ispat presentation
TRANSCRIPT
REPUBLIC OF TURKEY PRIME MINISTRY
Investment Support and Promotion Agency of Turkey
ISPAT
“Investment Climate in Turkey”
Beautiful
landscape…
Combination of
contemporary and
traditional…
Home of many
successful
people…
What about the
investment
opportunities…
AGENDA
• TURKEY WITH SOME KEY FIGURES
• FDI IN TURKEY
• TOP REASONS TO INVEST IN TURKEY
• THE AGENCY
• WHY TURKEY?
Turkey with some
key figures…
17th largest economy in the world and 6th when
compared to the EU Countries in 2012 (IMF)
The largest youth population when compared to the EU countries
54 million credit card
users (2012)
68 million GSM users
(2012)
20 million broadband internet subscribers (2012)
Turkey is the 8th largest steel producer in the world and 2nd compared with
the EU countries (worldsteel 2012)
Turkey is the 16th largest automotive producer in the world (OICA 2012)
- Turkish Airlines is one of the fastest growing airlines in Europe
-The best airline in Europe (Skytrax 2011, 2012, 2013)
- 131 million airline passengers in Turkey (2012)
- Istanbul Ataturk Airport is the best airport in Southern Europe (Skytrax 2013)
Turkey is the 6th most visited holiday destination in the world (2012)
International Tourist Arrivals
Country 2012
(million)
1. France 83.0
2. USA 67.0
3. China 57.7
4. Spain 57.7
5. Italy 46.4
6. Turkey 35.7
7. Germany 30.4
8. UK 29.3
9. Russia 25.7
10. Malaysia 25.0
Source: UNWTO
Out of world’s top 100 best hotels 22 are from Turkey (TUI Holly, 2012)
It’s not only a place
to work, but also a
fascinating place to live.
FDI in Turkey
Source: Central Bank of Republic of Turkey & Ministry of Economy
Soaring FDI Inflows
5,6 6,7
8,8
11,7
15
18,7 21
23,7 25,5
29,4
33,8
0
5
10
15
20
25
30
35
40
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
‘000 Number of Companies with Foreign Capital
15
123
0
25
50
75
100
125
1923-2002 (80 years) 2003-2012 (10 years)
FDI Inflows ($ billion)
FDI in Turkey
Increasing Confidence in the Turkish Economy
Source: A.T. Kearney
Foreign Direct Investment Confidence Index 2012
Transnational Corporations’ top prospective host economies for 2013-2015
Source: UNCTAD. Based on 159 company responses
(Percentage of respondents selecting economy as a top destination for investment)
FDI in Turkey
Top reasons
to invest in Turkey
Top reasons to invest in Turkey
Source: OECD, Eurostat and National Sources
Dynamic, Stable & Attractive Economy GDP & Income Key numbers
Population International Hub Structural Reforms
Benchmarking Performance of the Turkish Economy
5,0 4,7
4,5 4,3
3,6 3,5 3,5 3,3
2,9 2,5
1,6
1,1 1,0 0,8
0
1
2
3
4
5
6
Average Annual Real GDP Growth (%) 2002-2012
786 772
490 478
384
304 268
196 169
126 92
51
0
100
200
300
400
500
600
700
800
2012 GDP (Current Prices, $Billion)
Source: TurkStat
Main Drivers of the Economic Growth
Top reasons to invest in Turkey
Dynamic, Stable & Attractive Economy
GDP & Income Key numbers
Population International Hub Structural Reforms
66%
33% 33%
10% 4%
-6%
-39% -40%
-20%
0%
20%
40%
60%
80%
DomesticConsumption
Exports PrivateInvestment
PublicConsumption
PublicInvestment
Stocks Imports
Percentage Contribution to Real GDP Growth 2002-2012
An economy driven by entrepreneurial spirit of private sector, robust domestic market and lucrative export opportunities
Source: Indicators are based on the compilations of OECD, Rosstat, and Turkstat data
Quarterly Real GDP Growth (Index: Q1-2009=100) Seasonally adjusted
Fastest growing economy in Europe and one of the fastest growing economies in the world
The fastest recovering economy since the onset of global financial crisis in 2009
95
100
105
110
115
120
125
130
135
Q1
-20
09
Q2
-20
09
Q3
-20
09
Q4
-20
09
Q1
-20
10
Q2
-20
10
Q3
-20
10
Q4
-20
10
Q1
-20
11
Q2
-20
11
Q3
-20
11
Q4
-20
11
Q1
-20
12
Q2
-20
12
Q3
-20
12
Q4
-20
12
Q1
-20
13
Q2
-20
13
Turkey
Russia
Brazil
Poland
Czech Rep.
