadmap. Focusing on increasing investment scales and increasing productivity, the sector has put the fight against informal economy and market control and surveillance among its priorities in achieving these targets. Stating that the top priority issue of the sector, which closed 2019 with 17.9 billion dollars of exports, was the rapid improvement of the investment and operating environment in line with all the strategic plans of the public. In the machinery sector, which steps we have to take quickly said, “Representatives of managed to reduce the foreign within the scope of our Foreign Machinery sector closed machine-producing countries trade deficit by 5 billion dollars Market Strategy Report. With this 2019 with 17.9 billion are always getting more respect in 2019, the ratio of exports to study, which we have deepened dollars of exports. and dignity. Türkiye should imports reached a record level of through sample product groups insist on developing production 75.8 percent. for countries with high potential, technologies and vision-exporting Kutlu Karavelioğlu, President we have developed strategy countries.” of the Machinery Exporters Union suggestions that will rapidly stressed that the year 2019 is increase our global market share.” “BEING INDIFFERENT TO a major bend in the high-tech CLIMATE CHANGE WOULD BE transformation for Türkiye and as “MACHINERY AND ACCEPTING BEING A THIRD the strategic plan focuses on the TECHNOLOGY PRODUCING WORLD COUNTRY” machinery industry it gives them COUNTRIES ARE RESPECTED Pointing out that the concept a great responsibility and added: AND DIGNIFIED” of efficiency has become an “As we deemed necessary for Pointing out that there should be important criterion in the the success of these plans in terms a texture mismatch between the performance of the machines, of the technological independence buyer and the manufacturer in Karavelioğlu: and it is a basic criterion to do of our country, we discussed the the machine trade, Karavelioğlu more by consuming less energy, “The share of Karavelioğlu said: countries that “The share of countries that Manufacturing PMI hits 22-month high in January do not include do not include environmental environmental problems and climate change JANUARY reading reading exceeded the in industrial strategies will be exceeds threshold value of threshold value of 50 for problems and limited in foreign trade. Our main 50 for first time in last 22 the first time in the last climate change market will not import the goods months, rising to 51.3 from 22 months amid signs in industrial of countries that are indifferent 49.5 in December, shows of improving market to the bad trend after an EU joint survey. conditions. strategies will be planned transition period. As Türkiye’s Purchasing New orders in January limited in foreign representatives of a sector that has Managers’ Index for the improved due to the trade.” adapted most of its products to EU manufacturing sector recovery in demand. directives over a decade, we find rose to 51.3 in January, New export orders also this approach in line with the core according to a business increased and ended the values of humanity and aim to survey. five-month downward raise public awareness to manage The report said January trend. this phenomenon by taking timely measures.” MARCH 2020 ISSUE 80 15 Export Turkish exports jump-starts 2020 with 6.1 pct. annual increase Türkiye’s exports rose 6.1 percent on annual basis to 14.8 billion dollars in January, says head of Turkish Exporters Assembly İsmail Gülle.

Gülle, “Our position in the global arena will get “THIS IS THE highest January to better places in 2020 in terms of January-November success” she said. export figure in the history of the and will continue to 2019 figures, according to World GÜLLE: WE HAVE Republic,” Turkish Minister of improve.” Trade Organization (WTO). I am STARTED THE Trade Ruhsar Pekcan stated on sure that our country will see YEAR WITH Twitter. its remarkable success in the IMPROVEMENTS Pekcan pointed out that last year when WTO discloses Chairman of the the figure hinted at economic annual data. We will continue Turkish Exporters Assembly recovery despite weak trend in our successful performance in İsmail Gülle said that after global economy. “It also supports foreign trade in 2020 with the reaching a record level of 180.5 positive developments in macro same determination in 2019. I billion dollars in 2019, the year indicators. We are the 7th country congratulate our exporters who 2020 has started with important in the world that increased its contributed to this important developments internally and exports the most in terms of rates success and wish them continued externally and added: 16 MARCH 2020 ISSUE 80 The Turkish Perspective

“With the signing of the first dollars, followed by Italy and UK phase agreement in the trade wars with 889 million dollars and with between the USA and China, a 870 million dollars respectively. Steel positive environment was created Automotive sector has The steel industry in the global markets, while the exported 2.4 billion dollars in exported 1.1 billion dollars process became more evident January, followed by chemicals indicating a decrease of in Brexit, creating a movement sector with 1.7 billion dollars and 3.9 percent, while exports in investments and demands, apparel sector with 1.5 billion to the USA by rose 202.6 especially in the European market. dollars. percent to reach 43.3 Since the 3rd quarter of 2019 The most increased ratios of million dollars. Türkiye’s economy entered the exports were seen in fresh fruit growth trend and it seems to be and vegetables sector with an reflected in the export figures. increase of 29 percent, followed by Electric electronic The export performance of our hazelnut and hazelnut products Total exports in the country stands out with its sector with an increase of 22 electric-electronic successful acceleration compared percent and carpet sector with an sector increased by 3.48 to our competitors and target increase of 21 percent. percent and reached markets. With the dynamism Among the 214 countries that 824.7 million dollars. of our exporters, accurate route Türkiye exports to, 132 of those Exports to Iraq increased determinations and strategic countries have increased their by 106.2 percent in decisions, with the support of imports from Türkiye. January and reached our government, it will improve Germany was the top exporter 50 million dollars, there our position in the global arena in January with 1.4 billion dollars, is also a 46.1 percent to better places in 2020 and will followed by Italy with 889 million increase in exports to continue to improve.” dollars and UK with 870 million the USA. Gülle stated that exporting dollars. firms have reached 90 thousand 174 countries among 214, have and 617 in January with an imported 4.4 billion liras, while Apparel addition of 1,449 new exporters, 6,404 firms have used liras in Apparel exports that exported 80.4 million their transactions. increased by 5.76 dollars alone, while a total of of The share of top ten exporters percent monthly and 38 thousand and 165 firms have amounted to 49.2 percent of total reached 1.5 billion dollars exported. exports. in exports. Exports to the Gülle underlined that imports 53 cities have increased Netherlands rose 29.6 also surged nearly 19 percent their exports in percent in January to 123 to hit 19.2 billion dollars January. million and 273 thousand during the same dollars. period. “Thus, the exports-to-imports coverage ratio reached Chemistry 76.8 percent in The chemical industry January,” he noted. exports increased by The country’s 10.65 percent and rose exports to the EU hit to 1.7 billion dollars. 7.4 billion dollars in Chemical exports to January, bringing Netherlands increased the bloc’s share in by 226.3 percent and Türkiye’s total exports to 50 rose to 111 million 428 percent, thanks to the thousand dollars. recovery in the EU, Exports to Belgium Gülle said. amounted to 71 million Gülle also 77 thousand dollars, announced the with an increase of 343.6 following recent percent, and exports to developments: South Africa reached 29 The trade volume million dollars, with an reached 34 billion increase of 327 percent. dollars in January, rising 13 percent year-on-year. Machinery Export volume has Exports in the machinery increased by 13.9 sector rose by 6.86 percent annually to percent to 625.7 million reach 12.9 million dollars. Exports to Iran tons. rose by 197.3 percent in Germany was the January and reached 31.8 top exported country million dollars. with 1.5 billion

MARCH 2020 ISSUE 80 17 Investment UK Technology Conference 2020 convenes in Istanbul UK​ TECHNOLOGY Conference 2020 was held in Istanbul on February 17 with the participation of Minister of Industry and Technology Mustafa Varank and Investment Office President Burak Dağlıoğlu. ​​ The conference brought together leaders from business, academia, research centers, and government. There were a series of exclusive keynotes, panel discussions, and workshops in sectors spanning fintech, agritech, ​digital manufacturing, science, and innovation. “I see this conference as a step for improving and deepening our relations much more after the Brexit period,” Minister Varank said. He also stated that Türkiye will reach its 2023 targets by taking steps in technology, innovation, digital transformation, Investment Office President Dağlıoğlu. to valued investors in their business entrepreneurship, ​human capital, and Dağlıoğlu said during the roundtable dealings with ministries, local infrastructure. “Türkiye aims to boost the meeting, “The United Kingdom has been administrations, or other public manufacturing industry’s share of GDP a top source of FDI in Türkiye. In 2019, institutions in Türkiye. ​ to 21 percent and to raise the share of the UK was the second largest country medium- and high-tech products to 50 in terms of FDI inflows into Türkiye percent of its exports.” with USD 825 million. There are more The Investment Office also organized than 3,300 active British companies in a roundtable meeting with the executives Türkiye, and they have invested more of UK-based companies in Türkiye, than USD 11 billion in the country.” chaired by Minister Varank. This gave Dağlıoğlu also reminded participants investors the opportunity to share that the Investment Office is ready their views with the Minister and with to provide coordination and support Ermut hands over Investment Investment Office addresses US Office reins to Dağlıoğlu investors based in Türkiye FDI since 2002 and that the US has always been one of the top sources of FDI for the country. “Since 2002, more than two thousand US companies operating in Türkiye have accounted for a combined BURAK Dağlıoğlu begins his FDI of over 12 billion tenure as the President of the dollars. Nevertheless, we Investment Office of the Presidency are not yet convinced with of the Republic of Türkiye, taking figures. We have set our over from Arda Ermut, who had eyes on increasing our been serving at the same post since share in US FDI outflows May 2015 and had been working and we will work hard in the Investment Office since its to achieve this target,” inception. INVESTMENT Office President Burak Dağlıoğlu said. Dağlıoğlu has been serving the Dağlıoğlu addressed the AmCham AmCham Türkiye’s 110 member Investment Office for 10 years, Türkiye/ABFT General Assembly Meeting companies employ more than 95,000 taking on many responsibilities at in Istanbul. people in Türkiye and provide a value- various roles. He highlighted that Türkiye has added of USD 50 billion to the Turkish attracted more than USD 217 billion of economy.

18 MARCH 2020 ISSUE 80 The Turkish Perspective

Türkiye's Tourism Revenues 100 (USD billion) Number of Tourist 75 75 (million) 51.9 39.4 50 32.4 65 25.3 34.5 25 29.5 26.2 25.3 0 2016 2017 2018 2019 2023E

THE​​ TOURISM Investment Forum (TIF) 2020, organized by the Turkish Tourism Investors Association, took place on January 28-29 in Istanbul. The global organization brought together renowned tourism experts under the theme of “Destination Future Türkiye”. Speaking at the Tourism Investment Forum in İstanbul, Investment Office then-President Arda Ermut said, “We do not consider annual FDI figures of USD Istanbul hosts Tourism 13-14 billion sufficient for Türkiye; we aim to double our current 1 percent share of global FDI in the long-term.” Investment Forum Turkish tourism revenues hit USD 34.5 billion in 2019, a new record high according to TurkStat. The figure jumped 17 percent last year, up from USD 29.5 billion in 2018. Also, 51.9 million tourists visited the country last year, a rise of 13.7 percent year- on-year. The average expenditure per th capita stood at USD 666 in 2019, up from USD 647 in 2018. 6 As the 6th most Türkiye’s rank popular tourist among most destination in the world, Türkiye preferred tourist continues to present destinations in vast investment the world in 2019. opportunities in the tourism sector.

WABCO breaks ground for its first manufacturing facility in Türkiye

WABCO​​​ , one of the world’s leading manufacturers of braking systems and safety applications for commercial vehicles, held a groundbreaking ceremony in the northwestern province of Sakarya for its first manufacturing facility in Türkiye. Industry and Technology Minister Mustafa Varank attended the ceremony, and he said that the factory will provide employment for 600 people and make USD 100 million in exports annually. This marks yet another in a series of investments by WABCO, which In October 2018 launched its first distribution center in Istanbul.

MARCH 2020 ISSUE 80 19 Investment Türkiye diversifies its FDI sources

217 FDI Inflows Number of Foreign 74.200 ($ Billion) Companies in Türkiye

15 5.600

1973-2002 (30 years) 2003-2019 (17 years) 2002 2019

ACCORDING to the latest data released list of the sectoral breakdown, and its that the share of Europe in total FDI by the Central Bank of Türkiye, the FDI share in total FDI inflows increased to inflow to Türkiye fell to 58.8 percent in inflows to Türkiye have been realized as 38.2 percent in 2019 from 30.6 percent 2019 from 63.9 percent in the previous USD 8.4 billion in 2019, making total FDI in 2018. Share of manufacturing in year. This is an indication that Türkiye is inflows to Türkiye since 2002 around 2003-2019 period was recorded as 24.4 continuing to diversify its sources of FDI. USD 217 billon. percent. Share of Europe in 2003-2019 period was The manufacturing sector topped the The regional breakdown also unveiled recorded as 66.4 percent.

