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YOUR COMPLIMENTARY COPY

B nal Yıldırım has become the new Prime Minister.

JUNE 2016 ISSUE 35

BRIEFING

Umbrella of Compassion Opened In Istanbul INDEPTH

Centurıes old bridges to be rebuilt: Balkans and Turkey

BRANDS

Keystones of Export

ECONOMY BUSINESS FOREIGN TRADE ANALYSIS

F O O R P K RIS

Y E S R JE

ign g e r o f he winnin t s e t i nv ose the i y e k Tur rs to choors l o t o s c e v n i

EURO 2016 Jersey of Turkish National Football Team

The Turkish Perspective

Contents

F O O PR RISK

JERSEY

05 | Prime minister changes: Passing the torch to old colleague 08 | Gone With The Wind: Ankara Innovation Week 09 | Turkish Growth and Innovation Fund is Established 09 | Euro 2016 Sustained the Industry 10 | ITHIB Rewarded Top 91 Exporters 10 | Turkish Airlines’ USA Attack Maintains with Atlanta

o t s r o est v n i ign lors e r o f e ing co h t s e n it v n i n i w y e e Turk choose th 32 COVER

05 13 BRIEFING 13 | Umbrella Of Compassıon Opened In Istanbul



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First World Humanitarian Summit to Revamp Humanitarian Aid And Global Responses to Modern-Day Crises Held in Istanbul, Turkey, in 22-23 May 2016.

18 | Turkish Airlines: Flag Carrier Of Europe 20 | Ways To Create Successful Marketıng Campaıgns



It is Very Important to Optimise Marketing Budgets and Create Roi in Today’s Highly Competitive Market.



State Owned Companies Like Aselsan, Roketsan and Havelsan are the Dynamos of R&D and Innovation.

26 | n11.Com: Bringıng The Bazaar To Your Home

14 | “We Need To Review The Global Aid System With A Perspective That Places The Human Beings In The Centre.” 16 | Turkısh FOOTPRINTS Over The World

24 | Prıde Of The Natıon: Roketsan



22 | Turning Ordinary Cars Into:Goblın Smart Cars



Goblin is a Turkish Company that Produces Goblin Connected Car Platform Device, Which Turns the Attached Cars into Smart Cars Like Kitt in Knight Rider.

n11.Com is Changing the Consumer Habits And Allowing the Sellers to Reach Their Target Consumers Thanks to the Friendly Digital Medium it Offers.

28 | Ispat Attracts One Of The World’s Top Terminal Operators To Turkey



Turkish PM: DP World Yarimca Will be a Milestone in Turkey’s Infrastructure Transformation.

30 | SImsek invited the Spanish investors to increase their investments in Turkey

1

2 Content

www.theturkishperspective.com To be launched soon

42 ın depth 42 | Centurıes old brıdges to

42

be rebuılt: Balkans and Turkey

Arda Ermut Manager In Charge H. BADER ARSlan PhD

THE WORLD

The game market in Turkey grows nearly 8% every year. It is expected it to reach 2 billion dollars volume by 2020.

economy: automotıve ındustry

Automotive industry is important itself, however the real importance lies what’s beneath: The industry has a multiplier effect, as it creates employment, attracts foreign investment, boosts sub and related industries.

PUBLICATION BOARD M. İlker aycı TEMEL KOTİL PhD BÜLENT AYMEN MUSTAFA ÇIKRIKÇIOĞLU PhD SÜLEYMAN KOCASERT ZEKERİYA METE Furkan Karayaka

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50 | the multıplıer of the

PUBLICATION MANAGEMENT President Mehmet Mücahİd Demİr vice president yaşar mamatİ Project COORDINATOR Ahmet Damgacıoğlu Editor ın chıef M. Bahadırhan dİnçaslan

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53 Brand 53 | KEYSTONES OF

Edıtorıal reporterS berkan kİŞİN HALİL KAPLAN ENGİN ÖREN

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Specıal contrıbutors Prof. DR. Alİ ALP Prof. DR. Murat SAK YENER COŞKUN PhD TÜRKSOY EMEN

EXPORT



Turkish companies are taking concerete steps to reach Turkey’s 2023 target, incresing high added value product.

Contributıng reporter Mustafa Yİğİt design CREATIVE DIRECTOR AHMET SAİD ÇELİK ART DIRECTOR HARUN AKTUNÇ

60 AGENDA

PRıntıng Bİlnet Matbaacılık ve Ambalaj San. A.Ş. Dudullu Organİze Sanayİ Bölgesİ 1. Cadde No: 16 , Esenkent Ümranİye / İstanbul Tel: 444 44 03 • www.bilnet.net.tr

FAIRS, EXHIBITIONS, SUMMITS, MEETINGS IN THE NEXT QUARTER

62 FIGURES THE BASIC INDICATORS OF TURKEY IN THE FIRST HALF OF 2016

53 JUNE 2016 ISSUE 35

MEHMET BÜYÜKEKŞİ Strategıc Partner Presıdent of Prıme Mınıstry Investment support and promotıon Agency

Turkey has always been in close relationship with Balkan countries, which is symbolized by the famous Mostar bridge.

46 | NEW STYLE OF CONQUERING

MANAGEMENT Publisher on Behalf of Turkish Exporters Assembly/ CHAIRMAN of The Turkish Exporters Assembly

62 contact T. +90 212 216 19 48 [email protected] www.medyatr.com.tr Neither text nor photographs from this publication may be reproduced in full or part without acknowledging the source and securing prior permission from the publisher.

The Turkish Perspective

Editorial

Mehmet BüyükekŞi President (TIM)

R&D and Innovation ARE Key for the Success

Fifty buckets of tomatoes, twenty shirts and one smart phone are sold at the same price, which demonstrates the importance of R&D, design and branding.

W

e are observing that the turbulence that started in 2015 in global economy continues in 2016. According to the data by World Trade Organization that represents 90% of world trade, global trade volume which had shrunk by 13% in 2015, experienced a decline by 7.6% in 2016. According to the same data, 59 countries suffered a loss in their exports, only 10 were able to enjoy an increase in total exports. However, these countries that managed to increase their exports constitute only 5% of global trade. Countries that suffered most in terms of export are Russia, Norway, Venezuela and similar other countries whose economies are dependent on oil exports. Turkey’s exports, in parallel to the global situation, had experienced a decline by 8.7% in the previous year. However, we increased our share in global trade to 0.87%, which is an all-time high. This year, exports are declining due to decreasing export unit prices, but in quantitative terms we managed to increase our exports by 5.4%. This increase in quantitative terms is a sign that as soon as the detrimental effects of petroleum and commodity prices are no longer, the declining trend in the qualitative terms will be reversed. In order to overcome the global recession and decrease its effects, regional trade agreements are gaining importance. In this regard, Trans-Pacific Agreement between 12 Pacific countries including USA and planned agreement between

USA and EU countries, Transatlantic Trade and Investment Partnership are the examples of these attempts to overcome the obstacles. As Turkish Exporters’ Assembly, we prepared a report on the impact of Trans-Pacific Partnership on Turkish economy and trade. Announced at a press conference on 12th of May, we discussed the potential scenarios regarding the effect of TTP in detail. Besides, we are also analyzing the effects of domestic developments on our foreign trade. We published our Foreign Trade and Economy Report consisted of

data regarding 2015 and short-middle term estimations & strategies in May. In this report, demonstrating our country’s position in overall global trade, we pointed out our strength and weakness and the necessary steps to reach our 2023 goals. In addition, we analyzed the hot-topic, Industry 4.0, and its potential contributions to our exports. One of the most important happenings in our country, undoubtedly, was the change in the government. As exporters’ family, a strong government and harmony at the top level of the state is of highest importance for us in the harsh environment of global trade. We believe this change will strengthen the harmony and will have a positive impact on our economy and exports. Lastly, I also would like to mention value added products export, which we always underline in all organizations we host. R&D, innovation, design and branding are not only ours, but has become the main debate of all institutions nationwide. Increasing the per kg worth of our exported products to $4 from $1.5 is a crucial step to consolidate the increase in exports and decrease the effects of external shocks. Fifty buckets of tomatoes, twenty shirts and one smart phone are sold at the same price, which demonstrates the importance of R&D, design and branding. Therefore, we believe that Turkey will achieve its goals by focusing its energy in these fields. I wish a successful month for our country and exporters.

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The Turkish Perspective Content: Gone With The Wind: Ankara Innovation Week P08 Turkish Growth and Innovation Fund is Established P09 Euro 2016 Sustained the Industry P09 ITHIB Rewarded Top 91 Exporters P10 Turkish Airlines’ USA Attack Maintains with Atlanta P10 Editor: Berkan Kişin

First

EU NEGOTIATIONS, EXPORTS, MEETINGS, PARTNERSHIPS, TOURISM, BANKING, ELECTRONIC, SCIENCE, MARKETING...

The New Prime Minister Binali Yıldırım received the official appointment from President Erdoğan.

POLITICS

Prime minister changes:

Passıng the torch to old colleague

Following the Party Congress held on 22nd of May, elected as Ak Party Chairman, Binali Yıldırım has announced the new government as new Prime Minister.

photograph by AA

N

ew cabinet is as follows: Deputy Prime Ministers Nurettin Canikli, Mehmet Şimşek, Numan Kurtulmuş, Yıldırım Tuğrul Türkeş, Veysi Kaynak. Minister of Justice: Bekir Bozdağ, Minister of Family and Social Policies: Fatma Betül Sayan Kaya, Minister of EU Affairs: Ömer

Çelik, Minister of Science, Industry and Technology: Faruk Özlü, Minister of Labour and Social Security: Süleyman Soylu, Minister of Environment and Urban Development: Mehmet Özhaseki, Minister of Foreign Affairs: Mevlüt Çavuşoğlu, Minister of Economy: Nihat Zeybekci, Minister of

Energy and Natural Resources: Berat Albayrak, Minister of Youth and Sports: Akif Çağatay Kılıç, Minister of Food, Agriculture and Livestock: Faruk Çelik, Minister of Customs and Trade: Bülent Tüfenkçi, Minister of Internal Affairs: Efkan Ala, Minister of Development: Lütfi Elvan, Minister of

Culture and Tourism: Nabi Avcı, Minister of Finance: Naci Ağbal, Minister of Education: İsmet Yılmaz, Minister of National Defense: Fikri Işık, Minister of Forestry and Water Affairs: Veysel Eroğlu, Minister of Health: Recep Akdağ, Minister of Transport, Maritime Affairs and Communication: Ahmet Arslan.

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As Ak Party changes its Chairman, former Chairman and Prime Minister Davutoğlu’s term is over. Davutoğlu assumed his position following Erdoğan’s election to Presidency in 2014 August, receiving votes of 1382 delegates, becoming the new chairman and eventually the prime minister. During his term, Turkey experienced a recover in various fields, recording a growth rate of 4% in 2015, outshining in an

environment many countries were affected by the global recession. Inflation also was reduced to 6.57%. The most important development during Davutoğlu’s term was the action plan announced in December 2015, involving economic reforms. On the other hand, 30% increase in the minimum wage was another important development his term saw. He also has visited various countries in order to strengthen diplomatic, social and of course, economic ties.

The New Prime Minister Binali Yıldırım started his duty after receiving the official appointment from President Erdoğan.

Mehmet Şİmşek

Faruk Özlü

Mevlüt Çavuşoğlu

Nİhat Zeybekçİ

Deputy Prime Minister

Minister of Science, Industry and Technology

Minister of Foreign Affairs

Minister of the Development

Faruk Özlü was born in 1962 in Düzce. He graduated from Yıldız Technical University and studied in Spain on engineering. His last stop for his education was Harvard University in United States. He joined the Defence Industry Underdersecretariat as an engineer in 1990. At the time he worked at the Undersecretariat Özlü was in charge of the projects such as Turkey’s first domestically produced tank ALTAY, the country’s first unmanned spacecraft ANKA, its first domestically produced warship MİLGEM. He was appointed as the Minister of Science, Industry and Technology after his second term in parliament.

Mevlüt Çavuşoğlu was born in 1968. Çavuşoğlu graduated from International Relations Department of Ankara University in 1988. He then received a masters degree in economics from Long Island University in New York. He studied for his doctorate at Bilkent University. Çavuşoğlu worked as a research fellow at London School of Economics. Çavuşoğlu joined the Parliamentary Assembly of the Council of Europe in 2003 and soon after was named the head of the Turkish delegation and a vice-president of the Assembly. Mevlüt Çavuşoğlu, became Minister of Foreign Affairs on 24 November 2015 after Prime Minister Ahmet Davutoğlu formed his third government.

Nihat Zeybekçi was born in 1961 in Denizli. After studying Business Administration at Marmara University, he received his master’s degree in International Relations from Istanbul University. In 2004 local elections we was elected as Mayor of Denizli. In 2009 elections he was elected for the second time as mayor. While he was mayor he resigned to run for a seat in parliament. On 26 December 2013, Nihat Zeybekçi assumed office as the Minister of Economic Affairs. Leaving the Minister Office in 17 November 2015 Zeybekçi is appointed as the new Minister of Economy again.

Master’s Degree in Engineering MemberoftheGrandNationalAssemblyin2015 Member of executive board of Turkish Aerospace Industries Member of executive board of Airport Operations and Aviation Industries Member of executive board of Defence Technologies Engineering and Commerce

Master’s Degree in Economics Member of the Grand National Assembly since 2002 President of the Parliamentary Assembly of the Council of Europe 2010-2012 Chief Negotiator for Turkish Accession to the European Union 2013-2014 Minister of European Union Affairs 2013-2014

Master’s degree in International Relations President of Textile and Apparel Exporters’ Association Mayor of Denizli 2004-2011 Member of the Grand National Assembly since 2011 Minister of Economic Affairs in 61st Cabinet

Mehmet Şimşek was born in 1967, in Batman. Şimşek earned his bachelor degree in Economics Department from Ankara University Political Sciences Department in 1988. He was awarded a state scholarship to the University of Exeter in the United Kingdom. He earned his master degree here in Merill Lynch in Finance and Investments in 1993. He was elected as an AKP Member of Parliament for Gaziantep in the 2007. Şimşek began his ministerial career as a Minister of State and was promoted to the post of Finance Minister in 2009. He was nominated as one of the 500 most powerful people on the planet by Foreign Policy in 2013.

Master’s Degree in Finance and Investment Member of Parliament in 2007 Minister of State in 60th Cabinet Minister of Finance in 61st Cabinet Deputy Prime Minister in 64th Cabinet JUNE 2016 ISSUE 35

photograph by AA

Davutoğlu’s Term

photograph by AA

6

The Turkish Perspective

LIFE STORY OF Bİnalİ Yıldırım

photograph by AA

photograph by AA

Prime Minister Binali Yıldırım was born in Erzincan in 1955. He graduated from Naval Construction and Maritime Science department of İstanbul Technical University, and completed his master thesis at the same department. Between 1978 and 1993 he was General Manager at Turkey Ship Industry Institution, followed by General Manager

at İstanbul Municipality Sea Transport Company (IDO) between 1994 and 2000, making İstanbul’s IDO Company one of the biggest in the world with 29 wharfs, 22 sea liners and 4 car-ferries. He has become a member of parliament in 2002, 2007 and 2011 elections, assuming Ministry of Transport, Maritime Affairs and Communication for three consecutive governments, being the longest serving Transportation Minister in the Republic’s history.

Binali Yıldırım is expected to be more praxis-oriented Prime Minister thanks to his always on field profile.

Ministers on Their Debut Deputy Prime Minister Nurettin Canikli, Minister of Environment and Urban Development Mehmet Özhaseki, Deputy Prime Minister Veysi Kaynak, Minister of Family and Social Policies Fatma Betül Sayan Kaya and Minister of Transport, Maritime Affairs and Communication Ahmet Arslan became members of the cabinet for the first time.

Berat Albayrak

Bülent Tüfenkcİ

Lütfİ Elvan

Nacİ Ağbal

Minister of Energy and Natural Resources

Minister of Customs and Trade.

Minister of Development

Minister of Finance

Berat Albayrak born in 1978 in as a child of a journalist. He got his bachelor degree from Istanbul University’s School of Business Administration. He started to work as a financial director in Çalık Holding’s US office in 2002 while he studied for an MBA at the Lubin School of Business, Pace University in New York. In 2007 he was appointed as CEO of Çalık Holding. He continued his duty until 2013. Albayrak became a member of the Parliament the elections of 7 June 2015 and 1 November 2015. On 24 November, he was appointed Minister for Energy and Natural Resources. It is his second term as a minister.