Hungary
Top reasons to invest in Turkey
Dynamic, Stable & Attractive Economy
GDP & Income Key numbers
Population International Hub Structural Reforms
Source: OECD Economic Outlook No.93, May 2013
Let your business blossom in a thriving economy and promising future
8,4
6,9
6,0
5,1
5,0
4,6
4,1
3,8
3,7
3,5
3,3
3,3
3,2
3,2
3,0
2,9
2,7
2,7
2,6
2,4
2,1
2,1
2,0
2,0
1,9
1,7
1,7
1,5
1,5
1,5
1,4
1,4
1,3
1,2
1,1
1,0
1,0
0,8
0,8
0,8
0,2
0,1
-0,5
-1
0
1
2
3
4
5
6
7
8
9
Ch
ina
Ind
ia
Ind
on
esi
a
Turk
ey
Ch
ile
Sou
th A
fric
a
Ko
rea
Arg
enti
na
Bra
zil
Isra
el
Au
stra
lia
Ru
ssia
Slo
vaki
a
Mex
ico
Esto
nia
Po
lan
d
No
rway
Swe
de
n
Luxe
mb
ou
rg
Ne
w Z
eal
and
Cze
ch R
ep
.
Swit
zerl
and
US
Can
ada
OEC
D
Au
stri
a
UK
Fran
ce
Fin
lan
d
Be
lgiu
m
Ne
the
rlan
ds
Irel
and
Hu
nga
ry
Ge
rman
y
Slo
ven
ia
Euro
are
a
De
nm
ark
Jap
an
Ice
lan
d
Spai
n
Po
rtu
gal
Ital
y
Gre
ece
The fastest growing economy among the OECD countries
Average Annual Real GDP Growth (%) Forecast 2012-2017
Top reasons to invest in Turkey
Dynamic, Stable & Attractive Economy
GDP & Income Key numbers
Population International Hub Structural Reforms
Source: TURKSTAT
Potential of the Turkish Economy
Dynamic, Stable & Attractive Economy Population Age Labor Force GDP
International Hub Structural Reforms
Top reasons to invest in Turkey
GDP Per Capita – Nominal (USD)
3.4
92
4.5
59
5.7
64
7.0
22
7.5
86
9.2
40
10
.43
8
8.5
59
10
.02
2
10
.46
6
10
.50
4
-
2.000
4.000
6.000
8.000
10.000
12.000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Top reasons to invest in Turkey
Source: TURKSTAT, Hedef 2023
A Visionary Economy: Road to 2023
Dynamic, Stable & Attractive Economy Population
Age Labor Force GDP
International Hub Structural Reforms
230
786
2.000
-
500
1.000
1.500
2.000
2002 2012 2023 (Target)
GDP ($ Billion, Current Prices)
2,5 times
3.492
10.504
25.000
-
5.000
10.000
15.000
20.000
25.000
2002 2012 2023 (Target)
GDP per capita ($)
3 times
2,5 times
3,5 times
Top reasons to invest in Turkey
Source: TURKSTAT
Enriching population eradicating poverty
Dynamic, Stable & Attractive Economy Population Age Labor Force GDP & Income
International Hub Structural Reforms
30,3
23,8
20,9
16,4
13,3
8,4 6,8
4,4 3,7 2,8
0,0
5,0
10,0
15,0
20,0
25,0
30,0
35,0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Percentage (%) of Poor People Living Less Than $4,3 Per Day
Source: TURKSTAT
Top reasons to invest in Turkey
60,5
43,2
36,8 36,0 34,8 34,2
29,7 27,4
21,2
5,2
0
15
30
45
60
1 2 3 4 5 6 7 8 9 10
Percentage Increase in Decile (10%)
Income Groups
Lowest income group
top income group
Real Increase (%) in Household Income 2002-2011
Dynamic, Stable & Attractive Economy Population Age Labor Force GDP & Income
International Hub Structural Reforms
Emergence of a new middle-class
Top reasons to invest in Turkey
Dynamic, Stable & Attractive Economy Population Age Labor Force GDP & Income
International Hub Structural Reforms
2002 2012
Number of shopping malls 60 327
Stock of Consumer Loans* ($ Billion) 4,2 142
Private Consumption per capita ($) 2.390 7.674
Motor Vehicle Sales (thousands) 174 818
Number of Cars in traffic (million) 4,6 8,6
Airline Passengers (million) 33 131
Source: OSD, TCSCR, Ministry of Transport, TURKSTAT, CBRT, Ministry of Development *including credit cards
Rise of the middle-class in Turkey
Top reasons to invest in Turkey
Dynamic, Stable & Attractive Economy Population
Age Labor Force GDP & Income
International Hub Structural Reforms