Construction 3,3% Transport & Other Others 8,1% Storage 4,7% 8,5%

Asia Wholesale & 17,9% Retail Trade Finance Geographic 6,6% Sectoral 33,4% Breakdown of Breakdown of Investments* Information & USA Investments* 7,6% Communication Services 7,7% EU 66,4% Energy 11,3% Manufacturing 24,4%

20 MARCH 2020 ISSUE 80 The Turkish Perspective

Highlights of the Türkiye moves up the Turkish Startup Ecosystem rankings in startups league ACCORDING​ to startups.watch’s Turkish Startup Ecosystem 2019 report, angel investing and venture capital funding for Turkish startups increased by 66 Türkiye is percent in 2019 to reach USD 102 million across 94 the largest deals. startup hub in Southeast Europe. Based on this amount, Türkiye’s rank among European countries has improved and the country has jumped up to the 1st League from the 2nd. Türkiye also USD ranked 4th among European countries in the rate of women entrepreneurs, with 16 percent. The sectoral breakdown of investments reveals that 488 the fintech industry attracted the highest amount of investment with 17 deals. The Getir deal and the Iyzico, 550 million Foriba, and Paraşüt exits were among the highlights of Number of startups Amount raised through angel 2019 in the Turkish startup ecosystem. established each investors and VC funding year in Türkiye 2010-2018 period in Türkiye. Belgium $598M

Denmark $546M In 2018 Finland $526M 3 of the top 10 venture 1 out of every 3 capital-backed exist in investments was made Europe were Turkish by Corporations & CVCs. Ireland $426M

Italy $298M 5,000 Norway $281M USD Number of freelancers and Poland $209M 35.7 million startups thought Amount of government to work in 40 Austria $178M grant in the Seed/Series coworking spaces in

A stage in 2018 Türkiye. 1. League Russia Fed. $168M

6th 7th Portugal $161M Türkiye's rank in Türkiye's rank in Instagram use globally. Twitter use globally. Lithuania $160M

Luxembourg $128M

17 Türkiye $102M

11 14 11 10

$8.4M $8.3M $5.8M $3.3M $8.4M

Fintech SaaS Al Deep Tech Marketplace 2019 Startups.watch Source: MARCH 2020 ISSUE 80 21 Aviation Turkish Airlines adds Malabo to its flight network Being the biggest international airline in Africa, Turkish Airlines keeps growing in the continent. Starting flights to Malabo, the capital of Equatorial Guinea, as its 60th route in Africa, the national flag carrier reaches a total of 319 destinations worldwide.

AS THE AIRLINE that flies to more countries than any other, Turkish Airlines continues to expand its flight network. Flag carrier started its operations to Malabo on February 7, making the capital of Equatorial Guinea its 319th destination. As the 60th destination of the global carrier in the continent of Africa, flights to Malabo will be operated on Istanbul - Port Harcourt - Malabo - Istanbul route with Boeing 737-900 type aircraft. will further enhance the relations to its flight network in 2020. On the new route, Turkish Turkish Airlines plans to between Türkiye and Equatorial Having already one of the Airlines chairman of the Board and add Port Sudan (Sudan), Guinea in all areas.” youngest fleets in the world, the Executive Committee, M. İlker Osaka (Japan), Newark Malabo, the capital of Equatorial the national flag carrier keeps Aycı said: “A new era has begun in (US) and Vancouver Guinea, is the second largest city expanding its fleet with next- Turkish aviation and tourism sector (Canada) to its ever- of the country. Apart from being an generation wide body aircraft. with the Istanbul Airport. Our new expanding flight network oil-rich city, it is also at the forefront By the end of 2019, the airline and improved operation hub offers in 2020. with tourism activities. With its had 351 aircraft, including 98 us an unparalleled performance natural wonders, rich world cuisine wide-body, 229 narrow-body, and advantage when it comes to and historical architecture, Malabo 24 cargo planes, up from 332 at the enhancing our flight network. Today, is one of the most prominent beginning of the year. in line with our continuing growth destinations in Africa. “With our current fleet size, we strategy, we are happy to announce After starting service to 10 new rank 10th among the passenger the addition of Malabo to the ever- international routes in 2019, the airlines globally and among the top expanding flight network of Turkish national flag carrier closed out the 10, we have the fourth-youngest Airlines. From this day forth, year flying to a total of 318 cities fleet” Aycı said. passengers traveling to Malabo in 126 countries. Turkish Airlines 2020 will see the arrival of A350- will be able to enjoy the Turkish plans to add Port Sudan (Sudan), 900 new generation wide-body Airlines comfort and hospitality. We Osaka (Japan), Newark (US) and aircraft to the carrier’s fleet, after firmly believe that our new route Vancouver (Canada) besides Malabo, B787-9s joining the fleet in 2019. 22 MARCH 2020 ISSUE 80 HAPPY INTERNATIONAL WOMEN’S DAY Outlook KPMG: 2020 Starts with a degree of relaxation KPMG’s global outlook shows that some degree of relaxation is observed in the rather strict protectionist perspectives towards global trade, as we enter 2020.

IN THESE DAYS, the US and should note that the geopolitical efforts should be made to solve China are getting ready to sign tensions arising from time to the unemployment problem, the phase 1 deal, this matter of time on our southern borders and to provide the foundations of concern which topped the risk the Eastern Mediterranean did lasting development in the long- agenda of virtually everyone is not derail the stabilization of the term. On the other hand, the 5 being put on the back burner, at economy. percent growth target requires least for a while. We expect 2020 to be a more maintaining a solid current Throughout 2019, both predictable year in general accounts structure, which can developed and developing compared to 2019. We will only be achieved by a nation-wide economies tried to relieve the probably have a year in which the focus on investments to produce market conditions through some KPMG claims that downwards trend in inflation and value added products. interest rate cuts. Yet, this positive 2019 was not as interest rates is to continue, no Re-establishing economic implication for the developing destructive as major changes in exchange rates stability will, in turn, accelerate economies will not extend into are to occur, the confidence indices consumption and investment 2020. The falling real interest forecasted for are to exhibit a relative recovery, expenditures inside the country, rates on offer in developing Türkiye and 2020 credit expansion is to accelerate, while revitalizing capital countries, which still proceed with to be predictable and as a result, the economic investments and direct foreign their interest rate cuts, will stand year. activity is to flourish once again. capital inflows from abroad, out as a significant risk element. Yet, strict financial discipline reinforcing the current recovery Türkiye, in turn, had a new and the diligent management of process. process of economic stabilization geopolitical processes are must- in 2019. On one hand, the need for haves to achieve the targets set in RETURN TO POSITIVE structural reforms to deal with the the New Economic Plan. In this GROWTH fragile financial outlook became context, even though certain facts • For Türkiye, 2019 was not the apparent. On the other, the costs such as the inflation and low real destructive year it was expected brought about by geopolitical risks returns look relatively manageable to be. The economy was able are being assessed. However, we in the short-term, substantial to return to growth in the third

24 MARCH 2020 ISSUE 80 The Turkish Perspective

quarter (1 percent), technically CBRT interest rates putting an end to recession. 30.00 • The list of factors contributing Pre-borrowing Pre-lending Weekly repo 27.00 to growth start with inventory Pre-late liquidity CBRT average funding changes, accounting for +2.8 24.00 percent. 21.00 • The contraction in investment 18.00 expenditures has been slowing 15.00 down in construction (-18 percent) and machinery-equipment (-7.5 12.00 percent); yet the signals for the 9.00 recovery are still not strong and 6.00 extensive enough. Jan.17 Jan.18 Jan.16 Jan.19 Mar.17 Mar.18 Mar.16 Mar.19 Nov.17 July.17 Nov.18 May.17 Nov.16 Nov.19 July.18 July.16 May.18 July.19 May.16 May.19 Sept.17 Sept.18 Sept.16 Sept.19 THE INFLATION FIGURE IS IN TUNE WITH THE TARGETS SET • As expected, inflation rate fell trade in most of 2019, Türkiye’s EXPECTATIONS FOR 2020 to single digit figures by the third exports grew by 2.6 percent in The Central Bank • Having closed 2019 with growth, quarter and was at 11.84 percent 2019, rising to 172.2 billion of the Republic of Turkish economy is expected to by the end of the year, below the dollars. Türkiye (CBRT) has keep up the growth trend in 2020 12 percent rate set as the target in • Imports, on the other hand, are cut the interest rates as well. the New Economic Plan. back in a rising trend in parallel to from 24 percent to • The government’s continued • After August 2019, PPI receded the increasing pace in economic 12 percent. support for the markets is below the CPI levels. activity and completed the year important for maintaining the with a figure of 203.8 billion current trend. At this junction, FISCAL POLICY: THE END OF dollars. strong management of budget THE FRONT-LOADED PROCESS • Trade deficit fell by 43 percent, balances is essential to prevent • Cutting the policy interest rate to 31.5 billion dollars by the end of potential fragilities. from 24 percent to 12 percent, the year. • The signs of an emerging The Central Bank of the Republic recovery in consumer demand as of Türkiye (CBRT) provided DIMINISHING DEBT BURDEN well as investments is considered significant easement for the The burden of credits the private a positive development for the market. sector obtained from overseas banking sector. continues to diminish. The overall • In 2020, the unemployment rate REDUCED VOLATILITY IN debt figure is highly expected to is expected to fall slightly, as the EXCHANGE RATES begin rising once again in 2020, employment is expected to rise. • Turkish Lira began the first from its current level of 204.5 • 2020 will see relatively low quarter of the year with some billion dollars. The economy was able volatility in Turkish financial appreciation. Some degree of to return to growth assets, based on the assumption stability was achieved as the ISTANBUL STOCK EXCHANGE in the third quarter. that no significant disruption will confidence in macroeconomic IS IN A STRONG TREND The list of factors occur in macroeconomic indicators. stabilization process became As of the end of 2019, the BIST contributing to growth Under normal circumstances, prominent. 100 index of Istanbul Stock start with inventory Turkish Lira is expected to • In terms of volatility of exchange Exchange rose by 28.7 percent changes, accounting maintain a relatively stable trend rates, 2019 was incomparably over its level in the beginning of for +2.8 percent. throughout the year 2020 in terms more stable than 2018. The the year. of its real value. volatility of the exchange rates receded from around 27.5 percent in 2018, to around 14 percent in 2019. GDP annual groxth rates (%)

INTEREST RATES ON 11.65 BONDS FELL TO THE RATES WITNESSED IN EARLY 2018 7.44 • The interest rates on bonds fell 7.27 significantly in 2019, receding 5.34 5.64 back to the levels seen in the first 5.26 quarter of 2018, thanks to faster- than-expected fall in inflation 2.30 0.95 rates and the strong front-loaded steps the CBRT took on the interest -2.29 front, not to mention the overall -2.81 global trends. -1.55 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 HOPEFUL SIGNS IN FOREIGN Households and Households State Final Consumption Gross Capital formation TRADE Non-profit Organizations Expenditure • In spite of the protectionist Export Imports Annual growth perspectives dominating global Source: TurkStat

MARCH 2020 ISSUE 80 25 Interview

BORNEMANN: Turkish people value family and forming close relationships with colleagues Nestle Türkiye CEO Ansgar Bornemann says he is mesmerized by the beautiful city of İstanbul, being authentic in terms of culture, architecture, history and texture.

BORNEMANN says, it took him two Around 40 years after Nestlé’s to meet changing expectations of our minutes to decide to come to Türkiye and foundation in Switzerland, Nestlé’s 114 consumers better. This is a first in the taking the CEO position in Nestle Türkiye year journey started in Türkiye with sales Nestlé world. A product that is developed 11 months ago and since feels that Nestlé of infant nutrition products. We have by Turkish engineers and now we are Türkiye is one big family who welcomed opened our first sales office in Karaköy meeting with other Nestlé markets him in from day one. in 1909, which is the 3rd global office extension. after London and Paris. Later on, we Today we are operating with 4 The history of Nestlé Türkiye begins have opened the first chocolate factory production facilities in Karacabey and in Istanbul in 1909. What are the key of Türkiye in Feriköy, in 1927. This was Kestel districts of Bursa with our 3.000 milestones of Nestlé Türkiye? also one of the first investments of the direct employees and 4.000 extended I want to take a step back and tell you Republic. partners. We create value for Türkiye about Nestlé’s story briefly first. The Nestlé has introduced novelty with with our production, using 92% local raw story of Nestlé begun with the significant Turkish consumer since then. The first materials to present around 800 products invention of Henri Nestlé in 1866. When pistachio chocolate DAMAK in 1933, the in 10 different categories to the Turkish Henri Nestlé learned that a premature first instant coffee NESCAFE in 1984, the market. baby could not be breastfed by his first chocolate powder drink NESQUIK in mother, he developed the first milk-based 1986, the NESCAFE 3'ü 1 Arada in 2002 Türkiye’s economy has passed baby formula ‘Farine Lactée’, which was are some of them. through a difficult period in 2019. the only product that the baby could Since then, we have been continuously Can you tell us about the investment digest. And with this invention, Henri working on innovative products that of Nestlé in Türkiye? Nestlé saved the little boy’s life. are born in Türkiye and extended With a population of 80 million, Türkiye This has set the purpose of our to the World. As I mentioned Nestlé is a country with great potential and company; “enhancing quality of life and DAMAK, the world’s first Antep pistachio strategic importance for Nestlé. I am contributing to a healthier future.” chocolate, has become a national pride happy to say that we have been growing Today Nestlé is world’s leading for us. Today, Nestlé DAMAK is sold in 15 at double-digit rates for the past 12 years. Nutrition, Health and Wellness company, countries from Japan to the USA. Our goal With this growth momentum, we took with our products and services we is to make DAMAK a world-wide brand. our place among the fastest growing touch 1 billion people every day in 190 Last year, we launched NESQUIK markets in the Nestlé world. We just countries. Lactose-free and No Added Sugar product had the 2019 results revealed, and we 26 MARCH 2020 ISSUE 80 The Turkish Perspective

