TURKISH TRADE NEWSLETTER
February 2010 - Issue 10
TACCI-Midwest Dinner: Investment Opportunities in Turkey
February 5, 2010
CHICAGO - Investment opportunities in Turkey including trade assistance, investment incentive and support programs for Turkish-American businesses were discussed at the Turkish American Chamber of Commerce and Industry – Midwest (TACCI-Midwest) Dinner on February 5, 2010 in Chicago. Turkish Commercial Attache in Chicago Mr. Suleyman Sozeri presented current developments in macro-economic indicators, government incentives for investors and bilateral trade relations between the US and Turkey at the event.
Attended by around 30 Turkish business people from the US Midwest Region, the event provided a venue for not only conveying available incentives and business opportunities, but also a good opportunity to network between the Turkish business communities. Turkish government provides major incentives for foreign direct investments including but not limited to tax reductions, customs exemptions and social security assistance for the employees. In his presentation Commercial Attache Mr. Sozeri underlined “Many global conglomerates such as Microsoft, Coca-Cola, P&G and Citibank established their regional headquarters in Turkey due to its geostrategic location, booming economy, invaluable human capital and liberal trading and investment climate. Turkey offers the largest young population in Europe and well-educated executive level professionals. While accessing Turkey’s growing domestic market of over 72 million, companies can also reach over one billion consumers in Europe, the Middle East, Central Asia, and the Mediterranean region. Turkey’s Customs Union Agreement with the EU and its free trade agreements with 15 countries have put Turkey as a central location for trade with minimum barriers”. He also noted “Turkey is ranked as the 5th most attractive FDI destination among emerging markets.” Mr. Sozeri’s presentation ended with remarks on the current trade relations between the US and Turkey.
3rd Annual Innovation Istanbul 2010
Innovative Turkish tech companies and European investors in 3rd Istanbul Bootcamp
March 3, 2010
ISTANBUL - 3rd annual Innovation Istanbul "Boot Camp" to be held on March 3, 2010 is set to highlight six innovative Turkish technology companies as they present their business model to leading European and local investors. Investor panelists include top investors like Venrock Venture Capital, Intel Capital, RedAlpine Investments, Rhea Investments, as well as Microsoft.
The organizer of the event Boot Camp Ventures is corporate advisory firm founded by American investment professionals to offer companies the tools and contacts to successfully complete investment rounds as well as identify strategic partners. They advise companies on their business model and investment focus to best position promising ventures for a successful financing round via global road shows. Boot Camp Ventures such events like Innovation Istanbul enables companies to realize their business goals by identifying strategic partners in target geographic regions. Audience of the event is composed of investors, commercial and investment banks, angel investors, Private equity and venture capitalists, emerging technology companies. For more information visit www.istanbulinnovation.com.
Ford Connect manufactured in Turkey draws attention at Chicago Auto Show 2010
February 12-21, 2010
CHICAGO - Annual Chicago Auto Show, the largest auto show in North America and the third largest in the World, took place in Chicago at the McCormick Place on February 12-21, 2010. Being awarded as “North American Truck of the year”, Ford Transit Connect commercial vehicles produced in Turkey made its mark in the show. The Consul General of Turkey in Chicago H.E. U. Kenan Ipek and Commercial Attaché Suleyman Sozeri were among the attendees of the Chicago Auto show on its launching day.
During Chicago Auto Show 2010, one of the main attractions was the American debut of the 2010 Ford Transit Connect commercial vehicles. To fulfill the unmet needs of small business owners and entrepreneurs in the United States, Ford’s Global Product Development team adapted the Transit Connect for the American market, which is manufactured by Otosan in all new production plant at Golcuk, near Kocaeli, Turkey. The Transit Connect is a nimble as a compact car, works like a van and engineered to be as tough as a truck. It is specifically designed for tight, urban environments, where space is at a premium and fuel prices are high.
The Consul General of Turkey in Chicago H.E. U. Kenan Ipek and the Commercial Attaché Suleyman Sozeri attended to the Chicago Auto show on its launching day. After visiting Ford’s booth, Consul General Ipek said, “I am much honored to tell American and international visitors of Ford’s exhibit that Transit Connect is being manufactured in Turkey. I found out that in 2009, 29.551 Ford Connects were exported to the US from Turkey. During my conversation with Ford employees, they expressed their excitement about the increasing interest and high demand in Ford Connect.”
S&P raises Turkey’s credit note one notch
February 19, 2010
UNITED STATES - Standard & Poor's raised its long-term foreign currency and local currency sovereign credit ratings for Turkey to 'BB' and 'BB+', respectively, according to a statement on Friday. The 'B' short-term ratings were affirmed. The Transfer and Convertibility Assessment was raised to 'BBB-' from 'BB+'.
Standard & Poor's credit analyst Frank Gill said the upgrade reflects the firm’s view of the Turkish government's improving economic policy flexibility. The rating also reflects the firm’s opinion of the success of Turkey's regulatory institutions in preserving the solidity of the financial sector, despite external adversity.
