Turkey Emerges as Auto Production Powerhouse

Turkey, rarely thought of as a global automotive hub, will this year overtake the Czech Republic as the biggest car maker in Eastern and emerging Europe outside of Russia, according to industry forecasts. Turkey is producing almost one-third more cars this year than last. Sales of cars and light commercial vehicles in Turkey were up 31 percent this year through November, compared with a year earlier and manufacturers say they are struggling to meet demand. 

"Turkey is developing into a globally competitive auto hub, largely under the radar. It has a huge domestic market and the government appears to be reforming the economy in a way investors find attractive, so its growth is likely to continue," said John Wormald, Director of Autopolis, an auto-industry consulting firm. 

Auto exports are surging. Seven out of every 10 vehicles made in Turkey are exported. The USD 22 billion auto industry employs more than 230,000 workers, and accounts for 20 percent of Turkey's total exports, according to Deloitte, a financial-advisory firm. 

Source: http://www.invest.gov.tr/en-US/sectors/Pages/Automotive.aspx

Turkey and Canada Explore Possibility of a FTA

Speaking during a visit by a Canadian trade mission to Istanbul, Yilmaz Arguden, Head of the Turkish-Canadian Business Forum, said Canada and Turkey are considering signing a free trade deal (FTA) after Canada signs a FTA with the EU. 

Peter van Loan, Canada’s Minister of International Trade, said that Turkey, with its strong economy and dynamic market of 72 million, has a key place in the global economy and that the question of a FTA between Turkey and Canada would be considered after Canada signs a FTA with EU. “Canada has great expertise in environmental technologies and energy industry, particularly in nuclear power plants,” said van Loan, noting that Canadian firms are interested in energy investments in Turkey. 

Turkey’s State Minister for Foreign Trade Zafer Caglayan called for stronger trade relations between the two countries and invited Canadian energy companies to invest in Turkey, saying “Canadian firms are welcome to bid on Turkey’s nuclear energy projects.”

Source: http://www.invest.gov.tr/en-US/

Turkey Records % 6.2 Increase in Foreign Tourists

Foreign visitors coming to Turkey between January-October has increased by 6.2 percent when compared to the same period of the previous year. The total number of visitors has reached nearly 26 million, the majority comprising of Germans, Russians and British. Foreign visitors preferred Turkey’s Mediterranean shores by a large margin, 34.1 percent, followed by Marmara and Aegean regions. 

According to data made available by the Ministry of Culture and Tourism, Germany tops the list of countries with nationals visiting Turkey. Some 4 million Germans visited Turkey in the first ten months of 2010, corresponding to 15.3 percent of Turkey’s total foreign visitors. Almost 3 million Russians and 2.5 million Britons visited the country, corresponding to 11.5 percent and 9.9 percent respectively. Iran, Bulgaria, Holland, Georgia, France, Syria and Italy are the other countries ranking behind the first three in terms of numbers of citizens visiting Turkey. 

Source: http://www.invest.gov.tr/en-US/sectors/Pages/WellnessAndTourism.aspx

Turkey's Automotive Industry Expects All-time Record

The automotive industry is close to breaking a sector record for all-times sales this year, with an expected 735,000 passenger cars, said Ali Haydar Bozkurt, Chief Executive of Toyota Turkey. A total of 729,000 passenger cars were sold in Turkey in 2005, the previous record-setting year. The sector started the year 2010 with low expectations due to the economic crisis, Bozkurt told Anatolia news agency on Sunday in the southern Anatolian province of Adana. “We did not even set a target for 2009,” he said. 

“Low interest rates in car loans helped the industry recover from the effects of the financial crisis and the markets started doing well without government support” added Bozkurt. 

As 70 percent of passenger car sales in Turkey are made with bank loans, interest rates are vital for the industry, said the Toyota CEO. The low rates made automobiles much more accessible, he said. 

Source: http://www.invest.gov.tr/en-US/sectors/Pages/Automotive.aspx

Turkish Regulator Grants First License in Wind Energy

urkey has given the first production license for wind energy applications by companies, taking a crucial step in renewable energy. 

The Energy Market Regulatory Agency (EMRA) convened on Thursday at last to evaluate the applications, according to an Anatolia news agency story filed Sunday. 

The EMRA decided to give a license to Tektug, a Turkish electricity company, for a 25MW wind power plant in Adiyaman, in southeast Turkey. On average, 1 MW of power can supply electricity to as many as 300 households per year. 

“The EMRA will continue to distribute licenses to projects whose technical assessment is positive and which do not involve more than one application for the same region,” Anatolia news agency reported. 

