Made in Turkey January/February 2016 by İstmag Magazin Grubu

ISSN 1300-2260

www.img.com.tr

February 2016

Turkey: High-tech economy grows in Turkish capital

Turkey’s current account deficit narrows as oil prices continue to drop Turkey’s current account deficit narrowed to $2.1 billion in November 2015, a decrease of $3.689 billion from November of the previous year, the Turkish Central Bank said in a statement on Jan. 11.... | Page 2

Turkish textile exporters eye new markets in Africa to recover Russian losses

Turkey to focus on natural gas storage, Energy Minister says

President Recep Tayyip Erdoğan urges for innovation coupled with sustainable economic growth and development Speaking at the Turkey Innovation Week, organized by the Turkish Exporters Assembly at Istanbul Congress Center, President Erdogan said: “Russia says ‘We don’t buy Turkish products.’

Property sales to foreigners in Turkey up 25.6 pct in November roperty sales to foreigners increased a remarkable 25.6 percent in November compared to the same month of the previous year - amounting to 2,119 properties sold, according to data released by the Turkish...| Page 3

Third bridge over Bosphorus to open first half of 2016 Transport Minister Binali Yıldırım has said the third bridge over Bosphorus will likely open in the first half of 2016, either in April or May. He noted that there would be four motorway lanes on the Northern Marmara... | Page 7

hese are emotional reactions. Even if you import $1 billion worth of goods, turkey is not a country that would collapse because of such a loss. Other doors will open, other resources will emerge, which is already happening. Rest assured we will stand tall and never bow down. We will continue to increase our production and find new markets.” Attending the innovation champions award ceremony, president recep tayyip erdoğan presented awards to firms, whose innovative and business development projects were ranked the highest.

President Recep Tayyip Erdoğan

Russian sanctions against Turkey are ‘unsustainable’ Speaking during Anadolu Agency’s editors’ desk meeting in Ankara, Turkish Culture and Tourism Minister Mahir Ünal said the tourism sector had been affected by the Kremlin-imposed restrictions, meanwhile calling the sanctions “unsustainable.” “Turkey does not want to lose the Russian market in tourism, but we will not depend only... | Page 6

Fikri Isik Industry and Technology Minister

plan promises various supports for students, graduates and youth including TL 50,000 in financial support plus up to TL 100,000 in interest-free loans for young entrepreneurs. The first step to realize this was taken at the ceremony. Stressing that tech-

nology-driven entrepreneurship enables companies to grow more rapidly and gives rise to the emergence of giant companies, Işık said the ministry provided 628 entrepreneurs with techno-enterprise capital support this year. | Page 5

Turkish Deputy PM: No need for discussions over central bank | Page 5

Fear of $30 a barrel haunts oil-dependent economies

ANKARA-Due to a 65 percent fall in prices since mid-2014, economies of oil producing countries that are highly dependent on oil sales for revenues are likely to be affected next year if prices reach $30 a barrel. Goldman Sachs announced in January this year that it anticipated oil prices would fall as low as $30 per barrel due to oversupply and low global demand. The international investment bank revised this forecast in September, and stated that if the current high level of oil stock persists, oil prices could fall to $20 a barrel next year. | Page 7

Investments in startups have aimed more at high-tech companies | Page 8

EconomicNewspaper

January February 2016

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Mehmet Soztutan Editor-in-Chief

Letter From The Editor

Playing “Russian Roulette” with economy! Following the downing of the Russian jet by Turkey on Nov. 24, Moscow introduced a range of sanctions, ranging from restrictions on visa-free travel for Turks to a ban on imports of certain foodstuffs and textile products from Turkey. Turkish officials have described Kremlin-imposed restrictions as “unsustainable” and added thatAnkara is open for dialogue with Moscow to resolve the recent political crisis. Turkish and Russian economies have strong economic ties in energy, food, tourism and construction projects. The effect of sanctions imposed on Turkey by Russia will be limited, European Bank for Reconstruction and Development (EBRD) said. “Turkey is the second biggest export market for Russian gas, with a $16.5 billion volume in 2014 (around 0.6 per cent of Russia’s GDP), providing 18.8 per cent of Gazprom’s revenues. Any disruption to this supply in 2016, which appears very unlikely at this stage, would harm Russia’s exports and GDP,” the statement said. The bank said that, on the other hand, the Russian economy also can’t pass through this

crisis unscathed as the sanctions may put upward pressure on import prices and inflation in Russia, adding an additional 0.1-0.2 percentage points through more expensive vegetable and fruit imports. We are confident that the major effect of sanctions imposed on Turkey by Russia will be limited and the Turkish economy will not deviate from sustainable growth and development. Turkey’s own emerging potential and its market attractiveness arise mainly from the sustainable growth and development path. Turkey closely monitors developments in global economy and implement policies in line with its medium-term economic program. The Government focuses on policies to increase private sector’s investments, direct international investments and exports.

