ISSUE 56 OCTOBER '18 NEWSLETTER PRESIDENT ERDOĞAN MEETS EXECUTIVES OF US COMPANIES IN TURKEY On September 19, President Erdoğan will not compromise on free market received Turkish executives of 25 principles and we will continue to US companies at the Presidential take every step so that businesses Complex in Ankara. The executives will not be harmed by trade measures came from various sectors such as vis-a-vis US tariffs," said Erdoğan. He finance, ICT, pharmaceuticals and made it clear that Turkey will continue medical devices, chemicals, agri-food, to be proactive in implementing and insurance. Among the companies regulations, taking into consideration represented were Boeing, Citibank, the needs of industry and the ever- Invest in Turkey had a very Coca-Cola, Dow Chemical, General changing conditions in the business comprehensive agenda in Electric, Google, Microsoft, and Pfizer. environment. He stated that Turkey September as investment During the meeting, which was has always welcomed international attraction and promotion activities picked up speed. organized by the Presidency of the investments and will continue doing President Erdoğan received Republic of Turkey Investment Office so. Turkish executives of 25 U.S. in cooperation with the American Erdoğan also extended his support companies at the Presidential Complex in Ankara during a Business Forum in Turkey (AmCham/ to organizing future business meeting that was co-organized ABFT) and the International workshops under the coordination of by Invest in Turkey. We also Investors Association (YASED), the Investment Office. Industry and arranged investor meetings in the U.S. and Germany that were President Erdoğan asked each of the Technology Minister Mustafa Varank, attended by President Erdoğan. executives to express their opinions Trade Minister Ruhsar Pekcan, Also keeping us busy in about Turkey’s current investment and AK Party Deputy Chairman September were seminars and workshops in Japan, China, environment and their expectations Lütfi Elvan were also present at the Thailand, and South Korea. from the government. meeting, which convened prior to Invest in Turkey was also a "Turkey's strategic cooperation with Erdoğan’s scheduled visit to US in late sponsor of the first technology festival of Turkey, Teknofest the US will be further strengthened September. Istanbul. through investment and trade. We NEW ECONOMIC PROGRAM STANDS ON BALANCE, DISCIPLINE, AND TRANSFORMATION Treasury and Finance Minister Turkey. “The program includes a unemployment rates is consistent Berat Albayrak announced the New realistic plan that appropriately with moderate growth rates Economic Program - 2019-2021 identifies current problems and and shows that NEP has a more (NEP) on September 20, in Istanbul. includes correct action plans. coherent policy mix. The Program centers on the three It also highlights moderate NEP also unveiled new pillars of balance, discipline, and macroeconomic goals, and we will mechanisms such as the transformation and outlines the also take steps to achieve those “Financial Stability and government’s three-year plan to goals,“ said Albayrak. Development Committee”, which fight inflation, ensure sustainable NEP projects moderate growth will maintain financial security and healthy growth, and reduce rates for 2018 and 2019, but a more and stability, and the “Public the current account deficit prudent fiscal policy with the Finance Transformation Office”, while emphasizing achievable budget deficit gradually declining which will identify saving and macroeconomic targets. Albayrak to 1.7 percent of GDP in 2021, revenue improvement potential. stressed that the new program helping the already tight monetary will reinforce the confidence of policy and the rebalancing in the global markets and investors in economy. The rise in projected growth, 3.8 ppt came from growth. Notable contributions TURKEY RECORDS private consumption, 1.2 ppt from from investment spending and net ROBUST GROWTH investment expenditures, 1 ppt exports show that the quality of from government consumption, growth has significantly improved. RATE IN Q2 2018 and 0.9 ppt from net export, Moreover, Turkey is one of the calculated as export minus fastest growing economies in import. On the other hand, stock comparison to peer economies, as The Turkish economy expanded changes deducted 1.7 ppt from illustrated in the following chart. by 5.2 percent year-on-year in the second quarter of 2018. Meanwhile, seasonally and calendar adjusted data show that the economy expanded 0.9 percent from the first quarter to the second quarter of 2018, which indicates that the growth momentum has been sustained. Recent growth figures of 7.3 percent and 5.2 percent in the first and second quarters of 2018 respectively indicate a rebalancing in the Turkish economy. Out of the 5.2 percent headline FRANCE’S RENAULT RAMPS UP INVESTMENTS IN TURKEY Cooperating for almost 50 years exchange rates. Oyak Renault with Turkey's Oyak, French received a TRY 493 million automotive producer Renault incentive package for hybrid declared that they will continue car