CONTENTS INCENTIVES AND SUPPORT ...... 33 INCENTIVES ANDSUPPORT WHY OSMANIYE? ...... 31 ONGOING PUBLICINVESTMENTSINOSMANIYE...... 28 LOGISTICS ...... 27 FOREIGN TRADE...... 24 ENERGY ...... 23 CULTURE ANDTOURISM...... 19 INDUSTRY ...... 10 AGRICULTURE ...... 8 SOCIAL INDICATORS ...... 6 GENERAL INFORMATION ...... 2

1 2 Information General Source: Turkish StatisticalInstitute GENERAL INFORMATION Annual Growth Rate ofPopulation Population Density Population Surface Area Province ofOsmaniyeGeneralInformation,2013 widespreading incentivemeasures inthelastfewyears. of industry, effected bydevelopingindustriesatsurrounding citiesandthe with thateconomicactivitiesare observedintheprovince inmanysectors livestock andforestry duetoitsgeographicalpositionandnaturalstructure, Kahramanmaraş inthenorth.Osmaniye,iseligibleforagriculturalproduction, adjacent to Gaziantep in the east, Hatay in the south, Adana in the west and Çukurova side of the Ceyhan River. on the fertile lands on the eastern It is MediterraneanRegion,Eastof Osmaniye issituatedintheEastern 498.981 (OsmaniyeProvince) 244.195 (CityCenter) 160 persons/km 3280 km 13,8% 0 2 2 Osmaniye Counties of Source: Turkish Statistical Instıtute Hasanbeyli Toprakkale Sumbas County Center Bahçe Kadirli Düziçi Total Population(Including Towns andVillages) 244.195 118.119 16.622 15.130 79.450 21.077 4.388 16.622 respectively. these districts are 244.195, 21.077, 79.450, 4.388, 118.119, 15.130 and Hasanbeyli, Kadirli,SumbasandToprakkale counties.Populationsof Osmaniye consistsof7districtswhichare Center, Bahçe,Düziçi, GENERAL INFORMATION

3 4 Climate Structure Geographical GENERAL INFORMATION 6 mm. is higherinwinterandfallthantheothermonths averageannualprecipitation is767. Average temperature is18.2°C and averagemaximum temperature is42.8°C. Precipitation of Mediterraneanclimate.Summersare hotanddry;wintersare mildandrainyingeneral. Although theclimateinOsmaniyediffers inhighlandsandplains;ithasthecharacteristics located inAdana(90km)andHatay(121km). 60 km from the Port of Iskenderun. The nearest airports to Osmaniye are no seafrontier, isatadistanceof220kmfrom thePortofMersinand Turkey intermsofhighwayandrailroad transportation.Osmaniye,having Osmaniye isthetransitionpointbetweenSoutheastandwestof are DüldülMountain(2.400metres) andTurna Mountain(2.285metres). the Centre, Toprakkale, Kadirli and Düziçi counties. The highest mountains slightly rough terrainsbetweenmountainsandplains.Plainsare mostly in Mountainsintheeast.There arethe northwest,Dumanlı,DüldülandTırtıl extending from thePortofIskenderuntoeast,Toros Mountainsin Osmaniye. There are AmanosMountains(GâvurMountains)inthesouth, Flat area ofAdanaPlainextendstowards partsof theeastinwestern features. Thelandrisesgraduallyfrom thesouthtonorthandeast. Osmaniye isoneoftherare places,whichhasmanyformsofsurface Osmaniye of History region hasbecomehometoTurks sincethebeginningof12thcentury. conquest ofAnatoliabytheTurks, in1080’s Turkish tribescame to thisregion. The early ages the on. Afterwards Ummayyad and Abbasis lived on this land. With Assyria, Persian,AncientGreek, RomanandByzantinesometribesfrom the in whichOsmaniyeissituatedwitnessedtheexistenceofsuchstatesasHittite, years. Historyofthisregion datesbacktotheearliestknownperiods.Theregion, Situated totheeastofCukurova, Osmaniyeprovince hasahistoryofthousands of GENERAL INFORMATION

5 6 Source: Osmaniye Provincial Directorate of the Ministry ofEducation Source: Osmaniye ProvincialDirectorateoftheMinistry Source: OsmaniyeKorkutAtaUniversity Province ofOsmaniyeEducationStatistics Education SOCIAL INDICATORS Total Vocational andTechnical HighSchool High School Secondary School Elementary School Pre-School Osmaniye Number of Students 7,586 university, whichhas5faculties,2institutesandvocationalschools. Osmaniye, wasestablishedin2007.There are 7.586studentsstudying atthe future intrainingqualifiedhumancapital,whichisimportantfortheprovince of Osmaniye KorkutAtaUniversitywhichisexpectedtohaveamajorshare inthe of Osmaniye. sectors and1035teacherstrain19.712studentsintheseschoolstheprovince There are 30Vocational andTechnical Schoolswhichtrainintermediatestaff for social developmentwithincreases inproductivity. preferences, isoneofthemostimportantindicatorssustainableeconomicand of individualsandsocietiesisadeterminingfactorinhumanrelations and Level and quality of education, which affects directly the development process Osmaniye 2013-2014EducationTerm Statistics Higher Education(2013-14Term) Number of Academic Staff 276 Number ofSchool 645 138 207 232 30 38 Number of Faculty 5 Number ofStudents 122.093 19.712 13.416 38.942 42.521 7.502 Number of Colleges 3 Number of Institutes Number ofTeacher 2 6.016 1.932 1.876 1035 777 396 Number of Vocational Technical School 5 Source: Osmaniye Provincial Directorate of the Ministry ofHealth Source: OsmaniyeProvincialDirectorateoftheMinistry Osmaniye NumberofHospitalsandBedsinHosiptals Health Osmaniye Number ofHospitals planning aninvestmentinthehealthsector, especiallyinhospitals. demand inthe sector, Osmaniyeisseen as apotential market bythepeople As itisunderstoodfrom thecurrent indicators,intermsofitspopulationand Health) per 100,000peopleis189.(OsmaniyeProvincial Directorate oftheMinistry specialists, 257practitioners,103dentistsandthetotalnumberofbedsinhospitals Considering thehealthsectorintermsofmedicalpersonnel;there are 313 (Public) 3 Hospitals (Private) Number of 5 Number ofBeds in Hospitals 944 SOCIAL INDICATORS

7 8 Production Area andOutputofSomeAgriculturalProducts inOsmaniye AGRICULTURE Source: : Osmaniye Provincial Directorate of the Ministry ofFood,AgricultureandLivestock Source: :OsmaniyeProvincialDirectorate oftheMinistry Orange Olive Radish Soybean Sun Flower Corn Peanut Wheat Agriculture “ 36% ofpeanutproduction inTurkey 80% ofradishproduction inTurkey 7% of corn production7% ofcorn inTurkey 5% ofsoyproduction inTurkey Takes placeinOsmaniye of theagriculturallandandfruit,vegetablefallowlandsconstituterest. The province has125,012hectares ofagriculturalland.Fieldsconstitute84.2% Osmaniye. area andamountofproduct intheproduction ofagriculturalproducts of Grains andotherplantshavethemostimportantplaceintermsofproduction Production Area (da) “ 121.904 369.013 119.837 569.108 40.550 15.900 47.768 9.208 place inOsmaniye. cherry, oliveandorangehasanimportant in Osmaniye.Inaddition,production of and radishare theprominent products sunflower,Wheat, peanut,corn, soybean Output (Tons) 125.000 471.268 241.226 32.762 73.451 11.890 42.059 5.908 Source: Osmaniye Provincial Directorate of the Ministry ofFood,AgricultureandLivestock Source: OsmaniyeProvincialDirectorate oftheMinistry Production Animal Practices Farming Greenhouse Osmaniye value in2013Osmaniyewhichhas1%ofthenumber ofcattleinTurkey. There is 874.188.750 TL worth of plant and 328.761.689 TL’s worth of animal people andcompanies,planningtoinvestinthefieldofagriculture. Osmaniye. Itisevaluatedthatthere isaninvestmentpotentialinthisarea for There are 26plasticgreenhouses, 7hightunnelsand1.006lowin Plant Production Value (Thousand TL) 874.189 Animal Production Value (Thousand TL) 328.762 AGRICULTURE