MARCH 2020 ISSUE 80 27 Interview

met our business goals rather nicely, we assignment before Türkiye was Ukraine. maintained our double-digit sustainable Once I was offered the position of Nestlé growth above the industry in Türkiye. Türkiye CEO last year, I was very excited We have invested 150 million liras that it took me two minutes to decide to from 2018 to 2020 for enhancing our come here. operations. Last year we invested 80 I have always been fond of Türkiye million TRY for capacity increase of our but I never lived here before. I am factories. In 2020, we plan to invest an mesmerized by the beautiful city of Name 3 additional 120 million liras. İstanbul. It is definitely very authentic in Our labor force in Türkiye is very terms of culture, architecture, history and strong. If we take a look at 2019, we can texture. words that see that our factories ranked among I am very impressed as to how Turkish the top three. We have very competent people value family and forming close and hardworking teams both in Head relationships with colleagues. It has been come to Quarters and the production facilities. 11 months since I took this position, but We will continue to support them with I truly feel that Nestlé Türkiye is one big necessary investments. family who welcomed me in from day one. your mind Operations is not the only area we This type of solid relationships enables invest in Türkiye. We also invest for this team to achieve such a success. regarding individuals and families, communities and our planet in scope of our Creating How would you define Turkish Shared Value approach. business world and ecosystem? What Türkiye: We believe that our company will be are the distinctive characteristic successful in the long term by creating features? What would you say about value for both our shareholders Türkiye’s production and and for society as a whole. We manpower? call this Creating Shared Value; Türkiye is a As I mentioned, Türkiye has it is the principle for how we been placed as one of the fastest do business. It enables us to country with growing markets in the Nestlé bring our purpose to life. great potential world. We plan to continue Potential Nestlé in global has made and strategic this growth and further invest 42 commitments in line in Türkiye. In my experience with UN 2030 Agenda for importance for in Türkiye, the part about the Sustainable Development Nestlé. I am business world that really Goals. Helping 50 million happy to say that attracts my attention is how children to lead healthier lives, open minded it is. The well- improve 30 million livelihoods we maintained educated, well-informed and in communities connected to our double-digit young manpower poses as the our business and strive for zero sustainable greatest attribute. In the Turkish environmental impact in our growth above the business world, I am amazed by operations are the three main the speed in adaptation at times commitments we have made. industry in Türkiye. of economical, and sectoral Following these change, especially through commitments in Türkiye, technological development. Thrilling we have been conducting Even though there are long-standing and effective projects. fluctuations on macro economical terms, We have been conducting the Healthy the business world is keeping its ambition Steps project since 2012 with Ministry intact. Parallel to this, the ability of human of Education to raise awareness of resources to be flexible can be detected on balanced nutrition and physical activity every level. Servicing the purpose of their in 17 cities. We have been partnering business, the reflex to put oneself on the with TEMA Foundation since 2011 to line is very high in Türkiye. They exhibit increase efficiency of pistachio and good collaboration and a motivation for enhance welfare of pistachio farmers in solidarity towards a common goal. I am Gaziantep. There are many more projects delighted to work in an environment to talk about. We have invested a total of shared with our Nestlé Türkiye team. 14 million liras to Creating Shared Value projects in past 8 years and in 2020 we Did you have a chance to travel in will continue to do so. Türkiye? Where are your favorite Authentic places? You have been in Türkiye for almost a Yes, indeed. I have visited Cappadocia year, what were your initial thoughts some years ago. Definitely one of my about Türkiye before coming here and favorites, a world class tourist attraction. what changed in this period of time? In the past year I visited Ankara, İzmır, Including my place of birth Germany, I Bodrum, Bozburun and Ayvalık. Although had a chance to live in different countries I extendedly appreciate Turkish Cuisine, with my family for work such as France, I especially love the food in Bodrum and Serbia and Saudi Arabia. My last working Bozburun. 28 MARCH 2020 ISSUE 80

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Türkiye: Third Largest Superyacht Builder in the World Türkiye, being one of the top three superyacht manufacturers of the world, continue to make a mark of itself with the superyachts it launches. Innovation awarded Sirena 88 has become an example of blending a century of experience and innovation. Dream Symphony is indicated to be the world’s largest sailboat with 140 meters when completed and will be Türkiye’s new “Falcon”.

30 MARCH 2020 ISSUE 80 The Turkish Perspective

YACHTS Production in Türkiye Antalya Free Zone, which has Mega yacht production, one of become a world brand in luxury the leading sectors in Türkiye’s yacht production, receive yacht maritime area. Turkish mega orders from dozens of countries, yacht manufacturers, which rank Netherlands, the United States, among the top 3 in the world Israel, Qatar, Croatia, Vietnam, in the field of yacht production Ivory Coast, Portuguese, Jamaica, specially designed, have delivered Russia, Oman and Djibouti. 48 many important projects so far. firms are operating in the free Although Türkiye and Italy as zone area and as of the end of the quality in the production of 2019, the total number of the the first unit sale terms are vying yachts produced increased up to for the leadership of Germany and 441 yachts with a total length of the Netherlands. 8,240 meters and a value of 1.17 Türkiye, which has become a billion dollars. global brand in the production Antalya Free Zone Corp. of luxury yachts; has started to (ASBAŞ) General Manager Zeki export yachts all over the world. Gürses said that Türkiye ranks Türkiye, or while being the world’s third worldwide after Italy and third-largest superyacht exporting the Netherlands in the super country; It was announced that luxury yacht production and the the target was to be number one Antalya Free Zone has been a top in the near future. center for the construction, which Companies operating in was initially started in 2000. The

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32 MARCH 2020 ISSUE 80 The Turkish Perspective

Tuzla district of Istanbul in the Yacht and boat manufacturing northwest and the western resort industry is a sector with a high town of Bodrum follows Antalya in added value, capable of providing this regard. employment and high export Saying that they aim to rates. This industry machinery, provide more in yacht towing- iron-steel, wood, paint, chemistry, unloading investments, Gürses electrical-electronics, textile, said a new pier is on the way, the decoration, rubber-plastic, etc. construction of which will begin It is a branch of industry that in a short time. “With this new produces as a result of combining ship lift investment, the yacht the products of many branches capacity of 50 meters and 500 of industry in shipyards and tons will increase up to 90 meters also gets service from various and 2,000 tons. We also plan to service sectors. The yacht and create a total investment budget of boat industry is different from the 20 million dollars, which is set to shipbuilding industry in terms include a 500-ton mobile-wheeled of both its content and scope travel lift investment along with and the technology it applies, other infrastructure investments,” Türkiye has while large investments for the he said. become a brand in shipbuilding industry needs Yacht and boat industry in the production of for a long time at the seaside, Türkiye, especially after 2011, is while the yacht and boatbuilding growing. Especially specialized in luxury yachts. takes a shorter time and can manufacturing super yachts, labor operate in smaller places with cost and quality advantages in less investment. Although it does the manufacturing drives Türkiye not require large investments, forward in the European market the added value is much higher. often in yachts and boats. Türkiye provides an important When you examine the history opportunity for the international of developed countries, you can market with its coasts, yacht see how much the seafaring tourism facilities, a rich culture and marine culture is valued and history, particularly to mega and transformed into a state yachts. Istanbul being one of policy in most countries. Sea the most attractive tourist and trade fleets owned, ports and historical spots in the world, will marinas are indicators of this. The include mega yacht mooring yacht and boat sector is a very opportunities in the future, and large industrial area with yacht this will provide a boost and manufacturers, marine engines, prestige for the country. equipment, boat and mooring Türkiye’s yacht and boat areas, technical maintenance and industry as a general rule that the refit processes, water sports and owner of the title are summarize; distributors. ship and boat building industry MARCH 2020 ISSUE 80 33 Cover

with a long history, craftsmanship The global superyacht industry Soydaş: 2020 will be A’Design Awards and and skilled workmanship, trained paused for breath in 2019, with Competition - Platinum workforce, flexible working hours, the 807 projects over 24 meters even better than 2019 Winner XSR 155 by Sarp quality and production with ordered (with deposit taken) or Yachts. international standards, affordable under construction representing Numarine cost and labor costs, high quality a slight dip on the 830 recorded General and sufficient supply industry, in 2018. This brings a halt to a Manager suitable supply conditions, period of largely uninterrupted Murat Soydaş adequate technological and IT growth in the order book – from said, 2019 has infrastructure, our country’s the low of 692 projects in 2013. proximity to the international The total length of projects this been very market according to the Far East year is 32.3 kilometers, a decline good and added that 2020 will countries, appropriate climate and of just one per cent from last be even better. Soydaş said environmental conditions. year’s figures. How to interpret that, “Numarine is producing Türkiye has shown a steady this year’s figures depends on your in its factory in Gebze, Istanbul, rise in construction, particularly outlook: a welcome stabilization and exports to the American, in superyachts (24 meters and of a potentially overheating European, Far Eastern and above), since 2007 and has risen industry or an indication that Australian dealer network. Our to the world third position in the buyers and shipyards are sales schedule for 2020 is full.” number and length of superyachts bracing against macroeconomic Having two production lines, delivered in 2010. When the 2014 headwinds? We suspect there’s global order book data is analyzed, truth to both positions but also Numarine produces trawler style Türkiye was ranked third in the note the exceptional levels of boats, which called the XP series. world with 3,005 meters and design and innovation seen in Soydaş said, “Our long-range 68 projects in the list of yachts some of the projects under way excursion boats sail at a distance ordered or in production, and - and the vision of the owners of 3,000 miles. With our new in 2016, it maintained its third commissioning them. model of 22 meters, our XP series place in the ranking of countries Looking at all 170 active yards starts from 22 meters and rises according to the total length of globally, 78 have only one project to 26, 32, 37 and 45 meters. In the the super yachts in order or under on their books and 64 are building motor yacht segment, they have construction. According to the three or more superyachts. Of these sizes from 62 feet to 300 feet.” 2019 data, Türkiye ranks fourth 64 yards, 33 are building five or with a total length of some 3,000 more superyachts and just 17 have meters. 10 or more projects under way. 34 MARCH 2020 ISSUE 80 The Turkish Perspective

Dream Symphony to be the Largest Luxury Yacht Dream Symphony is a 141 meters luxury yacht, currently being built by Dream Ship. Her top speed is 19.5 knot and her power come from two 3350.0hp diesel electric engines. She can accommodate up to 18 people with 32 crew members. Located in Bozburun, Türkiye, luxury yacht builder Dream Ship Victory Limited is dedicated to constructing large custom motorsailers out of laminated wood utilizing both traditional and modern techniques.

Councilor of USA, Germany and France. The Chamber of annual export values of these Maltese Falcon is one of Small and medium Shipping and countries are between 1 billion the most complex and Chairman of dollars and 3 billion dollars. and largest yachts in the boats can be improved Turkish Ship and Türkiye is in the range of 100-250 world with 88 meters. Burla Machinery Yacht Exporters million dollars. Trade and Association Bayrak pointed out that Türkiye Investment Başaran Bayrak is one of the top five countries in said that the exports cover the the world, especially in the over Corporation product groups defined under the 30 meters mega yacht production. Manager Yavuz 89.03 Customs Tariff Statistics Although it is in third place in Sipahi says Position worldwide. The volume of terms of order book, we think it that the investments of foreign the market varies between years, is still far from its real potential. investors began in Türkiye, but due but it is between 10-14 billion In addition, we have shipyards to the lack of stability and legal dollars. The amount of exports of that are internationally known infrastructure and volatility in the Türkiye in yacht group vary in the and increasing their popularity exchange rates creates doubts. range of 100-250 million dollars. every year. Important brands He added, “We have fallen behind The countries that import the such as Turkuaz Yacht, Mengi in the production of small and most yachts in the world are the Yay, Sirena Marine, Numarine, United States, Netherlands, the Bilgin Yat, Yıldız Gemi, Su Marine medium boats. Even Northern UK, Malta, the Cayman Islands started to emerge. Türkiye has European countries entered the and the Virgin Islands, which offer made significant advances in market. But this is a long process, flag advantages. The top exporting terms of quality and design in it can still be done.” countries are Italy, Netherlands, luxury products. The rise in MARCH 2020 ISSUE 80 35 Cover

the prestige of the country also increases the interest in the products produced in Türkiye. People preferr ing Türkiye to build their yachts as a luxury good is very important for country’s image. Our yacht manufacturers should be promoted effectively in the world. Turkish shipyards are in a very favorable position for yacht production with their existing power and geographical advantages. In order to climb up

