republic of turkey prime ministry investment support and promotion agency of turkey ispat investment...
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Republic of Turkey Prime Ministry Investment Support and Promotion Agency of Turkey ISPAT Investment Climate of Turkey Ahmet İhsan Erdem Vice President - Head of Investor Services Department. AGENDA. • T he Agency • Turkey With Some Key Figures • Top Reasons to Invest in Turkey - PowerPoint PPT PresentationTRANSCRIPT
Republic of TurkeyPrime Ministry
Investment Support and Promotion Agency of
TurkeyISPAT
Investment Climate of Turkey
Ahmet İhsan ErdemVice President -
Head of Investor Services Department
AGENDA
• The Agency• Turkey With Some Key Figures• Top Reasons to Invest in Turkey• Investment Environment• Turkey & Arab Countries Relations
The Agency
Established in 2006
Attached to the Prime Ministry andReports directly to the Prime Minister
Private sector approach
ONE STOP SHOP approach
Guidance on; Laws, Regulations, Site Selection, Sectoral Reports, Local Market Players, Potential Partners
Confidentiality, Free of Charge
2 offices (Ankara – Istanbul)
REPUBLIC OF TURKEY PRIME MINISTRYINVESTMENT SUPPORT AND PROMOTION AGENCY
invest.gov.tr
ANKARA ISTANBUL
REPUBLIC OF TURKEY PRIME MINISTRYINVESTMENT SUPPORT AND PROMOTION AGENCY
invest.gov.tr
www.invest.gov.tr
Available in 12 languages including Arabic
User-friendly «Invest in Turkey» app for iOS and Android devices.
All aspects of doing business, investment opportunities, incentives, key facts and more about Turkey.
Website & Mobile Apps
REPUBLIC OF TURKEY PRIME MINISTRYINVESTMENT SUPPORT AND PROMOTION AGENCY
The International Network
invest.gov.tr
REPUBLIC OF TURKEY PRIME MINISTRYINVESTMENT SUPPORT AND PROMOTION AGENCY
invest.gov.tr
• ISPAT chairs the World Association of Investment Promotion Agencies
• WAIPA was established in 1995
• 244 national and sub-national agencies from 162 different countries
• HQ of WAIPA will be relocated from Geneva to Istanbul
Turkey With Some Key Figures
Turkey is the 17th largest economy in the World
(6th when compared to EU Countries – IMF/2013)
will continue to increase and reach 93,4 million in 2050
76,667,864
Turkey has the largest youth population when compared to
the EU countries
57 million credit cardusers (2013)
70 million GSM users (2013)
33 million broadband internet subscribers (2013)
Turkey is the 17th largest automotive producer in the World and 6th largest when compared to the EU countries
(OICA 2013)
Turkey is the largest TV manufacturer in Europe
Turkey is the 8th largest steel producer in the World and
2nd largest whencompared to the
EU countries
Source: Worldsteel Association, 2013
INTERNATIONAL TOURIST ARRIVALS
Country 2012(million)
1. France 83.02. USA 67.03. China 57.74. Spain 57.75. Italy 46.46. Turkey 35.77. Germany 30.48. UK 29.39. Russia 25.710. Malaysia 25.0
Source: UNWTO
Out of World’s top 100 best hotels 22 are from Turkey (TUI Holly, 2012)
Turkey is the 6th most visited holiday destination in the World (2012)
Top reasons to invest in Turkey
One of the biggest emerging economies
invest.gov.trSource: IMF
GDPGROSS DOMESTIC PRODUCT
5% annual average growth in the last 11 years
0
300
600
900820
516 488
351312 277
198 190132 99
53
2013 GDP (Current Prices, $Billion)
Turke
y
Chile
Russ
iaSlo
vakia
Polan
dKo
rea
Braz
ilSo
uth Af
rica
Roman
iaCz
ech R
ep.
Mexico US
Hung
ary
EU28
Japan
0
1
2
3
4
54.9 4.6
4.3 4.1 4.0 3.7 3.5 3.4 3.4
2.6 2.51.8
1.1 1.1 0.9
Average Annual Real GDP Growth (%) 2002-2013
Source: OECD Economic Outlook No.93
Turke
y
Austral
iaMex
ico
Slova
k Rep
.
Icelan
dPo
land US
Swed
enAust
riaSp
ain
Hunga
ry
Finlan
d
Denmark UK
Belgium
Greece
German
yJap
an0.0
1.0
2.0
3.0
4.0
5.0
6.05.1
4.8
3.6 3.6 3.5 3.4 3.3 3.32.9 2.8 2.8 2.8 2.7 2.6 2.6 2.5 2.5 2.4 2.3 2.3 2.2 2.2 2.1 2.1 2.1 2.0 1.9 1.9 1.8 1.8 1.7 1.7 1.6 1.4 1.2
Average Annual Real GDP Growth (%) Forecast in the OECD Countries
2012-2017
Turkey will be the fastest growing economy among the OECD countries
invest.gov.tr
GDP GrowthFuture Projection by the OECD
Turkey is located in the center of the most promising markets of the World
4h
You can access to multiple markets from Turkey
(Total 56 Nations, 1,5 Billion People $ 25 Trillion GDP)
Multinational Company
Number of Countries Managed from Turkey
Coca Cola 90 GE Healthcare 80 Microsoft 76 Intel 67 Unilever 36 Verifone 30 Schneider Electric 27 Ericsson 22 Cargill 20 Pfizer 20 Volvo 18 BASF 18 PepsiCo 14 P&G 11 LG Electronics 9 Adobe 9
invest.gov.tr
Turkey as Regional Hub
Source: TURKSTAT
Exports
invest.gov.tr
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130
20
40
60
80
100
120
140
160
36
152Billion USD
Manufacturing industry constitutes 93% of Turkey’s total export
invest.gov.trSource: TURKSTAT, Products with 2-digit HS Codes, EU includes 27 countries (new members in 2004 were included in 2002 figures), *Data for 2012
Product & Market Diversification of Exports
2002 2013
Number of export products with over $1 billion* 9 35
Number of export markets with over $1 billion 8 34
Share of top 5 countries in total exports (%) 47 32
Share of MENA in total exports (%) 13 24
Share of EU in total exports (%) 57 41
Exports
Customs Union with the EU:
There is free circulation of goods between Turkey and 28 European Union member countries.