9 10 Industry INDUSTRY Stone andearth Based Industry Processing Peanut sector basedonstoneandsoil. Osmaniye are agriculture-based foodindustry, iron-steel industry, andindustry In general;thesectorsproviding thedynamismwhichdriveseconomyof based sectors,tendtodevelopinparallelwithindustrialization. added value through product differentiation, which are among the agriculture- of theproduction inTurkey. Peanutprocessing andobtaining products ofhigh Certain products intheagriculture andfoodsectorhavereached thehighestlevels Therefore, iron andsteelsectorhasbecomeanimportantinOsmaniye. and SteelSectorhasreceived itsshare from theseinvestmentsquitesignificantly. the introduction ofOsmaniyeintothecitiesfirstpriorityindevelopment.Iron expanding industryinthesurrounding citiesaswelltheincentivesgivenwith Investments for various sectors have been realized because of the pressure of the location aswellitssuitableclimateforagriculture. agriculture wastheprominent sectoroftheeconomy, becauseofitsgeographical Economic structure ofOsmaniyehasdevelopedbasedonagriculture. Initially, Prominent Sectors in theprovince of Osmaniye Olive and Olive Oil Food Production of bottled water Iron-Steel sectors respectively. Petro-chemical, coalandplasticindustry, stoneandearthbasedindusty and textileindustry followthese ranks first. After thefoodsector, main metalindustry sectorfollowswith 48companies andashare of18,9. Ratio ofthefoodindustrysectorintotalaccording tothenumberofcompaniesis31.2%andit There are 253companies with industrial registry certificate inOsmaniye, 79of whichare in the foodsector. Source: Osmaniye Provincial Directorate of the Ministry of Science, Industry andTechnology ofScience,Industry Source: OsmaniyeProvincialDirectorateoftheMinistry Machinery, Equipment and VehicleInd. Transportation Equipment Machinery, Petro-Chemical, Coal, Rubber and Plastic Products Plastic and Rubber Coal, Petro-Chemical, Paper, Paper Products and Printing Ind. andPrinting Products Paper Paper, Stoneand Earth Based Ind., Mining Textile, Clothing and Ind.Leather Food, Beverage and Tobacco Ind. Tobacco and Beverage Food, Main Metal Ind., Metal Ind.,Metal Products Metal Main Numerical Numerical andPercentage Distribution ofCompanies with Industrial Registry Certificate by Sectors Wood ProductsandWood Furniture Electricity Production Electricity 0 2 6

0,7 12 % 16 2,3

10 % 26

4,7 31 33 % 6,3

20 %

48 10,2 30 % 12,2

13,0 %

% 79 40

50 18,9 %

60

70 80 31,2 INDUSTRY %

11 12 INDUSTRY equipment andtransportationvehicleindustryranksfifthwithashare of4%. chemical-petroleum, coal,rubberandplastics products industryranks fourthwitha7.9%share, machinary, leather industryrankssecondwithashare of31.8%,foodindustryranksthird withashare of12.4%, Main metal industry ranks first with a35.8% share, in terms ofproviding employment, woven apparel and Source: Osmaniye Provincial Directorate of the Ministry of Science, Industry andTechnology ofScience,Industry Source: OsmaniyeProvincialDirectorateoftheMinistry Machinery, Equipment and Transportation Vehicle Ind. Vehicle Transportation and Equipment Machinery, Petro-Chemical, Coal, Rubber and Plastic Products Plastic and Rubber Coal, Petro-Chemical, Paper, Paper Products and Printing Ind. Printing and Products Paper Paper, Stone and Earth Based Mining and Based Ind., Earth Stone Textile, ClothingTextile, and Ind.Leather Food, Beverage and Tobacco Ind. Main Metal Ind., Metal Products Metal Ind., Metal Main Wood Products and Products Furniture Wood Electricity Electricity Production Employment Distribution of the Companies with Industrial Registry Certificate 0,0% 0,4% 1,9% 2,4%

3,1% 5,0%

4,0%

7,9% 10,0%

12,4% 15,0%

20,0% 25,0%

30,0% 31,7% 35,0%

35,8% 40,0%

Sector Steel Iron and people are employedinabout147companies,activetheiron andsteelsector. rebar andplainconstructionirons are produced inabout126rolling mills.Over30.000 them intheCentralAnatoliaRegion.Inaddition to this,iron profile from ingot,wire rod, them intheAegean,4ofMediterranean,3BlackSeaand1 7 of21producers producing endproduct from rawsteelare activeinMarmara,6of shows Turkey hasreached acertainlevelintheiron andsteelproduction. increase oftopproducers suchasChinaandIndia,isofgreat importanceinthatit that theincrease insteelproduction inourcountryranksthird, aftertheproduction steel intheworldandsecondproducers inEurope, afterGermany. Thefact As thecurrent situationshows,Turkey ranks8thamongthe65countries,producing country’s prosperity anddevelopment. level offlatsteelinacountryisconsidered oneofthemostimportantindicators capital goods industries in our country, as throughout the world. Therefore, production advantages. Iron andSteelproducts are maininputsoftheconsumerdurablesand with itsdurability, reliability, widespread use,eco-friendlyfeature andmanytechnical foundation of industrialization and become driving force of development since the past, Iron and Steel, which are integral parts of contemporary society’s life, has been the INDUSTRY

13 14 INDUSTRY companies, 4200employeesandarisingtrend intheexports. – IskenderunRegionin2012.ThesectorrankedamongtheleadingsectorsOsmaniyewithits26manufacturing examination ofIstanbulChamberIndustry, are thecompaniesoperatinginIron andSteelsectorinOsmaniye 11 companies,whichwere amongthetop500industrialenterprisesinTurkey, determinedeachyearthrough from energytoiron andsteelsectorsespeciallyinthelastfiveyears. Regionwillsoonbecomeoneofthefewindustrycentersfuture withitsinvestmentattractionithasattained and exceeded9.93milliontonsin2013. plants withelectricarcreached furnace 24,7milliontons,production ofintegratedplantsincreased annualy6,5% 35.9 milliontonsin2012.Therecognition ofthenumberis34,6milliontonsin2013.Whilerawsteelproduction of Turkey, which manufactured 34.1 million tons of raw steel in 2011, increased its production 5.2% and reached Sector Food Peanut harvested from this landin2013. Osmaniye. Total peanut cultivation area inOsmaniyewas 119.837 decares and42.059tonsof peanut were of Osmaniye.37%thecultivation area ofpeanutand 36%ofthepeanutproduction inTurkey isrealized in Osmaniye peanutisthemost importantproduct oftheagriculture inOsmaniyeandhasbecomeasymbol almost theentire peanut production inÇukurova Region today. production shiftedtothistype,marketingproblems disappeared automaticallylater. NC-7kindconstitutes Since the seed colour of this kind is straw yellow, it was unpopular among the merchants initially but since After NC-7typepeanutwasregistered inTurkey in1987,mainlythiskindbegan tobeplantedinOsmaniye. Source: Osmaniye Provincial Directorate of the Ministry ofFood,AgricultureandLivestock Source: OsmaniyeProvincialDirectorateoftheMinistry Food Packaging Dairy processing Peanut processing Oil-Olive Processing Flour andBakeryProducts to theeconomyandpromotion oftheprovince. food packagingfacilitiesmakeamajorcontribution flour andbakeryproduction facilities,feedmillsand peanut andrelated topeanut,oil-oliveprocessing, in Osmaniye in 2014. Products, produced from There are 736companiesopeatinginthefoodsector Number ofManufacturingPlants 121 31 63 97 15 INDUSTRY

