REPUBLIC OF TURKEY PRIME MINISTRY Investment Support and Promotion Agency of Turkey ISPAT Ismail Bitirim Senior Project Director 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 GLOBAL FDI FDI in TURKEY TOP REASONS to INVEST in TURKEY THE AGENCY WHY TURKEY
Turkey with some key figures...
15 th largest economy in the world and 6 th largest compared to the 27 EU Countries in 2007 (IMF) The largest youth population compared to the 27 EU countries
27 million internet users (2008) 66 million GSM users (2008) 44 million credit card users (2008)
Turkey is the 4 th largest shipbuilding (units) country as well as the 3 rd largest mega yacht producer in the world (2007) VOLITAN - Green Dot Award 2008, Miami - International Design Award 2007, New York
Turkey is the 11 th largest iron & steel producer in the world and 3 rd compared to the 27 EU countries Turkey is the 16 th largest automotive producer in the world, with 17 global brands producing over 1 million motor vehicles in 2007
Turkish Airlines is the fastest growing airline company in Europe, increasing its profit by 63 % in 2007 75 million airline passengers in Turkey (2008)
The proportion of the Turkish women academic staff is higher than the European average
Turkey is the 8 th most visited holiday destination in the world with 23.3 million tourists INTERNATIONAL TOURIST ARRIVALS Country 2007 (million) 1. France 81.9 2. Spain 59.2 3. USA 56.0 4. China 54.7 5. Italy 43.7 6.UK 30.7 7. Germany 24.2 8. Turkey 23.3 9. Ukraine 23.1 10. Mexico 21.4 Source: TURKSTAT and WTO
It s not only a place to work, but also a fascinating place to live.
Global FDI
Global FDI In 2007, 67 % of global FDI flew into developed countries while 33 % into developing countries. Billion USD 2000 1800 1600 1400 1200 1000 800 600 400 200 0 27 56 341 959 1,411 1,833 1,449 1975 1985 1995 2005 2006 2007 2008* * UNCTAD Staff Estimate Global FDI Inflow Today, because of the strategic choices of TNCs (transnational companies), the increase in M&A is an important portion of the global FDI movements. Source: UNCTAD 89% of the global FDI in 2007 was realized through M&A.
Top reasons to invest in Turkey Major Types of FDI: Market Seeking Efficiency Seeking Resource Seeking
Global FDI Challenges of 2009; Global economic uncertainty Exchange rates volatility Rising interest rates Inflation pressure
Top reasons to invest in Turkey Factors for the fall of FDI: Financial resources limits and higher cost of finance Recession in large scale economies
FDI in Turkey
Strengthening upward trend in FDI Inflows Billion USD 25 20 FDI Inflow 20.2 22 17.7 15 10 10 5 0 1.1 1.8 2.8 2002 2003 2004 2005 2006 2007 2008 Japan *Jan-October (M USD) 2002 2003 2004 2005 2006 2007 2008* 63 58 6 31 1 2 10 Thousand 25 20 15 10 5 0 5.1 5.6 Number of Companies with International Capital (Cumulative) 6.7 8.8 11.7 15 18.7 2001 2002 2003 2004 2005 2006 2007 2008 21 Source: Central Bank of Republic of Turkey & Treasury
Turkey ranked 15 th most attractive FDI destination in 2006 and 3 rd among Emerging & Developing Economies Source: UNCTAD
Top reasons to invest in Turkey Rising Sectors in Turkey: ICT Petrochemicals High Tech Industries Life Sciences Electronics Agro Business Transportation Services Infrastructure
Top reasons to invest in Turkey
Top reasons to invest in Turkey Benchmarking Performance of the Turkish Economy Billion USD Dynamic, stable & attractive economy GDP Key numbers Population International Hub Structural Reforms 700 600 500 400 300 200 100 0 % 8 7 6 5 4 3 2 1 0 Nominal GDP (2007) Real GDP Growth 2002-2007 Average Source: IMF World Economic Outlook