“Standard & Poor's believes Turkey's banking system to be one of the strongest and least-leveraged in Eastern Europe," Gill said. Turkey's well-capitalized banking system deposit ratio of 80 percent confirms low leverage of the household sector, in Standard & Poor's view, in contrast to many Eastern European systems.
"Since the primary general government budget operated an average surplus of 5 percent of Gross Domestic Product from 2004-2008, Turkey's ability to at least balance the primary budget would appear to be very solid.”
IT sector set to grow by 30 percent in 2010
February 14, 2010
TURKEY - Fueled by the introduction of third-generation (3G) mobile systems, the Turkish information technology market grew in size by 10 percent to 21 billion euros despite last year’s global economic crisis, Informatics Association of Turkey (TBD) Chairman Turhan Mentes has said, adding that they expect the sector to enjoy a growth of 30 percent this year.
Menteş, speaking to the Anatolia news agency on Wednesday, stated that influenced by the recession, the global information technology sector did not see significant growth in 2009. The sector’s market size grew from only 2.36 trillion euros in 2008 to 2.49 trillion euros last year, he noted. The communications sector accounts for 60 percent of the market, Menteş said, and added that the coverage area of mobile devices continues to expand, which has a positive impact on the information technology sector.
Despite a sector-wide employment drop due to the recession, major layoffs were not seen in the sector last year, Menteş stated. The Turkish information technology sector grew by some 10 percent in 2009, increasing its market size to 21 billion, he said, adding that communications technologies account for 75 percent of the sector in Turkey. “Considering [that it has] 27 million Internet users and more than 6 million people with access to a broadband connection, Turkey is still an important market for the development of technology,” Menteş said.
According to Menteş, the growth of mobile communications gained significant momentum with the 3G system, even though its introduction to the Turkish market came very late compared to other developed countries. “Other sectors, such as broadcasters, also started to take advantage of the system. I expect Turkey to complete its adoption of the 3G system faster than many countries,” he added.
Sector representatives found the opportunity to introduce new technologies last year, Menteş said, predicting that the Turkish information technology sector will enjoy a growth of nearly 30 percent this year. 2010 will also see more investments in information technology by the public sector, he stated, stressing that the 2023 target for the sector should be to have top service provider and software developer firms operating in the Balkans, Central Asia and the Middle East.
Teknosa in World Retail Awards shortlist
February 10, 2010
TURKEY - Teknosa, a technology retail chain, is short listed among finalists in the World Retail Awards, which recognize the outstanding innovation and creativity delivered by retailers across the globe.
The firm, which was short listed in the Design category last year, will represent Turkey in the Responsible Retailer category this year with its project Kadin Için Teknoloji - Technology for Women, it said Tuesday in a press statement. The project offers free computer training to women in the country.
Hundreds of retailers from around the world attend the contest, organized in five categories. In the finalists list announced by a jury, each category consists of six firms. The award ceremony will take place within the framework of the World Retail Congress to be held April 20-23 in Berlin.
Commenting on the success of Kadin Için Teknoloji project, Teknosa Managing Director Mehmet Nane said, ”With the energy stemming from our successes, we aim to speed up our project and introduce 5,000 women more with computers this year, through covering in just one year a distance that we have taken in three years.”
To date, Teknosa has introduced over 5,000 women with technology in Turkey’s different regions with its project initiated in May 2007. Through trainings, Teknosa has helped women in personal development.
Renewable energy investments to ramp up
February 7, 2010
TURKEY - Hyped up interest in renewable energy investments may be perceived as a sign of Turkish business world attaching importance to climate change. In 2011, the Energy Market Regulatory Authority expects to see private sector investments worth $3.2 billion to renewable energy. The energy ministry aims to increase renewable energy’s share in Turkey’s total energy resources to at least 30 percent by 2023.
This year some $4.2 billion worth of private sector investments will be added to Turkey’s energy market, said Hasan Köktas, chairman of the Energy Market Regulatory Authority, or EMRA.
Facilities generating 2,833 megawatts energy stepped into the local energy market last year, said Köktas on Sunday. Some 1,400 megawatts of that figure was from natural gas, while 1,000 megawatts was from renewable energy sources, including hydroelectric and wind. “This figure is the highest attained for the past seven years. In 2010 we aim to surpass the 2009 figure.” Based on the reports received by the authority, some 3.5 billion liras out of the total 5 billion liras investment, which will be implemented by the private sector, will be on renewable energy, Köktas said, adding that the remaining 1.4 billion will be on natural gas resources.
In 2010, 3,400 megawatts of installed capacity is expected to step in to the market, said Köktas. The annual energy production of the facilities will be 21 billion kilowatt per hour, he added. Besides providing energy, newly established facilities will also help increase employment opportunities, Köktas said.
“We have started on sight inspection for the energy investments last year. We will continue to do so starting April. We will visit the development sites of the companies that have received licenses. The licenses of the companies that have not made the investments they have promised will be canceled,” said Köktas.