15 16 INDUSTRY provided employmentfor1516peoplewith493.290.085TLtotalfixedinvestmentamount. of Province ofOsmaniyetakesfirmstepswithitsexistingsectorsandpotentialinvestmentareas. Total 10 thousand. alivingfromThe numberoffamilies,whoearn thissectorfrom peanutcollectiontoprocessing isapproximately 175.000 square metres oflandinOsmaniye. Plants, whichprocess andsellpeanutsare locatedinthe“PeanutZone,”where 38ofthemare locatedon of great alivingintheprovince. importance,especiallyintermsofemployingwomen,about3500familiesearn form ofsemi-finishedproducts asshelledorunshelledrawmaterials.Thankstopeanutbusinesses,whichare businesses have become brands and produce packaged products and others process and sell peanuts in the Peanut isprocessed at350largeandsmall plantsinOsmaniyeandoffered tothemarket.41ofthese carried outviaOsmaniye. produced in the surrounding provinces are sold from our province; 90% of total peanut sales in Turkey is This production amountcreates apeanutmarket,valuedat105.806.600TL.Alsolargepartofthepeanuts, 34 companiesreceived investmentincentivecertificatesintheprovince ofOsmaniyein2013and Source: Osmaniye Provincial Directorate of the Ministry of Science, Industry andTechnology ofScience,Industry Source: OsmaniyeProvincialDirectorateoftheMinistry Zones Industrial Organized Kadirli OIZ Osmaniye OIZ Name 9.305 people. available and137ofthemhavebeenallocatedtoinvestors. Numberofemployeesintheactivefacilitiesis State HighwayviaBüyükTüysüz road. Village Theroad isasphaltedand6kminlength.137plotsare Airport, 10kmfrom Toprakkale Turkish StateRailwaysStation.Theregion isconnectedtoAdana-Osmaniye Free Zone,45kmfrom IsdemirPort,63kmfrom thePortofIskenderun,95kmfrom theAdanaSakirpaşa Osmaniye OrganizedIndustrial Zone, which wasestablishedin1994,isatadistanceof35kmfrom Yumurtalık Osmaniye OrganizedIndustrialZone There are 2OrganizedIndustrialZonesinOsmaniye Size (Ha.) 120 699 Total Industry Plot 137 38 Companies in Production 22 98 Employees Number of 9.305 598 INDUSTRY

17 18 Source: Osmaniye Provincial Directorate of the Ministry of Science, Industry andTechnology ofScience,Industry Source: OsmaniyeProvincialDirectorate oftheMinistry Zones Industrial Small INDUSTRY Name Osmaniye 1stSIS Osmaniye 2ndSIS Kadirli SIS Bahçe SIS Düziçi SIS TOTAL investors and4ofthemare empty. Numberofemployeesin22activefacilitiesis598people. distribution linehavebeencompleted.There are 38plotsinKadirliOIZ.34havebeenallocatedto from thePortofMersin.Itsinfrastructure construction,potablewater, energytransmissionlineandinternal Ceyhan highwayentrance,90kmfrom AdanaAirport,100kmfrom ThePortofIskenderunand180km Kadirli OIZisatadistanceof5kmfrom Kadirli,35kmfrom Osmaniyehighwayentrance,50kmfrom Adana Kadirli OIZ was established in 2000 on 120 hectares of land in İnebeyli Döğüştepe in Yusuf İzzettin Village. Kadirli OrganizedIndustrialZone and Toprakkale SISare theindustrialsites,whichare stillunderconstruction. Besides, Osmaniye Carpentry and Furniture SIS, Kadirli Carpentry and Furniture SIS rial Sitesare activeandatotalof3,245peopleare employedin931businesses. There are 5 small industrial sites in the province of Osmaniye. These 5 SmallIndust- Year ofCommencing Operations 1979 1991 1977 2004 2008 Total Numberof Businesses 350 250 153 100 931 78 Current Employment 1.500 1.250 3.245 213 140 142 Tourism And Culture museum ofTurkey, andKastabalaRuinsare importantresources ofsightseeing. Cukurova andvastforests, KaratepeAslantaşOutdoorMuseum,thefirstoutdoor Cukurova withtheeast.InOsmaniye,whichhasrichagriculturallandspeculiarto in abusyregion owingtothefactthatitisatjunctionofroads, whichconnect watered duetoCeyhan River, Hamis,Karaçay, Kesiksuyu and SabunCreeks and is bankofOsmaniyeCeyhanRiverinÇukurovaLocated ontheeastern isbothwell- has beenacradletocivilizations. of flora, regional cuisineculture andthefactthatithasalonghistorical heritageand important placeinTurkey, withitspotentialforculture andnature tourism,richness a largenumberofhistoricalandculturalmonuments.Itisregion, whichhasan the earliestperiodsandremained undertheinfluenceofmanycivilizations,andhas The region where Osmaniye is situated has alwaysbeenasettlement area since aqueduct on Ceyhan River, approximately 5 km. northeast of the city. on allsides(rock cutandmonumentaltombs)remains ofthe castle, RomanBaths,stadium,necropoli, whichsurround thecity the mostimportantruinsinOsmaniyeandregion withitschurch, with aseatingcapacityoffivethousandpersons.Kastabala isoneof survived to the present day, are the colonnaded street and the theater time in1875.Themostimportantremains ofKastabalaruins,which cover fewsquare kilometersarea wasexaminedindetailforthefirst Karatepe-Aslantas ruinviaCevdetiye,Kesmeburunfrom Osmaniye, of thecastle,situatedtoeasthighway, whichreaches Osmaniye. RemainsofKastabalaruins,whichstartfrom thefoothills 15 km.from and Bahce Village, It is located in Kesmeburun Village Kastabala (Hierapolis)City: CULTURE ANDTOURISM

19 20 CULTURE ANDTOURISM monuments are exhibitedthere. an architectural unity. An“Open-airMuseum”wasestablished and and transportedintoaclosedmuseum,becausethey are partsof Monuments inKaratepe-Aslantaşwere notremoved from theirplaces these texts. hieroglyphics textsuntil2000BCinAnatoliawere read, bydecoding Hittite textswere read forthefirsttimehere onearth.Allofthe allowed thereading ofthepreviously unsolvedHittitehieroglyphics. the Phoenician (cuneiform) scripts here, akey was uncovered, which to protect hiskingdomagainstthewildtribesinnorth.Thanksto (8th centuryB.C.)bytherulerofAdanaPlain,Asativatus,inorder Karatepe was built as a border stronghold in the Late Hittite Period Karatepe-Aslantaş Open-airMuseum allow campingandsocialneedsintheplateau. activities iscarriedouteveryyearinAugust.There are facilities,which trees. Children’s Festival, which has become a tradition with various road, 26kminlength,leadstotheplateauwithpines,cedarandfir population reaches upto60thousandpeopleinsummer. Anasphalt and Çukurova Region and is situated on Amanos Mountains. Its It isoneofthemostimportantandoldplateausOsmaniye Zorkun Plateau; grow onlyinthisregion. Suitabilityofnatural floraallowscultivationofmedicinalaromatic plants. Some plants,whichare notfoundanywhere elseintheworld(Krokos, Cukurova Orchid, Cukurova violet) Mediterranean climate prevails. Forests and scrub covers about 42% of province stand out with rich flora. plant diversitywiththeirfloraandfauna.Almostall Mediterranean plantsare grown in Osmaniye, where Bird Paradiseare othermajortourismvalues.AmanosMountainsandToros Mountainshavegreat endemic Maksutoğlu, Beyoğlu-Savrungözü-Dokurcun and Çığşar Plateaus, Hasanbeyli-Almanpınarı Plateau, Kırmıtlı Castle, KarafenkBabaoglan-Olukbasi- ÜrünPlateaus,Sumbas-BağdaşPlateau,Kadirli- Toprakkale Castle,Hemite(Amuda)HarunReşitKaypak(Savranda)Çardak purposes athomesandbusinesses. of theserugshasbeenincreasing inrecent yearsfordecorative in Osmaniye are woven using natural wool and madder. The use World-famous inKadirlicounty KarateperugsinVillage Karatepe Rugs There are alsomosaics,belongingtotheperioditwasconstructed. of the monument on temple walls dates back to the Turkish Period. minaret withshortandbarrel-type body, corner builtinthewestern religious buildinginRoman,ByzantineandOttomanPeriods.The at thebasementofKadirliAlaMosque,whichwasanimportant a shrine. There are burial vaults, belonging to the Byzantine Period Dulkadirogulları, Alaüddevle, through the addition of a minaret and by making use of apse, and in 1489 into a mosque by the Ruler of Syrian influence,wasconvertedintoachurch inthe12thcentury, in 1489aftertheconquestbyTurks. TheBasilica,whichexhibits Basilica intheByzantinePeriodanditwasconvertedintoamosque It was a Roman temple before it was converted into a Christian Kadirli AlaMosque CULTURE ANDTOURISM