Alparslan Sirkecioğlu: The yachtes produced in Türkiye are more affordable Maritime Industry And Maritime Development to the top, the image of a safe Turgay Noyan, publisher of Association country for foreign investors sailing and yachting magazine (Dentur) should be provided and the Naviga said, “When it comes Chairman Alparslan Sirkecioğlu barriers faced by the producers to yacht production, there are said that Türkiye is one of the should be developed in favor two different tracks. The first is few countries in the world in of the sector as well as support those that produce sailboats or traditional boat manufacturing mechanisms should be in favor of motorboats in series, mainly in the sector. the range of 40-50 feet. We are not and added, “A craft that crosses active in this track. The second generations. Here I am talking TOP BUILDER COUNTRIES one is the big yachts where the about private yacht production, Italy remains in first place in heights have grown gradually. It not mass production. We could 2020 with a slight growth of turned into mega yachts and then profit if we produce private production (+3.8 percent). The giga yachts. We are among the top yachtes with the concept of houte Netherlands holds on to second three countries in the world in big couture. People that will invest in Türkiye takes third place, albeit with a slight decrease yacht production.” Türkiye are super yacht customers in production (-7.1 percent). Noyan pointed out that place from the Türkiye, placed in the fourth Türkiye’s production is powerful and we are in the top five in the UK largely thanks world in the production of super place in 2019, takes third place on large yachts, whether steel or to a slew of large from the UK largely thanks to composite, aluminum or mixed. yachts. Türkiye is a paradise for a slew of large orders. There As an example, Tom Perkins’ those who want to invest in the orders in 2020. were two newcomers to the famous Maltese Falcon yacht was production of super yachts. We builder leaderboard to 2020 built in Yıldız Shipyard in Istanbul. are close to world megapoles an Global Order Book, both Turkish: And it is the largest export item in are inexpensive in handcrafts. Bilgin, with five projects (four of a single product in the history of Sirkecioğlu says that domestic them exceeding 80 metres), and the Republic. manufacturers use all the latest Turquoise, which has six boats Türkiye also has a very, technologies in the World and under construction. very important tradition in no boat is produced exactly in In fifth place, Germany woodworking. Even if our number one country. Stating that many demonstrates higher activity of craftsmen gradually decreases, (+22.8 percent), mainly thanks to Türkiye will not lose its superiority equipments are produced and Lürssen, Nobiskrug, and Abeking in this regard. installed in different countries, & Rasmussen, a yard that has The fact that the people from he said, “The ratio of material dramatically increased the size different sectors as well as those production can not be found in of yachts it can deliver of late. All who were producers, created an Türkiye is 1 percent or 2 percent. these yards have 100-meter-plus excellent potential in Turkish Therefore, some costs are cheaper projects. yacht manufacturing. There are than abroad. Thus, buyers can Some yards, however, seem excellent examples such as Rahmi have around 30 percent cheaper increasingly unafraid to start very Koç’s RMK Shipyard, and Inan when buying boats from Türkiye. large boats without an owner. Kıraç’s Sirena. Türkiye is a very attractive place Bilgin has an 85-meter project Turkish brands such as Su under way that is currently for sale Marine, Bilgin Yacht, Sarp Yacht, for people to order the boat. and Turquoise has started a 75 Mengi Yay, Ege Yacht, Sirena, CMB meter on spec. Yachting, World Yacht, Momenta 36 MARCH 2020 ISSUE 80 The Turkish Perspective

Yacht, Zero Emmision, DSV and Vicem are recognized in the world in big yachts. Turkish companies such as Mercan, Atak, Proteksan, MAT, Salmakis, İstanbul Ege Yat and Soyarslan are known in sails and smaller boats. Türkiye also has great interior and exterior boat designers who have an impact in yacht production such as, Tanju Kalaycıoğlu, Rıza Tansu, Red Yacht Design, Haluk Suntay, Aslı Felah and Aslı Aygen.

50-METER SAILING YACHT ALL ABOUT U 2 LAUNCHED IN TÜRKIYE The 50-meter sailing yacht sistership to All About U 2 has been launched in 2019. Built from a steel hull and aluminum superstructure, All About U 2 was designed by Ginton Naval Architects and built by Ada Yacht Works in Türkiye. is decorated in grey, orange summer. Following delivery, Accommodation is for a total and brown accents for a she will be managed for charter According to Numarine, of 12 guests in six cabins while “contemporary” living space. by Turk Yacht in the Turkish 14 yachts from the XP the staff quarters allow for a crew Large windows flood the interior and Greek waters. All About U series have now been of four. The yacht comes packed with natural light while the formal 2 remains listed for sale at Fraser sold. with a number of water toys and dining area is positioned forward for an asking price of 19.5 million tenders including seabobs and with seats for up to 12 guests. euros. paddleboards. The yacht will have a top speed At the outset, the hull was Other features include a of 14.5 knots with power coming stripped to bare steel, the complete sundeck bar and open plan beach from two 800hp Caterpillar C-18 superstructure and surplus metal club, which is revealed by a folding Acert diesel engines. works were removed, and the transom. All About U 2 will now undergo interior gutted and sandblasted. The interior meanwhile sea trials ahead of delivery this The 320 tons of steel that was

The 50-meter sailing yacht All About U 2 has been launched in 2019.

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Mengi: We produce our own designs Huseyin Mengi, the owner of Mengi Yay Yachting, said that the year 2019 was a good year for Mengi Yay Yachting. Stating that the yachts were completed in an average of 24 months, Mengi said that the production was completed between 18 and 36 months removed was replaced with 550 multiples isn’t the easiest feat, depending on the length of the tons of new fabrications, including but Numarine just made it look yacht. Built from a steel the new superstructure and like a cakewalk. The Turkish hull and aluminum 112 electrically operated sliding shipyard has sold not one, but five Mengi said, “We delivered 2 windows each weighing 500kg. compact expedition vessels from boats in 2019. One is a 40-meter superstructure, All About U 2 was built by Ada New stabilizers and other heavy its popular XP series. sailboat and the other is a Yacht Works in Türkiye. engine room equipment were According to the builder, four 44-meter motor yacht. In 2020, installed before the vessel was 85-foot 26XP yachts and one we will deliver 2 boats. One is faired, painted and relaunched. 104-foot 32XP superyacht were a 35.5-meter motor yacht and Following her launch, new snapped up, meaning a whopping the other is a 44-meter gulet. In pipework was installed, she was 14 yachts from the XP series have 2021, we will deliver a 42-meter rewired, and her new interior, now been sold. sailboat. In 22, we will produce a all floating on rubber mounts to “These achievements indicate 48-meter yacht, but our goal is to minimize noise transmission, the relevance and popularity was inserted. All these works of the series,” said founder and produce 2 more yachts.” were compliant with SOLAS 36 chairman of Numarine Omer Stating that they stopped Passenger requirements. Malaz. “We are very pleased that producing on customer demand The Judges concluded that five more international customers and producing their own designs this was an extraordinary will be able to experience what and selling their biggest yacht conversion that not only changed high quality and impeccable through an investment, Mengi the whole exterior profile of Numarine style are.” said, “We are producing first to the vessel, improving it beyond To recap, both the 26XP bring the customer here. Buyers recognition, but also gave her a and 32XP are billed as modern are already working with you completely new interior, which expedition yachts. They feature when they see a price advantage has a refreshingly understated and efficient hulls and impressive modern appearance that abounds long range-up to 3,000 nautical of about 25 percent.” in luxury. This, they felt, was a miles for the 26XP and 4,000 Saying that boat sales are conversion for which the owner nautical miles for the 32XP-as made with networking as much should be justifiably proud. well spacious interiors which as magazines and social media, make cruising at length a cinch. Mengi added that it is necessary to NUMARINE SOLD 5 HIGH- The vessels were designed by Can work with well-known brokers. PERFORMANCE YACHTS Yalman with naval architecture Selling luxury yachts in by Umberto Tagliavini and exude 38 MARCH 2020 ISSUE 80 The Turkish Perspective

a futuristic feel, with angular windows and vertical bows. Another successful yacht designer Sarp Yachts was the winner of the following categories in 2019: • German Design Award - Winner XSR 155- Aviation, Maritime and Railway Category • A’Design Awards and Competition - Platinum Winner XSR 155 • A’Yacht and Marine Vessel Design Award • German Design Award - Special Mention XSR 85 - Aviation, Maritime and Railway • German Design Award - Winner Nacre 60 - Aviation, Maritime and Railway

ONE OF THE WORLD’S MOST COMPLEX AND LARGEST BUILT IN TÜRKIYE Maltese Falcon is a full rigged ship using DynaRig technology, which was built by Perini Navi in Tuzla, İstanbul, and commissioned by her first owner, Tom Perkins in 2006. It is one of the world’s most complex and largest sailing yachts at 88 m (289 ft), similar in size to the Athena and Eos. The vessel dropped her BVI flag in 2008 and was purchased by Pleon Ltd, which put her to charter use. Famous charterers include actors Tom Hanks and Hugh Jackman, Google-co founder Larry Page and Norwegian production company Fantefilm. Maltese Falcon has received 6 different best sailing yachts awards and won the Perini Navi Cup regattas on two occasions as well as the Palma Superyacht Cup in 2010.

Dream won the Converted Yacht Award

DREAM built by Haliç Shipyard was awarded by Boat International in Converted Yachts Category in 2019. This ambitious project, which converted an aging 93-metre cruise ship into a 106.5-metre dream yacht in a highly successful manner.

MARCH 2020 ISSUE 80 39 Outlook - Interview

CEO of Pragma Değer Şahbaz: Türkiye, continues to attract investors from around the world Türkiye continues its attraction for investors all around the World, in emerging markets with its proximity to Europe, and having a huge market of exemplary firms in many areas.

CEO OF PRAGMA Değer Şahbaz start-up investments. Transactions we completed said they think that Türkiye is As Pragma, we know that you in 2019 are; the sale of electrical an attractive place among the are a broker and a consultant both equipment manufacturer Ulusoy emerging markets of Türkiye, and for the sale of Turkish companies Elektrik for 285 million dollars to Türkiye is seen as an important and for purchases abroad. When the US Eaton, Tırsan purchasing production base by foreign we evaluate the last few years, are the trailer manufacturer Van Eck investors. He said that there is Turkish companies on the buyer from the Netherlands, the sale a growing interest in industrial side or on the sales side? of toll gate and transit systems companies. We talked about the In the past few years, Turkish manufacturer Özak to Italian investment environment and the groups have been following their company Came, sale of Emaş interest of foreign investors with growth strategy with acquisitions Chemical to Sumika from Japan, a the CEO of Pragma, which advised both domestically and abroad. subsidiary of Japanese Sumitomo on mergers and acquisitions We still provide consultancy Group, the sale of cryogenic tank amounting to 6.5 billion dollars in services for the Turkish groups manufacturer Arıtaş, owned the last ten years, Değer Şahbaz. in the chemical, automotive by the American Worthington Türkiye continues supply industry, machinery- firm, to Dutch origin Broadview Reports of Consulting to attract investors equipment, logistics sectors, Holding, The sale of the shares companies, buying merger in especially in Europe. Acquisitions owned by Özgörkey Holding, 2019 and shows a downward from all over the abroad provide Turkish groups, which is 50 percent, of the Atakey trend in Turkish market, world. Companies access to know-how, geographical frozen potato production company what are the causes of the with good brand diversification and being close to and the acquisition of Germany’s slowdown? customers. leading porcelain brand Weimar, Mergers and acquisitions and distribution Turkish companies, especially by Karaca Group. Foreign Investors in Türkiye suffered a severe network in Türkiye large conglomerates are also Sees Türkiye as a Production contraction. The total transaction are always in looking at acquisitions in Türkiye. Center. volume was 5.3 billion dollars, demand. We see that companies that while the number of transactions are larger than a certain size, Are there any sectors was 233. Whereas these figures profitable, growing, export- that foreign investors are were 12 billion dollars and 256 capable and well-managed attract particularly interested in in 2018. The main reasons for the interest of these groups. Türkiye? the shrinkage in 2019 were; the We already have many ongoing Foreign investors see Türkiye as an geopolitical problems around projects with buyers in this way. important production base for a Türkiye, the first half of the long time. For this reason, there is year were in an atmosphere of How many operations in an increasing interest in industrial election, the problems in the Türkiye in 2019 were, how companies. Firms that are well economy and there were no large many sales were made? managed, capable in exports transactions such as a bank sale Despite the serious decline in and use logistics advantage are or privatization. As the reason for Turkish mergers and acquisitions constantly attracting attention. the relatively small shrinkage of activity in 2019, it went well for Companies with a good brand and the number of transactions can be the Pragma in 2019. We have distribution network in Türkiye attributed to ongoing mobility in completed seven transactions. are always in demand. In addition, 40 MARCH 2020 ISSUE 80 The Turkish Perspective