Over the next term, the regulator is expected to give the go-ahead to 27 projects with a total capacity of 1,343 MW. These investments may total between TRY 2.7 billion and TRY 3.2 billion. 

In a previous statement, EMRA Chief Hasan Koktas said Turkey’s current wind energy capacity is at 1,200 MW and that 2011 will be a year of “mobilization” in the private sector’s wind energy investments.

Source: http://www.invest.gov.tr/en-US/sectors/Pages/Energy.aspx

High Demand Shows Robustness of Istanbul Bourse

The shares of Emlak Konut Real Estate Investment Trust (REIT), a state-run property developer, and catering firm Do&Co, have started trading on the Istanbul Stock Exchange (ISE), with their executives ringing the opening bell together with ISE Chairman Huseyin Erkan. 

“Next year, we expect the total volume of initial public offerings (IPOs) to reach TRY 10 billion,” said Erkan. 

“We observed huge demand from foreign investors for Emlak Konut shares,” Erkan noted. Emlak Konut is the biggest company to hold an IPO this year and also the country’s largest REIT. It offered 25 percent of its shares to the public. “Emlak Konut ranks among the top five IPOs in Turkey,” said Erkan. 

The total IPO volume this year has reached TRY 3.5 billion, while the volume of corporate bond issuances reached TRY 1 billion.

Source: http://www.invest.gov.tr/en-US/sectors/Pages/RealEstate.aspx

Goldman Sachs: Turkish Economy Continue to Strong Growing

Recently released November data of the Purchasing Managers Index (PMI) show that the Turkish economy is still on its strong growth track, a Goldman Sachs analysis indicates.

The 3-month average of PMI data reaching an average point of 53.6 shows that industrial production has increased by 2 percent in the last quarter, exceeding the previous quarter’s 1.2 percent.

The report supports Goldman Sachs’ early suggestion that the country will achieve 8.5 percent of GDP growth in 2010.

Source: http://www.invest.gov.tr/en-US/turkey/factsandfigures/Pages/Economy.aspx

Koc-AES Partnership Invest USD 5 Billion in Turkish Energy Industry

Turkey’s Koc Holding has signed a partnership deal with the US-based energy company AES, in a bid to extend its operations in Turkey’s booming energy industry. Already active in the energy market with Tupras and Aygaz, Koc Holding’s partnership deal with AES covers up to USD 5 billion worth of investments in electricity generation.

Under the terms of the deal, AES acquired a 49 percent stake in Entek, a subsidiary of Aygaz, at a cost of USD 136.46 million. The partnership aims to become one of the top five electricity producers in Turkey over the next five years, by achieving an installed capacity of 3,000 MW, utilizing Turkey’s various renewable and non-renewable energy sources.

Source: http://www.invest.gov.tr/en-US/infocenter/news/Pages/021210-koc-aes-partnership-turkish-energy-market.aspx

German Retailer Metro Boost Turkish Investments

Germany-based Metro Group, one of Europe’s largest retailers, will continue to grow in Turkey. Having entered the Turkish market in 1990, Metro has invested over EUR 700 million in supermarkets and electronic retailers. 

Horst Schneider, Director General of Metro Group's Asset Management Corporation said the company sees Turkey as a priority market, and that it will continue to expand in the country. 

“As an international retailer, Metro operates in a large number of countries and Turkey is among the most attractive locations for our investments,” said Schneider, adding that the group will soon open new cash and carry markets in the country, followed by Media Markt and Real store openings. 

Coface Run Regional Operations From Turkey

French debt collection and credit insurance company Coface has announced plans to run its operations in the Middle East and Southeastern Europe from its Turkey office. Starting from 2011, Coface’s 13-year-old Turkish branch will also handle the company’s business in the countries surrounding Turkey. 

“The dynamism of the Turkish economy and the companies in the country made Coface Turkey worthy of this responsibility,” said Coface Turkey’s Director General Belkis Alpergun, underlining Turkey’s high performance during the financial crisis, which the country has managed to turn into an opportunity. 

As it prepares to run its regional operations from Turkey, Coface already has offices in 67 countries, controlling a portfolio worth over USD 500 billion. 

Hilton Aims to Boost Investments in Turkey

Hilton is planning to boost its investments in Turkey with new hotels in the Central Anatolian province of Konya, as well as in other locations, according to a top company official. 

“There will be five DoubleTree hotels under the Hilton brand open in Turkey within the next year,” said DoubleTree by Hilton Vice President Gary Steffen recently during a visit to the chain's IstanbuI-Moda location. “The Istanbul-Moda Doubletree by Hilton is the first hotel to be opened by any brand within the Hilton Worldwide organization on the Asian side of the city of Istanbul. So, this opening is extremely important for us, along with our network of other DoubleTree by Hilton hotels that are open or will soon open," said Steffen. Hilton Worldwide has had a presence in Turkey since 1955, with the iconic Hilton Istanbul.