investment under the their manufacturing and Project-Based Incentives System distribution operations in Turkey announced by President Recep without any change in plans Tayyip Erdoğan in April. following recent fluctuations in QATAR'S MAJOR CONGLOMERATES TURN TO TURKEY FOR INVESTMENTS Five major conglomerates of Qatar’s Trade Partnership Agreement, to private sector are looking to invest boost trade and attract investments. USD 300 million in Turkey after Turkey’s Trade Minister Ruhsar Doha pledged USD 15 billion in Pekcan and Qatar's Economy and direct investments to Turkey. As Trade Minister Ahmed bin Jassim EBRD SUPPORTS part of this decision, Turkey and bin Mohammed Al-Thani closed the Qatar inked a partnership deal on deal that will attract Qatari capital RENEWABLE September 4, the Economic and to Turkey. ENERGY IN TURKEY SAYEM TO EXPAND HIGH-TECH The European Bank for Reconstruction and Development PRODUCTION IN TURKEY (EBRD) will provide a financing Industrial enterprises, R&D centers, SMEs, entrepreneurs, and universities package of up to USD 102 million will be supported with TRY 500 million through the Industrial Innovation to the renewable energy arm of Network Mechanism (SAYEM), Technology and Industry Minister Mustafa the Turkish conglomerate Akfen Varank announced. SAYEM has been developed to increase the share Holding. “The new financing of high-technology production in the country's exports. "With SAYEM, demonstrates EBRD’s commitment we took the first step to produce high-tech products locally. By making to the Turkish economy and value-added products — as a result of R&D and innovation activities — the confidence in the fundamental country's current account deficit will be narrowed," said Minister Varank. momentum behind the global shift Project applications will be evaluated by the ministry and the Scientific to renewable energy,” EBRD noted. and Technological Research Council of Turkey (TUBITAK). NATIONAL NEW-GENERATION VARIOUS RAIL DIESEL ENGINE, COMBAT AIRCRAFT HIGH-PRESSURE SYSTEM VEHICLES TRANSMISSION PRODUCTION PETROL INJECTOR PRODUCTION AND SUB-SYSTEMS FACILITY PRODUCTION FACILITY PRODUCTION FACILITY FACILITY TEKNOFEST ISTANBUL FIRMS UP TURKEY’S NATIONAL TECHNOLOGY INITIATIVE TEKNOFEST, Turkey’s first aerospace from 25 countries—, the Take Off technology. Following his speech, and technology festival, took place International Startup Summit— President Erdoğan presented awards at the Istanbul Grand Airport on attracting over 2,000 competitors— to the winners of the technology September 20-23, bringing together and exposing the attendees to never- competitions. about half a million technology seen-before technologies. The head of Invest in Turkey Arda enthusiasts from across the globe. Speaking at TEKNOFEST on Ermut participated as a panelist Invest in Turkey was one of September 22, President Recep in the “Role of Governments and the various sponsors of the event Tayyip Erdoğan emphasized International Organizations in that included rocket and hacker the importance of technology, Empowering Youth Entrepreneurship competitions, speed races of some stating that the first condition of Towards Sustainable Growth” session of the fastest vehicles, aeronautical independence in today’s world is at the Take Off International Startup shows, the World Drone Cup—a to become a country that designs, Summit. drone speed race with participants develops, produces, and exports ISPAT ATTENDS A COUPLE OF EVENTS IN ASIA Necmettin Kaymaz of Invest in Turkey attended ''HSBC’s BRI Summit 2018 | MENAT’s Position in the New Silk Road'' in Beijing, where he highlighted to potential Chinese investors Turkey’s ease of doing business, investment NEW BOARD OF DIRECTORS OF climate, and available investment opportunities. Kaymaz also talked TURKIYE WEALTH FUND HOLD ITS about Turkey’s investment climate FIRST MEETING and recent developments at the Global Assets and Wealth Forum in President Erdoğan received at the Hisarcıklıoğlu, BIST board member Singapore. Ahmed Emre Büyükkılıç Presidential Complex the Board Prof. Dr. Erişah Arıcan, DEIK Board of Invest in Turkey presented at the of Directors of the Turkiye Wealth Member Fuat Tosyalı, and Turkiye 3rd Thai-Turkish SMEs B2B Meeting Fund, including Treasury and Wealth Fund General Manager Zafer and Seminar on Exploring Business Finance Minister Berat Albayrak, Sönmez. Investment Office President Investment Office President Arda Arda Ermut was appointed a board Opportunities in Thailand and Turkey, Ermut, Banks Association of Turkey member of the Turkiye Wealth Fund which was held in commemoration Chairman and Ziraat Bank CEO on September 11. of the 60th anniversary of Thailand- Hüseyin Aydın, TOBB President Rifat Turkey diplomatic relations. Invest in Turkey, the official investment advisory body of Turkey, is a knowledge-center for foreign direct investments and a solution partner to the global business community at all stages of investments. It provides customized guidance and qualified consulting before, during, and after entry into Turkey. www.invest.gov.tr /investturkey /invest-in-turkey /investinturkeysocial.