In March 2015, the price dropped to $42.03, the lowest since 2009, as U.S. storage tanks brimmed with oil. Then came a rebound above $50 a barrel after the conflict in Yemen. The price collapse forced high-cost drillers in North Dakota and Texas to idle rigs while international giants like Chevron, Shell and Halliburton cut thousands of workers and billions of dollars in spending. At its December meeting, OPEC kept the pressure on by announcing it would maintain production levels. Yet with several members eager to increase their own production and Iran poised to ramp up exports after reaching a nuclear agreement with six world powers, OPEC is torn over a long-term strategy. U.S. shale output has proved resilient as drillers cut costs and focus on the best terrain, though their limits are starting to show. Still, the supply glut persists.

We wish Turkish business people and their counterparts lucrative trade.

Well, there was a kind of dependencia theory, which was very much left wing in its origins. There were some European intellectuals who fed into it, and the idea was that these poor, developing countries were so dependent on world marketplace, they were just being exploited by the center. [Raul] Prebisch talked about the center versus the periphery, which is another version of dependencia. But I think that there may be some vague notion, an element of truth behind this idea in the sense that markets are impersonal. I use the analogy of an elephant going through the jungle, and you’re a poor mouse. Now the elephant is not going to go after you. He is not against you; he couldn’t care less about you. G.Kron/ Frankfurt

Democratization

European Central Bank

M.Murp/ Washington D.C

The 12-month rolling deficit narrowed to $34.7 billion in November 2015 from $38.4 billion the previous month, added the statement. The country’s current account gap declined to $135 million in October 2015. This development in the current account largely stemmed from a $3.6 billion decrease in the deficit in goods, said the bank, adding that services came in at a net surplus of around $1.5 billion, an increase of $159 million. “Cheaper energy was the major factor in the current account narrowing,” Vladimir Miklashevsky, an economist with Danske Bank

in Helsinki, was quoted as saying by Anadolu Agency. Finansbank economist Deniz Çiçek said the decline in oil expenses had played a positive role. “We expected the current account

Turkey tops Spain in production of light commercial vehicles

ANKARA- The Turkish car industry is now first in the manufacture of light commercial vehicles in Europe, ahead of Spain, the Automotive Manufacturers Association reported. Turkey became the top manufacturer of light commercial vehicles as production in the first nine months of this year increased by 34 percent to 408,000 units, the report said. This put Turkey ahead of Spain in terms of production volume, the report said. Turkey’s commercial vehicle market in the first ten months of year rose by 34 percent annually to 236,000. The European market saw a 12 percent advance to 1.89 million units in same period according to the report.

Dependencia theory

M. Brick/Paris

For less developed countries, globalization offers access to foreign capital, global export markets, and advanced technology while breaking the monopoly of inefficient and protected domestic producers. Faster growth, in turn, promotes poverty reduction, democratization, and higher labor and environmental standards. While globalization may confront government officials with more difficult choices, the result for their citizens is greater individual freedom. In this sense, globalization acts as a check on governmental power that makes it more difficult for governments to abuse the freedom and property of their citizens.

Turkey’s current account deficit narrowed to $2.1 billion in November 2015, a decrease of $3.689 billion from November of the previous year, the Turkish Central Bank said in a statement on Jan. 11.

gap would decrease to around $32 billion by the year’s end. While lower oil prices brought a rebalancing of the current account sheet, some recovery in Turkey’s exports to the European Union

and a moderate demand growth in the domestic market also made a positive contribution to this field. Russia’s sanctions against Turkey will, however, negatively affect goods exports and tourism income negatively in the coming period. Nevertheless, the deficit will continue to decline in 2016,” said Çiçek, as quoted by Reuters. The government has announced the expected current account gap to GDP will be around 4.4 percent in 2015, 3.9 percent in 2016, 3.7 percent in 2017 and 3.5 percent in 2018 in its new medium-term economic program, which was released on Jan. 11. Direct investment recorded a net inflow of $92 million in November 2015 and official reserves recorded a net decrease of $212 million, according to official data.

Turkey: High-tech economy grows in Turkish capital

As known, Turkey, being the oldest of our publications, conveys the messages of the Turkish exporters for years by participating in a series of international fairs and exhibitions.

Letters to the Editor turkey@ihlas.net.tr The supply glut persists!