Bülent Tüfenkci was born in 1966 in Malatya. He graduated from Ankara University Faculty of Law. After the graduationfrom university in 1984, Tüfenkci completed a masters degree, specialising in customs law. He was elected as a Member of Parliament of Malatya in the June 2015 general election and was re-elected in the November 2015 general election. After Justice and Development Party won a parliamentary majority in the November 2015 election, Tüfenkci was appointed as the Minister of Customs and Trade by Prime Minister and AKP leader Ahmet Davutoğlu, who formed his third cabinet on 24 November 2015.

Lütfi Elvan was born in 1962 in Karaman. He studied mining engineering at Istanbul Technical University. He continued his education earning a Master’s degree in the fields of mining engineering and operations research with a thesis on “Determination of Optimal Production Systems in short-term Mining Production Planning” at University of Leeds, United Kingdom in 1986. In 1995, he received another Master’s degree in economics at University of Delaware, USA. He was elected as a parliament in the 2007 general elections. On 26 December 2013, Lütfi Elvan assumed office as the Minister of Transport, Maritime and Communication.

Naci Ağbal was born in 1968. He graduated from İstanbul University Faculty of Political Education in 1989. He began his career in the same year by entering the Inspection Board. In 2007 he became the General Director of Budget and Financial Control. Ağbal was one of the 200 bureaucrats who resigned from their civil service positions in February 2015 in order to stand as candidates in the June 2015 general election. He was re-elected in the November 2015 general elections. After the November 2015 election, Prime Minister Ahmet Davutoğlu appointed Ağbal as Finance Minister in his new government on 24 November 2015.

MBA at the Lubin School of Business, Pace University US country manager of Çalık Holding 2004-2006 Assistant General Manager of Financial Affairs in Çalık Holding 2006-2007 CEO of Çalık Holding until late 2013 Member of the Grand National Assembly June 2015

Bachelor’s degree from Ankara University Faculty of Law Master’s degree in Customs Law President of the AKP’s Malatya Branch 2011-2015 Member of the Grand National Assembly since June 2015 Minister of Customs and Trade in 64th Cabinet

Master’s Degree in Mining Engineering Deputy Undersecretary of DPT 2002-2007 Member of the Grand National Assembly since 2007 Minister of Transport, Maritime and Communication 2013-2015 Deputy Prime Minister of Turkey 2015-2016

Bachelor’s Degree from Istanbul University Faculty of Political Sciences General Directorate of Revenues 2003-2007 General Director of Budget and Financial Control 2007-2009 Undersecretary to the Ministry of Finance 2009-2015 Minister of Finance in 64th Cabinet

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ENTREPRENEURSHIP

Innovatıon

5th TİM-TEB STARTUP BUSINESS HOUSE Opened in TRabzon 5th Startup Business House which is established by Turkish Economy Bank and Turkey Exporters Assembly for supporting the entrepreneurs who wants to start a business on high added value production for exporting opened in Trabzon after the first four which were in Istanbul, Izmir, Gaziantep and Denizli. The number of entrepreneur incubators reached to five after the opening of Trabzon TİM-TEB Startup Business House. TİM-TEB Startup Business House which are specially designed to support companies who desire to export and trade abroad. This support includes the processes of putting the business ideas into action, finding the customers and finding investors. Companies whose potential are seen high to export products are using the network and consultancy of Turkey Exporters Assembly.

JUNE 2016 ISSUE 35

CEO OF LİMAK

Nihat Özdemir Shared his experiences with attenders.

GONE WITH THE WIND: ANKARA INNOVATION WEEK

Nicolas Huchet a mechanical engineer who developed an arm for his disability shone out in Turkey Innovation Week 2016 Ankara.

F

rance was the partner country of Turkey Innovation Week 2016 Ankara which was sponsored by Ministry of Economics and coordinated by Turkey Exporters Assembly and Central Anatolian Exporters Union. Arçelik, TEB, Turkish Airlines, Ankara Development Agency and Ankara Metropolitan Municipality took place as strategic partners in the event. The fire started by Turkey Exporters Assembly in 2012 to reach targets of exporting and producing high valued products is spreading to most of the Central Anatolian cities. Popular speakers gave tips about innovation to the students, academicians, business and art world in the event which lasted two days under the slogan of “Limitless Innovation, Limitless Potential” Especially student followed the panels and conferences curiously. The most interesting products were the virtual games produced for MAKER Movement’s HAKETON competition and TUBITAK’s projects. Inventor Nicolas Huchet

opened the gates of different worlds to teenagers in the session he presented his bionic arm. President of Turkey Exporters Assembly Mehmet Büyükekşi who mentioned the importance of taking Innovation Week to Central Anatolian cities said that they are aiming to be in the first place in innovation and teenagers have the potential to achieve this goal. “Our target is to create a new ecosystem with innovation and entrepreneurship and let the 13 million crowded youth to shape the future. Attendances to our event is increasing year by year. We hope that thanks to our events our country will discover its potential and innovative ideas will spread.” said Mehmet Büyükekşi. Declaring that they pay attention to the cooperation between university and industries Mehmet Büyükekşi said: “We want to combine the elbow grease of industrialists with the brain power of universities. Certainly we desire to see the ideas and thoughts as practices too.”

Nicolas Huchet who inspired attenders with his conference “Innovation Without Boarders”, shared the story of his bionic arm built via 3D printer.

Dimis MICHEALIDES Author, Magician

Dimis Michealides fascinated the attenders with his conference “Leading Innovation” in Turkey Innovation Week Ankara 2016.

photograph by AA

8

The Turkish Perspective

FUND

INDUSTRY

SPORTS

photograph by AA

Turkish Growth and Innovation Fund is Established The Launch Event for the Turkish Growth and Innovation Fund was held in Istanbul. European Investment Fund Chief Executive Pier Luigi Gilibert, Director General of Financial Sector Relations & Exchange of the Treasury Ali Arslan, President of KOSGEB Recep Biçer, CEO of the Industrial Development Bank of Turkey Suat Ince as well as other prominent names of Turkish ecosystem of finance, entrepreneurship and investment also attended yo the event. European Investment Fund Chief Executive Pier Luigi Gilibert stated:” This new generation of Fund of Funds is the result of years of experience gained with the successful roll-out of iVCi – Turkey’s first fundof-funds. We are ready to invest via the Turkish Growth and Innovation Fund to support SMEs in Turkey. With our commitments of EUR 60 million for a total fund size of EUR 200 million we are looking forward to the first investments into Turkish businesses.” Turkey’s first ever Fund of Funds, iVCi, was launched in 2007 and made 10 investments, including in some of Turkey’s most successful funds in the country.

Stadiums of Future Within the scope of designing an environment friendly future Turkey is taking serious steps ahead.

VODAFONE ARENA Capacity Opened

: 41.903 : 10 April 2016

Vodafone Arena which is constructed for BJK is the first smart stadium of Turkey

Euro 2016 Sustained the Industry Television production which increased because of Euro 2016 has taken one of a quarter place of the growing in industrial production.

I

Institute declared 61% total raise of production in computer, electronics and optic sustained the industrial production in March. This article draws attentions to the television and mobile phone sectors in Turkey. Television producers’ motivation to produce more because of the Euro 2016 coming, provided these increase rates.

ndustrial production that grew 5,5% in first two months increased only 2,9% in March. Television production which increased because of Euro 2016 has taken one of a quarter place of the growing in industrial production. Industrial production as adjusted increased 4.7% in March. According to the data that Turkey Statistical

ANTALYA STADIUM Capacity Opened

: 33.032 : 26 October 2015

Antalya Stadium is an environment friendly stadium which is able to produce its own energy

KONYA TORKU ARENA Capacity 41.981 Opened : 13 September 2014 Torku Arena is eqıipped with latest technological developments.

support for growth and ınnovatıon

Turkish Growth and Innovation Fund is founded to support entreprenaurs who wants to make an investment.



200 MILLION

capacıty of Turkish Growth and Innovation Fund

2

$

BILLION

total ınvestment target

100 thousand

companıes wıll benefıt

BURSA METROPOLITAN MUNICAPALITY STADIUM Capacity Opened

: 43.877 : 21 December 2015

Bursa Metropolitan Municapality Stadium has been rewarded because of its creative design.

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ENTREPRENEURSHIP

AVIATION

Turkish Airlines’ US EXPANSION CONTINUES with Atlanta

ITHIB Rewarded Top 91 Exporters

INVESTMENT

Austrian Post to Buy Aras Kargo Austrian Post who bought 25% stake in Turkey’s Aras Kargo in 2013 has started to the negotiations with Aras Family to buy 75% stake left. The negotiations that is held between Aras Family and Austrian Post is expected to end next month. 35 years old shipping company Aras Kargo is getting ready to change its owners. Today Aras Family owns 75% of the company and the other 25% belongs to the one of the most important posting and shipping company in Austria, Austrian Post. Austrian company bought this 25% stake from Is Yatirim in 2013 for 125 million TRY. Now they are ready buy the stake left over from Aras Family. The negotiations that started in last September is expected to end in a short period. According to the rumors leaked the sales will be held in June. JUNE 2016 ISSUE 35

Istanbul Textile and Raw Materials Exporters Union rewarded the firms which has exported most in 2015.

T

he biggest umbrella organization of textile sector, Istanbul Textile and Raw Materials Exporters Union rewarded the firms which has exported most in 2015. In the organization which doyens and doyennes people of the sector 36 companies awarded with Platin Award and 55 company awarded with Gold Award. Also gala of the “The Music of Industry from Textile’s Doyens” movie is done at the night. Movie was about 14 people’s experiences,

memories and thoughts about the sector. People who participated in the movie are; Abdülkadir Konukoğlu, Ahmet Nazif Zorlu, Ahmet Topbaş, Atilla Alptekin, Erol Gülen, Esat Sivri, Halit Narin, Hasan Bilici, Hanifi Öksüz, Mehmet Balduk, Mustafa Kıvanç, Ömer Dinçkök, Şevket Sürek ve Zekeriya Tanrıverdi. The movie released also transformed into a book and given to the people who attended to the night.

Export Performance of Apperal ındustry Apperal industry is contiuning its locomotive role in Turkey’s export. Export share of the industry is raising its effect day by day.

1.5

$

BILLION

Total Apparel Industry Export in April 2016

12.4% Share of Apperal in Export

15

$

bILLION

total apperal export to ıtaly ın 2015

Turkish Airlines started a direct flight to Atlanta Hartsfield Jackson International Airport one of the busiest airports of the world with 102 million passengers traffic per year. Atlanta which is Georgia State Capitol became Turkish Airlines’ 15th flying spot in the continent and 9th flying spot in the country. It is declared that flights will be done every day by Boeing 777-300ER planes. Turkish Airlines which is in the first row of airways flying to the most point, flies to more than 100 countries with 300 flight from its transfer point Istanbul. Coca Cola whose headquarter is in Atlanta did a favor for the first flight of Turkish Airlines. They put an Atlanta text and a photo of a by Boeing 777-300 plane on coke bottles. Bottles are distributed to the people in Istanbul Lounge which attracted a big interest.

The Turkish Perspective Content: Turkish Airlines: Flag Carrier of Europe P18 Ways to Create Successful Marketing Campaigns P20 Turning Ordinary Cars Into: Goblin Smart Car P22 Pride of the Nation: Roketsan P24 n11.com: Bringing the Bazaar to Your Home P26 ispat Attracts One of The World’s Top Terminal Operators to Turkey Editor: M. Bahadırhan Dinçaslan

Briefing

AVIATION, MARKETING STUDIO, automotıve, Defense, ONLINE SHOPPING, INVESTMENT

Summit

UMBRELLA OF COMPASSION OPENED IN ISTANBUL

An affective visual performing arts performance based on the tragedies of humanity on the world .

First World Humanitarian Summit to revamp humanitarian aid and global responses to modern-day crises held in Istanbul, Turkey, in 23-24 May 2016. By MUSTAFA YİĞİT

W

ithin the scope of the summit more than 5,000 delegates from 177 member states, including 65 heads of governments for the first time in UN history gathered to re-design the current humanitarian system. Participants tried to develop new methods and politics to improve the system in five core responsibility domains during the two-day summit: Conflict prevention, protection

of civilians, leaving no one behind, ending the need for humanitarian aid and investing in humanity. Most of the leaders who made speeches in the summit admitted that they have failed to solve the problems on the issues of humanitarian aid for about 130 million displaced people amid hundreds killed in a recent earthquake in Ecuador, thousands more had been fleeing from bombings

and war atrocities in Syria and millions facing hunger in southern Africa. The aim of the summit was for the first time prevent conflicts, to focus on the root causes and try to better analyze economic, social and cultural factors. The summit started with the breakfast that Turkey President Recep Tayyip Erdoğan gave for the honor of the leaders who are attending

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Briefing

to the summit. United Nations Secretary General Ban Kimoon and Turkey President Recep Tayyip Erdoğan gave a greeting speech within this session. After the session all the leaders posed to the cameras for the family photo. Forest Whitetaker who is a well-known American artist and won an Oscar with his role in Last King of Scotland hosted the opening ceremony of the summit. An affective visual performing arts performance based on the tragedies of humanity on the world held in the opening ceremony as well. Following to the performance in his opening speech “We need to provide more direct funding to local people and communities and fix the persistent humanitarian funding gap and investing in building stable and inclusive societies” said Ban Ki-moon. In 2014, the U.N. reported that around $540 million of the roughly $135 billion global aid budget was spent on decreasing disaster risk. “I call on humanitarian organizations to work more closely together based on shared priorities to meet (the needs) of millions of people in crisis,” Ban said. “We declare that we are one humanity with shared responsibilities. Let us resolve, ourselves, here and now, not only to keep people alive but to (give) people a chance at life in dignity,” he added. The U.N. secretary general, who urged the international community to cut the amount of internally displaced people by 50 percent by 2030, is also expected to push for an increase in world spending on reducing disaster risk at the summit. Speaking at the first ever World Humanitarian Summit in Istanbul, Erdoğan said that only certain countries were sharing the burden of the humanitarian crisis. “Now JUNE 2016 ISSUE 35

everybody should take on responsibility on this issue,” he said. “As Turkey, we have done our best to contribute to the five core responsibilities that Mr. Secretary General (Ban Ki-moon) mentioned,” he said. These responsibilities include: preventing and ending conflict; respecting the rules of war; addressing forced displacement; achieving gender equality; responding to climate change; ending the need for aid; and investing in humanity. But Erdogan urged a change in the UN Security Council, of which the five permanent members are Russia, China, France, the United Kingdom, and the United States. Each of these members has the power to veto, allowing them to block draft council resolutions, even when these have broad international support. “For the Security Council to fulfill its main functions, we need urgent reform,” Erdogan said. “The use of veto should be limited,” he added. German chancellor Angela Merkel who also attended to the summit drew attentions on to end the empty commitments on aid. “Too many promises are made and then the money does not come for the projects – that must end,” said Merkel, adding that the world currently had no humanitarian system that was “compatible with the future.” Greek Prime Minister Alexis Tsipras whose country also suffers from refugee crisis said his country was dedicated to continuing the cooperation with Turkey on refugees, which continue to exceed EU efforts on the matter. “The number of refugees located in EU member states are less than 1,000,” he said. In his speech, Guy Ryder, director-general of the ILO,

“Too many promises are made and then the money does not come for the projects – that must end”

“What we need is international solidarity to respond to the needs of humanity.”

Angela Merkel Chancellor of Germany

Kolinda Grabar-Kitarovi President of Crotia

praised Turkey for allowing Syrian refugees to obtain work permits. Also The James Bond star Daniel Craig has urged world leaders to unite and start the biggest humanitarian movement in the history. Western countries who are blamed on not helping the Syrian refugee crisis in heart, first time this closely faced the problems in first hand. The “Grand Bargain”, a package of reforms to humanitarian funding, launched at the World Humanitarian Summit. The International Red Cross and Red Crescent Movement welcomed the signing of the “Grand Bargain”

The Turkish Perspective

“We have a strong conviction that, in order to deal with this challenge, we need a new vision relating to humanitarian aid.” Alexis Tsipras Prime Minister of Greece

“We are committed to promoting cooperation among relevant institutions and stakeholders for ensuring access of population to early warning system and disaster-risk information.”