Source: http://www.invest.gov.tr/en-US/sectors/Pages/WellnessAndTourism.aspx

Tofas Produce Opel’s Light Commercial Vehicle in Turkey

Turkish-Italian joint venture Tofas will produce GM brand Opel/Vauxhall’s light commercial vehicle model Combo in Tofas’ Bursa plant in Turkey. According to an agreement signed between the Fiat Group and Opel, a new commercial vehicle model to be built on Fiat’s successful Doblo platform will be produced in Turkey. The vehicle, which will carry the Opel and Vauxhall brand names, will enter the European and other world markets, excluding North America, in early 2012. 

The Opel/Vauxhall design team, along with Fiat’s own team in Turin and Tofas’ engineering and design teams in Bursa, will work in cooperation to design the vehicle. The deal to manufacture 250,000 vehicles will increase the number of brands produced by Tofas to five, including Fiat, Peugeot, Citroen, Opel and Vauxhall. 

Source: http://www.invest.gov.tr/en-US/infocenter/news/

Deloitte: Turkish Economy Positively Dissociated From World Economies

The Turkish economy has dissociated itself, in a positive sense, from world economies, a monthly report by Deloitte Turkey has said. 

According to the report, prepared by Deloitte economic consultant Murat Ucer, the Turkish economy and many other emerging economies dissociated themselves from other world economies based on their strong performance. 

“Turkey must continue the economic momentum by continuing reforms. We believe that Turkey can reach figures of high growth by making reforms and strengthening its institutions,” Ucer's report said. “Turkey, we also believe, will achieve ‘investment grade’ status shortly.” 

Source: http://www.invest.gov.tr/en-US/infocenter/

Turkey Entering 'Golden Era' in Renewable Energy Market

Turkey is entering a “golden era” of renewable energy market developments, according to Tom Popple, project coordinator at the third annual Southeastern European Renewable Energy Conference. 

The conference, held in Istanbul on November 26, primarily focused on Southeast European developments of alternative sources of energy, including solar, wind and biogas. 

“As the liberalization of Turkey continues, a strong interest from the private sector has developed. But there is also pressing interest for Turkey to fully utilize its renewable energy resources. Governments are backing high feed-in tariffs and legislation to promote interest from investors,” read the official statement from Popple. 

Estimates suggest there is a profitable wind energy market in Turkey that could produce good returns and potentially surpass nuclear options in less than a decade, said Erol Demirer, CEO of Demirer Holding. 

Bungo Ezawa, head of Turkey’s Lahmeyer International Energy Branch, noted several positive aspects regarding other renewable energy sources, including solar energy. 

“Turkey is absolutely comparable in terms of solar capability with southern Spain,” he said. 

Source: http://www.invest.gov.tr/en-US/sectors/Pages/Energy.aspx

ISPAT Launches Turkish-Indian IT Cooperation Initiative

Turkey and India are seeking ways to improve cooperation in a strategically important sector, information technologies (IT). A meeting organized by the Investment Support and Promotion Agency of Turkey (ISPAT) brought Turkish and Indian IT industry representatives together in Istanbul in order to create cooperation opportunities for companies active in the critically important sector. 

Committees from the two leading industry bodies TUBISAD, the Informatics Industry Association of Turkey, and NASSCOM, the premier trade body and the chamber of commerce of the IT industries in India, exchanged views and discussed ways to form partnerships between Turkish and Indian IT companies. 

Speaking at the event, Dr. Huseyin Aslan, President of ISPAT, said that the strategically important IT industry directly affects the competitiveness of a country’s economy and that ISPAT’s efforts are geared toward presenting Turkey’s potential to global industry representatives. “The meeting with NASSCOM will serve as a starting point for future cooperation in the IT industry,” asserted Aslan. 

Source: http://www.invest.gov.tr/en-US/

Why Invest to Property in Turkey

Traditionally foreign investors have been purchasing property in Southern Euro-Med countries but now they are seeking fresh alternative destinations to invest in, like Turkey !

The potential for returns on investment in this area are enormous. Last year alone, property prices rose by around 50% and with more people looking to buy homes in Turkey, that extra demand is sure to push prices even higher.

