TURKISH TRADE NEWSLETTER
August 2009 - Issue 4
Istanbul bourse among world's most valuable
August 24, 2009
ISTANBUL - The Istanbul Stock Exchange's benchmark interest IMKB-100 ranks sixth among world stock exchange markets in terms of increase of market value. Figures from the World Federation of Exchanges, or WFE, showed that the market value in the IMKB rose by 65.09 percent in the first seven months of 2009 when compared to the same period last year.
The Shenzhen Stock Exchange ranked first, the Shanghai Stock Exchange came in second and the Brazilian Stock Exchange, BM&FBOVESPA, ranked third.
Market value at the Istanbul Stock Exchange has exceeded 300 billion Turkish Liras as of last weekend. The market value of companies in IMKB was reported to be 182 billion liras last year.
Akbank became the stock exchange’s most valuable company with 24.4 billion liras market value. Six out of the top 10 most valuable companies are banks, namely Garanti Bank, İş Bankasi, Yapı Kredi, Halkbank, Finans Bank.
Turkey and India to partner in construction
August 23, 2009
ISTANBUL - A high-level official from the Turkish-Indian Business Council said on Monday that Turkey and India would start a remarkable partnership in the construction sector in the upcoming months. Erdal Alkış, vice chairman of Turkish-Indian Business Council of Foreign Economic Relations Board, or DEIK, of Turkey, held talks with a group of Indian businessmen in Istanbul on Monday. Speaking at the gathering, Alkış said Turkey and India would sign a 1 billion USD agreement concerning the construction sector in the next 3 months; moreover, the countries would make a 7 billion USD deal until the end of 2009.
Alkış said such agreements would be the start of a remarkable partnership between the two countries. Alkış also said that Turkish-Indian Business Council aimed at improving the commercial, cultural and social relations between Turkey and India.
"Our target for the next 5 years is to bring 500,000 Indian tourists to Turkey, to reach a trade volume of 30 billion USD and to provide the issue of a total of 1 million visas for the citizens of both countries," Alkış said.
Chicago Turkish World Festival held in Chicago
August 15-16, 2009 
CHICAGO - The 3rd Annual Chicago Turkish World Festival was held August 15-16 at the Navy Pier Grand Ballroom in Chicago. Turkic speaking countries displayed their cultures and cuisine at the fair which attracted Chicagoans and international visitors. Turkey’s Industry and Trade Minister Nihat Ergün spoke at the festival’s opening praising organizers for keeping Turkey’s traditions and customs alive in Chicago. Besides experiencing Turkey’s vibrant culture, attendees also had the opportunity to observe a wide range of activities from countries with Turkic heritage including Turkmenistan, Uzbekistan, Kazakhstan, Azerbaijan, Kyrgyzstan, Bosnia, Macedonia, and Albania.
Main attractions included performances by The Whirling Dervishes of Rumi, the Mehter-Ottoman Military Band, Eyüp Municipality Janissary Band and folk dances showcasing Azeri, Kazakh, Kyrgyz, and Turkish traditions. The festival also featured handcrafted goods and souvenirs including hand woven textiles, handcrafted tiles and ceramics, and detailed stone and wood carvings. Visitors were able to savor Turkish cuisine and the world-famous Turkish tea and coffee.
Turkey has a deep relationship with many Central Asian, Mediterranean, and Balkan countries due to its concurrent history with these regions. The festival aimed to promote the positive message to the public to unite all races, cultures, and religions to live in harmony.
Chicago host to Turkish delegations from Mardin and Malatya cities
August 15-18, 2009
CHICAGO - Two Turkish delegations from cities of Mardin and Malatya in Turkey visited Chicago on August 15-18 to explore potential business opportunities in the Midwest. During meetings with the Commercial Attache Suleyman Sozeri, he stressed the lucrative business prospects between the cities of Mardin and Malatya and the Midwest region. The Mardin delegation showcased an exhibit at the Chicago Turkish World Festival promoting their historic city. Mardin is located in southeastern Turkey with a rich history dating back to the 3rd century A.D. The majority of the town is built of sandstone with churches and monasteries dating from the 5th century A.D. The beautiful city has constant sunlight year-round making it an excellent location for solar energy investment and tourism.
The delegation of six executives from Malatya also displayed an exhibit at the Chicago Turkish Festival featuring the city’s world famous apricots. Malatya is known for its apricot orchards and large production of the fruit. About 50% of fresh apricot production and 95% of dried apricot production in Turkey happens in Malatya. The delegation also met with Commercial Attache Suleyman Sozeri to devise ways to increase bilateral trade and consumption of apricots in the Midwest. The delegation expressed their eagerness to open new offices in Chicago to showcase dried apricots and apricot associated products.
Turkey is the largest producer and exporter of apricots in the world. A large majority of apricots imported into the U.S. are from Turkey. Although apricots have many health benefits, consumption in the U.S. is relatively low. Between 1972 and 2007, fresh-market consumption per person in the U.S. remained under 0.2 pounds per person. Apricots are an excellent source of Vitamin A, which serves as an antioxidant and promotes good vision. They are also a good source of beta-carotene, which is important for heart health, and fiber and Vitamin C.