Türkiye also has a very special and are very active in the market. place in the region on technology, We also see an increase in the many investors are in search of appetite of real estate investors. partnerships in Türkiye. We believe that as the reason behind this interest is Türkiye Türkiye was on the radar of being an attractive option among Western investors, but then Far the emerging markets of Türkiye. East investors took the scene and The main reasons for this are now Qatari investors are popular. the proximity to Europe, the What do you think are the fact that we are a large market, reasons that caused this shift? and the companies that are still Türkiye continues to attract developing in many fields which investors from all over the world. will be exemplified in the region. “Türkiye being seen as Currently the share of total an important production investments from U.S. including With the appreciation of the base by foreign investors” Western investors, is the highest. currencies against the Turkish says Şahbaz. In addition, Far Eastern investors lira, how is the value of Turkish are also showing increasing companies compared to the world? interest in Türkiye. In the last few Due to the course of the exchange years, the transactions we have rates, the export potential and completed with these investors as profitability of many industrial Pragma are constantly increasing. enterprises have increased. The We are witnessing the valuation of these companies increase in the proportion of has certainly not declined and Qatari investors interested in even the investor interest is high, Türkiye. They made significant so we continue to achieve the investments in the banking sector best valuation levels we have achieved in the long term in the transactions we completed with these companies. In other words, we see valuations in these companies in parallel with and sometimes even above company US and British valuations worldwide. What are your predictions investors put for 2020? Are there Turkish companies seeking investment Turkish startups in Türkiye or abroad? We currently have around 50 on their radar ongoing projects both in Türkiye TÜRKIYE has an and Europe. 10 of them are at important ecosystem an advanced stage and we aim for entrepreneurs and to complete these projects in investors said Pragma the coming months. Despite CEO Değer Şahbaz and all the difficulties we will keep added that as Pragma the investors’ interest alive and they focus on this sector continue to bring a considerable as an investor as well as amount of foreign direct being consultants. Şahbaz investment to Türkiye. said, “Venture capital By looking at the interest in investors, especially from our ongoing projects, we can see the UK and US, follow that 2020 will be a better year. companies, that are not The reasons for this expected know by most Turkish improvement are; relative recovery investors, very closely of the world macroeconomic and take advantage of situation and low interest rates, opportunities to invest. We the macroeconomic outlook is see that foreign investors improved in Türkiye (stabilized provide significant exchange rate, declining inflation, benefits to these start- declining interest rates), the up companies, especially relative diminishing geopolitical those who want to grow risks for Türkiye, Türkiye’s worldwide, and we believe developed infrastructure, the that these transactions will competitive cost structure and the continue to increase.” success of Turkish companies in export markets. MARCH 2020 ISSUE 80 41 Franchising

Türkiye enters global gastronomic competition

Local brands entering the growth competition of international chains in Türkiye brought a dynamism to the food sector. In the first month of the new year, the change of the licensee of the McDonald’s chain business, indicates that 2020 will be active for the sector.

WHEN Starbucks established particularly coffee and Türkiye’s its first store in Türkiye in 2003 fast-food chain will continue. the only known coffee shop in the country was Kurukahveci LARGEST PURCHASES Mehmet Efendi. Starbucks has IN FAST FOOD 434 branches in Türkiye today, In December 2019 Diageo Group, making the country the second the world’s second-largest with most Starbucks branches hamburger chain Burger King’s after the United Kingdom in owner, has decided to sell the fast Europe. According to data for 2018 food chain to a Texas Pacific-led show that more than 61 coffee consortium for 1.5 billion dollars, chain operates stores in Türkiye. an important purchase decision Dominos has 550 stores in Türkiye took place in Türkiye’s franchise and choosing Türkiye as the most sector. Anadolu Group, which put franchise friendly country in the McDonald’s on the sales list in 2019, last 10 years. The company sets have completed the sales process Türkiye’s potential as 940 stores. in January and sold the license of Birleşik Holding bought the McDonald’s chain to the Birleşik licensing rights of McDonald’s, Holding for 280 million liras. for 280 million liras for 15 Turkish Restaurant & years from the Anadolu Group. Entertainment Association of The researches show that the Catering Operations (TURYID) rapid growth in the food sector, Chairman Kaya Demirer 42 MARCH 2020 ISSUE 80 The Turkish Perspective

announced that the volume of coffee / cafe number of brands has the food and beverage sector has exceeded 60. Starbucks, the US reached 110 billion liras in 2019, chain, has 26.5 percent market an improvement that will likely share with 434 branches. While increase the interest of investors eight foreign brands from seven in gastronomy. countries in the sector have a 44 percent market share, 57 domestic THE BIGGEST COMPETITION chain brands has 56 percent of the IS IN COFFEE market share. The coffee culture in Türkiye has changed greatly with Starbucks TURKS LOVED PIZZA entering the market. Türkiye Pizza restaurants are the fastest being a tea drinking country, has growing fast food chains in increased its coffee consumption Türkiye. Pizza food and beverage twofold, from 600 grams to 1.2 sector reached a market value of 2 kilograms, in the last six years. billion dollars in 2019. Dominos Consumption is expected to more hinted that they will grow with than double in the next five years. new franchises stating that the According to World Coffee potential of Türkiye is at 940 Consumption Report 2018 data stores. According to a study by showed an increase of 13.2 Ekonomist magazine, only eight percent over the last five years pizza brands have plans to open in Türkiye. The largest share of 143 branches for 2020. Brands this increase is world-famous will grow with the franchise coffee brands establishing system. franchise stores in Türkiye. buffet restaurants in the world. Competition in the sector has DÖNER IS STILL THE MOST The market value of the döner in gotten more and more hot with POPULAR FASTFOOD Türkiye is estimated that over 4 the domestic brands that have The biggest competitor of the billion. In the döner store market, started branding in the last 10 pizza is döner after the hamburger 251 new branches are planned to years. According to research by in the fast food market. Döner, be established by the end of 2020. Cushman & Wakefield’s 2018 accounted for about 60 percent of Türkiye’s young population to make coffee / cafe sector in the market of fast-food products in and that of many people’s wish Türkiye, was announced as the Türkiye. Döner is also increasing to continue with his career as an fastest-growing retail sector with its presence in the world. Döner is World Coffee entrepreneur, the future of the an annual average of 70 percent, consumed in 30 thousand buffets Consumption Report franchise industry in Türkiye is with more than 2018 stores in or restaurants in Türkiye and 2018 data showed seen as an indication that it will Türkiye. According to data, the approximately over 150 thousand an increase of 13.2 continue to grow. percent over the last five years in Türkiye. 70% coffee sector growth rate in Türkiye 57 number of domestic coffee brands

MARCH 2020 ISSUE 80 43 Travel

44 MARCH 2020 ISSUE 80 The Turkish Perspective Hot springs; historical and natural richness Hot springs have been used as a source of healing since the early days of humanity, with even modern-day doctors prescribing patients to bathe in the sulfur-rich waters to help various health issues.

USING thermal and mineral nutrition and other natural and among the ailments that people waters for relaxation and health traditional methods at many hot seek to alleviate in the thermal purposes is as old as the history of spring centers where they create pools. humanity. Turkish grounds have the ideal atmosphere for a “health Thermal tourism is the witnessed this use via endless vacation”. In the meantime, type of tourism that combines historical remains. In Turkish, treatment concepts that make thermomineral water bath, hot waters and their sources are people stronger are developing inhalation, drinking and mud called “ilica” (hot spring). With like wellness, fitness, anti-stress, bath with physical therapy, the construction of facilities anti-aging, that prevent stress and climatotherapy, exercise, and baths over these areas, they aging effects. The “magical” word rehabilitation, diet, psychotherapy, were called “closed hot springs” of wellness comes from wellbeing and with recreational and and then “kaplica” (hot spring) and fitness in English, and is an entertaining activities. was developed. When the Turks artificially produced word that brought “cerge” (steam bath) to is used to aim for a healthier GREAT POTENTIAL FOR Anatolia, they came across the life with a vacation-relaxation HEALTH TOURISM Roman baths and combined component where treatment Türkiye has long been among the them to created and developed is chosen at the hot spring and most favorable destinations of the Hot water baths, mineral the “Turkish bath” (hamam). Hot return from the hot spring is world for tourists due to its ideal springs, inhalations and water springs, which are used for healthier. location, very rich natural and steam bath applications health protection-development, Believed to offer many health cultural tourism attractions, and specific to hot springs treatment and rehabilitation benefits, the hot springs welcomes increasing tourism investments. create the ideal and the modern use supported visitors from both Türkiye and Under the Health atmosphere for a “health with scientific knowledge is abroad. Transformation Program, which vacation”. growing stronger and becoming Skin diseases, rheumatism, began in 2003, Türkiye has a widespread approach primarily and nerve and bone disorders are become one of the world’s leading in our country but also in Europe, Asia, Africa and South America.

HOT SPRINGS AND HEALTH TODAY Wanting to protect one’s health and having the awareness of and wanting a healthier life, prior to developing any disease, is a new characteristic of human beings. It is at this point where health tourism steps in and the so called “health vacation” or “being healthy during vacation” concepts come to mind. It is becoming better understood that a hot spring not only creates an ideal atmosphere for the body and physical state but also for the mind-soul health distant from the stress, fatigue and tensions related to daily life. Hot water baths, mineral springs, inhalations and steam bath applications specific to hot springs are combined with exercise, massage, diet and

MARCH 2020 ISSUE 80 45 Travel

countries in the healthcare sector. Located on an important The inventory work aimed at The country has succeeded geothermal belt, Türkiye is one assessing the mentioned thermal in attaining high standards both of the top seven countries in tourism centers’ current state for its hospitals and healthcare the world in terms of resource and their potential with regards professionals with help of the richness and potential and is to tourism have been completed. program over the past decade. considered as the first in Europe, According to the current approved Türkiye has many international with 1,500 thermal springs, development plans, the planned rehabilitation and health care ranging between 20 – 100 bed capacity of thermal tourism organizations which have degreees, with high therapeutic centers is approximately 100 internationally accredited and geothermal potential. thousand. standards. There are approximately 190 European countries, which are Together with medical tourism Türkiye presents thermal facilities in 46 cities in the most important target market and thermal tourism, medical foreign patients Türkiye. The bed capacity of the for Türkiye, will have a substantial care services for elders and the with high-quality 12 facilities (the cure center of elderly population. Türkiye disabled is another important part which has been approved by the will serve these people with its of health tourism. treatment at Ministry of Health) which hold developed facilities in coming Thermal tourism is a type of lower costs in tourism investment certificates years. alternative tourism in Türkiye comparison with of the Ministry of Culture and that is known for growing in Tourism for thermal purposes TÜRKIYE’S HOT SPRINGS importance and in demand. Europe, the US is 2,347, while the bed capacity ATTRACT RUSSIAN VISITORS In recent years, the number and other western of the 30 facilities which hold Hot springs in northwestern of modern thermal tourism countries. tourism management certificates Türkiye are attracting Russian facilities has increased in Türkiye, are 8,567. The 156 facilities, vacationers looking for a way to especially to meet the growing which have an approximate bed heal various health problems. demands of foreign tourists. The capacity of 16 thousand, are Russian holidaymakers prefer increase in the number of thermal certified by local administrations. Yalova province to enjoy the hot tourism facilities in Türkiye will There are 34 tourism centers, one springs. contribute to the diversification of Protection, Development Region Highlighting 3,500 Russian tourism in the country, increased of Culture, and Tourism to date, visitors were accommodated in demand for tourism, expansion which have been declared as such Yalova in 2019, with an increase of the tourism market, and according to the Law no 2634 on of 20 – 25 percent annually, Ümit improving Türkiye’s image in the the Encouragement of Tourism Gürbüzoğlu, deputy manager of international arena. and are still operative. Thermal Hot Springs Enterprise of 46 MARCH 2020 ISSUE 80 The Turkish Perspective

due to cultural tours made in addition to thermal tourism. “Foreign tourists, who spend 650 dollars - 750 dollars on average in the all-inclusive accommodation system, reach over 1,000 dollars in alternative tourism, thus providing more foreign exchange inflow to our country,” he continued. “In this context, our country, which is rich in terms of tourism, should focus on thermal health and alternative There are approximately tourism as well as sea, sand and 190 thermal facilities in sun tourism.” 46 cities in Türkiye. Stating that they are trying to introduce elderly and disabled care facilities in Türkiye to foreign insurance companies and health institutions by organizing educational promotional activities at home and abroad, Yıllık explained that this year they made promotional visits to many countries and cities, spearheaded by Russia. Yıllık pointed out that Türkiye, surrounded by seas on three sides, has a short flight distance to Europe, Asia and the Middle East, which is a vital factor for the touristic preference.

