A new batch of privatization in key sectors have recently been announced by the Prime Ministry of Turkey’s Privatization Administration (PA), including offerings in Maritime Transportation, Food, Iron and Steel, Petrochemicals, Textiles, Transportation, Energy and Banking. With these late tender announcements, Turkey intends to further its efforts in optimizing the public sector via introducing new business opportunities for prospective investors.
Turkey’s booming economy keeps on attracting investors from all over the World, who are seeking expansion into the emerging markets. With its large domestic market, robust financial institutions and geostrategic location, which allow easy access to a population of over 1.3 billion and a GDP of USD 27 trillion, the country is seen by many as one of the most prominent markets in its region. Despite the current global financial crisis, which has a retarding effect on privatization, in the coming two years the PA envisages many privatization achievements, including the National Lottery; designated highways and bridges including two bridges of Istanbul – Bosphorus Bridge and Fatih Sultan Mehmet Bridge – spanning the Bosphorus strait and thus connecting Europe and Asia; ports; and the sale of remaining assets related to the tobacco product manufacturing business of Tütün, Tütün Mamulleri, Tuz ve Alkol İşletmeleri Anonim Şirketi ("TEKEL"), and Sigara Sanayii İşletmeleri ve Ticareti A.Ş. ("Sigara Sanayi"), an affiliate of TEKEL.
Several national and foreign companies are keeping a close eye on the long-awaited privatization tenders of Turkey's state-owned companies such as the National Lottery Administration with an annual turnover of USD 683 million and a net profit of USD 189 million. As the analysts’ tend to be increasingly more optimistic about the world economy and a dissipating trend is in progress over the current opacity in the world economy, these tenders are expected to be concluded as successfully as the one for Mersin Port, allowing Turkey to achieve its ultimate target of privatization, the establishment of a competitive economic environment, which promotes stability and prosperity not only for Turkey but also for its surrounding and neighboring countries.
Turkey has made remarkable strides in its privatization efforts during the last decade. Accordingly, since 1986, Turkey has generated USD 38,1 billion in income from privatization, and USD 6,3 billion of this accrued in 2008 alone. Turkey, which has recently gained USD 5.1 billion from distribution tenders, is expecting USD 10-15 billion revenue from the production privatizations to be carried out in 2010, PA officials said.
For further information on Turkish privatization efforts and ongoing tenders please see the following:
A Snapshot of Recent Privatization Opportunities in Turkey