“We can only reach rightful and lasting solutions through international cooperation” Recep Tayyip Erdoğan President of Turkey

“We need to provide more direct funding to local people and communities and fix the persistent humanitarian funding gap.” Ban Ki-moon Secretary General of the UN

Ilham Aliyev President of Azerbaijan

at the World Humanitarian Summit as an important contribution to achieving better outcomes for people in need through improvements to humanitarian financing. “The Grand Bargain means that humanitarian financing will better respond to needs on the ground,” said Mr Elhadj As Sy, Secretary General of the International Federation of Red Cross and Red Crescent Societies. “The Grand Bargain is a recognition that humanitarian solutions can start and end with local communities supported by local organizations such as National Red Cross and Red Crescent Societies. Local

Speaking at the first ever World Humanitarian Summit in Istanbul, Erdoğan said that only certain countries were sharing the burden of the humanitarian crisis.

people walk the first and last mile to serve those in their communities most in need.” During the two-day summit, leaders of 173 countries, including 55 heads of state or government, promised to do more for the 130 million civilians who are victims of conflicts and natural disasters. In the closing speeches of World Humanitarian Summit, United Nations Secretary General Ban Ki-moon and President Recep Tayyip Erdoğan expressed their dissatisfaction with world powers for not taking part at the summit. Erdoğan said that he hopes the summit was more than an ordinary meeting that

achieves no objectives. “We can only reach rightful and lasting solutions through international cooperation,” he said. Ban Ki-moon criticized the leaders of the G-7 countries. He said it was “disappointing that some world leaders” couldn’t attend, singling out the Group of 7 countries — Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. He also criticized members of the U.N. Security Council who have prevented progress “not only in critical issues of war and peace, but even on humanitarian affairs,” stressing that the absence of these leaders didn’t “provide an excuse for inaction.”

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“we need to review the global aid system with a perspective that places the human beings in the centre.” Openings Speech of President Recep Tayyip Erdoğan

WORLD HUMANITARIAN SUMMIT OPENING CEREMONY (23 May 2016, Monday, İstanbul)

Excellencies, Valuable Guests, Ladies and Gentlemen, I salute you all with my most heartfelt feelings and regards. Welcome to our country. It is a great pleasure to host the first World Humanitarian Summit of history and to host you in İstanbul, the city of civilization and history, on this occasion. I hope that this Summit leads to auspicious outcomes for all humanity, primarily those hundreds of millions of people striving to sustain their lives under great distress. I would like to thank the Secretary-General and his team for their efforts in convening such an important summit. I congratulate all those who contributed with their efforts in organizing the Summit. Valuable guests, Crises caused by wars, natural disasters, epidemics and climate change are threatening the peace, welfare and common future of all humanity. We present in this Summit recognize very well that pain knows no colour, race, language or religion. JUNE 2016 ISSUE 35

It is with this understanding that Turkey implements humanitarian and development aid activities and carries out thousands of projects in more than 140 countries around the world We also host more than 3 million Syrian and Iraqi refugees. I would like to proudly express that Turkey is the country that hosts the highest number of refugees and has the highest increase in its ratio of aid to national income around the world.

We will not stop pursuing bloodshedding dictators and we will do our best to ensure that the crimes committed against humanity do not remain unpunished.

The total amount of our humanitarian aid and humanitarian development aid for 2014 has been finalized as 6.4 billion dollars. This figure increases every year. Within this process, we had the opportunity to observe all aspects of the global humanitarian aid system and experience at first hand the problems and shortcomings of the system. The current system falls short in the face of urgent problems of humanity. The burden of the system, which fails to generate solutions to the problems, is shouldered only by certain countries. Everyone should assume responsibility from now on. First of all, we need to review the global aid system with a perspective that places the human beings in the centre. If a system cannot deliver even a couple of dollars’ worth of anti-malaria nets to those in need and cannot supply simple vaccines and

The Turkish Perspective

65 heads of governments for the first time in UN history gathered to re-design the current humanitarian system.

Cupica eti, sederox medo, que is nonducid pecrimuracio inc videmedit. Bem te tem, sis; inihillaric tum

remains a bystander to the loss of tens of thousands of children’s lives, it means that there is a problem in this system. We, as leaders and responsible individuals of the international community, can only succeed if we work under common principles and goals. The Humanitarian Agenda presented by the Secretary-General and the core responsibilities listed therein are highly important in this sense. First of all, to prevent the suffering around the

Including Oscar awarded actor Daniel Craig with his performance as James Bond, many celebrities attended to the Summit.

world, we should ensure that current conflicts are ended before all and that new conflicts are prevented. We are continuing and will continue our mediation efforts as Turkey. Secondly, we need to step up our efforts to bring an end to violations of international law, as we have witnessed in Syria. With this understanding, we will not stop pursuing blood-shedding dictators and we will do our best to ensure that the crimes committed against humanity do not remain unpunished.

Thirdly, we need to provide more assistance to displaced women, children, disabled people and others in need. Fourthly, in order to reduce dependency on aid, there is a need for overhauling the way we work to ensure that every nation can stand on their own feet. With its AFAD, TİKA, Turkish Red Crescent and other institutions, Turkey endeavours to present a different model with its “development oriented humanitarian aid” policy by ensuring collaboration in its humanitarian and development aid activities. Finally, while needs increase every day, resources do not increase at the same pace. Moreover, in terms of aid financing, we observe some issues and tendencies to avoid responsibility among the international community. The country that best knows and bitterly experienced this weakness is Turkey. While the amount spent for the refugees in our country exceed 10 billion dollars, the contribution of the international community remained at 455 million dollars. I hope that the World Humanitarian Summit serves as a turning point in all these areas. We shall never forget our responsibilities vis-à-vis the people who locked their eyes and hearts to the messages and commitments that will arise from Istanbul. With these thoughts in mind, I welcome our guests honouring this historical summit from all corners of the world and I wish this Summit great success.

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Turkısh FOOTPRINTS Over The World

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urkey has a strong

tradition of responding to those in need, not only in times of natural disaster, but also on a periodical basis. Turkey learnt a lot from its own painful experiences. Because of this Turkey is an ardent advocate of international solidarity and partnership with a view to building a safer world, saving human lives and protecting the environment. Believing in that a comprehensive development can only be achieved through a sustainable and collective strategy Turkey has been increased its humanitarian assistance. Especially starting from the tsunami disaster in late 2004, in Southeast Asia Turkey enlarged its role in the field. With the immediate response to the help call of Pakistan after the huge earthquake in 2005 and Lebanon crisis in June 2006 Turkey started to play a remarkable role in the field. Total amount that Turkey spent in 2005 and 2006 for humanitarian aid was 250 million dollars. Today Turkey is also home to one of the largest and fastest growing refugee populations in the world. Having more than 700 kilometers boarder with Syria, Iran and Iraq country is seen as a secure place for the people who escape from war, hunger,

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Presidet Erdoğan and Secretariat Ban Ki-moon with the refugee kids in Humanitarian Summit

Turkey has a strong tradition of responding to those in need, all over the world.

political oppression. Even international organizations and NGOs have participated in aiding these refugees Turkish government is also taking a huge role to help them. Yalçın Akdoğan who was Deputy Prime Minister in those days declared Syrian refugee number in Turkey as 2 million 733 thousand and 734 in March, 2016. Turkey has spent nearly $10 billion on caring for them since the beginning of the Syrian crisis. Turkey’s successful provision of humanitarian and emergency aid is thanks to the hard work of several institutions, especially the Turkish Cooperation and Development Agency (TIKA), the Prime Ministry Disaster and Emergency Management Authority (AFAD), and the Turkish Red Crescent. Turkey ranked third in the list of countries with the most international humanitarian work in 2012 and 2013, the Turkish Cooperation and Coordination Agency, TIKA, says in its Turkish Development Assistance 2013 report.

The Turkish Perspective

REGIONAL DISTRIBUTION OF DEVELOPMENT AIDS

Turkish Cooperation and Development Agency supplies to more than 140 countries across the globe totals in the billion dollars. TURKEY’S DEVELOPMENT AID

BALKANS/ E. EUROPE

CAUCASUS

$133.8 MILLION

2002

$85 MILLION

FAR EAST

$454.4 MILLION

$25.5MILLION

2014

$3,591 BILLION

INCREASED 42-FOLD IN 12 YEARS

MIDDLE EAST

$2.5MILLION AFRICA

AMERICAS

OCEANIA

$383.3 MILLION

$4.5 MILLION

$0.5MILLION

Turkey has also helped in the development of Palestine with $400 million worth of projects implemented through its Turkish Cooperation and Coordination Agency. According to the agency’s internal data, TIKA implemented 349 projects in Palestine since Turkey inaugurated the Palestine Coordination Program Office in 2005. According to another 2013 global humanitarian assistance report, the top five donors were the U.S. with $3.8 billion, followed by EU institutions ($1.9 billion), the U.K. ($1.2 billion), Turkey ($1.0 billion), and Sweden with $784 million. With its large logistical capacity to meet people’s

$1.5 BILLION WASSUPPLIEDTOTHELEAST-DEVELOPEDCOUNTRIES Afad reaches 40+ countrıes ın for contınents

Nearly 282,000 refugees provıded shelter at afad camps

AMBOLATORY HEALTHCARE SERVICES

5.086.471 PROVIDED OVER 5 MILLION TIMES

975.576

Turkey has spent $10B on refugee crises since 2011

HOSPITALS

6.156.660

PEOPLE HAVE BEEN PROVIDED OVER 6 MILLION PROVIDED HOSPITAL CARE TIMES

151.746

SYRIAN REFUGEE BABIES BORN

480.204

PEOPLE RECEIVED IN-PATIENT

325,000 NUMBER OF SYRIAN STUDENTS IN TURKEY, INCLUDING PUBLIC SCHOLLS

2015

1.937.940 unıts

of donated blood were collected

In addition to its staff of almost 3,000, it boast 17 regional blood centers, 64 blood centers, and mobile blood donation vehicles.

300,000 PEOPLE

Through its Turkok project, it registered 105,000 volunteer stem cell donors

148-year-old longstanding aid charity in Turkey

Its capacity makes it one of the strongest members of the international Red Crescent/Red Cross Association federation

has almost 700 branches

NUMBER TWO IN WORLD RANKING WITH ITS ABILITY TO PROVIDE EMERGENCY SHELTER AND FOOD

Especially starting from the tsunami disaster in late 2004, in Southeast Asia Turkey enlarged its role in the field. needs after humanitarian crises, the Turkish Red Crescent is number two in world rankings with its ability to provide emergency shelter and food for 300,000 people. Carrying out humanitarian aid activities in countries and regions such as Pakistan, Chad, Haiti, Libya, Somalia, Myanmar, Palestine, Mauritania, Senegal, Niger, Bosnia and Herzegovina, the Philippines, Iraq and Lebanon, the Turkish Red Crescent was also the first relief organization to help disaster victims after the Pakistan floods.

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AVIATION

Turkish Airlines:

Flag Carrier of Europe As the Official Airline Partner of UEFA EURO 2016, Turkish Airlines will carry 24 national football teams of Europe to France for the final tournament. By M. BAHADIRHAN DİNÇASLAN

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urkish Airlines, the flag carrier of Turkey, has been chosen as the ‘Best Airline in Europe’ for five years in a row by the world-famous airline ranking authority Skytrax. As European teams compete in the UEFA EURO 2016, the sponsorship deal between UEFA and Turkish Airlines made the company the flag carrier of entire Europe. Turkish Airlines is renowned for its big sponsorship deals and is already active in various fields in sports, such as rugby, golf and basketball. Turkish Airlines Chairman of the Board and the Executive Committee M. İlker Aycı states that the company is ready to carry national teams of Europe to France, the host of the final tournament. “As Turkish Airlines is the flag carrier of Turkey, such sponsorships not only contribute to the brand image of the company, but to Turkey’s overall image. Bringing millions of people together, international tournaments serve as a perfect opportunity to harness the power of the spirit of sports. When people see the Turkish Airlines logo, enjoy its services

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and receive its messages, the impression they get about Turkey is very positive”, Mr. Aycı states. “We can never overlook the interaction between the brand ‘Turkish Airlines’ and the brand ‘Turkey’ as a country. Any positive or negative perception of either brand might indirectly affect the other. Each brand has its roots and they always keep close relations with the country from which they derive. In other words, they support each other. What excites us most at Turkish Airlines is the positive contribution we have made to the brand name Turkey with our achievements.” Turkish Airlines will carry Turkey's National Football Team to UEFA EURO 2016 with a special aircraft.

We can never overlook the interaction between the brand ‘Turkish Airlines’ and the brand ‘Turkey’ as a country. Any positive or negative perception of either brand might indirectly affect the other.

UEFA EURO 2016 will be a tournament of many “firsts”; For the first time in history, 24 teams in 6 groups will participate, which means a lengthy football show of a total 51 matches. Moreover, it will also probably be the last big event in which several stars will play for their national teams for the last time. This tournament will also see many first-timer countries like Albania, Wales, Slovakia, Iceland and Northern Ireland. It is easy to foresee that this year’s tournament will be a remarkable one like World Cup of 1998, and will be remembered for years. This means that clips, photos and recordings from the tournament will circulate even long after the tournament is held, so the sponsorship’s effect will persist for years to come. As Mr. Aycı points out, Turkish Airlines has prepared a special campaign for the UEFA EURO 2016 entitled “Meet Europe’s Best’ comprising commercials, a plane covered with

The Turkish Perspective

M. İlker Aycı Chairman of the Board and the Executive Committee of Turkish Airlines

tournament visuals, ticket giveaways and other activities. A Turkish Airlines Airbus A330 brandishing UEFA EURO 2016 livery has already reached football lovers in the US, Europe, the Middle East, Asia and Africa, all part of the airline’s extensive flight network. Adverts of the UEFA EURO 2016, showcasing the excellent passenger experience offered by carrier were shot by Hollywood’s Grady Hall, a well-known director of music videos. A total of seven commercials portray professional footballers enjoying worldclass Turkish Airlines services.

Mr. Aycı, announced the sponsorship deal with UEFA.

Turkish Airlines is UEFA EURO 2016’s Official Airline Partner. Throughout this tournament, we will use football’s social and cultural uniting power to boost our brand further.

As for the fans all over the world, MeetEuropesBest. com web site provides the meeting point with the hashtag #EuropesBest where a chance to win flights, accommodation and tickets for UEFA EURO 2016 awaits. Speaking of the boost in the airline’s global recognition, Mr. Aycı states that Turkish Airlines increased its brand awareness to 64% with an increase by 20 points within the last 5 years. Sponsorships were the main driving force behind this success, and the company aims at increasing this to new highs by the year 2023. For that, UEFA EURO 2016 will surely play an important part. According to recent reports, the mention rate of Turkish Airlines on social media increased by 121%, following the success of several sponsorship deals and ad campaigns. Such occasions that bring together so many people have a multiplier effect thanks to the social media. The audience no longer just passively receive the message, but spread it via social media instruments.

Our brand is one of the pioneers “Our brand is one of the pioneers in the world about sports sponsorships. We are working together with the world’s best organizations. Turkish Airlines is UEFA EURO 2016’s Official Airline Partner. Throughout this tournament, we will use football’s social and cultural uniting power to boost our brand further. We have been supporting Euroleague Basketball for six years and have built a strong name in the world of basketball. We are going to be title sponsor of Euroleague until 2020. With these sponsorships, we can strongly focus on the niche markets that we want to reach and achieve our goals faster. Naturally, the sum of all these efforts will lead to even higher global brand awareness rates for Turkish Airlines.”

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MARKETING STUDIO

Ways to Create

SUCCESSFUL MARKETING CAMPAIGNS It is very important to optimise marketing budgets and create ROI in today’s highly competitive market. According to recent studies by Comscore, firms are wasting their digital budgets as much as 50% in certain campaigns. By Ahmet DamgacIoĞlu

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his can lead to big

inefficiencies for all sizes of businesses if not monitored closely. So the companies can use the following ideas to optimise their campaigns:

Freebies

Create Consumer Communities

SEOStrategy

GoMobile

1.