Türkiye’s Ministry of Health said, and Iran, Yıllık added. “2,500 visitors came from Middle Türkiye presents foreign Eastern countries. Hot spring patients with high-quality Benefits of hot tourism is very popular, especially treatment at lower costs in during the winter”. Aiming to comparison with Europe, the US springs increase the number of visitors in and other western countries. 2020, Gürbüzoğlu added. Yıllık underscored that Bursa, Denizli, Yalova, Ankara, Dalaman, • Protect and develop TÜRKIYE GENERATES Istanbul and İzmir are the most your health 1 BILLION DOLLARS IN fortunate cities due to their REVENUE FROM THERMAL proximity to the airports and the • Get away from daily TOURISM IN 2019 ease of access to the service. stress, “Stress relaxation” Thermal facilities in Türkiye have Located in the Aegean province • Stay with yourself, generated approximately 1 billion Denizli, the world-renowned Türkiye has long dollars in revenue from some 3 Pamukkale is one of the most personal time million tourists, including 750 popular sites for such tourists, been among the Gain physical and thousand foreigners, throughout particularly those from Europe, most favorable • 2019, according to the head of East Asia, Latin America as well as destinations of the spiritual vigor the Thermal Health and Tourism Russia. Association (TESTUD) Yavuz Yıllık. Because of its location on the world for tourists. • Eat healthy, diet and Mostly tourists from China, graben system of the Aegean weight loss Germany, South Korea, Japan, Region and the cracks formed Russia, United States, United by this system Kütahya is one of • Pain free physical Kingdom, Malaysia, Spain, the most important regions in and worry free spiritual Brazil, Azerbaijan, Norway and in terms of geothermal sources. Luxembourg come to Türkiye for Those sources have quite high activity thermal tourism purposes, Yıllık thermal value and are important • Learn how to live said. for health tourism. Among other countries that Yıllık further stressed that healthy showed a high interest are despite the fewer number of • Have a healthy vacation Czechia, Turkish Republic of tourists from Germany, Italy, Northern Cyprus (TRNC), Georgia, Czechia and Israel, there was a or take a health vacation Turkmenistan, Kuwait, Bahrain higher foreign exchange inflow MARCH 2020 ISSUE 80 47 Gastronomy Creative cuisine of Gaziantep Cuisine plays a huge part in the culture of Türkiye, and there is no better place in the world to experience Turkish food of the highest quality, than in the city of Gaziantep.

Varieties in Gaziantep cuisine; • More than 30 varieties of kebabs • More than 40 varieties of meat and meatless aubergine dishes • More than 50 varieties of meat and meatless various vegetable dishes GAZIANTEP is located in the • More than 30 varieties of North-western of Mesopotamia dishes with yogurt where mankind started to make • More than 30 varieties of agriculture and livestock for the soup first time. The Mediterranean • More than 30 varieties and continental climate could be of stuffed vegetables and seen in this region. The climate Silk Road, Gaziantep exchanged and fertile soil provide numerous cultures, ideas and science for stuffed grape leaves There are more than 400 different agricultural products for thousands of years, and city’s • More than 30 varieties of dishes in the city. 291 Gaziantep. cuisine is affected by all these salad, appetizers species of them have The city bears witness dozens features. Gaziantep is the city already been registered. • More than 20 varieties of of different eras in human history which collated the dozens of pastry and lahmacun and is well-known for its long different cultures from Yemen to • More than 10 varieties of gastronomic history which has the Caucasus in the North and meatballs been at the core of its cultural from India to the Aegean region identity since the Iron Age. Being of Anatolia on the east-west line. • More than 30 varieties of established in one of the most Babylonia, Hittites, Assyrians, desserts important points of the historical Romans, Persians, Byzantines 48 MARCH 2020 ISSUE 80 The Turkish Perspective

reigned over these lands. celebrations are made in large Throughout the history, the city’s amounts, easy-to-prepare dishes. cuisine has been the strongest For feasts, deaths and festivals, About the creative city element of this cultural blend. on the other hand, the best dishes GAZIANTEP Pistachio Gaziantep’s rich history and which are in season tend to be Culture and Art Festival geographic location make it one chosen. has livened up the of the most important cities in the Gaziantep cuisine has city and stands as country, and the unique culture something to please almost every the flagship event expressed in the variety of its taste. The heightened aroma with its wide range dishes enrich Turkish cuisine as and full flavor of the animal of performances a whole. and vegetable products raised combining gastronomy, and grown locally under natural music, literature and CATEGORIES AND TYPES conditions also contribute. Gaziantep is the folk art. Other local OF DISHES The quality of a dish is city which collated festivals included the The foods of Gaziantep can be affected both by the quality of the Shira Festival, which is classified in various groups ingredients, as well as the mastery the dozens of a unique 3-day event according to when they are and meticulousness of the cook. In different cultures gathering almost the eaten, the occasions on which Gaziantep, a good cook is known from Yemen to the whole city to share they are made, chief ingredients, as a kerdiman. Certain techniques the diversity of local preparation technique and where used in Gaziantep cooking have a Caucasus in the cuisines inherited from they are made. Such categories profound effect on its flavor. North and from the Gaziantep’s location include foods for feasts, festivals, India to Aegean on the ancient Silk Road. weddings, deaths and traveling; A MEMBER OF CREATIVE The city takes advantage according to ingredients such as CITIES NETWORK OF UNESCO region of Anatolia of this distinguished meat, yogurt, olive oil, vegetables, In 2007, Gaziantep received the on the east-west geocultural location to dried vegetables; and according European Commission EDEN line. enhance cooperation to preparation, such as meatballs, Award on “Local Tourism and with sister cities, notably soups, pilafs, kebabs, boiled and gastronomy”. Since then, the at the Silk Road Mayor baked dishes etc. There are more city has successfully attempted Forum which aims to than 400 dishes in the city. 291 to build Gaziantep into a world- foster the development species of them have already been renowned center for gastronomy of sustainable cities by registered. According to the most tourism and to protect its food tackling poverty and common type of classification, heritage. Gaziantep was marked environmental issues. there are 12 kinds of dishes in as a European Destination of The Municipality Gaziantep cuisine. There are Excellence through its theme of demonstrates a dozens of different recipes under “tourism and local gastronomy” strong commitment each species. and UNESCO included the city in to improving urban As dishes to be served at its list of Creative Cities Network quality of life and weddings and other large in the field of gastronomy in 2015. supporting sustainable development through many environmental and ecological programs including a climate change action plan, an environment protection plan and the creation of an eco-park. This third program is aligned with the production of renewable energy by transforming pistachio shells, unused until now, into an innovative source of energy foreseen to benefit both industrial and residential use. As a creative city of gastronomy, Gaziantep envisages: Nurturing enhancing social encouraging multi-levels cooperation by organizing an International Festival intercultural dialogue inclusion through conducting research and collecting data with of Gastronomy to share experiences through the Kitchens the Atelier Without other Creative Cities of Gastronomy, notably on and know-how with other Creative ✓in Districts project ✓Obstacles project ✓the history of the ancient Silk Road’s food culture; ✓Cities of Gastronomy. MARCH 2020 ISSUE 80 49 Start-Up

ElaA Tech to enable early diagnosis in cancer Assoc. Prof. Dr. Tunç Laçin and Assoc. Prof. Dr. Gökhan Bora Esmer has created a platform using image processing technology, with the support of TÜBİTAK. The platform enables the removal of an approximately 1 cm lesion from patients’ lungs. Thus, detecting cancer early and not subjecting the patient to CT scans and endoscopy.

FOUNDED BY thoracic surgeon Assoc. Prof. Dr. Tunç Laçin and Electrical and Electronic Engineer Assoc. Prof. Dr. Gökhan Bora Esmer ElaA Tech has developed a new technology to ease the process for patients and to decrease the costs of the iagnosis and treatment. Founding partner of ElaA Tech Assoc. Prof. Dr. Tunç Laçin said he uses the platform in Marmara University Hospital and added, “With this platform, we can pinpoint where the disease is and map the shortest route for the surgeon with 98 percent accuracy.” Assoc. Prof. Dr. Tunç Laçin told the commercialization of the project and the novelties it will bring to the medicine, especially on diagnosis of cancer.

What necessities brought up this project and how was the process? I am a lecturer in Marmara for nothing and if the growth was Has the project University Medical Faculty, and I actually cancer, we could have commercialized? operate on lung cancer. That is the “Our platform been too late on some of the cases We have started the project in source of the idea. We have started can be used on because meanwhile cancer stages August 2017 and signed up for thinking about early diagnosis. As any organ that up. I have thought of creating a Teknopark İstanbul Incubation you know, the diagnosis of cancer has air space. This system using image processing Center in October 2017. As is detecting a lesion through a CT platform only uses technologies to map the shortest of September 2019, we have scan of the lung. After detecting airways” says Prof. route to the lesion and shared my completed our project and the lesion, we evaluate if it is Dr. Tunç Laçin. idea with Electrical and Electronic applied for the CE certificate. cancer or not. Lesions around 1 Engineer Assoc. Prof. Dr. Gökhan When we get our CE certificate, cm diameter can’t be resected and Bora Esmer, who is also in we will be able to sell our product can’t be spotted on endoscopies. Marmara University. He said the all over the world. We have 100 We monitor the patient and the project could be implemented orders from a private hospital in lesion by 3 or 4 CT scans per year. so we have applied to TÜBİTAK Türkiye, but we are waiting for If the lesion grows, we operate on 1512 funding program. We have our certificate. When we get the the patient, send the growth to brought the project to a product in CE certificate said the hospital the pathology. If the growth is not two years with a funding of 130 will be the first to use this cancer the patient was operated thousand liras from TÜBİTAK. platform. 50 MARCH 2020 ISSUE 80 The Turkish Perspective

What technologies does the than lung cancer? platform use? This platform can be used on any It is a cloud-based system that organ that has air space. This ElaA Tech Starts Working on New Projects uses image processing technology. platform only uses airways. There ASSOC. PROF. DR. TUNÇ LAÇIN, cited We pinpoint the disease with CT are endoscopy systems to reach that they have applied to and supported scan the map the shortest route the intestines and prostate. We by TÜBİTAK 1511 with another project, “We to the lesion with endoscopy. It is want to improve the platform in are working on research and development kind of like a mapping system of order to use it on other organs as a of the new project, a hologram technology, Google and Yandex. We tell the second business idea. at the moment. This will be a project to surgeon the way to the disease teach high school students’ anatomy. with 98 percent accuracy. The Why don’t you launch this system picks the safest spot to platform as a full body operate using 3D images of the navigation system? vascular system. We plan to launch as a full body navigation system if we can find can form capital in two years but Have you started to use this an investor. This is about capital. in the meantime, our competitors system? Are there any similar We were told that if we were a can study and enhance our applications in this field? company from U.S., we could platform. In this sense, we Yes, I use the platform at Marmara have gotten a huge investment not only need an investor but University, this is where 98 and could have launched as a a mentor to show us ways in percent accuracy data comes from. full body navigation system. But commercializing and marketing. There are 3 different U.S. based in Türkiye, it is difficult to reach Technology Development systems in this field. But those investors. We have negotiated Foundation of Türkiye has trusted systems have 75 percent accuracy. with big investors in Türkiye, but “According to our and funded us and with this They place an electromagnetic they all avoid the health sector, calculations, if support our commercialization device on the patient, they actually due to certification process taking the patients were process accelerated and our vision sell a product. Our system is based too long. Our project came to life extended. on an algorithm, a platform. Due really fast, in 2 years we have diagnosed using to being cloud-based any doctor a CE certifiable product. Our our system, the What is the market value of from around the world can use advantage is co-founders being a diagnosis costs of this technology? this system after downloading the surgeon and engineer. Teknopark The lung navigation system platform to his computer from administration also supports us. the hospitals drop market value is currently at our website, without needing any But it is very difficult to persuade by 60 percent.” 500 million dollars. There are extra equipment of software. This domestic investors, while foreign 20 thousand bronchoscopy will allow us to reach the doctors investors remain distant because operations daily around the all over the globe. the platform is Turkish. world. Adding prostate and colon We need an investor to apply cancer diagnosis, the market How common are the current for U.S. market. Any product to extends even more. We want to systems use in Türkiye and in enter U.S. market, with clinic commercially launch our platform the world? studies, costs at least 500 in 2020 around the globe. Our The current 3 models are very thousand dollars. We are seeking investor negotiations continue, expensive, so they are not an investor for reaching global and if we find one soon we want to common. The prices in Türkiye markets including US We actually establish an office in Europe soon. are 180 thousand dollars for one system and 350 thousand dollars for the other. There is no repayment for them in the health practices system. We are going to charge by the patient because we do not have a product to sell. We are going to build our system by charging by the patient in the global market.

What is the cost advantage of your platform to hospitals? I will answer this backward. If the patients were diagnosed using our system, the diagnosis costs of 98% the hospitals drop by 60 percent, The accuracy according to our calculations. And we save the patient from of ElaA Tech’s the trouble of repeated CT scans pinpointing the and endoscopies, and a possible lesions. unnecessary surgical operation.

Can this platform be used in the diagnosis of diseases other MARCH 2020 ISSUE 80 51 Brands

Turkish brands reached

4,400This year,stores the biggest demand abroad for Turkish brands at MAPIC, which have reached 4,400 stores of 205 companies abroad, came from Europe and Russia.

