A Successful Economic Journey
TURKEY
Cenk AydınVice Chairman, International Cooperation Platform under the Patronage of the President of Turkish Republic
Founder and CEO, Halikarnas Financial Services & Advisory
Presented by
OVERVIEWBeautiful landscape…Unique location...Historical heritage…Combination of Contemporaryand Traditional…Home of skilled people…Policy
What is the receipe?
FASTEST RECOVERING
ECONOMY SINCE 2008
ECONOMIC INDICATORS
151,8 bn$ ANNUAL EXPORTS
AVERAGEANNUAL GDPGROWTH 5%
10,818$per capita
GDP
FASTEST GROWING ECONOMY IN EUROPE
FASTEST GROWING ECONOMY BETWEEN THE OECD
COUNTRIES
An economy driven by entrepreneurialspirit of private sector, robust domestic market and lucrative export opportunities
80%USChinaIndiaJapanUKItaTRAustra
liaPoland
The largest youth population when compared to the EU countries
6th largest economy in
EU
16th LargestEconomy in the
World
TURKEY IN FIGURES
5
TECHNOLOGY & ACCESSIBILITY
33,7 million broadbandinternet subscribers (Q32013)
69 million GSM users (Q32013) 57 million credit card users (Q32013)
77 Million People
TRANSPORT & TOURISM
Turkey is the 16th largest automotive producer in the world
(OICA 2012)
Turkish Airlines is the fastestgrowing airline in Europe. It is chosen as the best airlines in
Europe ( Skytrax 2011,2012,2013 )131 million airline passengers in
Turkey (2012)
Turkey is the 6th most visited holiday destination in the world
(2012)Out of world’s top 100 best hotels
22 are from Turkey (TUI Holly, 2012)
Turkey is the 8th
largest steel producer in the world and 2nd compared with the
EU countries
SET-UPLOREM
INDUSTRY
LEADING INDUSTRIESAutomotive: Target to produce over 2mm vehicles within 5 yearsTransportation:Highway capacity planned to be tripled until 2023
Real Estate; Third most attractive real estate investment destination in 2012 (AFIRE); Istanbul is the most attractive real estate investment market in 2012 (PwC, ULI); more than $27 billion FDI over past decade.
Finance: the most attractive sector with $39 billion FDI in the past decade.
Energy; Strategic location for energy terminal and corridor; rapidly growing demand: over$100 billion investment is needed to meet the demand till 2023; privatization and diversification opportunities.
ICT: Fastest growing IT companies in the region are fromTurkey, 27 of the 500 fastest growing tech companies
in EMEA are Turkish.
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200
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15
20
25
FDI in TURKEY
Foreign Direct Investment Inflows (Billion USD)
Annualized as of January 2014Source: GBRT
There is an increasing confidencein the Turkish economy. Turkeymoved up to number 13 in rankings in 2013 in the foreigndirect investment confidenceindex from number 23 in 2010.
Source: A. T. Kearney
CONFIDENCE INDEXBased on 159 companyresponses, Turkey settled in the19th place in transnationalCorporations’ top prospective host economies for 2013-2015.
Source: UNCTAD
A TOP DESTINATIONFOR INVESTMENT
FDI inflows increased from 15bn$between 1923-2002 to 123bn$between 2003-2013.
Source: Central Bank of Republic of Turkey
FDI INFLOWS
SUCCESS FACTORS
POPULATION
ACCESS TO INTERNATIONAL MARKETS
TURKEY AS A HUB FOR ENERGY , MANUFACTURING AND TRANSPORTATION
STRUCTURAL REFORMS AND OPPORTUNITIES IN TURKEY
LeadershipCommercial Diplomacy Stability and Consistency TransparencyAdoptability
Public Finance Reform, Banking Reform, Social Security Reform, Healthcare Reform
Privatization & Enhancing Private Sector’s Role in the Economy
Opening the Key Markets to Competition,and Regulation by Independent Agencies
Improving the Investment Environment
New R&D and Innovation Support Law
NEW FDILAW
Income Tax20%
Accessto Real Estate
STRUCTURAL REFORMS
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Turkey has one of the most liberal trade policies in the world. It has ranked the 5th according to the World Trade Indicators.
Turkey has a Customs Union with the EU since1996.
Turkey has Free Trade Agreements with 21 countries.
Tax Incentives, Land Allocation, R&D Support
Liason Office Structure for Regional Hubs
YOUNG POPULATION
Half of the population of Turkey is underthe age of 30.
SKILLED LABOR FORCE
Turkey has a highly skilled labor force. Turkey has ranked 37th in the IMD World Competitiveness rankings for the numberof qualified engineers and competantsenior managers.
POPULATION
Unemployment Rate for 2013 is 9,7%
77 Million People Vocational Schools 120+ Universities Golden Demographic Strong Domestic Demand 600,000 University GraduatesEvery Year
INTERNATIONAL ACCESS
EUROPE & RUSSIA MENA REGION
CENTRAL ASIA & CAUCASUS
EUROPE RUSSIA
CENTRAL ASIA & CAUCASUS
MENA REGION
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TURKEY GDP: $19 trillion Import: $6,5 trillion Population: 670 million
GDP: $2 trillion Import: $335 billion Population: 142 million
GDP: $3,8 trillion Import: $995 billion Population: 675million
GDP: $390 billion Import: $97 billion Population: 82 million
Source: IMF World Economic Outlook and WTO; GDP, Imports and population figures as of 2012
1,5 billion people; 25 trillion $ GDP; 8 trillion $ trade
REGIONAL CAPITAL for HQs of MNCsCoca Cola manages 94 countriesfrom Turkey whereas Microsoft manages 80 countries from Turkey.
INTERNATIONAL CONNECTIVITYInternational connectivity is great forTurkey with more than 196 flightdestinations, 10 international hubsfor sea transport.
Turkey will be the 16th manufacturing hub in the world and 2nd in Europe over the next 5 years. (Deloitte,2013)
R&D expenditures increased by 260 % between 2002 and 2011 in Turkey.
TURKEY: A MANUFACTURING HUB
TURKEY: AN ENERGY HUB
HOW ABOUT COOPERATION?
THANK YOU ! halikarnasd.com