Create Consumer Communities: Consumers have always been marketer’s source of inspration. This has become much easier now with today’s technology: Brands create Insight Communities to tap into consumer’s minds to learn about their desires and their reactions to new ideas. For example, Adidas co-creates their designs and products with consumers to ensure that the product’s success before it even arrives in the stores. Even the smallest brand can use this methodology to have a sense and sharing with the targeted consumer before investing in the media.

RightuseofBloggers

5. 3.

2.

Freebies: Offer of adding a free coupon or a trial offer helps grow the sales quickly. Consumers love the freebies if used in an intelligent way. The trick is offer should be the product itself to entice trial and should bring consumer back for more. Burger King Turkey has run a successful promotion by offering popular Frito Lay packs to increase their sales. JUNE 2016 ISSUE 35

optimised sites. A new campaign can make a difference when shown in the mobile channels versus competitors. A small brand has a big chance to utilise this channel to make a big impact. It is also becoming cheaper to create campaigns and sites in mobile compared to just a few years ago. Bi Taksi is a good example of this. It is an app to call taxis in chatoic Istanbul traffic. Many people quickly downloaded their app which created a strong buzz around the brand.

It is important to measure the ROI of the marketing dollars spent to build a healthy brand.

SEO Strategy: Search Engine Marketing should be taken in serious consideration. People are online continuously and look for opportunities. Brands do not need to own top words such as lowest airline ticket as these become very expensive. Brands can invest in longer search terms in a consistent way analysing conversion rates to validate their investments. Google Analytics are a good source to do the analysis and continue the investment.

4.

Go Mobile: Many brands are still shy when it comes to mobile campaigns and mobile

Right use of Bloggers: A smaller brand may use many younger bloggers to inluence the followers to create a halo effect among its targeted consumers. Big brand naturally go for the celebrities but there are young celebrities that new brands can also link themselves, too. The critical question again is to find the right person that fits to the brand positioning. Soho House is a good example of this. By using bloggers only they were able to create a desire to become paid members among their target group before the doors were opened. In conclusion, without much cash the above ideas will take your brand to the next level. It is important to measure the ROI of the marketing dollars spent to build a healthy brand.

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automotıve

Turning ordinary cars into:

GOBLIN smart cars

Goblin is a Turkish company that produces Goblin Connected Car Platform device, which turns the connected cars into smart cars like KITT in Knight Rider. By M. BAHADIRHAN DİNÇASLAN

A

utomobiles and other vehicles nowadays are far more developed than their predecessors. Back in history, engine power that allowed a person to travel without using horses was a big leap forward. The concept of a vehicle that moves by “itself ” was marking the beginning of a new era: the age of transportation. Early railways and now automobiles for individual use increased the mobility of human kind, increasing the quality of our lives. However, the automotive industry did not miss the opportunities arouse by the developing concept of

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Today, tracking and monitoring cars, buses and trucks is of highest importance, especially for rent-a-car firms, transportation agencies and municipalities.

electronics and advantages it offers. Slowly but steadily, new components became fundamental and crucial parts of the whole mechanism in an automobile. Safety systems, electronic engine and mechanism components took their place among the parts that constitute a car, and automobiles turned into electronic devices rather than mechanical ones. Today, tracking and monitoring cars, buses and trucks is of highest importance, especially for rent-a-car firms, transportation agencies that manage large truck fleets and

municipalities that use buses for citywide mass transportation. Goblin Connected Car platform just serves this need: It’s easy to use, cheap to buy, and highly effective and helpful. The company has a curious story: CEO and founding member Akın Burak Tiryaki, was actually an archeologist, who was just interested in software development since early childhood. Together with his friends, they started a R&D company that served various other firms to research and develop on their projects. They eventually decided to develop their own, independent projects and started seeking potential needs to address. As they realized a highly effective, cheap, compatible and easyto-use monitoring system is needed, they started working on the idea. What they came up with is amazing: They realized standard GPS systems give data regarding the position of the car, but with many disadvantages and they hardly give any on-line data regarding the status of the engines and other conditions. They just created a small device, no bigger than a fist, which is connected to the electronic control unit of the vehicle, and reads all the data provided by it, transfers it to an online system on which operators or clients can read all quantitative and qualitative data regarding that vehicle. What’s the use of this device in practical terms? There are various clients already bought large amounts of this device for different purposes. One of the biggest clients, a municipality in Turkey, uses the device on its buses; a fleet consists of several hundred vehicles. All information regarding the route, number

The Turkish Perspective

of passengers (thanks to the weight calculation), status of brakes, engines, fuel and speed, is accessible via a dashboard provided by the company to the client. This ensures drivers comply with the regulations, also acts as a warning system, as the device warns the driver, or the manager who’s in charge, about the breakdowns and the precise location of the breakdown. It also helps reducing the fuel costs, as it signals misuse or fuel leakages, as well as fuel theft as it is sometimes the case with especially truck transportation. Moreover, as the device connects to the electronic control unit, it allows remotecontrol on certain systems, which is useful especially in terms of emergency. Mr. Tiryaki states that the device already proved itself useful in a couple of emergency cases, paying itself indeed. Turning an ordinary car into KITT from famous TV series Knight Rider in just seconds as soon as it is connected to the car, he states jokingly. It can be connected to a smart-phone thanks to an application, in this regard the device is the link that will connect cars to “internet of things”.

The device when connected to the car, enables the user to perform many actions with voice commands if preferred.

The device will also be helpful for security and legal purposes. Determining the cause and responsibility in case of an incident is crucial, and thanks to the data stored by the device, legal authorities will have a precise data recorder, similar to flight data recorders on planes. Insurance companies, individual users who seek increasing their comfort and safety, companies that would like to monitor their cars on traffic, they all will find a reason to buy the device, and as the device can be upgraded or personalized in accordance with the clients’ needs, it will pay off itself quickly. Mr. Tiryaki also adds that they are working on a prototype of another device based on the same concept, a device that will enable renta-car companies to stop the engine or and have a remote control. Already sold many devices to global giants at home and abroad, Goblin Connected Car Platform is a pioneer of innovation, proving that a team with creativity and that ask right questions, combined with the innovative spirit, develop a product and quickly become a competitive player in the market.

Determining the cause and responsibility in case of an incident is crucial, and thanks to the data stored by the device, legal authorities will have a precise data recorder.

AKIN BURAK TİRYAKİ Co Founder of Goblin

We started our company in 2006, based on our previous experience in R&D. We were offering R&D services for other companies, but eventually we decided to create our own products from scratch. We develop our products ourselves, 100% domestic material and know-how, which is the most important dimension of our operations. This particular car monitoring platform is well-acclaimed by our partners, as we addressed a common need and at a very affordable cost. Basically, our platform is a small kit attached to the electronic system of a car, which takes only seconds, and start monitoring all the data, receiving it from the electronic control unit, process and transfer the data to an online center, enabling clients to monitor and interfere when necessary. Like devices on planes, it records all the travel data, allowing you to find the precise reasons of an incident, monitor if the driver abides by the rules and regulations, as well as testing how effectively the car is used.

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Roketsan’s SOM-J air-launched cruise missile will be used for the F-35 Lightning II combat jet of Joint Strike Fighter program.

Defense

PRıde of the Natıon: Roketsan

State owned companies like ASELSAN, ROKETSAN and HAVELSAN are the dynamos of R&D and innovation in Turkish industry. By M. BAHADIRHAN DİNÇASLAN

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urkish Defense

Industry is pride of the nation. In order to retain stability, security and independence in a region full of conflicts and –unfortunately- terrorist activities, a country needs to develop a well-functioning defense industry to fulfill the needs of the military, as well as increasing the efficiency of operations to eradicate threats with minimum loss and cost. The industry, thanks to the experience and know-how accumulated throughout the years, is now serving the needs of Turkish military in a vigorous way, and started to offer its services for friend and ally nations. Today, military operations involve the latest technology, decreasing the role of humans, improving the precision, efficiency and possible negative outcomes of missions. This is enabled thanks to high-tech developments in robotics,

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electronics and software as well. An un-manned aircraft monitors and detects the threat, a “big red button” far away from the scene of action releases guided missiles and the target is annihilated: human interference is gradually decreasing. The technological background for these functions is a sophisticated one, few countries can develop an industry to produce such high-tech weapons and systems as it requires wealth, a stable economy, a vast hub

These state-owned companies do not only serve the needs of defense industry, instead, they also contribute to the development of all industries.

of sub and related industries, raw materials and qualified personnel. Thanks to institutions such as ASELSAN, HAVELSAN and ROKETSAN, Turkey lacks none of the perquisites. Moreover, especially in the last decade, Turkey has become a main exporter and pioneering developer. ASELSAN’S Koral Radar system is still unmatched in many fields, and armored personnel carriers, attack boats etc. are among the prominent exports of Turkish Defense Industry. These state-owned companies do not only serve the needs of defense industry, instead, they also contribute to the development of all industries thanks to the outcomes of their R&D activities. A good example of this success story is Roketsan’s deal with Lockheed Martin. Roketsan’s SOM-J airlaunched cruise missile will be used for the F-35 Lightning II combat jet of

Joint Strike Fighter program. SOM-J’s features were praised, and the intensive efforts of Roketsan to develop domestic missile systems resulted in international acknowledgement. “SOM-J integration on the F-35 will enable pilots to engage targets from long ranges while maintaining the aircraft’s critical stealth capabilities,” had said Frank St. John, vice president at Lockheed Martin Missiles and Fire Control. The SOM-J missile uses Global Positioning System as its primary guidance and is aided by inertial, terrain-referenced and image-based navigation systems, as well as an imaging infrared seeker. Roketsan’s Cirit and Mızrak rockets and missiles were among the first products to be mass produced and used. Cirit is a laser-guided rocket, an affordable multi-purpose weapon that can be launched from a number of different platforms; including aircraft and land bases. Mızrak, similar to Cirit, is an anti-tank missile with heavier capacity. Along with smaller missiles to be used by unmanned aircraft and medium size bombs, SOM missile system is the pride of the institution, and is likely to find users especially in Middle and Near East. Able to produce all air-tosurface munitions necessary for most modern militaries, ROKETSAN, along with ASELSAN and HAVELSAN, and in cooperation with TÜBİTAK, main scientific institution of the state, will continue its contribution to both the national security and economy.

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ONLINE SHOPPING

n11.com: Bringıng the bazaar to your home

n11.com is changing the consumer habits and allowing the sellers to reach their target consumers thanks to the friendly digital medium it offers. By M. BAHADIRHAN DİNÇASLAN

D

oğuş Planet, established in June 2012, is a joint venture between Doğuş Group and the South Korean SK Group, which focuses on the e-commerce sector. Combining SK Group’s experience in technology and innovation with Doğuş Group’s local expertise, regional experience, and strong assets; the fruit of this partnership is Doğuş Planet’s e-commerce investment, n11. com, launched in the first quarter of 2013. This new venture operates as an open market platform, connecting diverse stores and brands to millions of customers. n11.com provides its customers with millions of products and services ranging from fashion to electronics, from kitchenware to rare Turkish handicrafts - all under 10 main categories. The platform’s strategy is to provide value propositions based on “trust” and “convenience” to customers, and “support” and “care” to stores and brands within an ecosystem that is built upon a strong alliance of strategic partners. n11.com, in this regard, has completed year 2015 with 38 thousand 500 registered stores, 27 million registered products, approximately 6 million members and 400 million visits in total and 1 billion TRY trade volume. By the end of 2015, n11.com had 234 employees, including 90 JUNE 2016 ISSUE 35

call center personnel and 100 qualified R&D personnel. As an open market platform, like virtual shopping center, it’s a sales channel with Business to Consumers (B2C) concept. Since the day it was founded, it serves as a powerful e-commerce channel to the SMEs. n11 focuses on consumers who can’t find what they really want from the traditional sales channels, and SMEs are cooperating with n11 as a medium, a virtual marketplace. n11.com has studio which provides photo shooting and marketing training to the brands. Member shops can also have the benefit of using n11. com’s Studio for professional shooting of their products without paying fee and besides that, they can get training on how to become successful while doing e-commerce and how to increase their sales by

using sales techniques. Serving 38.500 registered stores and approximately 6 million members, with 27 million registered products, n11.com deals with the busiest telephone traffic in the country. Enabling thousands of sellers to make online sales, n11.com is literally changing the consumer habits. One of the fast-growing sectors of Turkish economy is e-commerce, although the have a long distance to cover compared to the European countries, Turkish e-commerce sector has an exciting growth potential vis a vis many other sectors. In Turkey, the e-commerce transaction volume does not yet constitute 2% of the total retail sales. Considering that this ratio is 15-16 percent for the UK and 7-8 percent for Continental Europe; one could understand how big a growth potential the sector holds. In

this regard, n11.com is the top-of-mind e-commerce company in Turkey. The platform transformed into a giant e-commerce platform selling thousands of products from detergents to watches; or memory cards to garments. Therefore n11.com has many advantages for foreign entrepreneurs: Services, products and companies entering the Turkish market for the first time face many difficulties and challenges in marketing their goods and ensuring an effective distribution infrastructure. This e-commerce platform offers a wisely operated and supportive medium for newcomers, and in accordance with top types of products sold, the advantage cannot be ignored.

BİLGEN ALGAN Deputy Director General of n.11.com

We are assertive that any product marketed in Turkey can be found on this platform. In addition to that, a merchant or a brand can open a virtual store at our site to sell their products under the guarantee of n11.com. You can deem it the most advanced and convenient Marketplace for the shoppers of Turkey. As an entrepreneur who owns a store, your physical sales area is limited to your geographical location. But if you open that store at Marketplace platform on n11. com, you would expand your target group to all of Turkey. In other words, we enable you to access any store or brand, millions of visitors and customer group with one click. Top five products we have been selling most are, Diapers, USB Memory, Mobile phones, Smart Watches and Men’s shoes.

Briefing

INVESTMENT

ISPAT attracts one of the world’s top terminal operators to Turkey

JUNE 2016 ISSUE 35

photograph bY ISPAT

DP World commissions USD 650 million container terminal in Turkey

photograph bY ISPAT

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The Turkish Perspective

photograph bY ISPAT

photograph bY ISPAT

Yıldırım: “Turkey is one of the most important business hubs at a time when the world’s economic center of gravity continues to shift to East. That’s why we are building the world’s largest airport in Istanbul and 4th largest suspension bridge on Izmit Bay. DP World Yarimca will also be a milestone in this journey.”

DP World, a leading enabler of global trade and an integral part of the supply chain, held an inauguration ceremony in Yarimca, Kocaeli to mark the commissioning USD 650 million greenfield container terminal. The new facility, with a handling capacity of 1.3 million TEU, features remote-controlled and automated operations. It also represents the first infrastructure project in Izmit Bay to be run by an international operator. Turkish President Recep Tayyip Erdoğan joined via video conference the inauguration ceremony at which were present Prime Minister Binali Yıldırım; Minister of Foreign Affairs Mevlüt Çavuşoğlu and Prime Ministry Investment Support and Promotion Agency of Turkey (ISPAT) President Arda Ermut. Commenting on the new terminal, Erdoğan said, “DP World Yarimca will reduce costs and increase the competitiveness of industrial and trading companies located in our region.” Speaking at the ceremony, Binali Yıldırım extended his gratitude to Chairman of DP World Group, Sultan Ahmed bin Sulayem, and CEO of DP World Yarimca, Nichola

Silveira, for their confidence in Turkey’s business environment. Yıldırım said, “Turkey’s geostrategic position enables access to a market of 1.5 billion people and a combined GDP of USD 30 trillion within a 3-hour flight from Istanbul. Turkey is one of the most important business hubs at a time when the world’s economic center of gravity continues to shift to East. That’s why we are building the world’s largest airport in Istanbul and 4th largest suspension bridge on Izmit Bay. DP World Yarimca will also be a milestone in this journey.” Assisted by ISPAT at every stage of the investment process by coordinating more than 20 stakeholders,

Ermut: “DP World Yarimca will give a new impulse to the Turkish economy”

DP World Yarimca Terminal will employ 650 people to reach a handling capacity of 1.3 billion TEU, which is currently more than 10 percent of Turkey’s total capacity.

DP World Yarimca Terminal will employ 650 people to reach a handling capacity of 1.3 billion TEU, which is currently more than 10 percent of Turkey’s total capacity. The terminal is the first in Turkey to use remote-controlled gantry cranes with automated gate operations and fast scanner x-ray machines that can scan two containers every minute. ISPAT President Arda Ermut: “Since ISPAT gave support to DP World’s Yarimca project from the very beginning, today we are taking justified pride in accomplishing such an important and innovative investment for our country. I believe that this investment will not only contribute to Turkey’s exports and its logistic capacity, but also give a new impulse to the Turkish economy and usher in a new vision for the logistics sector in Turkey and the region.”