IT IS POSSIBLE to attribute Also, Türkiye is able to compete thousand visitors from nearly 80 the increase in Turkish brands’ Turkish brands made with overseas markets in products countries, many offers from all overseas expansion to several hundreds of interviews and services. over the world, especially from factors. In recent years the strides with investors and United Brands Association of Europe, Russia and the Balkans, Türkiye has made on the political companies with potential Türkiye (BMD) President Sinan came to Turkish brands. level to create new markets, for cooperations. Öncel said that the Turkish brands Evaluating the fair, President caused businesspeople to develop stand, which was established for of the United Brands Association a more visionary perspective, the third time in cooperation with (BMD), Sinan Öncel, reminded thus thw worldwide market is İHKİB, attracted great attention that Turkish brands still have a potential market for Turkish from visitors. Öncel said, “We have stores and sales points in 125 brands. The development of encountered an intense demand countries and that they have communication channels and for cooperation especially from reached the remotest corner of digitalization also facilitated Europe, Russia and the Balkans. the world with e - export. Stating brands to operate more effectively We have observed that our gift that 106 out of 387 BMD member abroad. Another factor is the and glassware brands, especially brands have 4,396 stores abroad Turkish population settled abroad, food and beverage, are waiting for and 12,884 sales points, Öncel eager to bring brands from important opportunities all over continued as follows: Türkiye, especially in the last year the world.” there was an acceleration of the MAPIC, the 25th retail and WE EXPLAINED THE POWER Turkish brands in the UK. Another real estate fair held in Cannes, OF OUR BRANDS TO FOREIGN reason is that brands that have France on November 13-15, INVESTORS reached a certain market maturity brought together Turkish brands “Unfortunately, we are still far domestically prefer to evaluate and foreign investors. At the behind our potential, although their foreign markets to grow. fair, which attracted around 9 we have achieved significant 52 MARCH 2020 ISSUE 80 The Turkish Perspective

success. We know that promotion dinner in the strength of our its portfolio by purchasing has a big role in reaching the brand to foreign investors invited Öncel, reminded the Spanish passenger lounge place we deserve. For this reason, to Türkiye I stand, and I got the that Turkish operator GIS, which operates we attach great importance chance to tell potential. With the brands still have in eight countries. Apart from to the participation of our multiplier effect of e-commerce, Türkiye, it operates in Tbilisi and brands in the world’s leading I believe that we will carry our stores and sales Batumi in Georgia, Monastir and fairs. We see MAPIC as a great overseas turnover much higher in points in 125 Enfidha-Hammamet in Tunisia, opportunity for promotion and the next 3 years.” countries and Skopje, and Ohrid in Macedonia, new collaborations. As in previous that they have Madinah in Saudi Arabia and years, this year’s organization was TURKISH COMPANIES Zagreb Airport in Croatia. Holding very productive and successful. SPECIALIZE IN AVIATION reached the also operates in other areas of Our brands made hundreds of Turkish companies also play an remotest corner airport operations such as duty- interviews with investors and important role in the construction of the world with free, food and beverage services, companies with potential for and operation of large projects ground services, IT, security and cooperation. In particular, we abroad, besides retailing. e - export. business services. The company faced high demand from Europe, Construction, airports, and ports provides services to approximately Russia and the Balkans. We are the leading sectors. Turkish 600 thousand flights and 89 have observed that our gift and companies operate airports in million passengers with its glassware brands, especially food more than 10 countries, as well as subsidiaries in 100 airports in 30 and beverage, are waiting for airport construction. TAV Airports, countries in 2019. important opportunities all over which is one of the leading airport With over 13.000 employees, the world. On the other hand, operators in the world, operates Çelebi continues to operate on 2 Shopping Centers and Investors 14 airports in seven countries. continents, in 4 countries, at more Association (AYD) hosted the TAV Operations Services expanded than 40 stations. MARCH 2020 ISSUE 80 53 Do you know? Come walk on the clouds in

PAMUKKALE “cotton castle” in Turkish, is top of the white “castle” which is teases the brain. a natural site in Denizli in in total about 2,700 meters long, You’re in bare feet and southwestern Türkiye. The 600 meters wide and 160 meters you walk gingerly; well, area is famous for a carbonate high. It can be seen from the it’s easy to slide around mineral left by the flowing hills on the opposite side of the on the slopes. It’s constant water. It is located in Türkiye’s valley in the town of Denizli, split-second feelings of being Inner Aegean region, in the River 20 kilometers away. in an Alpine ski resort before Menderes valley, which has a Known as Pamukkale or your conscious self brings temperate climate for most of ancient Hierapolis (Holy City), your brain right back to the year. this area has been drawing the the travertines. It really is a The ancient Greco-Roman weary to its thermal springs magical sight and experience. city of Hierapolis was built on Pamukkale, meaning

“Unreal” says UNESCO

WITH SUCH a unique combination of natural and man-made wonders it’s little wonder that Pamukkale-Hierapolis has been made a World Heritage Site in 1988. “An unreal landscape made up of mineral forests, petrified waterfalls and a series of terraced basins,” is how UNESCO describes Pamukkale. It’s as though those cascading waters have been frozen in time. A sudden waft of a magic wand and motion becomes motionless. Of course, in reality, there’s nothing sudden about Pamukkale. This is geology and science at work over years numbering their thousands. And what they’ve created is mesmerizing.

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Denizli: Hotspot for thermal therapy in Come walk on the clouds in Pamukkale Aegean Türkiye since the time of Classical of stalactites into milky pools TÜRKIYE’S Aegean antiquity. The Turkish name below. Legend has it that the province Denizli is refers to the surface of the formations are solidified cotton becoming a focus shimmering, snow-white (the area’s principal crop) that of interest for those limestone, shaped over millennia giants left out to dry. seeking cure in mineral- by calcium-rich springs. Tourism is and has been a rich thermal pools With Dripping slowly down the vast major industry in the area for its white travertines and mountainside, mineral-rich thousands of years, due to the thousands of years of waters foam and collect in attraction of the thermal pools. history. terraces, spilling over cascades Denizli, a key tourism center of the country in the southwest, offers a dynamic winter tourism for vacationers with its activities. Visitors can find numerous tourist attractions in ancient cities, caves and waterfalls, as well as a chance to taste local delicacies and shop in the historic bazaars. In the city, which has been seen as a unique thermal therapy center since ancient times.

Türkiye’s thermal tourism hub: Afyonkarahisar

AFYONKARAHISAR has always been rated as one of the top thermal centers of Türkiye with the thermal water and the mineral water which dates back to Roman period. The capital of the thermal tourism welcomes not only local tourists but also foreigners who are attracted by thermal water basin, mud baths, physical therapy and rehabilitation centers in 4 different regions of the city.

MARCH 2020 ISSUE 80 55 Fashion Türkiye to celebrate fashion with Mercedes- Benz Fashion Week Istanbul Mercedes-Benz Fashion Week Istanbul is a celebration of fashion and culture, making Istanbul the nation’s style attraction for Türkiye’s most innovative fashion designers, red carpet celebrities and retailers, being Türkiye’s premier fashion and lifestyle event and showcases the collections of Türkiye’s leading designer brands.

40 21 27 Fashion Opinion Fashion designers leaders shows

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ISTANBUL has come a long way most impressive fashion archives in establishing itself as a fashion during the 27 years it has been MERCEDES-BENZ destination, considering that in held. With this aspect Koza FASHION WEEK ISTANBUL 2008, Istanbul Fashion Week was represents the development and The official dates for the 15th only a fashion lab. Today is has history of the fashion industry season of Mercedes-Benz Fashion the support of its title sponsor, in Türkiye. 270 finalists chosen Week Istanbul are announced. Mercedes-Benz, and was attended by Koza today have established The Fall/Winter 2020/21 shows by over 20 thousand visitors their brands as the most well- for MBFWI Istanbul will be held who flocked to Türkiye’s cultural known fashion designers in on March 16th -20th, 2020 at the capital four-day event. Türkiye or they manage the Military Museum, Harbiye. Under design departments of the most the theme “Together” this year’s KOZA YOUNG FASHION important fashion brands. event will bring together the big DESIGNERS CONTEST names of the Turkish fashion Istanbul Fashion Academy APPLICATIONS FOR TURKISH industry and the country‘s most continues to bring its students, FASHION DESIGNERS creative people while being the who are educated with its CONTEST 2020 WILL END ON meeting point of fashion and industry-oriented, business-based, MARCH 20TH. creative disciplines that feed independent and researcher Mercedes-Benz Fashion Week fashion in its new, exciting education philosophy and vision, Istanbul will bring the veterans location. into the fashion sector and opens of Turkish fashion as well as the MBFWI, organized twice a the podium doors to its graduates young blood, who looks to bring year, is acknowledged as the at Mercedes-Benz Fashion Week a breath of fresh air to the scene. fashion event of the region. The Istanbul. The Mercedes-Benz Fashion Week event brings together the most The Koza Young Fashion Istanbul will offer new insight and important pioneers of the fashion Designers Competition has been an alternative look at the modern world and supports Türkiye‘s organized since 1992 by Istanbul fashion industry. apparel industries’ ongoing Ready – Made Garment Exporters’ The event will also host success on a multinational level. Association (IHKIB) with the aim panel sessions and workshops Koza has created MBFWI is organized by of discovering new and future conducted by the leading names Türkiye’s most Istanbul Apparel Exporters’ promising young creative Turkish of Turkish fashion. While the impressive fashion Association (IHKIB) and endorsed Fashion Designers Contest is an newest trends of the upcoming by the Fashion Designers important platform for young season will make a parade, local archives during Association (MTD), United Brands talents who want to make a career and international buyers will the 27 years it has Association (BMD) and the in the fashion design industry. come together with young fashion been held. Istanbul Fashion Academy (IMA). Koza has created Türkiye’s designers and fashion reporters MARCH 2020 ISSUE 80 57 Festival

Carnival enthusiasm comes to Türkiye with orange scents Orange Blossom Carnival, which is realized with the idea of people feeling the happiness, excitement and enthusiasm conceived by the orange blossoms, turns Adana into a huge festival area.

THE FIRST and only street begins in Adana. In the Orange Flower Carnival, carnival in Türkiye, “Orange The Orange Blossom Carnival you can feast on the music as Blossom Carnival in Adana in gathers people from many cities in you can on local delicacies. There April” is celebrated this year and out of the country to Adana. will be street artists in almost between April 3 and April 12th for The carnival begins in early all streets of Adana waiting for the eight time. April and has the simple slogan you to sing along with them. You April is an amazing “Nisan’da Adana’da” (In April in will experience a never-ending month in Adana, as the Adana). It is one of the first annual music feast with drums and scent of the charming orange In the Orange carnivals in Türkiye. flutes. You are going to see lots flowers decorates the city and the Flower Carnival, The Orange Blossom Carnival, of people dancing on the streets. blossom scents seduces the people dating back to 2013, i has a great One of the absolute musts of this of Adana. you can feast share in the recognition and festival is the flower crowns made The Orange Blossom Carnival is on the music as further development of Adana, of orange flowers. The carnival celebrated annually for Adana and you can on local does not only bring orange is organized every year at the its surroundings. It is important to blossoms to the agenda but also time of the orange blossoms and state that orange and other citrus delicacies. aims to recognize both local bringing together thousands of fruits are of great importance flavors and Adana. The economy visitors from Türkiye and abroad for Adana. As spring approaches and streets of Adana come to life in Adana. Most events will be every year, a sweet excitement during the festival. 100 percent local, a fascinating 58 MARCH 2020 ISSUE 80 The Turkish Perspective

Tastes of Adana While you are ADANA KEBAB SIKMA You should try the wrap if you are Sıkma, often mixed with pancakes, is in Adana wishing to taste famous Adana kebab, a type of dough filled with ingredients ADANA CINEMA from the land of kebabs such as cheese or potatoes. MUSEUM If you are into cinema you LIVER AŞLAMA must see Adana Cinema The shish liver, which you can find from In Adana aşlama name is preferred for Museum. There are wax early morning to late night, has spread licorice sherbet, which tastes like iced statues of the Adanian all over Adana to multiply your energy. tea, and it is a great choice for cooling workers of the cinema down. sector and various movie BICI BICI posters. A delicious dessert consisting of grated ŞIRDAN ice, starch, powdered sugar and sherbet, Şırdan, made from lamb’s stomach, is GREAT CLOCK TOWER which you can only find in Adana. one of Adana’s old and regional dishes. The Great Clock Tower, one of the oldest buildings in the city, was built in 1882 level of participation from the The carnival procession is by the governor of Adana citizens of the city. Musicians, estimated to gather an impressive of that period and has dancers, photographers, crowd; clubs, associations, schools, preserved all its glory with painters, handicraftsmen with kids and families who will meet its 32 meters of height. original works of souvenir, this for the opening ceremony at the is a productive nest and an city’s Central Park, which is two TAŞKÖPRÜ opportunity to demonstrate the decades ago a huge orange garden Taşköprü on the Seyhan city’s creativity, imagination in the middle of the town. River, joining the two and artistic face. Housewives Colorful suits, hats and sides of the city, still also sell their products like jams costumes, dragons and witches, looking majestic since the handmade crowns. Various groups most importantly lots of happy Romans, with its splendid The Orange Blossom like singers, artists, dancers, faces will populate the streets. structure of 3.1 meters Carnival gathers people sport clubs, folklore dancers, and Get ready to have fun and feel this high and 13 meters wide. from many cities in and musicians find the opportunity city’s warm, Mediterranean out of the country to to exhibit their talents, education spirit. Welcome to Adana’s Orange ULU MOSQUE Adana. and training in these events Blossom Carnival, the first true Ulu Mosque, which was throughout the Festival Program. carnival in Türkiye. started to be built by Ramazanoğulları in 1523. Ulu Mosque has the characteristics of Seljuk, Memluk and Ottoman architecture.