21 22 CULTURE ANDTOURISM See Attractions Other Must- urinary tractstonesandchronic urinarytractproblems afterkidneystonesurgeries. useful for stomach and small intestine problems, chronic ulcer, diabetes, gout, prevention of kidney and rehabilitation afterorthopaedicsurgeryandfractures. Furthermore; whenitisconsumed,thermalwater • • • Hemite Castle Savrun Canyon Kırmıtlı Bird Paradise pains, chronic lowbackpain,paralysisandneuralgias;are usefulin used fortherapeuticpurposes,isgoodarthritis,muscleandjoint 3.542 bath/person/dayand524bedcapacity. Thermalwater, when and haveradioactiveproperties. Theyhave25l/seccurrent value, bicarbonate, alsocontain4mg/lfluoride,332carbondioxide waters, whichcontaincalcium,magnesium,sulphur, sulphateand in Osmaniye.Thespringemergesfrom anaturalsource. Thermal on thefoothillsofDuldulMountain,15kmnorthDüziçicounty Haruniye Thermal Spring is located within the borders of Kuşçu Village Haruniye ThermalSprings Energy for usingallthecurrent potential.(Turkey EnergyStatisticsReport) Wind mW showsthatinspiteofthis generationcapacity, investmentsare inadequate which corresponds to5,15%ofTurkey’s production, province’s potentialof718 investments in wind power. Despite 135 mW of installed capacity in Osmaniye, Turkey has reached an installed capacity of over 2619,15 MW through the for theworld. be provide bywindpower2020.Thus;energyhasagreat importance 53 TWh/year. Itisanticipated that12%oftheworld’s energyconsumptionwill places where windtribunescanbesetup.World’s windsource iscalculated as use ofwindenergy. Hills, plateaus andcliffs canbeconsidered amongthebest Geographical structures are amongthemostimportantfactorsenabling Turkey average. hours. Average dailysunshinedurationinOsmaniyeis8.1hoursandabove Turkey’s totalannualsunshinedurationis2.699hoursanddailyaverage7.5 Electrical PowerResources SurveyandDevelopment Administration,2013). is intheMediterraneanRegion,1650kWs/m2-year. (GeneralDirectorate of The MediterraneanRegionrankssecond.SunshinevalueofOsmaniye,which AnatoliaRegionranksfirstinsolarenergypotentialourcountry.Southeastern 2009. powerplantsinOsmaniyehavebeenoperatingactivelysince sources. Wind duration and the presence of wind power potential in terms of renewable energy Osmaniye hasquiteanadvantageouspositionintermsofbothlongsunshine thousand hectares ofland.Aslantaşdamprovides 88%ofthisirrigation. this generationisprovided from BerkeDam.Ourdamsirrigateatotal of134 Dams are 648MWand annual electricity generation is 2.277 GWh.73,4%of Mehmetli DamisonKesiksuyuCreek. GenerationcapacityofAslantaşveBerke Berke Damsare builtonCeyhanRiver, KalecikDamisonCreek and Electricity isgeneratedattwoofthefourdamsinOsmaniye.Aslantaşand experienced inelectricityproduction andirrigation. Thanks tothe rivers anddamlakes located around Osmaniye, problems are not Osmaniye isanimportantprovince, intermsofunderground andground sources. ENERGY

23 24 Trade Foreing FOREING TRADE Source: Turkish Statistical Institute 2013 2012 2011 2010 2009 2008 2007 2006 Year of exports,withtheeconomicperformanceithasexhibitedinrecent years. Despite thecrisesexperiencedonaglobalscale,Osmaniyetendstoincrease itslevel EXPORTS ($) $132.662.063 $117.870.966 $131.537.388 $75.120.073 $9.752.500 $6.820.809 $2.737.137 $1.319.929 $707.423.317 $839.993.612 $836.774.173 $326.764.957 IMPORTS($) $28.153.706 $47.646.585 $35.775.742 $10.119.151 East Countriestoday. Exportswere madefrom Osmaniyeto78countriestotalin2013. Companies, whichare activeinOsmaniyeexportproducts tomanynewmarkets, suchasItalyandtheMiddle ofOsmaniyereachedin 2012,exportturnover $133millionin2013. steel sector. Exportsin2011increased approximately 2foldfrom 2010in2011.Afteraverysmall decrease previous between2009and2010almostallofthisincrease wasduetotheincrease inimportsiron and economic performanceithasexhibitedintherecent years.An8-foldincrease wasobservedcompared tothe Despite thecrisesexperiencedonaglobalscale,Osmaniye tendstoincrease its levelofexports,withthe Source: Turkish Statistical Institute FOREING TRADE

25 26 Source: Turkish ExportersAssembly FOREING TRADE IRAQ COUNTRY PERU UNITED ARABEMIRATES PORTUGAL EGYPT ITALY SAUDI ARABIA ROMANIA GREECE INDONESIA Distribution ofExportsbytheMainSectors(%) Top 10countries,towhichExportswere made share inexports,withapproximately 76%. sub-sector,* IronandSteelproductsistheindustry whichhas thelargest Source: Turkish ExportersAssembly Total III.Mining 0,64 II.Industry* 95,88 I. Agriculture exported products. Industrial and agricultural products stand out among 100,00 3,48 (Thousand $) 19.029 16.860 14.567 12.781 10.584 9.674 9.359 5.624 5.232 4.440 14,45 12,80 11,06 9,70 8,04 7,35 7,11 4,27 3,97 3,37 % 95,88 % Industry 0.64 % Mining Agriculture 3.48 % Logistics from thisregion to theeast. its immediatesurroundings willbethestartandendpointofhighwayrailroad transportation Project andfortheexportsofindustrialproducts tobeproduced intheregion. Thus,Osmaniyeand import andauxiliaryproducts, required fortheproduction intheregion Anatolia ofSouth-eastern comprehensive regional developmentplan.Theregion willbecomealogisticscenterofrawmaterial The region AnatoliaProject isalsogatewayofSouth-eastern toabroad, whichisthemost railway andwillsupporttheportisonagenda. of logisticsvillagetobeestablishedinİskenderunandhavingconnectionswithTosyalı Portand Industrial Zone.According tothisplan,establishmentofOsmaniyeLogisticsCenterasanextension planned tobeestablishedintheregion ofOsmaniyeontherailroad, whichisclosetoOrganized Plan” whichwasprepared forthispurpose,aLogisticsCenter, facingAdana-Antakyaroad was increase. andLogisticsCentersofAntakyaOsmaniyeMaster In“IskenderunLogisticsVillage The capacityofsub-sectors,usingiron andsteeltheproducers intheregion isexpectedto sector. corridor. Theprovince israpidlybecomingaproduction center, especially intheiron and steel Osmaniye isalsosituatedatthetransitionpointofTurkey’s north-southtransport export andimportpoint. in the gulf and Tosyali Port, which will be constructed soon, the region will be a major thenewlyprivatizedLimakPortofIskenderun projects intrasportationcorridors.With the MiddleEast,IranandTurkic Republicsandrailroad withthenewlinedevelopment itsgeographicallocation.Itisanimportantjunctionpointwiththehighways to With potential. ItisthemostconvenientpointatwhichMediterraneanconnectstoAsia industry, agriculturalproduction capacityandagriculture-oriented industrialproduction Osmaniye isbecomingaproduction centerwithitsgeographicallocation,rapidlygrowing LOGISTICS

