a successful economic journey industrialists... · turkey is the 16th largest automotive producer...

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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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