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Briefing

SImsek invited the Spanish investors to increase their investments in Turkey From high level official visits to international business forums, ISPAT takes every opportunity to present Turkey’s investment and business environment to global business circles.

Turkish Deputy Prime Minister Mehmet Simsek attended the Annual Meeting of BBVA´s Regional Advisory Committee in Madrid on May 5th, where he addressed more than 150 important executives from all over Spain. During his speech he gave information about the future prospects of the Turkish economy, the reform agenda to overcome structural weaknesses, and also responded to the questions of the attendees regarding the recent rise in Turkey’s minimum wage, inflation, and Turkey’s EU Accession Process. Later in the afternoon he attended a roundtable meeting that had been organized by the Turkish Embassy in Madrid and ISPAT in collaboration with the Spanish Businessmen Confederation (CEOE). The event took place at the headquarters of CEOE in Madrid and included from the Spanish side the Secretary of State for Commerce, representatives from the Spanish Chamber of Commerce (Camara de JUNE 2016 ISSUE 35

España) and CEOE, and top executives from 30 of the most important Spanish investors in Turkey. Among the investors represented were Mapfre, OHL, Grupo Essentium, Vestas, Tecnicas Reunidas, BBVA, Banco Sabadell, CLH, Befesa, Grupo Antolin, Tolsa, Amadeus, CAF, Gamesa, Gestamp, Indra, Ineco and La Caixa. The companies had a chance to comment about their projects in Turkey and ask questions about the developments in their respective sectors. Simsek responded to the questions one by one by explaining the investment opportunities and briefing them about the 2023

During the roundtable meeting, Minister Şimşek responded to the questions one by one by explaining the investment opportunities and briefing them about the 2023 Vision of Turkey in their respective sectors.

Vision of Turkey in their respective sectors. In his speech at the roundtable meeting, Deputy Prime Minister Simsek highlighted Turkey’s advantages as an investment destination. He emphasized that the country was considered a priority growth market given its domestic market and strategic location with reach to neighboring countries. Simsek also drew attention to various infrastructure projects and the growth rate of the Turkish economy. In his closing remarks, he encouraged Spanish investors to increase their investments in Turkey.

photograph bY ISPAT

Visit of Deputy Prime Minister Simsek to Madrid

photograph by ISPAT

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The Turkish Perspective

ISPAT President Ermut Meets Senior Executives of Italian Investors

photograph bY ISPAT

photograph by ISPAT

ISPAT, in partnership with the Embassy of Italy in Turkey, organized a “Roundtable Meeting” on May 3, 2016, at Palazzo Venezia in Istanbul for executives of the leading Italian companies operating in Turkey. During the meeting, presided over by ISPAT President Arda Ermut and Italian Ambassador to Turkey Luigi Mattiolo, senior executives of 25 Italian companies had the chance to discuss the activities and objectives of their companies and voice issues relating to their operations. In his opening speech, Ermut underlined that the meeting aimed to share updated information regarding the current state of the Turkish economy and new policies that will be applied to international investments in Turkey. Ermut stated that the Turkish government, which considers foreign direct investment (FDI) as one of the main components of its economic development, has significantly improved its investment environment through various reforms and legislations since 2003. He continued by giving information about the economic reform schedule of the government, highlighting regulations that

During the meeting, presided over by ISPAT President Arda Ermut and Italian Ambassador to Turkey Luigi Mattiolo, senior executives of 25 Italian companies had the chance to discuss the activities and objectives of their companies and voice issues relating to their operations.

will facilitate new investments and improve the investment environment in accordance with the expectations of the business world. With a goal to improve Turkey’s business and investment environment for international investors, the meeting provided a great opportunity to share and discuss sentiments to increase mutual understanding. While encouraging further cooperation between Turkish and Italian businesses, Arda Ermut said Turkey and Italy are important partners thanks to their geographical and strategic positions and their perfect bilateral relations. The industrial cooperation is continually developing, and all of the major Italian companies have an established presence in Turkey. Turkey has attracted more than 2.5 billion US dollars of FDI from Italy during the last 13 years. Last

year the trade volume between the two countries was nearly 18 billion US dollars and Italy was Turkey’s 4th largest trade partner. Ermut said that this is evidence of an excellent commercial relationship that is deepening more and more each day and that is taking advantage of the reciprocal productive systems that complement each other. Turkish and Italian economies are complementary in nature and there are opportunities for collaboration in many different sectors such as energy, healthcare, tourism, defense industries, financial services, environmental and infrastructural projects, and machine manufacturing. Mattiolo supported Ermut’s remarks, stating that the friendship between Italy and Turkey is very strong and this is especially true for the economic relations. The number of Italian companies in Turkey

reached a record number of nearly 1,300. The quality of investment is also worth stressing. Since the very beginning, Italian companies believed in the industrial and economic potential of Turkey and brought capital and technology to the country, giving their contribution to Turkey’s economic development. Nowadays, joint ventures and partnerships between Italian and Turkish companies continue, and each side brings its own competence and adds value to the final product. Furthermore, the penetration of Italian companies is strongly enhanced by the presence of Italian banks, which is a rare asset to find abroad.

Ispat set to reach Saudi Investors May 23, 2016 Riyadh, S. ARABIA During the ISPAT delegation’s investment promotion tour in Saudi Arabia, ISPAT Advisor Dr. Mustafa Göksu addressed Saudi executives at an exclusive meeting held by the Riyadh Chamber of Commerce and Industry. In his presentation, Göksu touched on Turkey’s outlook, investment climate, and incentives as well as on real estate acquisition in Turkey. The delegation also attended the Forum of Investment Promotion Agencies of the Organization of Islamic Cooperation (OIC), where ISPAT Vice President Mustafa Rumeli shared Turkey’s experience in successful FDI attraction and the best practices of ISPAT.

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F O O R P K S I R

Y E S R E J JUNE 2016 ISSUE 35

F

Y

The Turkish Perspective

o

rs t o t s e v n i n g rei colors o f e s th inning e t i v in the w y e k Tur choose

Turkey has become an attractive center for Foreign Direct Investment. Recent conflicts and crises in the region just made the country outshine, rather than having a detrimental effect on its image. Emerging as the only stable country with a strong and deep economic infrastructure, Turkey offers a risk proof jersey, the winning colors, for all foreign investors seeking opportunities to make profits. The construction and automotive industries are gaining importance in particular, as Turkey is the main “builder” of surrounding countries that faced destructive conflicts, and a production base for automotive companies to produce at lower costs and sell without big freight expenditures. Moreover, Turkey has also become an investor, which further enhances the country’s integration with the rest of the world, and enables the country to transfer know-how to use it for value added production at home.

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Opportunıtıes and New Developments That Will Affect Fdı Decisions in the Near Future By PrOf. Dr. Murat Sak and Turksoy Emen

T

he United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2014 was revealed that Foreign Direct Investment (FDI) inflows fell by 16 percent in 2014. However, according to interim report of UNCTAD printed in January 2016, FDI flows jumped sharply in 2015 reaching by 1.7 trillion dollars. The sharp increase of FDI inflows in developed economies changed the pattern of FDI by economic grouping in their favour. Turkey also decreased to $12 billion in 2014, but a sudden increase in FDI inflows rose by 33 percent compared to the previous year in 2015. H owever, according to data provided by Turkey Ministry of Economy, Turkey’s performance to attract FDI in 2015 was more tremendous than expected. The country exceeded the average predictions, increased FDI inflows by 32.4 percent, and attracted FDI of 16.8 billion. As manufacturing sector took the biggest share of FDI inflows with $4.1 billion, finance and insurance sector attracted FDI of $3.5 billion. Real estate sector also resumed to consist of one-fourth of the total FDI. The number of foreign companies founded in 2015 was also increased by 9.4 percent compared to the previous year. Turkey insists to attract more FDI than predicted, and has become one of the most attracting countries for foreign investors. The ruling party has been enacting laws, issuing regulations, taking related measures and boosting the economy to improve conditions for foreign investors to attract more FDI since it took office. So, foreign investors were very eager to invest in Turkey, and have increased their investments in spite of fragility of the global economy and the uncertainties. Then, can we expect that FDI inflows to Turkey would rise in the near future? As we examine foreign direct investment trends, international organizations’ forecasts, the global economy, and developments and opportunities in the Turkish economy, we can say that FDI inflows to Turkey would increase in the near future. If so, which factors will affect foreign direct investment decisions within the next few years? Here are the developments and opportunities which foreign investors should focus on and evaluate deeply before their investment decision-making processes.

JUNE 2016 ISSUE 35

The Turkish Perspective

16

$

BILLION

Total Foreign Investment in Turkey in 2015

32% MINIMUM WAGE INCREASE Before the general election held in November 2015, Turkish political parties pledged that they would increase the minimum wage if they won the election. After winning the election, the ruling party, kept its promise and raised the minimum wage by 30 percent for over 5 million workers. Obviously, the effects of this move will be felt in the economy. 30 percent increase in the minimum wage could boost consumer spending. It can be expected low-income workers with the increased minimum wage would spend more money to improve their standard of living. This rise in the minimum wage could also trigger domestic demand and the growth. This huge increase in the minimum wage shouldn’t be ruled out by foreign investors. The increase will allow workers to spend more, and then it will boost production. So, foreign investors should focus on manufacturing sector to benefit from consumer spending that is expected to rise due to increase in the

Total increase in FDI compared to previous year

2

$

BILLION

Total foreign investment made in Jan – Mar 2016

22

$

BILLION

Average FDI in 2006, 2007 and 2008

43.5

$

BILLION

Stocks owned by foreigners in Istanbul Stock Exchange

wages of low-income people. Turkey’s manufacturing sector already attracts the bulk of FDI. In the future, the sector may be more attractive and profitable for investors. Manufacturers could also be affected negatively due to rising in the minimum wage. It will increase the labor cost of the companies, and show its effects in the bottom line, which is the undesired side of this move. However, producers can simply adjust prices of their goods, and eliminate increases in the labor cost. Not surprisingly, some companies have started hiking prices of their products in the market to balance negative effects of increased wages. The other negative effect of this move could be a higher inflation rate. More spending of households and hiking prices of products could lead to an increase in inflation rate. But, we suppose that the Central Bank of Turkey would take precautions against inflation, using monetary policy tools to achieve and maintain price stability, which is the primary objective of the Central Bank.

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Automotive Industry attracts foreign investors thanks to its advantages.

THE ATTRACTIVENESS OF THE CONSTRUCTION SECTOR Turkey’s construction sector has a key role in the economy, and still maintains to contribute to GDP significantly. The sector hires tens of thousands directly, and boosts several related industries such as iron-steel, construction machinery, cement, building materials, engineering, architecture and financial services. According to data provided by Turkish Statistical Institute, the construction sector grew by 18.3 percent in 2010 and by 11.2 percent in 2011, and exceeded turnover predictions. After 2011, the sector has continued growing even though its growth rate remained under the average GDP growth. Properties sold in the market have increased dramatically over the years. As the number of properties sold was around 400.000 in 2008, it reached 1.300.000 in 2015. It is not hard to say the sector, one of the engines of the economy, would resume to attract FDI, and become one of the most attractive sectors for foreigners in the future. Here are the sector dynamics, developments and opportunities pointed out below should be taken into account by foreign investors before the investment decisionmaking process.

Urban Renewal The government passed a law in 2012 to renew old buildings overall the country due to earthquake risks, and initiated a major urban renewal program. According to the program, roughly 14 million buildings must be reviewed to determine whether they are at risk of demolition. The government has allotted hundreds of millions of dollars so far, and is expected to spend billions of dollars more for this program in the future. So, the renewal projects will be most charming and lucrative fields not only for local companies but also for foreign investors.

Overseas Contracting Services Turkey’s location is matchless, at the crossroads of Europe and Asia, and very close to Middle East & Africa markets. Turkey has strong cultural and linguistic ties with Turkic nations in Central Asia where Turkish contractors have undertaken countless projects so far. Turkey has also good relations with some countries located in Middle East and Africa. So, Turkish contractors started spreading their activities mainly to these regions using historical, cultural, and geographical ties between countries as of 1970s. According to data published by Ministry of Development, Turkish contracting companies undertook 8.606 projects with a total value of approximately $ 312 billion in 104 countries between 1972 and 2015, which has helped create large Turkish companies operating abroad. There are also Turkish contracting companies in the 2015 Top 250 Global Contractors list, published by “ENR - Engineering News Record”, an international industry magazine. So, foreign investors looking for new markets should create partnerships with Turkish contracting companies to spread to Asian, Middle Eastern and African markets that Turkish companies have already penetrated into. Undertaking overseas projects requires a large amount of capital, which Turkish contracting companies need more than earlier to maintain their presence, and to improve their competitiveness in overseas markets. Then, foreign companies should provide capital to Turkish companies, by creating partnerships to benefit from their growing overseas activities and strong presence in the markets stated above. JUNE 2016 ISSUE 35

Real Estate is Considered as an Investment Instrument Turkey experienced economic crisis periods in 1990s and early 2000s. Interest rates had hit record high. But today, along with the growing economy, interest rates are lower and more stable compared to previous years. The values of foreign currencies against Turkish Lira are fluctuating due to global effects. Gold, which Turkish people consider as a conventional investment instrument, has lost its stability in global markets, and has not preferred by Turkish people much more compared to earlier. These developments in investment instruments have put real estate on the stage as a new lucrative investment instrument. Investing in real estate earns more than 30 percent a year in some cities nowadays. So, people buy real estate not only for housing but also for investment. Foreign investors should notice this reality, and consider it deeply before their investment decision-making processes.

The Turkish Perspective

MACROECONOMIC DEVELOPMENTS Turkish economy is growing. The growth rate was 4 percent in 2015. Increasing income and purchasing power of households accompany by this growth. People borrow more from banks to spend for basic needs, durable goods, cars and real estate, leading more consumption. Fiscal discipline in public finance is underway. Decreasing debt burden has been affecting the country’s credit ratings and keeping them at the investment grade despite fluctuations in exchange rates and geopolitical developments, which mainly stem from Syria crisis. However, interest rates are relatively high compared to a couple of years ago. Increases in foreign exchange rates made Turkish Central bank rise interest rates. Another important development is international trade. Easing tension between Iran and the US has affected Turkey’s trade with Iran. Trade volume between the two countries started to flourish after the improvements in international relations. Further, Turkey has also increased the number of countries that it exports.

Briefly, consumption seems to increase in near the future. This increase is expected to affect domestic demand-led growth. Fiscal discipline will be the most important determinant of the county’s credit ratings. We estimate that ratings would stay at the investment grade even though the investment grade is the lowest level.

CONCLUSION

A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty. Winston S. Churchill

Global competitiveness is enhancing, multinational firms try to spread their activities to new markets. Turkey became a lucrative market for foreign investors in previous years. Today, the country still a right destination to invest, and attracts billions of dollars FDI each year. Manufacturing sector is still charming because of increasing consumption and household income. Construction sector has become one of the engines of the economy, and provides numerous opportunities for investors. Fiscal discipline in public finance keeps credit ratings at the investment grade, a significant indicator for foreign investors. In a nutshell, Turkey seems to keep on attracting FDI in the near future.

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Why Foreign Investors Invest in Turkey? By Prof. Dr. Ali Alp and Dr. Yener CoŞkun

Economic and Political Risks of Turkey Turkey is the cultural, political and economic bridge between Asia and Europe and East and West. This is a real advantage in good times, but this might be also a big headache as observed in several crises in Greater Middle East region. The well-known fact is that the geography is the destiny of a country. The geography of Turkey was the productive instrument during peace time, but it was hard to find some long-term peace in the region since the WW1. Therefore, geo-political structure and some country-specific problems were the main contributors of the political risks of Turkey. In addition to negative impacts of regional and domestic political conflicts, structural economic problems provide enough reason to classify Turkey as the risky emerging country. Remember fragile five? Turkey is one of the members of this club which shows some highly risky emerging countries. Current account deficit, state/private sector debts, dependency on short term capital movements and other structural problems of the country are the reasons of this kind of classification attempts. But, like in the case of Spain, high tension in political arena and observable economic risks have not stopped the investments of foreign investors into Turkish economy.