At a separate meeting in Ankara on Sunday, Energy Minister Taner Yildiz, told the members of the Parliament that the ministry was aiming to increase renewable energy’s share in Turkey’s energy resources to at least 30 percent by 2023. Natural gas’ share in the country’s energy recourses is foreseen to be lowered to below 30 percent, he added.
EMRA provided licenses for wind turbines that will have 3,350 megawatts of installed capacity, Yildiz said. In 2002, Turkey had next to none wind energy recourses, he said. In 2009, wind energy capacity of the country reached 802 megawatts, Yildiz said and added that figure will increase to 2,200 megawatts within the next two years.
As per November 2009, Turkey added wind turbines with installed capacity of 374 megawatts. Hydroelectric power plants with 564 megawatts installed capacity also stepped in by that time and geothermal energy plants with installed capacity of 47.4 megawatts were added to the country’s energy resources by November 2009.
Turkey’s installed capacity of electrical energy was 31,845 megawatts in 2002. That’s figure rose to 44,782 megawatts by 2009. Some 7,087 megawatts of that comes from projects launched and completed in that period.
Istanbul Fashion Week: major step to make the city fashion center
February 4, 2010
ISTANBUL - ISTANBUL FASHION WEEK (IFW) which has been organized by ITKIB together with the cooperation of Fashion Designers Association and Istanbul Fashion Academy and which has been constructed to provide a flow of information to the world in fashion design and to draw the attention of the world’s leading fashion press and buyers to Istanbul has entertained fashion lovers from all around the world.
The event was the second, realized in parallel to the calendar and understanding of the World Fashion Weeks; and was organized in Santralistanbul on 3-6 February 2010 under the name “Istanbul Fashion Week”, as with its similar examples in the world’s fashion capitals.
Inside the giant tent set up in Santralistanbul for IFW 2010, a 2000 m2 boutique fair area and a 1000 m2 foyer area has been arranged apart from the 1000 m2 and 700 person capacity fashion show areas.
The leading fashion brands and fashion designers of Turkey unveiled their 2010/11 fall winter creations in a total of 24 fashion shows and the young designers participated with 2 mixed fashion shows.
The boutique fair area with the designer and brand stands, as well as the four-day fashion shows of the IFW, was open to visitors from 10:00 am to 7:00 pm. The visitors had access to free bus service to Santralistanbul, leaving from in front of Taksim Atatürk Kültür Merkezi every day including the weekend.
Approximately 31200 people followed the event, where foreign press and buyer groups from all around the world were entertained.
Five Turkish firms to attend Obama’s entrepreneurship summit
February 3, 2010
WASHINGTON DC - Five Turkish entrepreneurs reflecting diverse business backgrounds, from food delivery to high tech, have been selected to participate in the U.S. Presidential Summit on Entrepreneurship. A global initiative launched by President Obama in Cairo in June, the summit initiative will take place in Washington, D.C. in the spring.
In his Cairo speech, President Obama announced he would "host a summit on entrepreneurship to identify how we can deepen ties between business leaders, foundations and social entrepreneurs in the United States and Muslim communities around the world." All together 150 entrepreneurs from Muslim countries, President Obama and other high-ranking U.S. government officials will participate in the summit.
The companies to represent Turkey in the summit include wireless network router AirTies, online food delivery service Yemek Sepeti, mobile banking applications company Pozitron, science, innovation and technology policy advisory firm Technopolis, and education management firm Deulcom International.
Three of the companies – AirTies, Yemek Sepeti and Pozitron – are part of the Endeavor network. Endeavor is a support organization that focuses on high-impact entrepreneurs in emerging markets.
Ali Koç, member of the Endeavor management board, noted that five firms were chosen among 16 companies. "The requirement was that the firms would make a difference, create a new market or launch a product that changes the dynamics of the market, such as Pozitron and AirTies," Koç noted.
Bulent Celebi, chief executive officer and founder of AirTies, who resided in the United States for 30 years prior to returning to Turkey to found AirTies, noted that events like the upcoming summit, will contribute to giving a more accurate image of Turkey overseas. "There is a lot of prejudice against Turks in the United States and it is important to tackle it," he said. "When establishing AirTies and looking for investors in the United States I was actually told that "The idea is great but there is no technology in Turkey for this. If there is more cooperation on this kind of prejudice we can do away with them," Celebi said.
Fatih Isbecer, founder of Pozitron, noted there used to be a similar prejudice against Turkey's textile sector. "There used to be an opinion outside of Turkey that no textile brands can come from Turkey. This prejudice was proven wrong. We now need to attract the attention of the technology sector in Turkey and put an end to these prejudices," Isbecer said.
Ebru Özdemir, a member of the Endeavor management board, noted there is a major need to create new jobs in Turkey in the future. "Some 13 million youths will enter Turkey's labor market in the coming five years. At the moment, some 700,000 new jobs open each year, but in fact, this figure should be doubled. We are ready to support more entrepreneurs to expand their businesses," she said.