27 28 Source: GovernorshipofOsmaniye,ProvincialDirectoratePlanning andCoordination In Osmaniye Investments Public Ongoing ONGOING PUBLICINVESTMENTSINOSMANIYE TOTAL Services Other Public Education Energy Transportation Health Tourism Agriculture Sector Name ofthe transportation sectorfollows thissectorwitha24%share. plan andpotablewaterhas thelargestshare with34%, theeducationsectorfollowswitha32%share and that otherpublicservicesin whichthere are componentssuchassewerage,map-cadastre, construction When theexpenditures, madethroughout the Osmaniyeare examined onasectoralbasis,itcanbeseen Number of Projects 503 317 74 61 35 4 8 4 investments in2013isasfollows. previous years are implemented in Osmaniye. Information related to on-going State-led large-scaleinvestmentprojects, whichbeganin2013andthe Completed Number of Projects 296 208 49 21 14 0 2 2 Total Costsof Projects(TL) 627.117.559 122.996.863 187.492.905 167.249.210 116.654.826 11.363.840 13.500.00 7.859.915 248.450.711 Subsidy for 88.322.452 79.494.836 53.374.705 16.338.877 6.267.656 4.394.185 258.000 2012 until theEndof Cash Expenditure 229.713.087 77.308.541 73.421.986 54.956.207 14.835.143 Period(TL) 5.698.697 3.275.453 217.060 Other PublicServices Kadirli 21% Expenditure oninvestments,coveringmore thanonecounty(various)was5million349thousandTL. this county with47million 852 thousandTL expenditure and Düziçi county with 17million732thousand TL. county (Osmaniye) has the largest share with 143 million 978 thousand TL of expenditure. Kadirli county follows When expensesonpublicinvestmentsare examinedin2013districtbydistrict,itcanbeseenthatthecentral Education 34% 32% Hasanbeyli Sumbas 0% 2% Toprakkale 3% Düziçi 8% Various 3% Agriculture Bahçe Energy 3% 1% 6% Transportation Tourism Health 1% 2% 24% and Coordination Source: GovernorshipofOsmaniye, ProvincialDirectorateofPlanning and Coordination Source: GovernorshipofOsmaniye,ProvincialDirectoratePlanning Center 60% ONGOING PUBLICINVESTMENTSINOSMANIYE ments In2013OnASectoralBasis Proportion OfExpensesMadeOnPublicInvest- by county of expendıtures Proportıonal representatıon

29 30 Sectors And Tourısm The Culture Projects In Major Projects Major Social ONGOING PUBLICINVESTMENTSINOSMANIYE public investments. projects, ofwhichconstructionsare tobecompleted,are amongtheprominent Sports, “MouthandDentalHealthCentre” ofProvincial Directorate ofHealth “Olympic SwimmingPool”ofProvincial Directorate ofYouth Servicesand “Construction ofClassrooms andCentralUnits”ofKorkutAtaUniversity, progress. have beensenttotheregional committee.Restoration worksare in boundary oftheconservationarea requested inthecommitteedecision Restoration project, restitution project, excavationworkplanandthe Natural HeritageofAdana. projects havebeenapproved bytheRegionalCommitteeofCulturaland Kadirli AlaMosque:Surveying,interference andanalysesofperiod f. e. d. c. b. a. e. d. c. b. a. 1. AdvantagesofIndustrySector 2. AdvantagesoftheAgriculture andLivestockSector ExistenceoftheUniversity of region supportandincentives,financialprograms Government carriedoutbyDOĞAKAonthebasis Proximity tomajortransportnetworks Proximity toemergingmarkets(MiddleEastetc). Skilledandinexpensiveworkforce Sectoral experience,strong commercial partnershipopportunities OSMANİYE? vegetable oilproduction) Presence ofagro-industries (potentialformanufacturingvariousproducts from peanut,potentialfor Irrigable agriculturallands cultivation activities,cherryproduction) Favorable climateconditionsforagriculture andlivestockbreeding (Milkanddairyproducts, olive Greenhouse cultivationpotential Presence ofregion-specific products (Peanut,radish,orange, soybean) WHY WHY OSMANİYE?

31 32 d. c. b. a. Why OSMANİYE? 4. AdvantagesoftheEnergyandMiningSectors 3. AdvantagesoftheTourism Sector c. b. a. Government supportandincentivesfortourism Government Richness ofFlora&Fauna Rich GeothermalSources Potential forculture andnature tourism Being inthetransitpointofEnergyTransmission Lines Utilization ofWaste EnergyforAgriculture/Greenhousing Potential forrenewable energy(especiallysolar andwindpower) *It willbeprovidedforstrategicinvestments, whosefixedinvestmentamountisover500millionTL. Supports And Incentives Support Elements VAT Return* Location Allocation ofInvestment Interest Subsidy Support Insurance Contribution Employer’s National Tax Reduction Exemption Customs Duty VAT exemption General Incentive zone inthisnew6-zoneincentivesystem. into province-based incentivesystemhasbeen made.Osmaniyeisinthe5th the Socio-economicDevelopmentIndex(2011)ofprovince andatransition theNewIncentiveSystem,anewregulation hasbeenmadeaccordingWith to in Investmentson20.06.2012theofficial gazette. Aid theGovernment 15.06.2012 andtheApplicationofDecisionConcerning Aid inInvestmentson theGovernment Related totheDecisionConcerning The NewIncentive System entered into force withthepublicationofDeclaration Practices ˝ ˝

1) TheNewIncentiveSystem Regional Incentive Practices ˝ ˝ ˝ ˝ ˝ ˝

Incentive forLarge-

Scale Investments ˝ ˝ ˝ ˝ ˝ INCENTIVES ANDSUPPORT Incentive for Investments Strategic ˝ ˝ ˝ ˝ ˝ ˝ ˝

