ISSUE 81 20 NEWSLETTER NOVEMBER’ TURKEY ENJOYS NEW HEIGHTS OF SUCCESS WITH GAS FIND AND INFRASTRUCTURE BREAKTHROUGH Page 2-3 PRESIDENT ERDOĞAN COMMISSIONS Page 3 TURKEY’S LATEST CITY HOSPITAL IN KONYA Page 4 OCTOBER INDICATORS TURKEY OFFERS SIGNAL RECOVERY GLOBAL INVESTORS FOR TURKISH UNEQUALLED ECONOMY OPPORTUNITIES Page 4 R&D SPENDING RENEWABLE ENERGY RISES IN TURKEY CAPACITY INCREASES Page 7 IN SEPTEMBER TOGG ANNOUNCES PARTNERSHIP Page 9 WITH FARASIS Page 8 INVESTMENT OFFICE WEBINARS & TURKISH EVENTS GRAND PRIX SET TO MAKE FIERY Page 11 RETURN TO F1 Page 12 NEWSLETTER November’20 NEWSLETTER November’20 Message from TURKEY ENJOYS the Investment NEW HEIGHTS OF Office SUCCESS WITH The discovery of the hydrocarbon reserves in the GAS FIND AND Black Sea was a turning point in Turkey’s energy roadmap. INFRASTRUCTURE President Recep Tayyip Erdoğan broke the good news that, as a result of Turkey’s BREAKTHROUGH further exploration activities, On October 17, right after natural gas reserves in the billion cubic meters in total,” said at the Tuna-1 zone will be connected to region have reached 405 inspecting the drilling vessel President Erdoğan. Turkey with a platform to be set up.” billion cubic meters in total. Fatih on board, President Recep Preferring to use national devices In the meantime, infrastructure Tayyip Erdoğan announced that Describing the find as the largest for exploration activities, Turkey investments and activities to Turkey’s natural gas reserves amount of hydrocarbon reserves in employs Kaşif (Explorer), a attract more FDI further sped Turkey’s history, President Erdoğan homegrown remotely operated up in Turkey. Latest examples discovered in the Black Sea were the inauguration of reached 405 billion cubic meters. added, “Along with Tuna-1 zone of underwater vehicle, for drilling the Konya City Hospital by the Sakarya field, Fatih, Turkey’s observation. Kaşif contributed President Erdoğan and the “On August 21, the good news of the 320 first-ever drillship owned by the state- to a large extent to the drilling investor conference held by billion cubic meters of natural gas reserves run Turkish Petroleum Corporation activities in the Black Sea following Citibank with the attendance of Minister of Treasury and was given to our nation. In the wake of the (TPAO), will further maintain its drilling its involvement in Turkey’s energy Finance Berat Albayrak. tests, analyses and detailed engineering activities in the Türkali-1 zone as well. fleet, and the process gained Addressing global investors works, 85 billion cubic meters have further We hope to receive good news also speed. Being able to dive deeper via videoconference, Minister been discovered. As a result, the natural from the Türkali-1 zone in the soonest than divers, Kaşif can dive as deep Albayrak said, “Turkey offers gas reserves in the Tuna-1 zone of the FDI investors unmatched possible time. The newly-discovered as 3,000 meters, outpacing the opportunities. In the new era, Sakarya field have reached a total of 405 405 billion cubic meters of natural gas likes of other robots. government-owned enterprises will also be potential FDI co-investors who will provide international investors stronger local representation.” PRESIDENT ERDOĞAN Improving economic indicators once again proved COMMISSIONS TURKEY’S LATEST Turkey’s resilience in turbulent times. New investments CITY HOSPITAL IN KONYA made by Gilead Sciences and QTerminals set examples On October 2, President Recep Tayyip Erdoğan officially for Turkey’s reliability as a manufacturing and export opened Konya City Hospital, which had been partially hub. With its up-to-date commissioned in August. Poised to provide services for incentives scheme, Turkey both domestic and foreign patients, the mega complex is ready to welcome global investors more than ever. aims to help Turkey raise its healthcare tourism during and after the COVID-19 outbreak. As part of our promotion acitivities in global platforms, Addressing the attendees at the Hospital has 1,250 beds, including the Investment Office will be the “Founding Partner of inauguration ceremony, President 256 for intensive care units, 108 the Formula 1 DHL Turkish Erdoğan said, “City hospitals are for emergency services and 30 for Grand Prix 2020”, which will dubbed the landmarks of our dialysis services. be run on November 15 at the healthcare system, and Konya City Istanbul Park. Hospital is one of the largest among The complex is named the 16th President, Investment Office them.” city hospital inaugurated by the A. Burak DAĞLIOĞLU Turkish government as part of According to a statement released infrastructural development plan by the Ministry of Health, Konya City for the national healthcare system. 