Source: EIU
0
2000
4000
6000
8000
10000
12000
2004 2012
5389
2737
4757
12251
163
2257
> $5K< $10K
>$10K<$50K
> $50K
Annual Income:
Number of Households by their Annual Income Level (‘000)
Source: Central Bank of the Republic of Turkey, European Central Bank , FRED
Household Liability % of GDP
Top reasons to invest in Turkey
Dynamic, Stable & Attractive Economy Population Age Labor Force GDP & Income
International Hub Structural Reforms 21
66
85
0
10
20
30
40
50
60
70
80
90
100
Turkey Euro Area USA
2012
Top reasons to invest in Turkey
Source: Treasury, Eurostat, IMF
EU Defined General Government
Gross Debt Stock (% of GDP)
Stability and High Performance in the Economy
Maastricht Criteria: 60 %
Dynamic, Stable & Attractive Economy GDP & Income Key numbers
Population International Hub Structural Reforms
74,0
36,1
60,9
85,3
35
40
45
50
55
60
65
70
75
80
85
90
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
TURKEY
EU
Stability and High Performance in the Economy
Dynamic, Stable & Attractive Economy GDP & Income Key numbers
Population International Hub Structural Reforms
Top reasons to invest in Turkey
Central Government Budget Balance
(% of GDP)
Maastricht Criteria: -3 %
-10,2
-2,0 -2,5
-4,0
-12
-9
-6
-3
02002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
TURKEY
EU
Source: Ministry of Finance, Eurostat
Source: TURKSTAT
Stability and High Performance in the Economy
Dynamic, Stable & Attractive Economy GDP & Income Key numbers
Population International Hub Structural Reforms
Top reasons to invest in Turkey
Annual Inflation
* As of September 2013
30,7
7,9*
0,0
5,0
10,0
15,0
20,0
25,0
30,0
35,0
J 0
3 A J OJ
04 A J O
J 0
5 A J OJ
06 A J O
J 0
7 A J OJ
08 A J O
J 0
9 A J OJ
10 A J O
J 1
1 A J OJ1
2 A J OJ1
3 A J
Source: TURKSTAT
Stability and High Performance in the Economy
Dynamic, Stable & Attractive Economy GDP & Income Key numbers
Population International Hub Structural Reforms
Top reasons to invest in Turkey
Exports
36
47
63
74
86
107
132
102
114
135
153
0
20
40
60
80
100
120
140
160
180
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Billion USD
Source: TURKSTAT, Products with 2-digit HS Codes, EU includes 27 countries (new members in 2004 were included in 2002 figures)
Product & Market Diversification of Exports
Top reasons to invest in Turkey
2002 2012
Number of export products with over $1 billion 9 30
Number of export markets with over $1 billion 8 34
Share of top 5 countries in total exports (%) 47 33
Share of MENA in total exports (%) 13 28
Share of North America in total exports (%) 10 4
Share of EU in total exports (%) 57 39
Dynamic, Stable & Attractive Economy GDP & Income Key numbers
Population International Hub Structural Reforms
Less dependent on the crisis-ridden markets
Source: TURKSTAT
Increasing export of technology-intensive products
Dynamic, Stable & Attractive Economy GDP & Income Key numbers
Population International Hub Structural Reforms
Top reasons to invest in Turkey
46,3 48,5 53,9 54,5 58,8 61 65,2 60,7 59,6 60,9
53,7 51,5 46,1 45,5 41,2 39 34,8 39,3 40,4 39,1
0
20
40
60
80
100
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Tecnology-intensive Labor-intensive
Compositipon of Exports (%)
Top reasons to invest in Turkey
Turkey has the 5th most liberal trade policies in the world (World Trade Indicators 2010)
Customs Union with the EU
Free Trade Agreements with 21 countries:
Source: Ministry of Economy, * In ratification process