In 2004 more than 17 million people visited Turkey

The number of visitors to Turkey is expected to double in the next few years and Turkish investment in tourism and infrastructure is expected to keep pace. Moreover future projects are planned such as the creation of more leisure facilities such as golf courses, health resorts, tourism centres and sport stadiums that support international events like

Garanti Bank Deal Tops Turkey’s M&A List

Hurriyet Daily News - The Spanish banking group BBVA’s (Banco Bilbao Vizcaya Argentaria) November 2 announcement that the company will buy a stake in Turkey’s Garanti Bank is the country’s top merger & acquisition (M&A) this year, according to data from mergermarket, an M&A intelligence service. 

With a transaction value of EUR 4.2 billion, the deal surpassed the value of the August 9 privatization of Bogazici Electricity Distribution Grid. The rights to operate the grid were sold to the Turkish companies Is-kaya and MMEKA for EUR 2.261 billion. 

The top 20 Turkish M&A deals tracked by mergermarket represent a huge increase compared to crisis-hit 2009. Last year’s highest-volume deal was the privatization of the Osmangazi electricity distribution grid for EUR 327 million. 

According to an e-mailed report from mergermarket, the privatization of the Gediz electricity distribution grid and the sale of 54.17 percent of fuel retailer Petrol Ofisi to Austria’s OMV ranked as the third and fourth top M&A deals, with volumes of EUR 1.452 billion and EUR 999 million, respectively. 

Source: http://www.invest.gov.tr/en-US/infocenter/news/Pages/291110-turkey-acquisitions-mergermarket-garanti-bank.aspx

Turkish Technology Market Reaches 9 Billion Euro

Hurriyet Daily News - The value of Turkey’s booming electronics market has reached EUR 9 billion, making the country the seventh largest electronics market in Europe, according to electronics retailer Darty Turkey’s CEO. The CEO of Turkish technology retailer Darty said at a press conference in Istanbul that the company’s massive 30 percent growth this year could be attributed to the opening of five new stores. 

"We are opening our 21st store in December in the Avcilar district of Istanbul, and by opening five stores every year, we are fortifying our hold in the Turkish market,” said Darty Turkey CEO Nedim Esgin on Wednesday. 

Darty’s Turkey operation grew by 30 percent in 2010, obtaining a 2.5 percent share in a booming technology market, said Esgin, adding that Turkey is the only country to host all four of the leading electronic chains in the world - Media Markt, Darty, Best Buy and Electro World. Because of this competition, expansion in the technology retail sector is essential. 

“The volume of the electronic goods market in the world is around EUR 700 billion, and Turkey is a big component with its EUR 9 billion market. Now Turkey is the seventh biggest market in Europe, and we predict that this growth tendency will continue,” he said. 

According to the CEO, the Turkish technology market will surely surpass that of the Netherlands in the next two years and rank sixth in the world, provided its robust growth continues. 

Source: http://www.invest.gov.tr/en-US/sectors/Pages/ICT.aspx

Energy Industry Received Over Usd 5 Billion Of Investments in 2010

Today’s Zaman - Turkish Energy and Natural Resources Minister Taner Yildiz said on Thursday that energy investments corresponding to 3,500 MWs were added to Turkey’s installed capacity in 2010, worth approximately USD 5 billion. 

"I thank the private sector for its investments," said Yildiz, while addressing the opening of a conference on "Energy Policies in Turkey towards 2030 and the Future of Energy Regulations" held in Ankara Hilton Hotel by the Association of Energy Experts. Yildiz thanked all investors who contributed to the growth, development and supply security of Turkey and wanted continuation of the investments. "The private sector makes investments in places where it sees stability and profit. Turkey provided the private sector with the necessary conditions," he added.

Source: http://www.invest.gov.tr/en-US/sectors/Pages/Energy.aspx

Fitch Lifts Turkey's Rating Outlook to "Positive"

Reuters - Ratings agency Fitch lifted its outlook on Turkey's rating to "positive" from "stable" on Wednesday, citing the country's economic recovery and improving public finances. 

"Turkey's improving public finances are increasing confidence in its sovereign creditworthiness... debt dynamics are favorable, helped by strong GDP growth and a marked decline in interest rates," said Fitch in a statement. 

"The government is lengthening the maturity of its debt, thereby reducing market risk, while financing is supported by a deep local market, as well as strong current capital inflows," it added. 

Fitch expects Turkey to grow 8 percent this year, above a government forecast for growth of 6.8 percent. 

Source: http://www.invest.gov.tr/EN-US/TURKEY/FACTSANDFIGURES/Pages/Economy.aspx

HSBC: Turkey is The Premium Emerging Country

Dunya - Recent upgrades by rating agencies have brought Turkey under investor scope once again. According to an HSBC Global Asset Management analysis, reported by Reuters, Turkey is the preferred country among emerging economies. Controlling assets over USD 411 billion, the fund noted Turkey’s high performance in the financial crisis and praised the structural reforms it has undertaken in the past decade. 