FDI Performance of Turkey Therefore, despite above very clear facts, the foreign direct investment (FDI) performance of Turkey has been very good specifically in last decade. In this respect, FDI into Turkey was $12.1 billion in 2014, making the country the 22nd most popular spot for investors in the World. According to A.T. Kearney Foreign Direct Investment Confidence Index 2015 result, Turkey moves up to 22nd in 2015 ahead of Poland, Norway and Finland (see the below figure). Turkey has respectively attracted 8,696 and 8,175 new jobs in 2013 and 2014 based on FDI, ranked as the 8 th country in the Ernst & Young Global Investment Monitor 2015. As one of most important economic performance indicators of a country, FDI figures suggest that Turkey is one of the members of FDI’s champion league in the world. But, let’s be realistic. Everybody asks why foreigners invest more to Turkey, despite very serious political risks and structural economic problems. JUNE 2016 ISSUE 35

The Turkish Perspective

2015 FDI Confıdence ındex rankıng and scores

Ranking

Values calculated on a 0 to 3 scale

2013

2014

2015

1

1

2

2

8

4

4

3

7

6

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

3

5

13

19

12

10

9

12

6

8

5

7

-

20

-

22

18

14

10

9

21

-

16

18

-

16

-

21

-

23

-

-

-

24

19

-

-

-

-

-

0.00

0.50

1.00

1.50

2.00

2.50

2.10 2.00 1.95 1.94 1.89 1.87 1.80 1.80 1.79 1.79 1.79 1.75 1.74 1.74 1.73 1.72 1.71 1.71 1.70 1.69 1.69 1.69 1.68 1.68 1.67

UNITED STATES CHINE UNITED KINGDOM CANADA GERMANY BRAZIL JAPAN FRANCE MEXICO AUSTRALIA INDIA ITALY NETHERLANDS SWITZERLAND SINGAPORE SOUTH KOREA SPAIN SWEDEN BELGIUM DENMARK AUSTRIA TURKEY POLAND NORWAY FINLAND LoW CONFIDENCE MAINTaineD RANKING

Source: A.T. Kearney Foreign Direct Investment Confidence Index, 2015

Benefits of Investing in Turkey The short answer is that foreign investors already know what the risk and return in their investments in Turkey. They had started invest into Turkey since 19th century and they know very well the existing market today. Records suggest that they get historically good risk premium in the past and current risk pricing will be also probably rewarded with better return. Moreover, in realistic terms, Turkey provides some sufficient background for foreign investment. In this respect, sound legal background, industry friendly approaches for direct investments, low corporate tax rates, some state support for foreign investment, cheaper/qualified work force and efficient financial markets are among the main reasons of the growing FDI volume. Growth period of the country in the last decade also suggests

HIGH CONFIDENCE MOVED UP

MOVED DOWN

that opportunities are very real in many sectors from retail to industry. So, it seems that FDI records of Turkey are linked to some realistic background and foreign investors already buy all economic/political risks of the country.

Churchill Seems Right

Growth period of Turkey in the last decade also suggests that opportunities are very real in many sectors from retail to industry.

The strategy of FDI mostly focuses on long-term return and foreign investors manage some short term risks with their highly qualified local partners. Their long-term presence suggests that there are very good reasons to be an optimistic in a direct investment in Turkey. Difficulties of Turkey are gifted by business opportunities and fundamentals of the Country provide plenty of reasons to think that way. So, the word of Winston Churchill seems right at least in the case of prospect of Turkish economy.

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The Other Side of

the Coin

T

By M. bahadırhan dinçaslan

urkey has already been a prominent economy and power in the region. However, especially in the last decade, Turkey strengthened its economy even more, becoming an active player on a global scale. This resulted in a brand new story on the economic outlook of Turkey: An active investor and policy-maker. A country cannot seek opportunities abroad without ensuring a stable economy at home. And economy tends to be affected by political conflicts, frequent changes in the policy due to changing governments and prudency and even panic of the markets due to uncertainty. However, Turkey seems to have overcome these obstacles, when the market reaction to the recent change in the government considered. Currency rates stirred a little bit, and media debated heavily for a couple of days, and that’s all: No big deal. No big and more importantly, permanent damages. It seems the day-today politics based on names and persons are over, and Turkey established a robust, consolidated system, increasing its immunity to fluctuations and panic. Moreover, Turkey has a regional role. The country is representing a region wider than its national borders, thanks to its history, cultural ties and because of geographical necessities. Especially for muslim countries, Turkey has become an important role-model: Decreasing oil prices forced these oil-dependent economies to seek new models, and Turkey emerged as a prominent “concept” role-model for these. Cultural ties with Balkan countries, racial ties with Central Asia, religious ties with Middle East and Africa provides Turkey a wide sphere of influence, and Turkey participates as a partner country which leads, mentors and supports developing countries through their re-building progress. This progress resulted in Turkey becoming an investor, as well as an address for investment. Chairman of Foreign Economic Relations Board Ömer Cihad Vardan states this as follows: “Turkey’s progress of global integration that started with exporting policy in 1980s, is now continues with investments in abroad that’s to the accumulation of capital and increase of production capacity of our companies. We support the investments by our companies in the global markets as we see this as a strategic matter regarding the long-term goals. Such investments in abroad should be encouraged and supported as they will decrease the current account deficit which is a structural problem, and enable know-how transfer and contribute to the supply security.”

JUNE 2016 ISSUE 35

Turkey’s progress of global integration that started with exporting policy in 1980s, is now continues with investments in abroad that’s to the accumulation of capital and increase of production capacity of our companies.

The Turkish Perspective

Turkey’s Foreıgn Investments

First 25 Countries in High Income Rank AMERICA

38,6

SWEDISH

30,9

FINLAND

30,6

FRANCE

29,9

NETHERLANDS

29,8

GERMANY

29,6

UNITED KINGDOM

29,5

IRELAND

28,8

SAUDI ARABIA

28,6

QATAR

27,7

CANADA

27,6

SPAIN

26,0

PORTUGAL

25,7

JAPAN

25,2

NORWAY

25,1

AUSTRIA

23,5

ITALY

23,5

GREECE

22,9

SOUTH KOREA

22,5

DENMARK

22,5

SWISS

21,8

BELGIUM

21,7

NEW ZELAND

21,6

LUXEMBOURG

21,6

ESTONIA

21,4

First 25 Countries in Middle and Low Income Rank In the last decade, Turkish firms completed 250 purchases worth $25 billion in foreign markets. In last two years, total investment is worth $5.2 billion and total mergers and purchases are worth $10 billion. Besides, in 2015, Turkish companies made $2.4 billion worth 52 investments in foreign markets, in addition, Turkish companies completed $3.5 billion worth 35 mergers and purchases. Another important matter is the knowhow transfer and experience. As Turkish firms are operating in foreign countries, Turkish banks also opened new branches in these countries, creating a convenient infrastructure for Turkish firms to operate. This integration came along with experience, today Turkish banks are well experienced regarding long-term project financing, which enhances the Turkish investors. Moreover, this experience also serves foreign investors in Turkey, whose financial and economic mechanism is fully integrated with the rest of the world.

CHINA

29,5

ROMANIA

26,4

IRAN

25,7

POLAND

25,3

KAZAKHISTAN

24,7

HUNGARY

24,6

BULGARIA

24,3

MALAYSIA

24,0

MEXICAN

23,8

CHILE

23,4

SOUTH AFRICA

23,0

INDIA

22,7

CZECH REPUBLIC

22,6

AZERBAIJAN

22,3

INDONESIA

22,1

MOROCCO

22,0

ALGERIA

22,0

VIETNAM

20,8

CROTIA

20,7

BRAZIL

20,6

EGYPT

20,6

PERU

20,5

LATVIA

20,3

ETHIOPIA

20,3

GEORGIA

20,2

Along with the construction sector, the automotive industry of Turkey is a locomotive in terms of industry and investment. Affordable production costs, huge workforce pool and proximity to different target markets makes Turkey a production base for foreign giants, and Turkey steadily attracts investment from automotive companies. Every year witnesses a new factory to be built or expanded to increase the production capacity. Joint ventures and partnerships proved their worth, a win-win situation for both investors thanks to the investorfriendly environment and profitability, and for Turkey as the investment does not only contribute to the finance, but to employment, technology and infrastructure. A good example of this is Toyota, which has long been in Turkey, and been exporting since 2002. In its production headquarters in Sakarya province, Toyota is producing Corolla and Verso models, exporting most of its production to more than 50 countries. Having produced more than 1.3 million vehicles since 2002, Toyota exported more than 80% of its production, total worth $21.4 billion according to the data by Prime Ministry Investment Support and Promotion Agency. In overall, Turkey is one of the top economies of the world, with a young population, geographical advantages, proven economic and regime stability, and retains a mental leadership position in the region. Such features make Turkey a prominent destination for investment, as well as encouraging Turkish investors to seek opportunities in feasible regions. Having survived the tremendous storms of conflicts, economic crises and global recession with minimum damage, the country is undoubtedly on its way to become one of the top ten.

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In Depth / Balkan

Centurıes old brıdges to be rebuılt: Balkans and Turkey Turkey has always been in close relationship with Balkan countries, which is symbolized by the famous Mostar bridge. By m. BAHADIRHAN DİNÇASLAN

JUNE 2016 ISSUE 35

The Turkish Perspective

Turkey has historical, cultural, religious and racial ties with Balkans, although certain factors had had a restricting effect on the trade and diplomatic relations between Balkan countries and Turkey, the last decade has witnessed an awakening in trade, business, investment, diplomacy and cultural terms. Today, Turkey is an important economic partner, investor and diplomatic player for the region. Upon the cultural and historical infrastructure of the Ottoman era, Turkey has laid stones of cooperation and friendship, which is resulting in a win-win boom for all parties. Being Turkey’s gateway to Europe, the region is also geopolitically important; it is no surprise that Turkey steadily increases its activities in the region.

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In Depth / Balkan

T

he word “Balkan” is of Turkic origin, meaning “cliff ” or “wooded mountain range”. Although the term was initially used for the mountain ranges north of Bulgaria, today its meaning expanded to referring whole “Balkan” peninsula, including Romania, Bulgaria, Albania and all countries emerged after dissolution of Yugoslavia. The region has a history full of conflicts, which severely affected the development and modernization of the countries that emerged after the end of Ottoman rule and eventually, dissolution of Yugoslavia. Moreover, socialist regimes that ruled Romania and Bulgaria during the cold war era and the integration process with the western world in 90s have been the most important milestones in the history of the region. Romania and Bulgaria are now the biggest economies in terms of GDP in the region, followed by Croatia, Slovenia, Bosnia-Herzegovina and Albania. The youngest countries in the region, Montenegro and Kosovo are striving to increase the depth of their economies, as well as Serbia and Macedonia, in a quest to have a relatively more stable economy, infrastructure and cooperation to further develop their industries. Joint Economic Commissions established with Romania, Bulgaria, Albania, Macedonia, Croatia, and Bosnia-Herzegovina, further enhancing the effectiveness of trade activities in these countries.

Former Yugoslavian Countries and Albania

Following the dissolution of Yugoslavia, several countries emerged: Slovenia, Croatia, Bosnia, Serbia, Macedonia and most lately, Montenegro and Kosovo. Civil wars and conflicts during the dissolution of the federation have had a drastic effect on these economies, therefore the main policy of these countries has been attracting foreign investment to build up the infrastructure and catch up with the industrialization progress. Turkey is the 9th biggest country of origin in total FDI, and since free-trade JUNE 2016 ISSUE 35

Turkey has recently been more active in Balkans as a partner country in trade and diplomacy.

Thanks to free-trade agreements between turkey and western balkan countrıes, the trade ıs flourıshıng.

agreement between countries in 2002, Turkish goods are exported to Bosnia without customs tax, resulting in a steadily increasing amount of Turkish exports to this country, above yearly $250 million in last four years. Turkish companies are active in the country, Turkish Ziraat Bank Bosnia being the biggest with more than 20 branches in different cities. Republic of Macedonia and Kosovo are other

countries in which Turkish companies and state are relatively active. Turkish companies sell various processed products and Turkey buys several types of natural resources. Turkey is also diplomatically and culturally active in these countries, several organizations construct bridges between peoples, and Kosovo has officially recognized Turkish as a state language. From student exchange agreements to international bodies that encompass several countries, the cooperation between Turkey and Balkan countries is gaining strength steadily. Albania is also an important trade partner for Turkey, as total exports to Albania worth $320 million according to data by Foreign Economic Relations Board. The Seventh Sarajevo Business Forum in the Bosnian capital was a key summit that indicates Balkan countries need to increase the cooperation and attract foreign investment. “There is no country which is able to stand alone, especially in our region,” Montenegro’s economy minister Vladimir Kavaric told the forum, “The countries of the Balkans need to see each other as partners facing international competition, rather than competing against each other,” he continued, adding that this was especially true when it comes to developing a

The Turkish Perspective

Albania is becoming an important trade partner for Turkey.

Balkans, especially Romania: The more financial infrastructure is integrated, easier the transactions are made, creating a convenient environment for companies that must use financial instruments to operate properly.

Balkans Becoming a Strategic Region for the West

regional infrastructure network according to the article by Balkan Insight. Turkish Deputy Prime Minister Mehmet Şimşek attended the event, representing Turkey, indicating the importance of Balkans in the eyes of Turkish government and decision makers. Şimşek underlined the strong ties between Turkey and BosniaHerzegovina, and stated that stability and unity in the country as well as the region is very important for Turkey.

Romania and Bulgaria

According to the data by Ministry of Foreign Affairs of Turkey, Turkey invested more than $500 million in Romania and more than $200 million in Bulgaria; total investment in these two countries is many times greater than investment in other Balkan countries in total. Of $1.7 billion total trade volume with the region, Romania’s share is $670 million, and Bulgaria’s share is $530 million. As these countries are new members of European Union, and has strong trade ties with Turkey, their strategic value as being Turkey’s gateway to western EU increased. This increase in trade and business was enhanced by trade missions and Joint Economic Commissions as well, but an important move was Turkish Banks entering

Turkısh ıs an offıcıal language ın republıc of kosovo, a sıgn of eternal frıendshıp and long lastıng cultural brotherhood between two natıons.

Growth in the post-crisis period in the Western Balkan countries has been lackluster. The external environment has been weak, but it is the incomplete reform process that is holding back convergence to income levels of richer European Union economies. And faster growth, in itself, may not be enough. The Western Balkan countries also need to generate jobs to reverse the weak labor market outcomes that are leaving so many behind, states a report by IMF on Western Balkans. Today, Balkans is gaining strategic importance, besides their long struggle to develop their economies and integrate with the west: The Balkan corridor for NATO is more important as it has never been before. Montenegro is about to become fully-pledged member of NATO, Albania and Croatia already members, Bosnia-Herzegovina and Macedonia are on their way to become members. As NATO’s influence do not only rely on military power, but more on public diplomacy and economic strength. In this regard, Balkans’ gaining importance means Turkey will play a key role, as a NATO member, its ties with the region are far beyond than that of any other NATO member’s. As Mr. Şimşek indicated at the latest Forum in Sarajevo, Turkey plans to invest even more in the region and will retain its close partner status. These strong ties with Balkan countries, combined with Turkey’s status within Middle East, will surely strengthen NATO, EU and benefit Turkey.

500

9th

Amount of direct foreign investment of Turkey in Romania.

Turkey is the 9th biggest country of origin in total FDI figures in the Former Yugoslavian Countries.

MILLION DOLLARS

1.7

BILLION DOLLARS

Total trade volume of Turkey in the Eastern Balkans.

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In Depth / The Multiplier of the Economy: Automotive Industry

the multıplıer of the economy:

automotıve ındustry By ENGİN ÖREN

automotıve ındustry ıs ımportant ıtself, however the real ımportance lıes what’s beneath: The ındustry has a multıplıer effect, as ıt creates employment, attracts foreıgn ınvestment, boosts sub and related ındustrıes.

JUNE 2016 ISSUE 35

The Turkish Perspective

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In Depth / The Multiplier of the Economy: Automotive Industry

T

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17

10

15

29

2016 SHARE %

10

6

4

6

9

13

16/15 CHANGE % WORTH USD

Germany

Italy

France

Spain

131.702.977 303.695.622

In the current year, January – April period proves a favorable season as figures say the total production increased by 3% and automobile production increased by 6%.