Dynamic, Stable & Attractive Economy GDP & Income Key numbers
Population International Hub Structural Reforms
1. Albania 12. Switzerland
2. Bosnia & Herzegovina 13. Syria
3. Egypt 14. Tunisia
4. Georgia 15. Montenegro
5. Iceland 16. Serbia
6. Israel 17. Chile
7. Lichtenstein 18. Jordan
8. Macedonia 19. Lebonan*
9. Morocco 20. Mauritius
10. Norway 21. South Korea
11. Palestine
Top reasons to invest in Turkey
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
EUROPE
GDP: $19 trillion Import: $6,5 trillion Population: 670 million
RUSSIA
GDP – $2 trillion Import: $335 billion Population: 142 million
MENA
GDP: $3,8 trillion Import: $995 billion Population: 675million
CENTRAL ASIA & CAUCASUS
GDP: $390 billion Import: $97 billion Population: 82 million
Dynamic, Stable & Attractive Economy Population
International Hub Access to Multiple Markets
Energy Corridor Structural Reforms
Access to Multiple Markets
196 international destinations & 29 more planned
International Connectivity Top reasons to invest in Turkey
Source: Turkish Airlines
Top reasons to invest in Turkey
Source: Respective Companies
Business Capital for Regional HQs
Multinational Companies (MNCs)
MNCs Number of Countries Managed
from Turkey
Coca Cola 94
GE Healthcare 80
Microsoft 80
Intel 67
Unilever 36
Verifone 30
GlaxoSmithKline 30
BSH 30 Schneider Electric 27
Alstom 26 Ericsson 22
Cargill 20
Pfizer 20
Volvo 18
BASF 18
PepsiCo 14
Dynamic, Stable & Attractive Economy Population
International Hub Access to Multiple Markets
Energy Corridor Structural Reforms
Turkey As An Energy Corridor And Terminal
Top reasons to invest in Turkey
Dynamic, Stable & Attractive Economy Population
International Hub Access to Multiple
Markets Energy corridor
Structural Reforms
Existing Natural Gas Pipelines
Existing Oil Pipelines
Natural Gas Pipelines under Construction
Natural Gas Pipelines Underway
Proposed Natural Gas Pipelines
Oil Pipelines under Construction
Source: UN and TURKSTAT, 2012
Potential of the Turkish Economy - Young Population -
Top reasons to invest in Turkey
Population Pyramid
Half of population in Turkey is under age 30
5 4 3 2 1 0 1 2 3 4 5
0-4
5-9
10-14
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65-69
70-74
75-79
80-84
85-89
90+
Female Male
%
Age Group TURKEY
5 4 3 2 1 0 1 2 3 4 5
0-4
5-9
10-14
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65-69
70-74
75-79
80-84
85-89
90+
Female Male
%
Age Group EUROPE
Dynamic, Stable & Attractive Economy Population Age Labor Force GDP & Income
International Hub Structural Reforms
Top reasons to invest in Turkey
Source: UN *Number of people between ages of 15 and 64 **[Age 0-14 + Age 65+ ]/ Age 15-64
Dynamic, Stable & Attractive Economy Population
Age Labor Force GDP
International Hub Structural Reforms
Favorable Demographic Trend
80
85
90
95
100
105
110
115
120
125
2011 2014 2017 2020 2023 2026 2029 2032 2035 2038 2041 2044 2047 2050
Working Age Population*, 2011=100
Europe
Turkey
40
50
60
70
80
90
100
2011 2014 2017 2020 2023 2026 2029 2032 2035 2038 2041 2044 2047 2050
Total Dependency Ratio (%)**
Europe
Turkey
Source: IMD World Competitiveness Yearbook 2012, IMD WCY Executive Opinion Survey based on an index from 0 to 10
Top reasons to invest in Turkey
Skilled Labor Force 2012
6,2
6,1
5,6
5,3
4,4
4,0
0 1 2 3 4 5 6 7
Turkey
Poland
Hungary
Romania
China
Bulgaria
Availability of Skilled Labor Force
6,1
5,1
4,9
4,7
4,6
3,5
0 1 2 3 4 5 6 7
Turkey
Poland
Hungary
China
Romania