33 34 INCENTIVES ANDSUPPORT • • • • • • Which Supportsare Provided? • Conditions • • • Which Supportsare Provided? • • Conditions • • • • The NewIncentiveSystem consists of4different applications REGIONAL INCENTIVESYSTEM GENERAL INCENTIVESYSTEM Allocation ofInvestmentLocation Interest Subsidy Employer’s NationalInsurance ContributionSupport Tax Reduction Customs DutyExemption VAT Exemption Investments Fulfilling theminimumconditionsinAnnex(Annex 2)ofDecisionRegarding Aidin the Government and onconditionthatitdoesnotexceed18months) Employer’s NationalInsuranceContributionSupport(Onlyfortheinvestmentsofyards inshipbuilding Customs DutyExemption VAT Exemption will notbeincentivizedandotherincentiveapplications Not tobewithinthescopeofinvestmentissues,which Minimum fixedinvestmentamountis500thousandTL, Incentive forStrategicInvestments Incentive for Large-Scale Investments Regional IncentivePractices General IncentivePractices Hotels Furniture (exceptforthose,madeonlyofplastic) Manufacturing Motor vehiclesandsub-industry Medical, precision andopticalinstrumentsmanufacturing manufacturing Radio, televisionandcommunicationequipmentdevices Electrical MachineryandDevicesManufacturing Office, AccountingandDataProcessing MachinesManufacturing Machinery andequipmentManufacturing Metal Products industry Main metal,metalcastingindustry, otherthaniron andsteel Chemical SubstancesandProducts Manufacturing Paper andProducts Manufacturing manufacture ofmatsandsimilarproducts madebyweaving Manufacture ofwoodandcorkproducts (exceptforfurniture), Luggage, handbag,leatheraccessories,shoesetc.manufacturing Apparel manufacturing investments notfulfillingtheconditionsspecifiedinfootnote8) Manufacture ofTextile Products (exceptforthethread andweaving investments specifiedinfootnote6) Manufacture ofFoodProducts andBeverages(exceptforthe Aquaculture (includingfingerlingandfishegg production) capacity requirements specifiedinfootnote5) Investments (exceptforinvestmentsnotfulfillingtheminimum Integrated LivestockInvestmentsincludingBreeding Sectors toBenefitFrom RegionalIncentives Million TLandformotorvehicles sub-industry 10 MillionforInvestmentsinTextile Finishing Investment amountformotorvehiclesis50 Zone 5/MinumumInvestmentAmount 1 MillionTLforOtherInvestments 500 ThousandTL 500 ThousandTL 500 ThousandTL 500 ThousandTL 500 ThousandTL 3-star andhigher is 1MillionTL 1 MillionTL 1 MillionTL 1 MillionTL 1 MillionTL 1 MillionTL 1 MillionTL 1 MillionTL 1 MillionTL 1 MillionTL 1 MillionTL 1 MillionTL INCENTIVES ANDSUPPORT

35 36 INCENTIVES ANDSUPPORT Greenhousing Coal gasmanufacturing(synthesisgas) Facilities fortherecycling anddisposalofwaste Smart, multi-functionaltechnicaltextile Hospital investment,nursinghome except foreducationofadultsandothereducationalactivities) Training services(includingpreschool educationservicesand Licensed Warehousing Cold storageservices Student Hostels PRIORITY INVESTMENTISSUES • • • • • • The investmentissuesdescribedbelowcanbenefitfrom the regional supportsappliedinthe5thzone: drugs andbloodproducts, basedontheproject approval tobereceived from theMinistryofHealth. Investments valuedatminimum 20millionTLintheproduction ofbiotechnologicaldrugs,oncology for accommodationandshopping centerunits). fair investments, which have an indoor areaInternational of minimum 50 thousand square meters (except Tourism Preservation andDevelopmentRegions andfrom regional supports Investments in tourismaccommodation, whichcanbenefitfrom investmentstobemadeinCulture and industry). Investments intestingcenters,windtunnelandthat nature (thoseforautomotive,spaceordefence sector andforinner-city freight transport Railroad investmentsforintercity freight and/orpassengertransporttobeimplementedbytheprivate Investments forfreight and/orpassengertransportbysea Hospital: 500ThousandTL Nursing Home:100people 500 square meters 10 decares ofland 500 ThousandTL 500 ThousandTL 500 ThousandTL 100 students 50 MillionTL 1 MillionTL b) InvestmentsinMotorVehicles Sub-Industry a) InvestmentsinMotorVehicles MainIndustry Investments inManufacture ofMotor Vehicles: Investments inPortsandPortServices Manufacture ofChemicalsandChemicalProducts Manufacture ofRefinedPetroleum Products Investment Issues INCENTIVE FORLARGE-SCALEINVESTMENTS • Conditions • • • • Aid inInvestments To beonthelistoflarge-scaleinvestmentsinAnnex(Annex3)DecisionRelatedtoGovernment supported bytheMinistryofScience,IndustryandTechnology. Investments fortheproduction ofproducts developedasaresult ofResearch&Development projects Elementary, secondaryandhighschooleducationinvestmentstobeimplemented bytheprivatesector. carried outinİstanbulprovince). specified intheMiningLawno3213on4/6/1985andextractionand/orprocessing investmentstobe Mine hoistingand/ormineprocessing investments(exceptforthe1stgroup minesgravelinvestments project approval tobereceived from Undersecretariat forDefence Industries. Investments valuedatminimum20millionTLinthedefence,aviationandspacefieldsbasedon Minimum AmountofFixedInvestment (Million TL) INCENTIVES ANDSUPPORT 1000 200 200 200 50

37 38 INCENTIVES ANDSUPPORT (including mininginvestmentsintegratedtothisplants) their concentratewhichare statedasgroup IV/cintheMineLaw [Investments infinalmetalproduction ofmetalicmines’ore or/and Investments inMetalManufacturing: Machinery andDevices) Investments inMachineryManufacturing(IncludingElectrical Accessories Investments inManufacture ofAirandSpaceVehicles and/or Investments inDrugProduction Instruments Investments inManufacture ofMedical,Precision andOptical Investments inElectronics Industry Investments inTransit PipelineTransport Services Manufacture ofRailcars Investments inRailroad andTramway Locomotivesand/or INCENTIVE FORSTRATEGIC INVESTMENTS investments. The products whichprovide alltheabove-mentionedconditionstogetherwill be considered asstrategic • • • • Conditions • • • • • Which Supportsare Provided? (this conditionwillnotbestipulated forthegoodsnotproduced in-country) Total importsamountrelated totheproduct tobeproduced isatleast50million$asoftheprevious year stipulated forrefinery andpetro chemistryinvestments), Minimum addedvaluetobeprovided withtheinvestmentshouldbe40%(this conditionwillnotbe Total domesticinvestmentcapacityrelated totheproduct forinvestmentislessthantheimports, Minimum fixedinvestmentamountis50millionTL, Allocation ofInvestmentLocation Employer’s National Insurance Contribution Support Tax Reduction Customs DutyExemption VAT Exemption 50 abroad withinthescopeofincentivecertificate. It isappliedasnon-paymentofcustomsdutyformachinery andequipment,investmentgoods,tobeprocured from from thecountryorabroad withinthescopeofincentivecertificate. It isappliedasanon-paymentofvalueaddedtaxforthemachineryandequipment,investmentgoods,tobeprocured Large-Scale Investments investments beginningafter 01.01.2014,contributionratetotheinvestmentis40% andreduction rateis 70%) for At a reduction of 80% until its contribution rate to the investment reaches 50% of the fixed investment amount (in the And; for RegionalIncentivePractices investments beginningafter01.01.2014,contributionrate totheinvestmentis30%andreduction rateis70%) At areduction of80%untilitscontributionratetotheinvestmentreaches 40%ofthefixedinvestmentamount (for It istheapplicationofIncomeorCorporationTax; Tax Reduction Customs DutyExemption Value-Added Tax Exemption interest subsidy. Research&Development andenvironmental investmentsbenefitfrom VAT exemption,customsdutyexemptionand SUPPORT ELEMENTS(Supportsof5thZone,inwhichOsmaniyeislocatedincluded) R&D ANDENVIRONMENTAL INVESTMENTS • • • • • • • Which Supportsare Provided? only inbuilding-constructionexpenses) VAT return (onlyforinvestmentsamountingtoover500millionTLandontheconditionthat itwillbevalid Interest Subsidy Allocation ofInvestmentLocation Employer’s NationalInsuranceContributionSupport Tax Reduction Customs DutyExemption VAT Exemption