383.335.038 419.664.120

2015 2016

692.429.365 731.044.482

herlan

Turkısh automotıve ındustry

January – April 2016 Exports by Country

611.766.033 790.319.224

Sp

As the industry has a multiplier effect on other industries, it has a key role in 2023 export goals of Turkey.

1.118.002.660 1.282.972.276

F

he automotive industry is the locomotive of the industrialized countries and usually placed amidst a network of sub-industries and related fields. Countries that develop a strong automotive industry enjoy the huge contributions of this sector to the economy in overall, however, as the leading industry that closely affects other industries faces increasing competition, fluctuations in global markets and big mergers between global giants, number of manufacturing automotive companies decrease steadily. On a global scale, around 20 companies constitute 90% of the whole automotive industry. Automotive industry is the main component of German and Fre nch economies. Since 1960s, Japan has also been focusing on this industry and enjoyed huge automotive exports and a big leap in overall exports as a result of this diligence. At first glance, European countries, followed by USA, has been the leader of the industry till 2002, in terms of total vehicle production. However, since 2003, Asian countries took over the leading position. Except the slight decrease in 2001 by 3.6%, overall vehicle production volume in the globe has steadily increased. For example, in 2005, the production increased by 3.1%, reaching total 66.5 million pieces, of which the biggest contribution belongs to the Asian countries. In terms of manufacturer companies, General Motors, Toyota, Ford, Volkswagen Group and Daimler Chrysler constitute the top five producers. Of 66.5 million pieces produced in 2005, these five produced 33 million, which is nearly the half of total production in the globe. Automobiles and light commercial vehicles constitute the most of the overall vehicles produced by these five global giants. As to Turkish automotive industry, it’s economic importance is crucial for the country’s economy considering the value added it creates, contribution to overall employment figures, tax incomes, demand creation in various sub and related sectors and contributing to the technological development especially in the last years thanks to the development of domestic automobile project. Besides, the industry plays a key role in transferring the knowhow and high-tech to the country. Beginning to develop in 1950s, the industry’s development accelerated in mid 60s; initially by establishment of an assembly line to produce all-terrain vehicles and trucks for the military, and eventually the industry saw serial production of commercial buses, automobiles and trucks. Domestic designs began to be produced by 1966 and Otosan created the famous Anadol model, followed by establishment of TOFAŞ and Oyak-Renault, under Italian and French licenses, starting their production.

Netherlands

The Turkish Perspective

Orhan Sabuncu Chair of Uludağ Automotive Exporters Union

While automobiles retained their status as most produced vehicles in the industry, in year 1999, semi-trucks took the second place from tractors. In the meantime, giants from Far East, Mitsubishi, Toyota, Honda and Hyundai entered Turkish market via huge investments and opening of production or assembly facilities, further increasing the depth of the industry. Since 2002, Turkish automotive industry enjoyed an accelerated increase in production, especially in 2003 and 2004. 357.217 pieces produced in 2002 increased to 562.466 in 2003 and to 862.035 in 2004. This was mainly due to the fact that Turkey was becoming a base for automotive giants to produce and export to the rest of the world thanks to the advantages the country offers. In year 2015, overall production increased by 16%, automobile production increased by 8% compared to the previous year, making a total production of 1.35 million pieces, of which 791.000 are automobiles. In year 2015, total market volume reached 1.1 million, increasing by 25%, whereas automobile market expands by 24%, reaching 726.000. In terms of exports, total automotive export volume increased by 12% in quantitative terms, making 992.000 in total; automobile exports increasing by 4% and reaching a total number of 605.000. In the current year, January – April period proves a favorable season as figures say the total production increased by 3% and automobile

Effect of Automotive Sector to Other Sectors The industry’s export volume, worth over $20 billion, constitute the 15% of overall exports of our country, reaching 1.000.000 pieces exported per year. Besides, the industry has a positive multiplier effect on other industries in various aspects, therefore we play a key role in our economy. European Union retain its status as our most prominent target market, gaining even higher importance due to the latest conflicts affected our neighbors. Our export to EU in January – April term increased by 11%, making EU’s total share in our automotive exports 79%, an increase by 3% compared to last year’s figure 76%. Our goal is to reach $23 billion worth exports by the end of the year. We are delightful that we experienced joyous increases in our alternative markets, such as 11% in USA and 67% in Iran.

production increased by 6%. In this period, 469.000 pieces are produced, of which 283.000 pieces are automobiles. However, overall market shrank slightly, by 7%, and realized as 260.000. In terms of exports, compared to the same period in the previous year, overall automotive exports increased by 7% and automobile exports by %2, in quantitative terms; total 359.000 pieces are exported, of which 215.000 are automobiles. The strong capital structure in Turkish automotive industry, foreign-Turkish joint ventures, strong sub and related industries, qualified work force, advantages of the geographical position, standardization of the quality system are the main competitive strengths of the sector. As it already proved itself to be a prominent industry on global scale, the industry should keep investing and focusing on sustainability, efficiency and export-oriented policies; seize the latest trends and technologies, maintain the cooperation between the main and sub&related industries; increase the incentives and investments in order to become one of the top. As the industry has a multiplier effect on other industries, it has a key role in 2023 export goals of Turkey, one of the crucial components of Turkish economy in terms of employment, tax incomes and R&D. Thanks to its strategic geographical position, Turkey is likely to attract more foreign investment and increase its efficiency as a production base for world giants, as well as developing its own technology to have its domestic brands to sell with greater value added.

Tarık Altuncu CEO of Sampa Automotive

Importance of R&D Sampa’s long-term partnerships in global markets enable us to monitor the trends. When I have an Outlook, we spent 360 days of a year abroad, from South Africa to Russia, from Americas to Central Asia. Besides, we established a robust production infrastructure to meet the demands of different regions, thanks to our team of 81 scientists in our R&D center. We are creating new products and improving our current ones steadily. An example of this, TIP-certificated fifth wheel hitch which is developed by Sampa engineers. This product enabled us to compete with the imports, decreasing their share in the market, as well as making us one of the four companies in the globe to offer this product. Only three firms in the globe had been produced this product, being the fourth as a Turkish firm, was very meaningful for us and our country.

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In Depth / Technology

Dark Raid is a FPS Action game developed by Vector Games.

NEW STYLE OF CONQUERING THE WORLD The game market in Turkey grows nearly 8% every year. It is expected it to reach 2 billion dollars volume by 2020. By BERKAN KİŞİN

Dolmuş Driver is a game that the gamer tries to satisfy his customers during a journey.

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The Turkish Perspective

51

Voidrunner is an intense multiplayer flight game

Countries are in a race to turn into an information society and knowledge based economy. It is a fact that using information and communication technology are vital for growth, competition and employment. Software sector can be defined as new development force of the economies. Because it provides most employment and high valued products with least investment. Also software sector is the sector that most of the employees belongs to the youth sociological group when compared to other sectors. Turkey Exporters Assembly President Mehmet Büyükekşi points out an important issue on this subject. He once said: “Even total endorsement of all the sugar factories are not equal to Candy Crush’s endorsement.” This sentence summarizes the status and importance of software sector for Turkey.

According to the report that Turkey Digital Games Federation declared more than one billion people are playing digital games. The size of the sector is around 111 billion dollars. It is expected that digital game sector will be the one of the fastest growing sectors in next decade. According to the findings, there are 2.4 billion Internet users and 1.2 billion active game players worldwide. The research shows that China alone has 180 million active players. This number is almost equivalent to the number of players in all of Western Europe. The digital games industry is expected to exceed $75 billion (TL 159 billion) by the end of this year, counting online and offline games. The sector had a market value of $66.3 billion in 2012. It grew by 6.1 percent in 2013 and reached a market value of $70.4 billion. Turkey is INthe 3rd row in the “Share of time spent on PC Gaming Rank” In first two rows there are Poland and Russia. 22.8M gamers in Turkey spend 70% of their total game playing digital games in PC. Although Turkish gamers are more likely to pay for games than several Western European countries, their average spend per paying gamer is much lower. This places Turkey at a relatively low number 18 in the global revenue rankings. On the other hand, when it comes to Massively Multiplayer Online Role - Playing Games (MMORP), a relatively high share of gamers can be considered big spenders or “whales”: 14% of all paying MMORP gamers.

If you like classic adventure games, music making, surreal art and abstract stories, Beat the Game is your game.

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In Depth / Technology

T

ablet and handheld console gaming is relatively unpopular in Turkey with online social/casual gaming the segment of choice followed by PC download games. When it comes to cross-screen gaming, 15.2% of Turkish gamers are playing across all four screens. This is lower than average but noticeably higher than other growth markets Poland (10.7%) and Russia (10.9%). Smartphone gaming is very popular, with 70.9% of gamers playing on their mobile devices. Gamer number is around 21,8 million in Turkey. It is almost one third of the country. More than 11 million people are wasting money for the games they are playing. Another advantage of Turkey in game sector is that 51% of the population is under 25. Researches show us that producers of the games sector both in USA and Far East are willing to reach Turkish consumers. It is expected that market is going to reach 2 billion dollars in 2020. This looks realistic because the sector grows around 8% each year. In next decades mobile applications and games will be the locomotive of growth in individual software market. Because of the youth thickly population in Turkey digital game culture is really common. It is estimated that approximately 39 million hours in a day is spending for game playing. Turkey in social game category is in first row with 38,4 minutes session time per player. Turkey is taking steps to forward to be an effective actor in digital game sector. To achieve this goal many editions are done on the subjects of encouragement in digital game sector, attracting foreign investment to the country, training qualified employees for the sector, cooperation with universities and legislative regulation. In last period game sector in Turkey draws attention of the foreign investors. It is expected that multinational companies’ investment and cooperation in Turkey will speed up the process of training qualified employee that is necessary for the sector. Most of the big companies in sector are opening their own offices in Turkey. JUNE 2016 ISSUE 35

21.8

61%

Turkish Gamers aged 16 to 50

Of Turkish gamers are spending money to games

MILLION

Gamer number is around 21,8 million in Turkey. It is almost one third of the country. More than 11 million people are wasting money for the games they are playing.

Beside everything this means that Turkey is becoming an important actor of the sector now. Closest examples can be shown as world’s most crowded MOBA game League of Legends producer Riot Games’ new office in Turkey and Crytek’s investment to Turkey. It is estimated that Turkey is going to be a new terminal for digital game sector just like in the examples of Ukraine and Poland. Turkish government is also supporting Turkish information technology, software and digital game companies both in local and abroad. There is a great potential in

3rd

31%

BILLION DOLLARS

Turkey’s rank in “Share of time spent on PC Gaming Rank”

Of players are playing games in bed

this sector. Giant games of the sector like Crysis, Football Manager and Rome II Total War released with Turkish language support. It is expected that with these universal games and the local games that will be produced in the country will be crucial for market’s growth. According to a research done recently 87% of the companies that produces software are SMEs. Another research says that 31% of the people are playing digital games in bed and 16% of the people are playing digital games in public transportation. The effects of digital games increased its power in entertainment sector in the last decade. By the years passed rules have changed and player generation became more conscious. Most important thing about digital game sector that sector has come out of the rooms and houses and turned into a sport event taking places in stadiums. In addition to this with the spread of the internet games which don’t need any hardware like Candy Crush, Farmville became more popular. People who concerned about their children and asked “My child stuck in online games. What should I do?” turned into players themselves. With the effects of these developments digital game sector passed Hollywood’s effect in entertainment market. Digital games climbed up to the top of the entertainment sector so fast. Despite their 15 years old history it passed movie and television sector. This serious potential of digital games is able to shape, for now. If Turkish game sector takes the issue in hand seriously Turkey may be one of the most important actors of the market.

Brands / Lorem

The Turkish Perspective

Editor: Mustafa Yiğit

medıcal, apparel, technology, wood, fıshıng, COnsructıon, energy...

KEYSTONES OF EXPORT

Turkish companies are taking concerete steps to reach Turkey’s 2023 target, incresing high added value product.

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Brands /Keystones of Export

Turkish economy which

is one of the locomotive economies of the region and the World increasing its impact in global system. With the developments and regulations done by government in last decade Turkey has been one of the most important actors of global economic system. On the one hand Turkey built a secure economic system itself domestically, on the other hand it took a crucial role for regions future. The economy of Turkey is defined as an emerging market economy by the IMF. Turkey is also defined by economists and political scientists as one of the world’s newly industrialized countries. Turkey has the world’s 18th largest nominal GDP, and 17th largest GDP by PPP. The country is among the world’s leading producers of agricultural products; textiles; motor vehicles, ships and other transportation equipment; construction materials; consumer electronics and home appliances. Especially with raising the number and rate of high valued products production Turkish exporters are now feeding all the world. Despite the crisis and fluctuations that markets go through the solid substructure of Turkish economy is continuing its growth. Exporters who are the most important figures of Turkish economy are spreading their influence in the era. Over the past 10 years, the Turkish economy posted an average growth rate of 4.9%, led by domestic consumption. During the period following the global financial crisis, Turkey benefit from the globally cheap and massively available liquidity conditions for financing domestic consumption and investment expenditure. Dünya newspaperis one of the oldest newspaper in Turkey, organizes a night of honor to encourage new exporters and award successful exporters since 2001. Turkey’s most developed network economy newspaper Dünya’s 15th Stars of Export night took place in 13 May and more than fifteen companies took award in ten different categories for their effort.

JUNE 2016 ISSUE 35

MEDICAL

Take a New Breath

R-Vent Medical was founded in 2015. This young company is a professional enterprise in the field of researching, manufacturing, marketing and servicing disposable medical devices. They provide flexible patient solutions for airway management, anesthesia, critical care and oxygen & aerosol therapy for use within emergency care, the hospital environment and also in the home. R-Vent exports its products to Europe, North and South America, Asia, Africa and Australia. Company tells that they don’t only aim to be good in healthcare, but also in welfare of all humanity.

APPERAL

Power of Creative Design and Fast Production Merged Modavizyon is a manufacturing company that serving to their customer with its own designs. Modavizyon which belongs to Şahinler Holding is one of the pioneer groups in the textile sector and has production and sales companies in four continent of the world. The company is producing outer wear garments for men, women and kids from knitting and fancy fabric. It works with sub-contracters as a result of developments in Turkey and the world. Modavizyon has production capacity of 3-5 million pieces per year approximately.

The Turkish Perspective

FASHION

Brand Growing on Its Roots: CHAPPUTZ Yasin Sert founder of Chapputz is a university student. Besides studying Political Science and International Relations he is also working on social projects to help people who belong to disadvantaged groups in Turkey. In Turkey you could have seen rugs which are weaved in hand in every house until twenty years ago. Today with the development of industry in carpet sector people now buy their carpets from big companies. But the rugs are still kept in houses as souvenirs. Some hang them on walls and some are keeping them to give their children as a present in the future. This is the way they found themselves

to protect their legacy. But Yasin Sert who is a Boğaziçi University student came out with a new idea to make the legacy live. He is collecting the rugs from people who don’t want to look after them anymore. After gathering all the cloth he is designing bags, tablet and mobile phone cases from them. As a last stage he is selling them to the people who want to buy it. Yasin Sert says that the idea hit him one day suddenly because of his addiction on environmental issues. “When I started to university I was always asking myself how I can be useful about pollution problem. One day I was looking to my closet and saw some clothes which I don’t use. Then the idea of recycling these hit me. This was the start of everything. Then I decided to recycle the things that we never use. So I started from the rugs. People loved it.” said Yasin Sert. This small entrepreneurship of Sert’s caught a great success. The word “chaput” refers to the small cloth pieces of weaved rugs in Turkish. The designs of rugs also refers to a very old Turkic and Anatolian culture. Yasin Sert’s next target is to start exporting his designs. “After I started my brand and started to sell my designs all over Turkey many people reached me by internet and asked if they could buy it from abroad. Now our studies are going on to start the export process” he spoke.

TRADE

Wide Network Wide Perspective The founder of Koç Group, Mr. Vehbi Koç’s observations during his visit to Japan initiated the foundation of an export company, namely Ram. The general trade companies or “sogo shosha”s as they are named in Japan, attracted Mr. Vehbi Koç’s attention since they had a great share in Japan’s economic growth with their large budget figures. Taking those facts into consideration, in November 16, 1970 Ram Foreign Trade Inc. has been founded. RAM is one of the most valuable companies of Turkey that is exporting products all over the world with the help of their wide network.