Top reasons to invest in Turkey Stability and High Performance in the Economy Dynamic, stable & attractive economy GDP Key numbers Population International Hub Structural Reforms 35 30 25 20 15 10 5 0 J 03 30,7 M M J S N J 04 M M J S N J 05 M M J S N J 06 Annual Inflation M M J S N J 07 M M J S N J 08 9,5 M M J S N J 09* * As of January 2009 Source: TURKSTAT
Top reasons to invest in Turkey Stability and High Performance in the Economy Dynamic, stable & attractive economy GDP Key numbers Population International Hub Structural Reforms Billion USD 140 120 100 80 60 40 20 0 36,1 8,5 Exports 47,3 13,2 63,2 Tourism Revenues 73,5 15,9 18,2 85,5 Exports and Tourism Revenues 16,9 107,3 132 18,5 22 2002 2003 2004 2005 2006 2007 2008 Source: TURKSTAT
Top reasons to invest in Turkey Stability and High Performance in the Economy Dynamic, stable & attractive economy GDP Key numbers Industrial Production Index (1997= 100) Population International Hub Structural Reforms Source: TURKSTAT
Top reasons to invest in Turkey Dynamic, stable & attractive economy Population Age GDP International Hub Structural Reforms % 10 9 8 7 6 5 4 3 2 1 0 Potential of the Turkish Economy - Young Population - Population-Age Groups Pyramid (2008) 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+ Source: TURKSTAT
Top reasons to invest in Turkey Potential of the Turkish Economy Dynamic, stable & attractive economy GDP Per Capita Nominal (USD) Population Age GDP 14,000 International Hub 12,000 10,000 9,569 11,463 Structural Reforms 8,000 7,110 7,760 6,000 4,000 3,019 3,562 4,616 5,872 2,000 0 2001 2002 2003 2004 2005 2006 2007 2008 est. Source: IMF World Economic Outlook
Top reasons to invest in Turkey Access to Multiple Markets Total 1,34 Billion People & $ 23 trillion GDP Dynamic, stable & attractive economy Population International Hub Access to Multiple Markets Structural Reforms EUROPE GDP - 17,984 billion USD Population 588 million RUSSIAN FEDERATION GDP 1,289 billion USD Population - 142 million MIDDLE EAST AND NORTH AFRICA GDP - 3,453 billion USD Population 506 million CENTRAL ASIA AND CAUCASIA GDP 223 billion USD Population 105 million
Top reasons to invest in Turkey Turkey As An Energy Corridor And Terminal Dynamic, stable & attractive economy Population Existing Natural Gas Pipelines Existing Oil Pipelines Natural Gas Pipelines under Consideration International Hub Access to Multiple Markets Energy corridor Structural Reforms Planned Natural Gas Pipelines Proposed Natural Gas Pipelines Oil Pipelines under Construction
Top reasons to invest in Turkey Key Elements of Structural Reform Agenda Dynamic, stable & attractive economy Population International Hub Structural Reforms 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 InnovationSupportLaw
Top reasons to invest in Turkey Structural Reforms Dynamic, stable & attractive economy Corporate Income Tax %20 Protection Against Expropriation Population International Hub National Treatment NewFDI Law & Other Legislation Guarantee of Transfers Structural Reforms Freedom to invest Access to Real Estate Employment of Expatriates International Arbitration
Top reasons to invest in Turkey Special Investment Zones Dynamic, stable & attractive economy Population International Hub Investment Incentives in Turkey General Investment Incentive Program Incentives for the Priority Development Regions Technoparks Free zones New R&D Law Turkey has 3 kinds of regions: Structural Reforms Developed Regions: Istanbul, Kocaeli, Ankara, İzmir, Bursa, Adana and Antalya. Priority Developement Regions: 54 provinces determined by the Council of Ministers Normal Regions:The remaining provinces
Privatizations & Upcoming PPP-Projects
Main Privatization Projects Electricity Generation
AGENDA PRIVATIZATION PROJECTS PRIVATIZATION OF ELECTRICITY DISTRIBUTION COMPANIES TEDAŞ PRIVATIZATION OF ELECTRICITY GENERATION FACILITIES PRIVATIZATION OF TALL MOTORWAYS PRIVATIZATION OF NATIONAL LOTTERY PRIVATIZATION OF STATE OWNED HALKBANK PRIVATIZATION OF SUGAR FACTORIES ( TÜRKŞEKER) PRIVATIZATION OF TURKISH AIRLINES PRIVATIZATION OF SOME PORTS