Bulgaria
Availability of Competent Senior Managers
7,6
6,3
6,1
6,0
5,7
5,4
0 2 4 6 8
Turkey
Poland
Hungary
Romania
China
Bulgaria
Availability of Qualified Engineers
Dynamic, Stable & Attractive Economy Population
Age Labor Force GDP & Income
International Hub Structural Reforms
Source: OSYM
Skilled Labor Force
Top reasons to invest in Turkey
Dynamic, Stable & Attractive Economy Population
Age Labor Force GDP & Income
International Hub Structural Reforms
Number of Graduating Students in the Selected Engineering Fields
Field 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Mechanical Eng. 3415 3232 3436 3411 3550 3875 4323 4678 4485 4558 5324
Electric-Electronics Eng. 2640 2704 3013 3361 3208 3346 3637 3510 3621 3987 4403
Computer Eng. 1281 1402 1727 1970 1910 2174 2446 2950 3028 2906 3184
Civil Eng. 2840 2811 2735 2717 2850 2972 3235 3498 3595 4231 4368
Source: TURKSTAT, Ministry of Development
Productive and Cost-effective Labor Force
Top reasons to invest in Turkey
Productivity and Unit Wages Index in Industry
(Per Worker; 2005=100) Dynamic, Stable & Attractive Economy Population Age Labor Force GDP & Income
International Hub Structural Reforms
115,9
108,7
80
85
90
95
100
105
110
115
120
125
130
200
5 Q
1
200
5 Q
2
200
5 Q
3
200
5 Q
4
200
6 Q
1
200
6 Q
2
200
6 Q
3
200
6 Q
4
200
7 Q
1
200
7 Q
2
200
7 Q
3
200
7 Q
4
200
8 Q
1
200
8 Q
2
200
8 Q
3
200
8 Q
4
200
9 Q
1
200
9 Q
2
200
9 Q
3
200
9 Q
4
201
0 Q
1
201
0 Q
2
201
0 Q
3
201
0 Q
4
201
1 Q
1
201
1 Q
2
2011
Q3
201
1 Q
4
201
2 Q
1
2012
Q2
2012
Q3
Productivity Index
Real Unit Wage Index
Source: OECD
Labor Productivity in Total Economy
Top reasons to invest in Turkey
95
110
125
140
155
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
Turkey
Poland
Czech Republic
Hungary
Mexico
Real GDP per hour worked (Index: 2001=100)
Dynamic, Stable & Attractive Economy Population Age Labor Force GDP & Income
International Hub Structural Reforms
Top reasons to invest in Turkey
Source: *MERCER - Pan-European Employer Health Benefits Issues Survey 2008, **EUROSTAT 2012: The average number of hours corresponds to the number of hours the person normally works. This covers all hours including extra hours, either paid or unpaid, which the person normally works
4,6 5,5 5,7
6,6 6,7 7,8 8,3 8,3 8,3
9,7 10,8
11,9
22
0
5
10
15
20
25
Days
Annual average number of sick days per
employee in Europe*
Dynamic, Stable & Attractive Economy Population Age Labor Force GDP
International Hub Structural Reforms
Productive and Cost-effective Labor Force
Hours worked per week of full-time employment
Annual average**
Hours
52,4
43,8 43,5 42,8 42,6 42,3 42,1 41,9 41,9 41,7 41,6 41,6 41,1 41,1 40,8 40,6 40,3 39,8
30
35
40
45
50
55
Top reasons to invest in Turkey
Labor Cost Per Hour ($US)
2010
Productive and Cost-effective Labor Force
Dynamic, Stable & Attractive Economy Population Age Labor Force GDP
International Hub Structural Reforms
Source: EIU, February 2011; Average cost of labor per hour (pay and non-pay costs).
3,37
5
6,4
9,2
11,2
25,3
26,9
37,9
39
0 5 10 15 20 25 30 35 40
Turkey
Malaysia
Brazil
Hungary
Poland
Japan
US
Australia
Germany
Top reasons to invest in Turkey
Source: OECD *Harmonized Unemployment Rate, seasonally adjusted
Employment Generating Economy
-2.000
-1.500
-1.000
-500
-
500
1.000
1.500
2.000
2.500
3.000
3.500
Turk
ey
US
Germ
any
Kore
a
Chile
Canada
Austr
alia
Sw
eden
Sw
itzerland
Austr
ia
Belg
ium
Norw
ay
Fra
nce
Slo
vakia
Czech R
ep.
