Republic of Turkey Prime Ministry. Investment Support and Promotion Agency of Turkey ISPAT. Investment Environment of Turkey

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1 Republic of Turkey Prime Ministry Investment Support and Promotion Agency of Turkey ISPAT Investment Environment of Turkey Ahmet Cüneyt Selçuk Chief Project Director

6 AGENDA The Agency Turkey with some key figures Top reasons to invest in Turkey FDI in Turkey

7 The Agency

8 REPUBLIC OF TURKEY PRIME MINISTRY INVESTMENT SUPPORT AND PROMOTION AGENCY Attached to the Prime Ministry and Reports directly to the Prime Minister 2 offices (Ankara Istanbul) Established in 2007 Private sector approach Multi-lingual, professional and dedicated project directors ANKARA ISTANBUL Guidance on; Laws, Regulations, Site Selection, Sectoral Reports, Local Market Players, Potential Partners... invest.gov.tr

9 invest.gov.tr

10 Turkey with some key figures

15 Turkey is the 16th largest automotive producer in the World and 6 th largest when compared to the EU countries (OICA 2010)

16 Source: Worldsteel Association, 2011

18 Turkish Airliners is flying to Denmark 18 times a week

21 Top reasons to invest in Turkey

22 GDP 2010 GDP (Current Prices, Billion $) One of the biggest economies in the region Source: IMF World Economic Outlook, April 2011 invest.gov.tr

23 GDP Growth One of the fastest growing economies in the World Annual Average Real GDP Growth between Source: IMF World Economic Outlook, April 2011 invest.gov.tr

24 GDP Growth in 2010, 2011 %9 growth in 2010, %9.6 growth in 2011 Annual Real GDP Growth (%) 2010 Source: IMF World Economic Outlook, September 2011 invest.gov.tr

25 GDP Growth, future projection Average Annual Real GDP Growth (%) Forecast in OECD Countries Turkey will be the fastest growing economy among the OECD countries Source: OECD Economic Outlook No.86 invest.gov.tr

26 General Government Gross Debt Stock Turkish Government s gross debt stock to GDP ratio was only %41,6 in 2010 (EU 27 average %80,2) Maastricht Criteria %60 (*) (*): Medium Term Plan Source: Eurostat, Treasury invest.gov.tr

27 General Government Budget Balance Turkish Government s budget balance to GDP ratio was only -%3,3 in 2010 (EU 27 average -%6,6) %3 Maastricht Criteria (*): Medium Term Plan (*) Source: Eurostat, Treasury invest.gov.tr

28 Exports and Tourism Revenues Turkey s 2011 exports reach an all-time high of USD billion Billion USD (*) (*): Expected Over 20 billion $ of annual tourism revenues Source: TURKSTAT invest.gov.tr

29 EU Customs Union and FTAs Turkey has the 5 th most liberal trade policies in the world (World Trade Indicators 2010) Customs Union with the EU Free Trade Agreements with 21 countries: 1. Albania 12. Palestine 2. Bosnia & Herzegovina 13. Switzerland 3. Croatia 14. Syria 4. Egypt 15. Tunisia 5. Georgia 16. Montenegro 6. Iceland 17. Serbia 7. Israel 18. Chile 8. Lichtenstein 19. Jordan 9. Macedonia 20. Lebanon * 10. Morocco 21. Mauritus * 11. Norway Source: Undersecretariat of Foreign Trade, * In ratification process invest.gov.tr

30 Population Pyramid Turkey Europe Half of the population in Turkey is under the age of 29.7 Source: UN and TURKSTAT, 2010 invest.gov.tr

31 Cost of Labor Labor Cost Per Hour ($US) 2010 Turkey has a very cost effective and cost competitive labor force Source: EIU, February 2011; Average cost of labor per hour (pay and non-pay costs) invest.gov.tr

32 Dedicated and hard working labor force Hours Annual average of hours worked per week (2008) Source: EUROSTAT, 2010 (Including extra hours, paid or unpaid) invest.gov.tr

33 GDP Per Capita USD Welfare in Turkey has been tripled in the last 8 years Source: TURKSTAT invest.gov.tr

34 EUROPE NORTH AFRICA RUSSIA CENTRAL ASIA 4 hr flight time from ISTANBUL MIDDLE EAST

35 Oil and Gas Pipelines Existing Natural Gas Pipelines Existing Oil Pipelines Natural Gas Pipelines under Construction Natural Gas Pipelines Underway Proposed Natural Gas Pipelines Oil Pipelines under Construction Turkey As An Energy Corridor And Terminal invest.gov.tr

36 Structural Reforms Corporate Income Tax %20 National Treatmen t Protection Against Expropriation Freedom to invest NewFDI Law & Other Legislation Guarante e of Transfers Access to Real Estate Employment of Expatriates Int l Arbitration invest.gov.tr

37 Investment Incentives A new and attracting incentive system 1. General Incentive System 2. Large Scale Investments 3. Region and Sector-Based Incentive System also; Research and Development Supports, Support for SMEs,Industrial Thesis Program, Loans for Technology Development Projects, Training Support, State Incentives for Export invest.gov.tr

38 Investment Incentive Scheme The The Incentives Incentives Granted Granted According According To To The The Region, Region, Sector Sector and and The The Scale Scale of of The The Investment: Investment: Reduced Reduced Corporate Corporate Tax: Tax: between between 2-10% 2-10% Social Social Security Security Premium Premium Contribution Contribution for for Employers Employers up up to to 77 years years Interest Interest Support Support Land Land allocation allocation for for investments investments invest.gov.tr

39 FDI in Turkey

40 FDI inflows to Turkey FDI Inflows ($ billion) Number of Companies with Foreign Capital (Thousand) Source: The Central Bank of Turkey, Turkish Treasury invest.gov.tr

41 Top 10 Investors in Turkey in 2011 COUNTRIES (Million $) 1) Austria 2,235 2) Spain 2,230 3) The Netherlands 1,573 4) Belgium 1,474 5) USA 1,403 6) Azerbaijan 1,265 7) France 985 8) UK 895 9) Russia ) Germany 520 SECTORS (Million $) 1) Financial Intermediation 5,900 2) Electricity, Gas, Water Supply 4,246 3) Manufacturing 3,355 4) Real Estate, Renting, Business Services 5) Wholesale and Retail Trade ) Construction 311 7) Transports, Storage and Communication 238 8) Health and Social Work 232 9) Mining and Quarrying ) Education 68 Source: The Central Bank of Turkey, UNCTAD

42 Danish FDI to Turkey Turkey s share in Denmark s total FDI outflow is less than one percent ( ). (USD million) Currently there are 548 companies in Turkey with Danish capital (2011). Those firms are operating mainly in Real Estate, Construction, Trade, Hotels and Restaurants sectors. Source: UNCTAD, Central Bank of Turkey invest.gov.tr

43 Some International Investors in ICT & Electronics

44 Some International Investors in FMCG & Retail

45 Some International Investors in Different Sectors

46 ON

47 Thank you for your attention..

REPUBLIC OF TURKEY PRIME MINISTRY

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