Privatization Implementations Billions USD 60 50 Privatization Implementations* 49.2 40 30 20 10 8.0-1985-2002 2003-2008 *1985 2002 figures include privatizations done by PA, 2003 2008 figures include privatizations done by PA, SDIF and Ministry of Transportation Source: PA, SDIF
Upcoming PPP Projects I. HOSPITAL PROJECTS: KAYSERİ Health Campus Project (1048 BEDS) more than 500 Million $ Dollars ANKARA (Etlik and Bilkent), İSTANBUL (İkitelli) (2100 BEDS) II. HIGH SPEED RAILWAY CONNECTIONS CONSTRUCTION PROJECTs: Ankara High Speed Railway Train Station 300 Million $ Dollars BANDIRMA-BURSA-OSMANELI Railroad 592 Million $ Dollars III. INVESTMENT PROJECTS WHICH NEED FINANCIAL SUPPORT: Ankara-İstanbul High Speed Train Project 106 Million (EUR) Başkentray Railroad 290 Million $ Dollars IV. LIGNITE BASED POWER GENERATION PROJECT: AFSIN-ELBISTAN C &D Units (2 x 1200 MWt) 2 x 1,5 Billion $ Dollars
Case Studies
Case Studies In Turkey for Turkey, In Turkey for the world Key Points of Investment Project GE Healthcare Employment Description 240 employees Regional headquarter: leading 80 countries out of Turkey
Case Studies Key Points of Investment Project Budget Employment Description EUR 210 million 150 employees Construction of Wind Farm of 150 MWt in Kırşehir
Case Studies Solutions for power geneneration and electricity transport Key Points of Investment Project Budget: USD 105 million Employment: 600 employees
One of the world s leading OEM suppliers Key Points of Investment Project Budget Employment Desription USD 10 million 100 employees Distribution Center, Fluid Power Engineering and Service Center Power Transmission facility Case Studies
Case Studies Key Points of Investment Project Budget Employment Description USD 100 million 250 employees Manufacturing of Tractors in Manisa Organized Industrial Zone
THE AGENCY
The Agency Attached to Prime Ministry and reports directly to Prime Minister Private sector approach Multilingual, professional and dedicated project directors ONE STOP SHOP 2 offices (Ankara Istanbul) Result oriented Last EU Negotiation Progress Report shows that the establishment of the Agency is a proof for improvement of the investment climate in Turkey
The International Network International representatives network worldwide and strategic partners in Turkey (Embassies, Consulates, Commercial Attaches, NGO s etc) In charge of attracting FDI by promoting Turkey s dynamic economic environment In charge of supporting settlement of the investors in Turkey and the follow up (after sales service)
The n TUR KEY Agency for all potential investors!
Investors go where they feel W E L C O M E
Some International Investors in ICT & Electronics
Some International Investors in FMCG & Retail
Some International Investors in Different Sectors
WHY WHY TURKEY? TURKEY?
TURKEY IS A JEWEL Turkey is a jewel...
Why Turkey? WHY TURKEY? Booming Economy ($231 bn to $663 bn GDP in 5 years) 70 million population (average age 28.3!) 65% of the population is below 34!) Growing domestic market Liberal and reformist investment climate Dynamic and mature private sector
Why Turkey? Qualified and cost-effective labor force WHY TURKEY? Centrally located (Europe, Central Asia, Middle East) Energy corridor and terminal of Europe Low taxes & incentives EU accession country since October 2005 Customs Union with the EU since 1996 Opportunities, opportunities and opportunities!
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Why Turkey? THANK YOU FOR YOUR ATTENTION REPUBLIC OF TURKEY PRIME MINISTRY Investment Support and Promotion Agency of Turkey www.invest.gov.tr