Slo
venia
Irela
nd
Denm
ark
Italy
Pola
nd
Port
ugal
Gre
ece
Japan
Spain
Increase in Employment (‘000) 2009-2012
Turkey generated c. 3,5 million new jobs since the
onset of the global financial crisis in 2009
7,0
8,0
9,0
10,0
11,0
12,0
13,0
14,0
Jan-2
009
Mar-
2009
May-2
009
Jul-
2009
Sep-2
009
Nov-2
009
Jan-2
010
Mar-
2010
May-2
010
Jul-
2010
Sep-2
010
Nov-2
010
Jan-2
011
Mar-
2011
May-2
011
Jul-
2011
Sep-2
011
Nov-2
011
Jan-2
012
Mar-
2012
May-2
012
Jul-
2012
Sep-2
012
Nov-2
012
Unemployment* (%)
Turkey
EU
OECD
Dynamic, Stable & Attractive Economy Population
Age Labor Force GDP
International Hub
Structural Reforms
Top reasons to invest in Turkey
Turkey: A Manufacturing Hub
Source: Deloitte TURKEY TURKEY TURKEY
T U R K E Y
Turkey will be the 16th manufacturing hub in the world and 2nd in Europe over the next 5 years.
Dynamic, Stable & Attractive Economy Population
International Hub Structural Reforms
Top reasons to invest in Turkey
Public Sector Reform
Financial Sector Reform
Social Security Reform
Tax Reform
Enhancing Private Sector’s Role in the Economy
Opening the Key Markets to Competition, and Regulation by Independent Agencies
Improving the Investment Environment
Accelerated Privatization
New R&D and Innovation Support Law
Key Elements of Structural Reform Agenda
Structural Reforms
NewFDI Law &
Other Legislation
Employment
of Expatriates
International
Arbitration
Protection
Against
Expropriation
Corporate
Income
Tax %20
National
Treatment
Freedom
to invest
Guarantee
of Transfers
Access
to Real Estate
Dynamic, Stable & Attractive Economy Population
International Hub Structural Reforms
Top reasons to invest in Turkey
Top reasons to invest in Turkey
New Turkish Commercial Code
effective as of July 2012
Transparency
Accountability
Institutionalization
Improvement in investment & business environment
Adoption of institutional management principles
Opportunity to perform legal procedures electronically
Dynamic, Stable & Attractive Economy Population Age Labor Force GDP
International Hub Structural Reforms
Source: World Bank Doing Business Reports
Top reasons to invest in Turkey
27
29
30
30
31
36
37
38
39
25 30 35 40
Romania
Russia
Bangladesh
Bulgaria
Poland
Morocco
Cameroon
Turkey
Guatemala
Turkey in 2003
6
13
15
18
18
20
23
27
28
32
33
05101520253035
Turkey
UK
Germany
Russia
Switzerland
Czech Republic
Japan
India
Spain
Poland
China
Turkey in 2012
Improving Doing Business:
Number of days to set up a company
Dynamic, Stable & Attractive Economy Population
International Hub Structural Reforms
Dynamic, Stable & Attractive Economy Population
International Hub Structural Reforms
Top reasons to invest in Turkey
Structural Reforms: Yielding Results & Increasing Competitiveness
Global Competitiveness Index
Year Number of Countries
Turkey’s Rank
Turkey’s Rank (Percentile)
2004 104 66 63,5
2005 117 66 56,4
2006 125 59 47,2
2007 131 54 41,2
2008 134 63 47,0
2009 133 61 45,9
2010 139 61 43,9
2011 142 59 41,5
2012 144 43 29,8
2013 148 44 29,7
Source: WEF
Increasing Confidence in the Turkish Economy
Source: Respective rating agencies
Turkey’s Sovereign Credit Ratings S&P Moody’s Fitch JCR
Scale Jan 2010 Feb
2010 Mar 2013 Scale
Dec 2009
Jan 2010
May 2013
Scale Dec 2009 Jan
2010 Nov
2012 Scale
Jan 2010
Feb 2010
May 2013
A A2
A
AAA+
AAA
AAA-
A- A3
A-
A+
A
A-
BBB+ Baa1 BBB+ BBB+
BBB Baa2 BBB BBB
BBB- Baa3 Turkey BBB- Turkey BBB- Turkey
BB+ Turkey Ba1 Turkey BB+ Turkey BB+
BB Turkey Ba2 BB BB Turkey
BB- Turkey Ba3 Turkey BB- Turkey BB- Turkey B+ B1 B+ B+
B B2 B B
B- B3 B- B-
CCC+ Caa1
CCC+
CCC
CCC Caa2 CCC CC
CCC- Caa3 CCC- C
SD Ca DDD D
D
Investment Grade by Fitch in Nov 2012
Top reasons to invest in Turkey