Source: Undersecretariat of Foreign Trade, * In ratification process
EU Customs Union and FTAs
invest.gov.tr
1. Albania 7. Israel 13. Switzerland 19. Jordan 25. Moldavia*2. Bosnia & Herzegovina 8. Lichtenstein 14. Syria 20. South Korea3. Croatia 9. Macedonia 15. Tunisia 21. Mauritus *4. Egypt 10. Morocco 16. Montenegro 22. Lebanon*5. Georgia 11. Norway 17. Serbia 23. Ghana*6. Iceland 12. Palestine 18. Chile 24. Malaysia*
Free Trade Agreements with 25 countries:
Investment Environment
invest.gov.tr
National Treatment
=
Guaranteeof Transfers
Access to Real Estate
International Arbitration Employment
of Expatriates
Freedom to Invest
Protection Against Expropriation
The New Commercial Code
Structural Reforms
Corporate Income Tax
%20
Structural Reforms
Source: World Bank Doing Business Reports
Romania
Russia
Bangladesh
Bulgaria
Poland
Morocco
Cameroon
Turkey
Guatemala
25 27 29 31 33 35 37 39
27
29
30
30
31
36
37
38
39
Turkey in 2003Improving Doing Business:
Number of days to set up a company
Turkey
UK
Germany
Russia
Switzerland
Czech Republic
Japan
Spain
India
Poland
China
05101520253035
6.0
12.0
14.5
15.0
18.0
19.5
22.0
23.0
27.0
30.0
33.0
Turkey in 2013
Incentive System
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
FDI inflows to Turkey
invest.gov.trSource: The Central Bank of Turkey & Ministry of Economy
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
5.6 6.78.8
11.715.0
16.119.1
21.9
25.2
29.5
33.837.0
‘000 Number of Companies with Foreign Capital
1923-2002 (80 years) 2003-2013 (11 years)0
15
30
45
60
75
90
105
120
135
15
137FDI Inflows ($ billion)
More than 4.000 of them are from Arab
countries
Increasing Confidence in the Turkish Economy
invest.gov.trSource: The Central Bank of Turkey & Ministry of Economy Source: Respective rating agencies
Turkey’s Sovereign Credit RatingsS&P Moody’s Fitch JCR
Scale Jan 2010 Feb 2010 Mar 2013 Scale Dec
2009Jan
2010May 2013 Scale Dec 2009 Jan
2010Nov
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- TurkeyBB+ Turkey Ba1 Turkey BB+ Turkey BB+ BB Turkey Ba2 BB BB TurkeyBB- 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 CCCCC- Caa3 CCC- CSD Ca DDD D
D
Investment Grade by Fitch in Nov 2012
Investment Grade by Moody’s in May 2013
Investment Grade by JCR in May 2013
Turkey & Arab CountriesBilateral Economic Relations
FDI inflows to Turkey
invest.gov.trSource: CBRT
Arab investors are among the top investors in Turkey, over the past decade, they have invested over $10 billion in Turkey
FDI Flows from Arab Countries into Turkey ($ Million, equity)
Cumulative 2004-2013
United Arab Emirates 3.931
Saudi Arabia 2.114
Kuwait 1.379
Lebanon 1.099
Qatar 743
Bahrain 522
Jordan 180
Libya 98
Other countries 12
TOTAL 10.078
Major M&As in TurkeyM&As deals with over $100 million
invest.gov.trSource: Deloitte, E&Y
Year Acquirer Origin Target Sector Stake Deal Value (US$ million)
2005 Saudi Oger Saudi Arabia Türk Telekom Telecommunication 55% 6.550,0
2007 National Commercial Bank Saudi Arabia Türkiye Finans Katılım Bankası Financial Services 60% 1.080,0
2008 Abraaj Capital UAE Acıbadem Sağlık Hizmetleri Healthcare 54% 586,7
2013 Commercial Bank of Qatar Qatar AlternatifBank Financial Services 71% 448,0
2007 St, Martin's Property Kuwait Cevahir Shopping Center Real Estate 50% 393,0
2012 Burgan Bank Kuwait Eurobank Tekfen Financial Services 99% 359,0
2006 Saint Gobain Isover ve Alghanim Industries France-Kuwait İzoGlass Sanayi ve Ticaret A.Ş. Insulation 61% 171,3
2007 Abraaj Capital Limited UAE Acıbadem Sağlık Hizmetleri Healthcare 22% 162,5
2007 National Bank of Kuwait Kuwait Turkish Bank Financial Services 40% 160,0
2007 Global Investment House Kuwait FFK Fon Leasing Financial Services 60% 120,0
2013 Jadwa Investment Company Saudi Arabia Cemre İnşaat Construction 37% 100,0
ON
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