INCENTIVES ANDSUPPORT

39 40 INCENTIVES ANDSUPPORT operating inthesamesector andbeinganinvestmentwhichwillenabletheintegration inthecooperatedfield Realization RealizationoftheinvestmentinOrganizedIndustrialZone(OIZ), • • insurance contributionsupportwithmore advantageousratesanddurations. these supports provided in the 6th zone, which is a lower region in terms of tax reduction and employer’s national or regional incentivepracticesinOsmaniyemeetsatleastoneoftheseconditions below, theycanbenefitfrom If theinvestments,whoseincentivecertificatehasbeen prepared withinthescopeoflarge-scaleinvestments strategic investments,whosefixedinvestmentamount isover500millionTL. It isthereturnofVAT, collectedforthebuilding-constructionexpenses, whichwere made withinthescopeof Value Added Tax Return Allocation ofInvestmentLocation are withinthescopeofregional incentivepracticesdonotexceed700, 000TLinthe5thzone. the incentivecertificate.Interest subsidyamount tobeprovided onthe basisofprojects intheinvestments, which currency oftheinterest ordividendrelated totheloanusedup70%offixedinvestmentamount registered in the scopeofincentivecertificateandpaymentbyMinistry5pointsinTLloans2foreign Interest Subsidy is a financial support provided for the investment loans withat least one-year term,used within Interest Subsidy within thescopeofregional incentivepractices andlarge-scaleinvestments. respectively (forinvestmentsinOIZ50%and15%)ofthefixedinvestmentamountincentivized The amountoftheutilizedemployer’s nationalinsurancecontribution supportcannotexceed35%and11% investments inOIZ7years)bytheMinistry. the investmentsinOIZ10years),andforinvestments,whichwillbeginasof01.01.20146years(for the investments and regional incentive practices for the investments which began until 31.12.2013 for 7 years (for which is to be paid for additional employment provided within the scope of large-scale investments, strategic It isthepaymentofpartemployer’s nationalinsurancecontribution,corresponding tominimumwage, Employer’s NationalInsuranceContributionSupport Finance fortheinvestmentswhoseincentivecertificates havebeenprepared. It istheallocationofinvestmentlocationwithinscopeprocedures andprinciplesspecifiedbytheMinistryof of the investment

by the investor who is a partner of at least 5 real or legal entities machinery andequipment from abroad amountingto2,000,000TL,benefits from thecustomsduty exemption In theeventthatproject ofaninvestor, whowillwithinthescopeofinvestment project purchase imported annex of“ImportRegimeDecision” oftheCustomsDutyTax Ratesonthebasis of sectionsisstatedinthelists. equipment, investmentgoods, tobeprocured from abroad withinthescopeofinvestment incentivized. The Customs Dutyexemptionis thenon-paymentofcustomsdutyspecifiedin import regime formachinery and Customs DutyExemption ease offinanceuntiltheoffsetting of VAT. ** Netcontributionofthesupportforcompaniescapable ofoffsetting theValue AddedTax isthesameas investment goods,procured withinthescopeofInvestmentIncentiveCertificateis18%. * Exceptforthe special conditions specified inthe VAT law, thespecified rateof VAT forthemachinery andequipment, VAT exemption amount advantage ofapproximately 540,0000TL. from abroad amountingto2,000,000TL,benefitsfrom the VAT exemptionincentive,theinvestormaygainan machinery and equipment from thecountry amounting to1,000,000TL and importedmachinery and equipment In theeventthatproject ofaninvestor, whowill,withinthescopeofinvestmentproject, purchase domestic procured from thecountryorabroad withinthescopeofinvestmentincentivized. VAT exemptionisnon-paymentofthevalueaddedtaxformachineryandequipment, investment goods,tobe VAT Exemption amount. Said investmentisentitledtobenefitfrom the regional incentiveapplicationsintermsofitssectorandinvestment Total InvestmentAmount Domestic MachineryandEquipmentExpenses Foreign MachineryandEquipmentExpenses Building-Construction Expenses Land Expenses investment, beginningin2014asfollows: Let’s assumethatacompanyinthepeanutprocessing sectorwillprovide 50additionalemploymentwith an An EXAMPLEofIncentiveCertificateApplication =3.000.000TLx0.18540.000TL** = (Total CostofMachineryandEquipment)x(RateVAT* ) : 4.000.000TL : 1.000.000TL : 2.000.000TL : 500.000TL : 500.000TL INCENTIVES ANDSUPPORT

41 42 INCENTIVES ANDSUPPORT ** Theamountwhichisvalid forthefirsthalfof2014.Itwasassumedtobeconstant for6years. * “Duration”istheexpression ofsupport durationspecifiedinthe region in“months”. = 1,400,000/(72Months*141, 90)=137People Upper LimitofSupport/f((Duration) x(Employer’s Share ofNationalInsurance)) insurance contributionasfollows: We cancalculatethenumberofpersonnelcompanyemployfor6years without payingemployer’s national TL= 510,840TL = 50employeex72months 141,90 National Insurance)** Employer’s NationalInsuranceContributionAmount=(AdditionalEmployment)x(Duration)*(Employer’s Share of contribution corresponding tominimumwagewillbepaidfrom thebudgetofMinistryEconomy. Support. Aftertheinvestmentiscompleted,partofeachadditionalemployee’s employer’s nationalinsurance Labor costsare aimedtobereduced intheoperatingperiodwithEmployer’s NationalInsuranceContribution Duration ofSupport:6Years Contribution ratetotheinvestment35%=4,000,000TL*0,351,400,000(TheUpperLimitofSupport) Employer’s NationalInsuranceContributionSupport tax reduction, whichistotal1,2millionTL,fortherevenues obtainedfrom current activitiesintheinvestmentperiod. of incentive means even before the investment is completed, investor will be able to use 600thousand TL’s worth of amount from whichitbenefits.Becausetheapplication,withhisproject issupported,provides theutilization tax liabilitiesreaches thisamount,investor will paythecorporate tax, whichis20%inTurkey, at6%,whichisthe Company maybenefitfrom atax reduction at1,2millionTL.Untilthe tax, whichwillbedecreased from theannual Reduced Tax Rate70%,contributionratetotheinvestment30%,totalamount:4millionTL Tax Reduction considered asaveragerate. CustomsDutyRateprojected intheImportRegionDecision variesfrom countrytoand2%canbe * = 2.000.000TLx(2%)*40.000 Customs DutyExemptionAmount=(ImportedMachineryandEquipmentAmount)x(RateofDuty*) incentive, theinvestormaygainanadvantageofapproximately 40,000TL. Roles AndResponsibilitiesoftheDevelopment AgenciesintheIncentiveSystem 5% ofproperty taxandthisamountisincreased each yearonthePPIbasis. investment, amountingto4millionTL.Annualrental valueofimmovableproperty isdeterminedaccording to0.5-2. immovable property’s current value.Current valueofthelandclaimedcanbemaximum1,330,000TLforasample livestock andeducationinvestments,twofoldfortourismthree timesforotherinvestmentsthe The totalinvestmentamounttoberealized onimmovableproperties cannotbelessthanonefoldfortheagriculture, regional subsidies,withintheframeworkofprinciplesandprocedures setbytheMinistryofFinance. Incentive Certificate has been prepared, strategic investments and theinvestments which willbenefit from the realized, aninvestmentlocationcanbeallocatedthrough thetenderforlarge-scaleinvestments,ofwhichInvestment On conditionthatanappropriate landforinvestmentsispresent intheprovince inwhichtheinvestmentwillbe Allocation ofInvestmentLocation scope ofinvestmentmaybepaidbytheMinistryEconomy, untilitreaches 700,000TLfor5years. According tothis,5pointsoftheinterest forthe3millionTLpartofloan,whichcompanyusedwithin Upper LimitofSubsidy=700,000TL Subsidy Rate=5pointsinTLloans,2foreign currency loans = 4millionTL*0,753 Amount ofLoantobeSupported=Total FixedInvestment*0,75 Interest Subsidy •Preparation ofcompletionvisaandappraiser’s report. Please visitthewebsiteof MinistryofEconomy(www.ekonomi.gov.tr) andourOffice fordetailed information. •Monitoringtherealization statusofinvestments; •Receivingapplications(GeneralIncentivesnoexceeding10MillionTL) certificates inthe region where they are operating: decision no2012-3305andtheyare responsible fortheexecutionofworksandprocedures related totheincentive Development AgenciesandsomeChambersofIndustry were mentionedamong thelocalunitswithcabinet INCENTIVES ANDSUPPORT