BEBEKLI KILISESI İtalian Saint Paul Church, known as Bebekli Kilise - Church with Baby - indicates that Adana has hosts lots of beliefs and cultures. The local name of the church comes from the 2.5 meters high Mother Mary statue on top of the church.

KAZANCILAR BAZAAR The historical Kazancılar Bazaar is one of the most crowded places of Adana. Boilersmiths and coppersmiths work in this bazaar since time immemorial.

SEYHAN DAM LAKE Adana means Seyhan, another symbol of Adana is Seyhan Dam Lake.

MARCH 2020 ISSUE 80 59 Here are the art and culture events that you can enjoy in March

CONSTRUCTING A DREAM March 26 - June 28 Pera Museum

THE EXHIBITION focuses on Albanian social realism through painting, poster and drawings, and it offers a selection of artworks produced under the dictatorship that aimed to spread socialism’s main principles among the proletarian. Curated by Artan Shabani, the exhibition investigates the impact of the communist ideology on Albanian visual arts during the second half of the 20th century. The selected artworks reflect the ideology that played an important role in the works’ dogmatic content. The exhibition offers an 16TH AKBANK SHORT opportunity to become familiar with the culture and identity FILM FESTIVAL of Albanian people who had been isolated from the rest of March 16 - March 26 the world for a long time, and centers around the daily life, Akbank Sanat working class, portraits of leadership, representations of the regime and a hopeful approach to upcoming generations. AKBANK Short Film Festival was held for the first time in 2004. It has developed further over the years into one of the leading arts and culture events in Istanbul with an increasingly diverse program. The festival aims to encourage short film production, to deliver the films to audiences, to support new filmmakers, SÓNAR ISTANBUL to champion short film 05 March - 07 March internationally, to provide Zorlu PSM a debate platform for short film within a festival culture THE ISTANBUL edition of and to establish a festival for Sónar, the most distinguished cinema-lovers to enjoy. and awaited festival of Europe Every year, with will be reunited with music “Akbank Short Film lovers at Zorlu PSM this year on Festival in Universities” March 5th,6th,7th, 2020 with event, the festival reaches the contributions of %100 Music. various cities of Türkiye Sónar Istanbul will host DJs other than Istanbul. The and producers of the local and award-winning films are international electronic music screened to the students of scene, each who have achieved universities in Türkiye. great success in their genre. Sónar Istanbul is combining music, creativity, and technology while hosting thousands of music lovers for the past three years.

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FIDDLER ON THE ROOF March 25 - April 24 Zorlu PSM

STARTING under the roof of ‘’Yearlong Jazz’’, ‘’Akbank Jazz 30th Year Concerts’’ are carrying forward with saxophonist Anıl Şallıel, one of the prolific names of Turkish new generation jazz, and his ‘’166 Days’’ concert. Şallıel will be playing tracks from his first solo album ‘’166 Days’’ ranging from jazz to funk and ethnic fusion, and will be assisted by his guests Deniz Taşar, Önder Focan, Mustafa İpekçioğlu, Furkan Bilgi, Ergün Şenlendirici, Batu Şallıel, Burak Dursun and Memduh Aktay.

KENNY BARRON & DAVE HOLLAND TRIO FEAT. enjoyed a hugely influential tenure as a music teacher JOHNATHAN BLAKE at Rutgers University and the Julliard School of Music. March 24 British-born Dave Holland, played on Miles Davis’s Zorlu PSM rhythm section on In a Silent Way and Bitches Brew. He has successfully led his own small groups and PIANIST Kenny Barron and bassist Dave Holland first large bands during the last years. A master of tone and got together for an intimate series of duo concerts in rhythm, the bassist, composer, and bandleader is now 2014, after the release of their acclaimed CD “The Art in his fifth decade as a performer. of Conversation”. The son of legendary violinist John Blake and a They recently got together to record a trio album graduate of the William Paterson University, drummer with the help of drummer Johnathan Blake, to be Johnathan Blake has earned a solid reputation through released in early 2020 and followed by a world tour. years-long memberships in the Tom Harrell Quintet, NEA Jazz Master Kenny Barron got his start with the the Kenny Barron Trio, The Mingus Big Band and Dizzy Gillespie Quartet. Off the bandstand, Barron has many other top contemporary bands.”

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MINIATURE 2.0 March 26 - June 28 Pera Museum

FOCUSING on contemporary approaches to miniature painting, the exhibition brings together the works of 13 artists from different countries such as Türkiye, Iran, Pakistan, Saudi Arabia and Azerbaijan. The artists do not treat miniature solely MOON DUO PRESENT THE the Light” that was released last as a historical object, they LIGHTSHIP year, and the song ‘Shadow of the emphasize its theoretical March 21 Sun’ with which they completely potential as a contemporary Salon IKSV handed down the steering wheel to art form. Using various psychedelic forces. forms such as sculpture, ACTIVE SINCE 2009, the duo Embodying both the light video, photography, and introduced themselves with the and the dark, the duo can be best installation, they bring EP’s “Love On The Sea” and “The described as Yin and Yang of one out miniature from books, Killing Time”. Their long-play another. In Salon, they will be where it has resided journey took off with their first singing songs from their latest for centuries, give it a album ‘Escape’ in 2010 and bore its album “Stars Are The Light” in the new dimension, and most delicious fruit with “Circles” company of Emmanuel Biard’s search for ways in which released in 2012 with a Sacred light cube that is inspired by the miniature can live in the Bones label. Their hardliner fans psychedelic culture and disco of contemporary world. around the world grew in numbers the 70’s, which is sure to blow your Contemporary miniature with their latest album “Stars are mind. goes beyond its former context in terms of form and content, and it focuses on issues such as colonialism, orientalism, economic YEARLONG JAZZ: ANIL ŞALLIEL AND inequality, gender, politics GUESTS “166 DAYS” of identity, discrimination, March 24 social violence, Babylon compulsory migration, and representation. The STARTING under the roof of ‘’Yearlong exhibition emphasizes the Jazz’’, ‘’Akbank Jazz 30th Year Concerts’’ artists’ various approaches are carrying forward with saxophonist to traditional miniature, Anıl Şallıel, one of the prolific names as well as revealing the of Turkish new generation jazz, and commonalities between his ‘’166 Days’’ concert. Şallıel will be them. playing tracks from his first solo album ‘’166 Days’’ ranging from jazz to funk and ethnic fusion, and will be assisted by his guests Deniz Taşar, Önder Focan, Mustafa İpekçioğlu, Furkan Bilgi, Ergün Şenlendirici, Batu Şallıel, Burak Dursun and Memduh Aktay.

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IZMIR EUROPEAN JAZZ Austria, Italy, France and Greece FESTIVAL with their experimental and March 1 electronic works constitute the Ahmed Adnan Saygun Sanat finest examples of European Jazz. Merkezi The festival, which is organized in cooperation with The Goethe THE IZMIR European Jazz Institute, The Austrian Culture Festival organized every year Institute, Izmir French Cultural since 1994, aims to bring together Institute, The Italian Consulate, masters and lovers of Jazz in Izmir Consulate of Hellenic attempt of generating feelings of Republic, The Kingdom of love, friendship and peace. In the Netherlands and Izmir Belgium days Türkiye’s EU membership Honorary Consulate, is a showcase started to be worded more of European cultural collaboration. often, what started as the “Izmir The festival offers a panorama European Jazz Days” expanded of what’s going on with jazz in both in content and duration to Europe, an historical perspective become The “Izmir European Jazz and the latest discoveries by Festival”. Performers and bands musicians rarely if ever heard in coming from Türkiye, Germany, Türkiye.

RIVERSIDE March 10 Zorlu PSM

RICHARD BONA & ALFREDO FOUNDED in Poland in the early 2000s, RODRIGUEZ Riverside followed the footsteps of legends March 11 like Dream Theater, Tool, and Porcupine İş Sanat Tree and tried to discover and experiment the boundaries of progressive rock. The AFRICAN Music meets with band released their first album “Out of Latin Music. Famous bass player Myself” in 2003 and after quick success, the Richard Bona and Cuban pianist band immediately focused on producing Alfredo Rodriguez will have an new materials. With the release of Voices unforgettable evening in İş Sanat in My Head EP, InsideOut released the with drummer Taylor Gordon. band’s second album Second Life Syndrome Watching Rodriguez’s breathtaking in 2005. When the group member Piotr technique with the charming bass Grudziński lost his life in 2016, the group performance of Richard Bona, was shaken to the core but persevered its known as “African Sting”, offers a way without compromising from their real music feast. Alfredo Rodriguez, performance. In 2018, they returned to the legendary musician Quincy the studio and released their apocalypse- Jones brought to the world of music, themed album Wasteland. Poland’s star works wonders with the piano. Riverside is coming to Zorlu PSM on March 10th for a progressive rock storm! MARCH 2020 ISSUE 80 63 Arts & Culture

FLAPPER SWING March 11 Touché

FLAPPER Swing is a quintet following footsteps of famous french jazz artists Django Reinhardt and New Orleans’s expatriate Sidney Bechet. These five musicians were brought together by their passion for taunting acoustic sounds of gypsy swing. Flapper Swing’s music is a sweet blend of manouche guitars, wild soprano saxophone, sensitive silklike vocal, supported by the deep woody hum of the double bass. In their performances, Flapper Swing is striving to bring the audience an atmosphere of roaring twenties and ballroom parties, the times when jazz was still fun.

DARK NIGHT: SHE PAST AWAY, KAELAN MIKLA, BOX AND THE TWINS March 10 %100 Studio

SHE PAST AWAY is dark- wave with a reworked 80’s sound. Signature guitar sound of the post-punk era, combined with minimalist poetry in Turkish. Often an outburst of emotional PATRICK WATSON anxiety through the March 14 nihilistic mind-frame, it %100 Studio is personal. It is broad, a wondering mind brave BORN IN CALIFORNIA, raised in enough to question taboo Montreal, Patrick Watson first began and existence. She Past singing in a church choir. After Away was formed in 2006 singing and playing keyboards in by guitarist and vocalist the ska band Gangster Politics, he Volkan Caner and bass left the band to explore different player İdris Akbulut. Playing areas of music such as ambient in genres such as post-punk, and electronica, studying Jazz and darkwave, gothic rock and Classical Piano, Composition and new wave, the band released Arranging at Vanier College in its first EP called Kasvetli Montreal. He released his first album Kutlama in 2010. Having in 2001, and in 2002 he formed a performed in festivals in chamber pop band carrying his name and outside of Türkiye, She with musicians Mishka Stein, Robbie Past Away has released two Kuster and Simon Angell. The band, albums called Belirdi Gece which shook all over Canada and (2012) and Narin Yalnızlık Europe with their Close to Paradise (2015). After İdris Akbulut album, won the Polaris Award. Patrick, who also composed quit in 2015, keyboard music for short films, got nominated for the Polaris Music player Doruk Öztürkcan Award with the album Wooden Arms released with his joined the band. band. In 2017, he released his solo single “Broken’ which was played in series such as Grey’s Anatomy and The Good Doctor. Patrcik Watson is ready to take the stage at %100 Studio with his soon-to-be released album on March 14! 64 MARCH 2020 ISSUE 80 Figures The Turkish Perspective Numbers of best January in exports

The highest January export figure in the history of the Republic of Türkiye was reached in January with 14.8 billion dollars. Turkish Minister of Trade Ruhsar Pekcan said, “We will continue our successful performance of 2019 in foreign trade with the same resolve and determination in 2020.”

6.1% 76.8% Top exporters in January The monthly The ratio of exports Germany increase in exports covering imports in in January January 1.4 billion dollars 132 90,617 Italy The number of countries among The number of 214, that increased their imports exporters reached in from Türkiye in January January

889 million dollars Top exporting sectors UK 6,404 Automotive 2.4 billion USD The number of firms have used liras in their Chemicals 1.7 billion USD 870 million dollars transactions, in January Apparel exports 1.5 billion USD

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Türkiye is only 4 hours away from a wide Türkiye has 56 geography airports YOU CAN ACCESS TO COUNTRIES WITH A POPULATION OF 1.55 BILLION 180 PEOPLE, A GROSS DOMESTIC Ports PRODUCT OF 35.7 TRILLION DOLLARS AND A TRADE VOLUME OF 6.8 TRILLION 19 DOLLARS WITH A FLIGHT OF border gates 4 HOURS FROM TÜRKIYE.

66 MARCH 2020 ISSUE 80 ZAFERLERLE YÜKSELEN AY YILDIZIMIZI GÖKLERDE TAŞIMAKTAN GURUR DUYUYORUZ 18 Mart Çanakkale Zaferi’nin 105. yılı kutlu olsun.

CELEBRATING THE 105TH ANNIVERSARY OF ÇANAKKALE VICTORY