A Successful Economic Journey TURKEY Presented by Cenk Aydn Vice - PowerPoint PPT Presentation

A Successful Economic Journey TURKEY Presented by Cenk Aydın Vice Chairman, International Cooperation Platform under the Patronage of the President of Turkish Republic Founder and CEO, Halikarnas Financial Services & Advisory

OVERVIEW Beautiful landscape … Unique location... Historical heritage … Combination of Contemporary and Traditional … Home of skilled people … Policy What is the receipe?

ECONOMIC INDICATORS AVERAGE ANNUAL GDP GROWTH 5% 151,8 bn$ ANNUAL FASTEST EXPORTS GROWING FASTEST ECONOMY GROWING 10,818$ FASTEST IN EUROPE ECONOMY RECOVERING BETWEEN per capita ECONOMY THE OECD SINCE 2008 COUNTRIES GDP An economy driven by entrepreneurial spirit of private sector, robust domestic market and lucrative export opportunities

TURKEY IN FIGURES 16th Largest Economy in the The largest youth World population when compared to the EU countries 6th largest economy in EU Austra Poland TR Ita UK Japan India China US 80% lia

TECHNOLOGY & ACCESSIBILITY 33,7 million broadband 69 million GSM users (Q32013) 57 million credit card users internet subscribers (Q32013) (Q32013) 77 Million People 5

TRANSPORT & TOURISM Turkey is the 16th largest Turkish Airlines is the fastest Turkey is the 6th most visited automotive producer in the world growing airline in Europe. It is holiday destination in the world (OICA 2012) chosen as the best airlines in (2012) Europe ( Skytrax 2011,2012,2013 ) Out of world’s top 100 best hotels 131 million airline passengers in 22 are from Turkey (TUI Holly, 2012) Turkey (2012)

INDUSTRY Turkey is the 8 th largest steel producer in the world and 2nd SET-UP compared with the LOREM EU countries

LEADING INDUSTRIES Automotive: Target to produce Finance: the most attractive sector with $39 over 2mm vehicles within 5 years billion FDI in the past decade. Transportation: Highway capacity Energy; Strategic location for energy terminal planned to be tripled until 2023 and corridor; rapidly growing demand: over Real Estate; Third most attractive $100 billion investment is needed to meet the real estate investment demand till 2023; privatization and diversification destination in 2012 (AFIRE); opportunities. Istanbul is the most attractive ICT: Fastest growing IT companies in the region are from real estate investment market in Turkey, 27 of the 500 fastest growing tech companies 2012 (PwC, ULI); more than $27 in EMEA are Turkish. billion FDI over past decade.

FDI in TURKEY 25 20 15 10 5 20 0 10 0 Annualized as of January 2014 Source: GBRT Foreign Direct Investment Inflows (Billion USD)

A TOP DESTINATION FOR INVESTMENT FDI INFLOWS CONFIDENCE INDEX There is an increasing confidence Based on 159 company FDI inflows increased from 15bn$ in the Turkish economy. Turkey responses, Turkey settled in the between 1923-2002 to 123bn$ moved up to number 13 in 19th place in transnational between 2003-2013. rankings in 2013 in the foreign Corporations’ top prospective Source: Central Bank of Republic of Turkey direct investment confidence host economies for 2013-2015. index from number 23 in 2010. Source: UNCTAD Source: A. T. Kearney

SUCCESS FACTORS STRUCTURAL REFORMS AND OPPORTUNITIES IN TURKEY POPULATION ACCESS TO INTERNATIONAL MARKETS TURKEY AS A HUB FOR ENERGY , MANUFACTURING AND TRANSPORTATION  Leadership  Commercial Diplomacy  Stability and Consistency  Transparency  Adoptability

STRUCTURAL REFORMS Income Tax 20% Public Finance Reform, Banking Reform, Social Security Reform, Healthcare Reform NEW FDI Privatization & Enhancing Private Sector’s Role in LAW the Economy Opening the Key Markets to Competition, and Regulation by Independent Agencies Access to Real Estate Improving the Investment Environment New R&D and Innovation Support Law

Turkey has one of the most liberal trade policies in the world. It has ranked the 5th according to the World Trade Indicators. Turkey has a Customs Union with the EU since 1996. Turkey has Free Trade Agreements with 21 countries. Tax Incentives, Land Allocation, R&D Support Liason Office Structure for Regional Hubs 16

POPULATION  77 Million People  Vocational Schools  120+ Universities  Golden Demographic  Strong Domestic Demand  600,000 University Graduates Every Year YOUNG POPULATION Half of the population of Turkey is under the age of 30. Unemployment Rate for 2013 is 9,7% SKILLED LABOR FORCE Turkey has a highly skilled labor force. Turkey has ranked 37th in the IMD World Competitiveness rankings for the number of qualified engineers and competant senior managers.

1,5 billion people; 25 trillion $ GDP; 8 trillion $ trade INTERNATIONAL ACCESS EUROPE & RUSSIA MENA REGION EUROPE RUSSIA 1 TURKEY GDP: $19 trillion GDP: $2 trillion Import: $6,5 trillion Import: $335 billion Population: 670 million Population: 142 million 2 MENA REGION CENTRAL ASIA & GDP: $3,8 trillion CAUCASUS Import: $995 billion Population: 675million 3 CENTRAL ASIA & CAUCASUS GDP: $390 billion Import: $97 billion Population: 82 million Source: IMF World Economic Outlook and WTO; GDP, Imports and population figures as of 2012

REGIONAL CAPITAL for HQs of MNCs Coca Cola manages 94 countries from Turkey whereas Microsoft manages 80 countries from Turkey. INTERNATIONAL CONNECTIVITY International connectivity is great for Turkey with more than 196 flight destinations, 10 international hubs for sea transport.

TURKEY: A MANUFACTURING HUB Turkey will be the 16th manufacturing hub in the world and 2nd in Europe over the next 5 years. (Deloitte,2013) R&D expenditures increased by 260 % between 2002 and 2011 in Turkey.

TURKEY: AN ENERGY HUB

HOW ABOUT COOPERATION?

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