02 03 NEWSLETTER November’20 NEWSLETTER November’20 TURKEY OFFERS GLOBAL INVESTORS UNEQUALLED OPPORTUNITIES Minister of Treasury and Finance Berat Albayrak attended an event titled ‘Republic of Turkey Investor Conference’ held by Citibank on October 27. Addressing international investors via videoconference, Minister Albayrak gave insight into many topics such as global economy, Turkey’s resilience during the COVID-19 outbreak thanks to its dynamism, its strengths and its INDUSTRIAL PRODUCTION macroeconomic outlook. UPSURGES IN AUGUST Turkey’s industrial production index soared in August 2020. Turkish Statistical Institute (TurkStat) The sub-sectors of industry, mining unveiled August industrial production and quarrying indices increased by 5.2 data. Accordingly, industrial production percent, manufacturing industry index increased by 10.4 percent annually, 11.4 percent, and electricity, gas, steam while a 3.4 percent monthly increase and air conditioning manufacturing was recorded in the month of August. and distribution indices by 2.3 percent OCTOBER INDICATORS SIGNAL compared to the same month of 2019. RECOVERY FOR TURKISH ECONOMY Commenting on the latest industrial These sub-sectors posted monthly production data, Minister of Treasury increases of 2.5 percent, 3.6 percent Various economic indicators show that Turkey’s economy and Finance Berat Albayrak said, “With and 1.3 percent respectively in August. is gaining ground in October 2020. these figures, we rank 1st among OECD members and 2nd worldwide.” According to the Turkish Statistical On a side note, a survey led by Institute (TurkStat) data, sectoral the Central Bank of the Republic confidence indices recorded a of Turkey (CBRT) showed that real Industrial Production Index (OECD, August 2020, yearly %) noteworthy improvement in October. sector confidence index jumped Reaching 79.7 points with a 6.4 from 105.3 points in September percent increase, the services sector to 108.1 points. confidence index recorded the highest spike among other indices. CBRT further observed a recovery in the manufacturing industry TurkStat also revealed that the retail in Turkey, which utilized 75.4 trade sector index posted a 1.7 percent of its capacity in the percent monthly rise, reaching 95 in month of October. The capacity October. Along the same line, a slight utilization rate (CUR) of the rise was recorded in the construction manufacturing industry increased sector confidence index, which saw 0.8 percentage point on a 83.8, going up by 0.6 percent. monthly basis. Stemming from these increases, economic confidence index in October came at 92.8 with an increase of 4.8 percent when compared to September. Source: Turkish Statistical Institute 04 05 NEWSLETTERNEWSLETTER November’20October’20 NEWSLETTER November’20 TURKEY In his statement, Minister Varank provided detailed information on INCENTIVIZES the results of Turkey’s investment TRY 18.3 BILLION incentives in the first 8 months of 2020. Accordingly, compared to the same WORTH OF period of 2019, the first 8 months of INVESTMENTS 2020 saw the number of incentive certificates rise by 98 percent, projected “We have issued TRY 18.3 employment by 54 percent and fixed billion worth of investment investments by 32 percent. incentives in August, OCTOBER EXPORTS HIT paving the way for new job Of all the projected investments, opportunities for 28,411 57 percent were in the manufacturing RECORD OF ALL TIMES citizens,” Minister of sector, 24 percent in the energy sector, Industry and Technology 16 percent in the services sector, Commenting on the figures, Minister Turkey hit the highest monthly Mustafa Varank 2 percent in the agriculture sector, Albayrak said Turkey’s exports export volume in October with announced on October 12. and 1 percent in the mining sector. USD 17.3 billion,” said Minister increased by 5.6 percent in October of Treasury and Finance Berat 2020. “We are entering a new era in Albayrak in a statement on which exports are rising and current account balance is maintained,” he November 2. added. R&D SPENDING RISES IN TURKEY October figures also unveiled that The Turkish Statistical Institute released the ‘Research and export/import coverage ratio in Turkey Development Activities for 2019’ report and revealed Turkey’s reached 95.3 percent excluding gold. latest R&D spending to GDP ratio. Accordingly, Turkey’s R&D expenditure to GDP ratio rose to 1.06 percent in 2019. Following the record high exports, Commenting on the results, Minister of EXPORT CLIMATE Turkey’s PMI Export Climate Index Industry and Technology Mustafa Varank surmounted once again the threshold underlined that the outcome is a “record INDEX ABOVE level in September 2020. in the last ten years” and said, “The private sector has been revealing the THRESHOLD The ICI Turkey Export Climate Index innovation spirit just as the way we want released by the Istanbul Chamber of it. The Turkish private sector provided IN THREE Industry has unveiled Turkey’s latest 64.2 percent of the country’s whole figures. R&D expense and 56.3 percent of its CONSECUTIVE financing.” Signaling strengthening demand MONTHS conditions in export markets, the index In addition, the amount allocated for was recorded as 51.9 in September, R&D activities by the Turkish government marking the third month in a row over reached TRY 14.9 billion in 2019, read 50.0 level during the novel coronavirus.