The analysis cites the recent upgrades as preparatory steps for the country’s attainment of an investment grade rating, widely expected to happen as early as next year. 

Source: http://www.invest.gov.tr/en-US/successstories/Pages/HSBC.aspx

IMF: Turkey To Have The Second Highest Growth Rate in Europe

Dunya - Turkey will be among the top three countries to grow above 5 percent in Europe in 2010-2011 and will rank second after Belarus, according to data released by the International Monetary Fund (IMF). IMF data suggest that Belarus will achieve a rate of 6.9 percent, followed by Turkey with 5.8 percent. Kosovo will be the third country to grow over 5 percent, following Turkey. 

Asian countries like China and Indonesia will also grow over 5 percent, as will Egypt and Ethiopia in Africa, while larger economies like the USA, Canada, Russia and Japan will grow between 2 and 5 percent. The countries to experience a contraction in their economies in the aforementioned period are Greece, Venezuela and Romania. 

Source: http://www.invest.gov.tr/en-US/turkey/factsandfigures/Pages/TRSnapshot.aspx

Dutch Investments Increasing in Turkey

Dunya Special Issue - Dutch investments in Turkey will increase with the improving investment environment, according to the Ambassador of the Netherlands in Turkey. 

An article by Ambassador Jan-Paul Dirkse in Dunya daily highlights Turkey’s improving investment environment and strong trade ties between the two countries. “Dutch companies invested EUR 4.3 billion in Turkey in the year 2009, making the Netherlands one of the largest foreign investors in Turkey. Multinational Dutch firms such as Unilever and Philips have been active in Turkey for years and an increasing number of finance and real estate companies from the Netherlands are investing in Turkey,” the Ambassador wrote in his article, affirming his confidence in Turkey’s improving investment environment attracting more Dutch investments in the country.

Source: http://www.invest.gov.tr/en-US/investmentguide/Pages/10Reasons.aspx

Southeastern Turkey Becoming An Investor Magnet

Dunya - Turkey’s Southeastern Anatolia region is rapidly turning into a production hub for companies seeking to reach the neighboring markets. 

Domestic and foreign companies, including a Greek plastics producer and a British packaging firm, are flocking to Organized Industrial Zones (OIZ) in the region for easy-access to the developing Iraqi, Iranian and Syrian markets. Turkey’s policy of visa-free travel, combined with government incentives and available labor force, has transformed the region into a potential production base for producers, even leading to a shortage of space in OIZs in the region’s major cities like Diyarbakir and Mardin.

Source: http://www.invest.gov.tr/en-US/infocenter/news/Pages/241110-southeastern-turkey-investor-magnet.aspx

Turkish Car Market Registers Record Growth In October

Zaman - Car sales in Turkey reached new heights in October, making the country’s car market the growth champion in Europe. 

A sharp spike of 246 percent was observed in October’s car sale figures, when compared to the same month in 2009, while European car sales contracted by 16 percent in the same period. 

Backed by economic indicators bettering those of Europe, the Turkish car market outlook is expected to remain positive for the months to come. Sales in the period from January to October have also risen by 22 percent year-on-year, reaching more than 360,000 units. 

Source: http://www.invest.gov.tr/en-US/infocenter/news/Pages/241110-turkish-car-market-record-growth.aspx

OMV Sees Turkey As Its Third Business Hub

Hurriyet Daily News - Austria-based energy giant OMV, operating in the oil, gas, electricity and renewable energy fields, aims to develop Turkey as its third business hub after Austria and Romania by integrating the country into its core market for refining and marketing (R&M), also establishing Turkey as a link to northern Iraqi and Caspian supplies. 

Speaking to members of the press at the OMV Media Summit on Friday, CEO Wolfgang Ruttenstorfer said that OMV aims to turn Petrol Ofisi into an energy company from an oil distribution line by integrating all their businesses in the country under its roof. "We value the company very much and plan to create a complex energy company out of it for actualization of all our future energy investment in Turkey by integrating gas and power investments beneath it,” he said. He also noted that Turkey plays a key role in the company's integrated regional business scheme due to its proximity to Caspian and northern Iraqi oil reserves. According to the company's estimates, by 2015 the energy demand growth rate in Turkey will be 12 percent for oil, 31 percent for gas and 37 percent for power, making Turkey an essential component in the OMV portfolio. 

Source: http://www.invest.gov.tr/en-US/infocenter/news/Pages/231110-omv-turkey-third-business-hub.aspx