Investment Grade by Moody’s in May 2013
Investment Grade by JCR in May 2013
Source: Bloomberg
Increasing Confidence in the Turkish Economy
0
5.000
10.000
15.000
20.000
25.000
30.000
35.000
40.000
0
200
400
600
800
1.000
1.200
1.400
1.600
Nov-0
9
Dec-0
9
Jan-1
0
Feb-1
0
Mar-
10
Apr-
10
May-1
0
Jun-1
0
Jul-
10
Aug-1
0
Sep-1
0
Oct-
10
Nov-1
0
Dec-1
0
Jan-1
1
Feb-1
1
Mar-
11
Apr-
11
May-1
1
Jun-1
1
Jul-
11
Aug-1
1
Sep-1
1
Oct-
11
Nov-1
1
Dec-1
1
Jan-1
2
Feb-1
2
Mar-
12
Apr-
12
May-1
2
Jun-1
2
Jul-
12
Aug-1
2
Sep-1
2
Oct-
12
Portugal
Ireland
Spain
Turkey
Italy
Greece (right axis)
5-Year CDS Spreads (basis point)
Top reasons to invest in Turkey
Top reasons to invest in Turkey
INVESTMENT INCENTIVES IN TURKEY
1. General Incentive System
2. Incentives for Large Scale Investments
3. Regional Incentive System
4. Incentives for Strategic Investments
5. Employment Scheme
6. Research and Development Supports
7. State Incentives for Export
Top reasons to invest in Turkey
NEW INCENTIVE SYSTEM
1. General Incentives 2. Regional Incentives
3. Incentives for large-scale Investments
4. Incentives for Strategic Investments
VAT Exemption
Custom Duty Exemption
VAT Exemption
Custom Duty Exemption
Tax Deduction
Employer’s share for
insurance premium
payment
Land provision
VAT Exemption
Custom Duty Exemption
Tax Deduction
Employer’s share for
insurance premium
payment
Land provision
Interest Support (except
1st and 2nd regions)
VAT Exemption
Custom Duty Exemption
Tax Deduction
Employer’s share for
insurance premium
payment
Land provision
Interest Support
VAT Refund
In the 6th Region; income withholding tax and employee’s share for insurance premium payment
Top reasons to invest in Turkey
Regional Incentive Map
The Agency
The Agency
Attached to the Prime Ministry and reports directly to the Prime Minister
Private sector approach
Multi-lingual, professional and dedicated project directors
ONE STOP SHOP
2 offices (Ankara – Istanbul)
Result oriented
The EU Negotiation Progress Report shows that the establishment of the Agency is a proof for improvement of the investment climate in Turkey
The Agency
The Agency
International representatives network worldwide and strategic partners in Turkey (Embassies, Consulates, Commercial Attaches, NGO’s etc)
The International Network
WORLD BANK’s GLOBAL INVESTMENT PROMOTION BENCHMARKING REPORT 2009
Among 181 National Investment Promotion Agencies,
INVESTMENT SUPPORT and PROMOTION AGENCY of TURKEY ranked as;
15th in the World in terms of General Performance Assessment
5th in the World and 2nd in Europe in terms of Inquiry Handling
The Agency
The Agency
for all potential investors!
n TUR KEY
Why Turkey?
Enjoy your potential in Turkey
According to the projection by Goldman Sachs, Turkey will be the 9th largest economy in the world and the 3rd largest economy in Europe by 2050.
1.China 2.U.S.A. 3.India 4.Brasil 5.Russia 6.Indonesia 7.Mexico 8.U.K. 9.Turkey 10.Japan
Source: Goldman Sachs, 2008
Why Turkey?
The Most Promising Sectors
Automotive ; Target to produce over 2 mio vehicles within 5 years Transportation; Highway capacity planned to be trippled up until 2023 with 12 different project
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; Resillent to the global financial crisis with strong regulatory and supervisory framework, the most attractive sector with $39 billion FDI in the past decade; more opportunties with Istanbul Finance Center
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 from Turkey, 27 of the 500 fastest growing tech companies in EMEA are Turkish. 2011 winner: Logic Bilişim (5-year revenue growth of 28,617%
with 412% CAGR).
Why Turkey?
ON
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