43 44 INCENTIVES ANDSUPPORT 2) DOĞAKASupports active. SODES program since2011intheTR63region (Hatay, Kahramanmaras andOsmaniye),where itis to beexecutedbyDevelopmentAgencieswitharegional approach andhasbeenimplementingthe since 2008in31provincesundergeneral coordination bygovernorships oftheMinistry ofDevelopment, Agency” in2011,order toapplytheSocialSupportProgram (SODES),whichhasbeenexecuted T.C Doğu Akdeniz Kalkınma Ajansı (East Mediterranean Development Agency) was selected “Pilot directly managingtheproject preparation process. without acallforproposal, bymeansofalleviatingsometheobligationsonproject preparation or Agency, exceptionally, cansupportasdirect financialsupportforactivitiesandguidedproject support Please visitthewebsiteof Agencywww.dogaka.gov.tr fordetailedinformation Support. to theeconomicandsocial developmentofTR63region bymeansofonlyDirect Financial Interest Free-Loan Support are not yetintheimplementationphase;ourAgencycontributes within theframeworkofregional planwhichtheAgency willprepare. Interest Subsidyand the Agency identified that they contribute to the economic and social development of the region suitable applicationownerswhomeetthespecifiedconditions inthesectorsandissueswhich Interest SubsidyandInterest Free-Loan Support isthefinancialsupportthatAgencyprovides of callforproposal. However;the provides virtuallywiththemethod supports thattheAgency support is composed of the and activities.Direct financial Agency tothecertainprojects unrequited paymentsofthe Direct FinancialSupportis and Interest Free-Loan Support”. Support” and“Interest Subsidy main groups as“Direct Financial Agency are dividedintotwo Mediterranean Development Financial supportsofEastern • • • • • • • OTHER ACTIVITIESOFDOĞAKA advertise ourregion andincrease nationallyandinternationally itspopularity. Oil andTechnology Fairwere ensured withthecompaniesinregion andsupportofDOĞAKAinorder to Furniture-Decoration Fair, 2011AntalyaRegionalProducts Exhibition(YÖREX) and 2011Olivetech-Olive,Olive TravelMediterranean International & Tourism Exhibition (EMITT), 2012 Moscow Textillegprom Fair, 2012 Adana Fairs: Participation in 2011,2012,2013 and 2014 Eastern Participation in National and International Osmaniye forthenextfiveyearperiod. this Plan,strategies,actionsandprojects areLivestock. With identified forthedevelopmentofagriculture in of OsmaniyeKorkutAtaUniversityandTheProvincial Directorate oftheMinistryFood,Agriculture and Plan isprepared MediterraneanDevelopmentAgencyandwiththecooperation withthesupportofEastern Osmaniye AgriculturalStrategyandActionPlan:Theworksof existing historical,culturalandnaturalassetsmore efficiently. prepared, withtheaimofidentifyingtourismpotentialsOsmaniyeprovince andimproving andevaluatingthe Osmaniye Tourism StrategyandActionPlan:OsmaniyeTourism StrategyandActionPlanisbeing DOĞAKA andOsmaniyeKorkutAtaUniversity. Conference hasbeenconductedbythespeakersofluminarycorporationsectorwithcooperation regional development of Hatay and Osmaniye via improving logistic sector, Logistic The Osmaniye International academic informationandindustrialstructure andgatheringalltheagentsofsectorinorder toenhance commercial advancement,announcingimportanceofOsmaniyeinlogisticsector, initiatingjointwork of LogisticsConference:International Forthepurposeofsupportingregion’s economic,industrialand published. TR63 region, Mediterraneaninlogisticsterms,wasprepared whichhasastrategicpositioninEastern and In 2012,LogisticsMasterPlanthatisanimportantstepforthelogisticscenterinvestmenttobemadein Iskenderun LogisticsVillageandSupportCentersofAntakyaOsmaniyeMasterPlan: and employmentareas ofOsmaniyeprovince. sharing knowledgeandexperienceaboutIron andSteelsectorwhichhasanimportantplaceintheproduction across thecountry, academiciansandcivilsocietyrepresentatives participated,wasorganizedwiththeaimof Iron andSteelPanel:In2012,“OsmaniyeIron andSteelPanel,”whichleadingrepresentatives oftheindustry achievement themaximumbenefitfrom theseinvestmentsineconomicterms. cultivation investmentsmainlyinOsmaniyeandtheregion recently withrightstrategiesandcontributingto marketing of oliveandoilinOsmaniye, order tomanagetherapidly increasing oliveproduction and olive Olive OilMarketingWorkshop” were organizedintheyears2011and2012fieldsforproduction and Olive andOilWorkshops: MediterraneanRegionOliveCultivationWorkshop” “Eastern and“Olive INCENTIVES ANDSUPPORT

45 46 Office Support Investment Osmaniye DOĞAKA INCENTIVES ANDSUPPORT prescribed byrelevant lawandrelated topermission,licenseandincentiveissues. free ofcharge,exceptforthefees,pricesandotherfinancialobligationswhichare The servicesprovided toinvestorsatInvestment Support Office inOsmaniyeare Are theServicesoffered forafee? • • • • • • What doesOsmaniyeInvestmentSupportOffice do? as ofAugust2010,where MediterraneanDevelopmentAgencyisactive. Eastern established andbegantheiractivities,inHatay, KahramanmaraşandOsmaniye Our InvestmentSupportOffices inwhich3qualifiedpersonnel are employedwere Who are we? Supports conductingofAgency’s activitiesatprovincial level. to berealized intheprovince. Supports andcoordinates theinvestment,supportandpromotion activities opportunities intheprovince. promotionMakes thenationalandinternational ofbusinessinvestment Monitors investmentsintheprovince. Provides free consultingservicesfortheinvestors. and dutyofstateinstitutionsorganizationsattheprovincial level. administrative worksandprocedures” whichare undertherealm ofauthority Makes centralfollowingofinvestors’“permissionandlicense”“other • • • • • • support mechanismstobebenefitedfrom as: OtherthanthesupportsofMinistryEconomyandAgencytoinvestorsinOsmaniye,there are such Incentives ofMinistryCulture andTourism (Fordetailedinformationwww.ktbyatirimisletmeler.gov.tr Supports ofTechnology DevelopmentFoundationofTurkey (Fordetailedinformationwww.ttgv.org.tr) www.osmaniyetarim.gov.tr) Supports of Provincial Directorate of Ministry Food, Agriculture and Livestock(Fordetailed information gov.tr) Funds of The Scientific and Technological Research Council of Turkey (For detailed information www.tubitak. Ministry ofScience,IndustryandTechnology Supports(Fordetailedinformationwww.sanayi.gov.tr) kosgeb.gov.tr) Small andMediumEnterprisesDevelopmentOrganizationSupportsforSMEs(Fordetailedinformationwww. 3) OtherSupports INCENTIVES ANDSUPPORT

47 Note: 48