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Turkey: More than you knowJune 2011

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“Turkey has high potential to become one of the world's largest economies in the 21st century”.

GDP: £580 bn World’s 17th largest economy Population: 76 Million - the youngest

population in Europe

Jim O’Neill, Chief Economist,

Goldman Sachs.

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Goldman Sachs used the following criteria:

Economic stability

Political maturity

Openness to trade and investment

Quality of education

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Modern Turkey OECD estimates that Turkey will be the third highest growing country after China and India by 2017.

Turkey ranks 15th among 153 developing countries in terms of FDI inflows.

Turkey grew by average of 10% during 2010 and 9% so far in 2011.

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Modern Turkey Urban: Turkey has the world’s 13th largest urban population (about 50 m).

Style: Recent poll states the Turks are the most image conscious people in Europe. Brand aware with a preference for foreign brands.

Education: Each year, 1.8 million students graduate from high school.

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Rapid movement from corner shop to retail mall.

Brand aware, will pay a premium.

Embrace the latest technology.

Turkey has 67 million GSM users.

Current Trends in the Market

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Open to Trade and Investment Joined the EU Customs Union in 1996. UK-Turkey trade volume £6.6 billion

2009, Turkey is EU's 5th largest export and

7th largest import partner More than 2,400 British companies

operating: Vodafone, Tesco, HSBC, BAE Systems

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Turkey: Doing Business

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Know how it operates European business ethics and modern

management practices. Highly (often foreign) educated

managers, growing skills base. Increasing use of English for business,

but fluency varies. People are very internationally-minded.

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Know how it’s structured Hierarchical business structure - identify

key decision-maker. Relationships and building trust are

critical and take time. Honour, respect and family are very

important.

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One in four of the largest companies in Middle East and North Africa are Turkish.

65% of industrial exports from the MENA region originate from Turkey.

47% of Turkey's trade is with the EU. Turkish contractors are the second biggest

globally after China.

Know the opportunities

UKTI Turkey

Turkey: Sectors of Opportunity

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Oil and Gas Market Size: £640m total investment

for Exploration & Production operations Market Growth: By 2020, £85bn

investment in Energy of which £9.6bn in Oil and Gas

Opportunities: Black Sea Exploration, Nabucco, Projects in Iraq, BTC

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Construction

Market Size: £14.6bn Market Growth: Average 21% growth Opportunities: Third country projects; EU

funding; high-end, innovative project design, planning and specialist services; and PPP projects.

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Environment and Water Market Size: £81bn investment

required, covering waste-water treatment facilities and solid waste.

Market Growth: Both sectors have grown over 6% annually last 5 years

Opportunities: Waste water and solid waste treatment, air pollution, carbon management.

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Financial and Insurance Services Market Size: The banking and

Insurance sectors are worth £272bn Market Growth: Public-Private

Partnership, individual insurance, private banking

Opportunities: Financing infrastructure projects

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Defence Market Size: 9th top importer of

defence equipment with £2.6 bn budget Market Growth: Expanding and

improving indigenous defence industry. Opportunities: High level of

production technology & improvement and potential in research initiatives.

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Aerospace and Airports Market Size: 45 operational airports.

Total annual traffic figure is 45 million PAX.

Market Growth: Air traffic growth at 10% pa, higher than EU average, Technical Services.

Opportunities: Airport Infrastructure. 3rd Istanbul Airport announced.

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Railways Market Size: Massive network expansion

plan announced early 2011. Market Growth: 2.297km track, 3 railway

terminals, signalization by 2012. Opportunities: Consultancy, high-speed

system specialists, rail equipment suppliers, security and signalling specialists

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Automotive

Market Size: Total vehicle production in 2009 - 884,466 units (commercial vehicles:373,535 units).

Market Growth: 15 firms manufacturing motor vehicles, 4000 auto-parts manufacturers.

Opportunities: Growth in R&D, Design & Technology Management

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Marine Market Size: £1bn from new builds,

£700m from repair and maintenance Market Growth: 78% growth in

number of shipyards since 2002 Opportunities: New marinas, mega-

yacht design consultancy, defence

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Ports Market Size: 176 ports with a 350m

ton handling capacity Market Growth: 300% capacity

increase in the next 20 years Opportunities: Privatisation, BOT

Container Port Projects, Re-design of existing Ports & Terminals

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Education and Skills Market Size: £330m. EU IPA, IBRD Funds for

National Education Structural Development

Market Growth:30m primary, secondary, tertiary education population. Population increase rate 2%

Opportunities: Corporate Training, Business English, Continuous Personal Development, Vocational Training

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paul.hardy@fco.gov.uk Second Secretary Trade and InvestmentUKTI, Ankara

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