Turkey’s Industry and Trade Minister Nihat Ergün visits Chicago
August 13-16, 2009
CHICAGO - Turkey’s Industry and Trade Minister Nihat Ergün, heading a Turkish delegation comprised of members of the Turkish Parliament and public officials, met with business and government leaders, visited various American companies as well as industrial zones, and inaugurated the Chicago Turkish World Festival during his visit to Chicago on August 13-16, 2009. During his stay, Minister Nihat Ergün attended a panel discussion of various members of the Turkish-American Chambers of Commerce and Turkish American businessmen and government officials at the Consulate General of Turkey in Chicago. He also toured the Elk Grove Industrial Zone, in which thousands of companies across manufacturing and distribution, service, and commercial industries are located. The Minister inaugurated the Chicago Turkish World Festival and made his opening speech. In his remarks, he emphasized the importance of the bilateral economic ties between the two countries and stressed the fact that Turkish government was ready to explore new business endeavors with the U.S. administration. Critics regarded Minister Ergün’s visit to the U.S. as an excellent opportunity to strengthen ties between Turkish and U.S. companies.
Number of foreign businesses in Turkey hits 22,505
TURKEY - The Undersecretariat of the Turkish Prime Ministry for Treasury issued data revealing the number of foreign companies operating in Turkey reached 22,505 in June 2009. Growing business opportunities, state-of-the-art infrastructure, and skilled human capital have made Turkey a popular investment destination in Afro-Euroasia. 17,725 were newly established, 4,216 are subsidiaries of other companies and 564 are branches of international firms. About 55% of the foreign companies in Turkey are from the European Union. German firms have the most businesses in Turkey with 3,852 followed by the UK, Netherlands and the US. The majority of foreign firms in Turkey are in the retail industry, followed by manufacturing and real estate. Other fields include transportation, communications, construction, and hotel management. Most foreign businesses are located in Istanbul, although Antalya and Ankara also host many foreign firms.
The rise in foreign investment into Turkey is due to its well-educated workforce, expanding economy, strategic location and liberal business climate. Turkey is ranked the 13th most attractive country for FDI in the world and number five among emerging markets. The Investment Support and Promotion Agency of Turkey is the official investment agency of Turkey. The agency presents investment opportunities to the global business community and assists investors in all their administrative processes.
Turkey and Libya expected to sign free trade agreement in September
August 13, 2009
TURKEY - Turkish State Minister in charge of Foreign Trade Zafer Caglayan met with Libya’s Secretary of General People’s Committee for Public Works Muhammad Matuq in August to discuss bilateral trade and economic relations. Minister Mr. Caglayan said Turkey and Libya would likely sign a free trade agreement (FTA) in September. The Turkish endeavour to sign free trade agreements with regional countries will contribute to the prosperity of the region. If signed, the agreement with Libya will be Turkey’s 18th FTA. In the past four months, Turkey has accelerated its efforts to conclude FTAs with various countries including Serbia in June and Chile in July. The customs union agreement with European Union, along with FTAs with 18 different countries allow Turkish companies to access over 1.4 billion consumers in surrounding countries without tariffs.
Trade volume between Turkey and Libya reached 1.4 billion USD last year. Turkey’s exports to Libya constituted 1.1 billion USD of this amount. Officials are working to increase trade volume between the two countries to 5 – 10 billion USD. A delegation from the Turkish Foreign Trade Undersecretariat will pay a visit to Libya on September 7 and 8 to hold talks on the agreement. September also marks the 40th anniversary of the Libyan revolution.
Best Buy expanding into Turkey
MINNESOTA - Best Buy will open its first store in Turkey in the western province of Izmir in October. The company plans to track consumers its first year in the country to understand the market’s demands for further expansion in the country. Best Buy plans to open stores in Ankara and Bursa in 2010 and is planning to eventually be in all districts throughout Turkey. The stores in Izmir, Ankara and Bursa will be at least 4,000 square meters in size.
Local collaboration is a key part of Best Buy’s international business strategy. The company plans to use Turkish brands in their store and move them into other nations they operate in. Best Buy is the world’s largest consumer electronics company and currently operates in 13 different countries.
Number of American patients seeking health care in Turkey surpasses European patients
TURKEY - More Americans are choosing to travel to Turkey for health care with the loss of health insurance accompanying widespread job loss. Turkey is preferred by citizens of European Union member countries for health care although the number of American patients has surpassed the number of Europeans. More Americans are discovering Turkey as a health care option with its top quality medical facilities, U.S. trained board certified physicians and no waiting periods. There are 28 hospitals in Turkey which are American Joint Commission International accredited, which is the largest number of accreditations a country has achieved so far. Turkey’s high quality health care is combined with low costs and Americans are noticing the difference. For example, the cost for open heart surgery in the U.S. is around $150,000, compared to around $12,000 to $15,000 in Turkey. Turkey hosts around 40,000 people in health tourism annually creating a business volume of $150 million.
Turkey’s role in energy booming
August 15, 2009
TURKEY - According to Fatih Birol, chief economist at the International Energy Agency, Turkey may become one of the leading five countries in energy transportation. Turkey has two giant energy projects on the agenda, the Nabucco pipeline and the South Stream Project, along with an expanding renewable energy sector and plans for nuclear power plants. The Nabucco pipeline will transport natural gas from the Caspian Sea and Central Asia region to Europe and is expected to become operational by 2014. The pipeline will run from Turkey to Austria via Bulgaria, Romania and Hungary. Considering almost two-thirds of the pipeline runs through Turkey, the country holds a major role in the project. Turkey also signed an agreement with Russia in early August to allow Russia to construct part of the South Stream pipeline beneath Turkish waters in the Black Sea. The South Stream project will link Russia to Europe via the Black Sea and is scheduled to be completed in 2015.
Turkey also has one of the highest potentials for wind generation in Europe and has taken a huge step in pushing wind power. Turkey’s largest and most expensive wind farm is currently in the works. Zorlu Energy is constructing the first phase of the project and will be installing 29 wind turbines which will save around 300,000 tons of carbon dioxide a year. The project is expected to boost wind power output by 35% when it begins operating this year. Turkey is also considering building nuclear power plants, further reducing carbon dioxide release.