HOME APPLIANCE

A Family Success Story Arzum which was established 1953 as entrepreneurship of 3 brothers trademarked their brand in 1966. Today this family business turned into a huge success story. Arzum owns the Arzum and Felix brands, which collectively house 250 products in 8 categories. Founded in 2008 and based in Hong Kong, Arzum Asia Pacific is in charge of the company’s Far Eastern operations. The company imports its products to Europe, Central Asia/Caucasus, Africa and the Middle East. Located in Skopje in Macedonia, Arzum Adriatic joined Arzum in 2011, and is the company’s first retail store.

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Brands /Keystones of Export

TECHNOLOGY

Watching the Space From Turkish Eyes Nanomagnetics is the first nanotechnology company of turkey. It was established in United Kingdom in 1998 and then turned back to home for production. Today the research and development center is Ankara. The company is selling its products from Nasa to Samsung. It is possible to say that the world is watching the space from the eyes of NanoMagnetics Instruments has been established in 1998 to develop Scanning Hall Probe Microscopes (SHPM) for room temperature applications. In 2005, following the market needs, they launched their Low Temperature Magnetic/Atomic Force Microscope (LT-MFM/ AFM) for high resolution magnetic/ topografic imaging, achieving sub-10nm magnetic resolution. The LT-MFM/ AFM design utilises a fiber interferometer cantilever detection technique with alignment free silicon cantilevers. All AFM modes: EFM, Scanning Spreading Resistance, Piezoresponse Force JUNE 2016 ISSUE 35

Microscopy, contact mode AFM etc. are available with these microscopes in the 30mK-300K temperature range. In 2008 Nano Magnetics introduced the High Resolution Ambient MFM/AFM achieving sub10nm magnetic resolution in air! In July 2010 they introduced the AQUA ncAFM, the first commercial non-contact Atomic Force Microscope in the world, achieving atomic resolution on mica in water using noncontact mode operation with a digital PLL. Today Nano Magnetics sell products to universities like Oxfor, Harvard and MIT. “We are proud to work with NASA, Argonne National Laboratory, Microsoft, Seagate Technology and Samsung Display. The technology we developed is created by our 40 employees.“ says the founder of the company Dr. Ahmet Oral. “We are trying to represent Turkey as best as we can in the sector.” Ahmet Oral also stated that their firm’s products are really important from the view of developing high added value products. “We also help our country to earn foreign currency” Stating that Turkey has a huge innovative and technological potential Ahmet Oral said: “Sometimes we are bringing people abroad to work with us. There are not enough qualified people in our country for our sector. To use the potential and become one of the leader countries in the sector we need to create a new education system. That will also help us to stop the brain drain.”

Kastamonu Entegre has 6 factories in Turkey and 3 facilities abroad.

WOOD

Way From Local to Global Kastamonu Entegre, which was established under Hayat Holding in 1969 to produce in the forestry and wood products sector, is rapidly moving towards its goal of increasing its 25-50 percent share in the Turkish market according to the product groups and becoming a regional leader. It is expected them to becomea leading producer of the region with the 6 new factories it will be opening in the next five years in Turkey and abroad with 700 million USD in investments. Kastamonu Entegre, which has 6 factories in Turkey, also has 3 facilities abroad.

APPAREL

Dresser of the Region Since its founding in 1990, Uniteks has become a key supplier for the world’s top clothing retailers. Across Europe, one out of every twenty-five people owns a knitwear garment produced by Uniteks says the company. Uniteks has developed a uniquely flexible production system, helped bring employment and skills to less-developed regions of Turkey, and expanded both its design and production operations beyond the borders of Turkey into the European Union and North Africa.

The Turkish Perspective

FISHING

Power of a Mother Seda Şeremet Ayarcı who attended to the course of Chamber of Commerce and Industry of Milas and gained the right to have a credit for an entrepreneurship, established the firm Seda Fishing Nets in 2015. Even its young age company gained a big success in the sector. Seda Ayarcı who we talked says that she didn’t expect such a big attention. “We started this business 11 months ago. I worked in the sector for 13 years. One day an idea of being my boss own hit me. I searched for opportunities and found the course. After finishing the course successfully and opening the company things got bigger itself.” Said Ayarcı Besides celebrating her success she is also aware of the seriousness that her job came through. “Despite not

expecting such a big volume of trade and export we are ready to produce more.” Said Seda Ayarcı. “How did you accomplish such a big job from starting zero?” we asked her. “We are filling out the spaces that Greece has left because of the economic crisis they are going through. Also Russia is having fluctuations in their economy too. The market there is a big chance for us. Our next aim is to get in to the Russian market” Ayarcı answered.

CONSTRUCTION

Uniting the Powers of Experience and Innovation Hidromek is a company that leans on its production through innovative approach and latest product development methods. The company started its production in a small atelier in Ankara in 1978. They started their production process developing industrial equipment. Today it is one of the biggest companies in the world in its sector. Through this strong structural design, engines that offer advantages in productivity, innovative hydraulic and under carriage systems and ergonomically designed operator environment offering comfort levels equal to automotive industry.

ENERGY

Genarating The Power

TECHNOLOGY

Creator of the Trust Comodo which is a software company launched its first certificate product in 2001. The company launched Hackerguardian in 2006. Comodo opened its software development, operatios support, and customer support and regianal sales in Beijing, China. Today over 120 people are working at this station. Melih Adbulhayağlu CEO of Comodo was elected CEO of the year in USA more than one times.

As world is looking up for alternative energy systems maintaining the current situation is important too. In order to strength this status Teksan Generator was established in 1994 and has made important progress in the way to achieve continuous expansion and to have a bright future. Company declaring its mission as to provide products, technology and services helping people to live

TEKSAN has 600 employees and customers over 85 countries all around the world.

better in accordance with the customers satisfaction principles of the 21st century, today has 600 employees and customers over 85 countries all around the world.

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Brands /Keystones of Export

PLASTICS

CONSTRUCTION

The Foreigner (!) Inside Exporting all the products it manufactures in international standards and providing significant foreign currency flow, Izocam exports to 46 countries mainly in the Balkans, Commonwealth of Independent States, Turkic Republics, Middle East and Africa. It is currently the leading isolation company in Turkey with its wide range of products and technical consultancy services that offer protection against heat, cold, noise, fire and water. Besides being one of the most successful exporter company of Turkey Izocam received an award because it was the company rising its rate in corporate governance index the most in the last year.

ENERGY

Building The Future

Biopipe is a company which produces new generation of pipes. Company is named after the product they developed, Biopipe. Biopipe has a simple and innovative design that clears the dirty water inside the pipe without any need of an extra system. The natural treatment is done inside pipes by Biopipe bacteria without any chemical. Biopipe can be applied in a wide range of population starting from individual houses for 2 people, hotels for hundreds and compounds for thousands to cities for millions.

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Story of a Multiway Adventure SEM Plastik with its 25 years experience is one of the leading companies of Turkish export on plastic sector. Their distinguishing point from the their rivals is that they have started their production journey in different area and the experience they gained on the road took them to the point where they are today. As one of the leading companies of the Turkey, SEM Plastik was established in 1975 mainly focusing on production agricultural technical parts. SEM Plastic used the knowledge and experience it has gained from Agricultural Machine Parts production until 1980’s; to become an OEM for Electronic and Telecommunications sector that needs precise standards and very small tolerances. In 1982 using knowledge and the quality advantage gained from precise productions for Electronics and Communication Sector and the market demand

they started investing in “Production of Plastic Disposables and Inflight Service Equipment “ Today a part from being one of the first 1000 top leading exporters of Turkey, SEM Plastik is also nominated as one of 100 top leading companies in East Turkey by an international research. Thus hightech combined with experience results in production of 80 bilion pieces & an export of 4500 contaniers to four continents, 45 countries worldwide. Today SEM Plastik has three facilities namely one production plant in İstanbul of 20.000 sqm closed area, another production plant in Malatya of 8.500 sqm closed area and 600 sqm sales and logistics office in İstanbul. SEM Plastik is using up to date technology from world’s top machine&mould manufacturers like Reifenhauser, Union, OMV, TFT, Fostag, Nestal, Demag, Rascher Systems. As a founder member, board member or member of national and international organizations like PAGEV, ISO, ITO, ASD, ITCA, IFSA, PLMA the company has certified its quality with TUV ISO9001:2000, HACCP, TSE and TKB.

The Turkish Perspective

BRAND

Trade Ambassador of Turkey CEO of Coca Cola Muhtar Kent has been a volunteered trade ambassador of Turkey with the success that he reached. Kent who was born as a child of an ambassador in New York graduated from Tarsus American College. He earned his bachelor’s degree from Hull University in Economics. He worked in Coca Cola between 1978-1999 and left the company for a position in Efes Pilsen Group. He turned back to home in 2005. After taking the role of North Asia, Eurasia and Middle East Group President he became CEO of the brand in 2008.

TRADE

Mediator of Turkey’s Export Development TGS Dış Ticaret has been incorporated in 1999 and has realized its exports operations under the title Sectoral Foreign Trade. In 2004, the company has been granted the title “International Trading Company”. TGS acts as intermediary between the exporter partners as well as its customers and the importer firms abroad. TGS, who has dedicated itself to mediate in the development of Turkey’s export, has realized its goal to become the 10th major exporter firm of Turkey, which rank it has achieved by its performance in 2013.

DESIGN THE FUTURE BY LEARNING FROM PAST Hakan Güldağ is one of the most important and well known economy journalists is in Turkey. He started his journey as an economy journalist in Dünya Newspaper in 1987. During his journey he worked in many different places like Cumhuriyet, Ekonomi Politik, Power and Globus. Today he is again in Dünya newspaper as the chief editor of the newspaper. How do you see the responses given to the Turkish high added value products in the global market? As you know world is a global village now. Especially if we are talking about trade there are no boarders. At this point comes out the importance of your cultural wealth. Because there are many companies and brands that you have to compete. If you have a rich culture than you can produce and sell easily. Thanks to god our country has one of the richest cultures in the world. So there isn’t any obstacles in front of us. Feeding from the culture our industrialists are producing many goods in wide range and selling them. What would be your suggestions to Turkish firms to strength their position in global market? As I mentioned in first question we have a rich culture. This

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culture also consists the empire history. Ottoman Empire which landed in three continents learnt many things form the societies they got in touch and taught many things to them. The one thing they learnt was to live together with different cultures. Living together means everything. Because if you live together with someone you construct together, produce together, consume together and trade together. The companies who want to integrate to the situation and global market need to combine the trends today with our experiences that we learnt through ages. What are our firms’ advantages in global market while competing foreign brands? To be honest there isn’t such big advantage. We have the groundwork but we need to construct the building. In last decade there is an effort to build it. A country like us which is in the middle of Silk Road, Europe, Asia and Africa should use its potential more effectively. This effectiveness can only come through educated and qualified human resource. So we need to teach our employees, investors, entrepreneurs the conditions of the global market. They should form their organization and targets according to the trends of the world. As I said it before world isn’t big as it was yesterday. Today the world is not more than a village. Our firms’ goal must be “Being the best in village”

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Agenda

FAIRS, EXHIBITIONS, SUMMITS, AND MEETINGS IN THE NEXT MONTH

Future Fish EURASIA

JUNE 2-4, 2016 MAT İzmir Turkey

FUTURE FISH EURASIA Future Fish Eurasia is organized with the full support of the Ministry Of Food, Agriculture & Livestock, Aegean Exporters Association, Turkish Seafood Promotion Committee, the leading companies of the industry and the universities. It is an opportunity to introduce producers’ aquaculture and/or processing technology to Turkey and its neighboring countries.

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61

Agenda

CPhl ISTANBUL ICC - IST JUNE 01-03, 2016

JUN.

1-3 SMART CITY EXPO ISTANBUL Haliç Congress Center JUNE 01-03, 2016

JUN.

1-3

HIGHTEX 2016 TUYAP - IST JUNE 01-04, 2016

Smart City Expo World Congress is the only international event about smart cities which brings together the main institutions and people leading the change and urban transformation in order to provide strategies and tools to foster the exchange of knowledge, the development of partnerships and the creation of business opportunities in the new market of urban solutions and technologies.

6th International Technical Textile & Nonwoven Trade Fair

JUN.

1-4

JUN.

ANKOMAK

1-5

IFM - Yeşilköy JUNE 01-05, 2016 As Turkey’s economy expanded in recent years, the construction sector has taken a major role in domestic and international infrastructure. ANKOMAK is a platform where big names in the construction industry meet every two years. The exhibition is the largest international forum in the Eurasian region with over 1,000 brands represented and over 25,000 visitors attending the event.

CPhI Istanbul brings together local Turkish and regional drug manufacturers with global suppliers of raw materials, machinery, packaging solutions and contract services. The event gathers over 200 exhibitors and attracts more than 4,000 attendees from the region looking for suppliers and manufacturing partners to bring cost-competitive pharmaceuticals to their individual markets.

JUN.

2-4

In Turkey technical textiles market started to develop in the recent years thanks to the development of high value added products. The producer companies export tones of technical textile raw material or end products to the world. This exhibition, the distinction of being the first meeting in its field is gathering producers and consumers in Istanbul.

TURKEY HOMELIFE CHINA IFM - Yeşilköy JUNE 02-04, 2016 Turkey Homelife China is a 3 day event being held from 2nd June to the 4th June 2016 at the CNR Expo Center in Istanbul, Turkey. This event showcases products like home textiles, textile and apparel and accessories, furniture, appliances, bathroom, building materials, lighting, home and so on associated with this field etc. in the Household Consumables, Household Services, Lifestyle & Fashion industries.

JUNE

62

Figures conCERETE STEPS TO TARGETS

Turkey to reach its 2023 targets in export taking concrete steps forward. Report declared by Turkey Exporters Assembly gives hope to the producers.

Defense Industry

23% 460 566

The growth rate of Defense Industry in first 4 months of 2016 compared to last year According to the first four months’ numbers three sectors expanded rapidly. Defense, apparel and automotive industries are taking critical roles in Turkey’s export.

million dollars

million dollars

Amount of Export in first 4 months of 2015

Amount of Export in first 4 months of 2016

Apparel and Textile Industry

7.9% 5.4 5.8 The growth rate of Apparel and Textile Industry in first 4 months of 2016 compared to last year

Billion dollars

Billion dollars

Amount of Export in first 4 months of 2015

Amount of Export in first 4 months of 2015

Automotive Industry

7.8% 7 7.6

growth rate of Automotive Industry in first 4 months of 2016 compared to last year JUNE 2016 ISSUE 35

Billion dollars

Billion dollars

Amount of Export in first 4 months of 2015

Amount of Export in first 4 months of 2016

63

Export in 2016 Q1

According to the report that Turkey Exporters Assembly released total number of companies expanded compared to the last year.

33

43.580 Number of exporter companies in 2016 Q1

Cities increased their exportation in 2016 Q1

54 BILLIOn dollars

TOTAL AMOUNT OF ISTANBUL’S EXPORT AS NUMBER ONE IN THE CITIes EXPORTING MOST RANK

188

total projects constructed

Turkish Construction Industry Servicing Abroad

$21,277

Turkish construction firms are taking critical roles in international prjects. Thanks to firms Turkey is second in the world construction industry.

2

nd

Turkey is second after China in the world in construction industry

42

Turkish companies took place in “The 2015 Top 250 Global Contractors” list

Billion

total amount of projects

43

countries took service

64 Figures

BELGIUM

NETHERLANDS

1.77

2.68

Shares of Top 20 Markets of Turkey in 2016 Q1 (%)

FRANCE

4.16

According to the data anounced Turkey increased its export rates in 2016 Q1 compared to same period last year.

uk

6.13

ITALY

5.12

USA

4.37

SPAIN

3.56

poland

2.07

RUSsıa

1.13

germany

9.88

ROMANIA

1.93

BULGARIA

1.35

china

1.28

IRAN

ıraq

saudı arabıa

4.98

2.45

Algerıa

1.30

EGYPT

ISRAEL

2.05

Turkey is increasing its effect in global international market day by day. Turkish firms are competing with their international rivals at par.

Data: TIM

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2.62

2,17

UAE

2.11

CIP LOUNGE 20x26cm ING.indd 1

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THE CUP 20x26cm ING.indd 1

18.05.2016 12:07