Turkey’s current account deficit narrows as oil prices continue to drop

Mario Draghi, the governor of the Frankfurt-based European Central Bank, calls on eurozone governments to align their budgetary policies – a first step toward a tighter fiscal union. (ECB) chief Mario Draghi said the 17 countries that use the euro must tether their economies more tightly to avoid a repeat of the debt crisis that is threatening the global financial system. He also hinted that the ECB may play a more pivotal role in the resolution of the crisis, but he insisted that the governments must first back proposals to align their budgetary policies. B. Mutde/ Milan

Russian sanctions on Turkey have limited effect

Nurettin Ozdebir Head of Ankara’s Chamber of Industry

ANKARA- A high-tech economy is growing in Turkey’s capital, Nurettin Ozdebir, head of Ankara’s Chamber of Industry, has told Anadolu Agency. “Ankara is becoming a center for high-technology, with local innovation exceeding that of Istanbul,” Ozdebir said. The quality of exports of Ankara has become very high, as the level of value-added content in exports from here is more than 30 percent higher than that of the Turkish average, more than Istanbul contributes, Ozdebir explained.

LONDON-The effect of sanctions imposed on Turkey by Russia will be limited, European Bank for Reconstruction and Development (EBRD) said. The sanctions were imposed after a fighter jet that violated Turkish airspace was shot down after warnings on Nov. 24. Moscow later announced it was a Russian aircraft. The measures imposed ranged from restricting visa-free travel to a ban on imports of certain foodstuffs and a ban on the sale of Turkish holiday packages by tourist agencies to Russians. “The sanctions may reduce Turkey’s GDP growth in 2016 by around 0.3 - 0.7 percentage points, if they remain in force over the next year and are fully applied, with most of the impact related to tourism occurring around the mid-year,” the bank said in a statement. However the bank pointed out that there are risks for both Turkish and Russian economies as the two countries have strong economic ties in energy, food, tourism and construction projects. “However, at this stage, a disruption to the energy supply seems highly unlikely.” the bank said. “However, a further escalation of the sanctions cannot be ruled out, in which case Turkey’s country risk premium and cost of funding could rise, causing a larger-than-estimated impact.” The bank said that, on the other hand, the Russian economy also can’t pass through this crisis unscathed as the sanctions may put upward pressure on import prices and inflation in Russia, adding an additional 0.1-0.2 percentage points through more expensive vegetable and fruit imports. Also the probable rise of up to 25 percent in travel services costs over the next year after the travel ban to Turkey is expected to boost inflation a further 0.5 percentage points in 2016. “If the situation escalates to the point of disrupting energy exports, the effect on Russia’s GDP will likely be negative,” the bank said. “Turkey is the second biggest export market for Russian gas, with a $16.5 billion volume in 2014 (around 0.6 per cent of Russia’s GDP), providing 18.8 per cent of Gazprom’s revenues. Any disruption to this supply in 2016, which appears very unlikely at this stage, would harm Russia’s exports and GDP,” the statement said.

“What’s more, industries with a high level of technological innovation are expanding in Ankara. Defense technology is the largest sector, and is expanding very rapidly. “But the level of research culture in Ankara has become very high, thanks in part to the concentration of defense industry innovation. It has spread to areas like information technology, and particularly software, which are also growing fast,” Ozdebir said. Ozdebir pointed out that Ankara has six technoparks, of which the oldest and largest is METU Technopolis, established in 2001. It houses more than 250 companies. There were six Ankara-based companies included among the Deloitte Technology Fast50 companies in 2014. “In our technoparks, cutting-edge innovation is taking place. For example, Ankara software companies are leaders in the development of embedded software -- not just in Turkey, but abroad. They are taking a large share of export markets,” Ozdebir said.

Ankara produces more patents than any other city in Turkey, thanks to the high level of research at its technoparks, Ozdebir said. “And there is a nanotechnology cluster centered around the Ankara technopark which is among the best in the world,” he added. However, the research culture of Ankara should spread further, to the other cities of Anatolia, Ozedemir said, adding: “We need to increase our human capacity so that the province and the region can benefit from it.” Ankara is also taking advantage of the diversification of the defense industry, according to Ozdebir. Some of the Ankara defense companies are moving into related areas like electronics and high-speed trains. “This will increase investment in Ankara, bringing in new companies and new capital,” he said. Ankara is building a new industry zone dedicated to aviation and space technology, Ozdebir said. Where Ankara has been less successful, Ozdebir admitted, is in attracting foreign direct investment. “The lure of Istanbul is great in this area among foreign companies. What’s more, the construction industry attracts more investment than high-tech, because the time for a return on investment is shorter.” However, this is changing as interest in Ankara’s hightech sector grows, according to Ozdebir. “As the quality of our innovation and technology input becomes better known, increasing investment will follow,” he said.

EconomicNewspaper

January February 2016

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These are emotional reactions. Even if you import $1 billion worth of goods, turkey is not a country that would collapse because of such a loss. Other doors will open, other resources will emerge, which is already happening. Rest assured we will stand tall and never bow down. We will continue to increase our production and find new markets.” Attending the innovation champions award ceremony, president recep tayyip erdoğan presented awards to firms, whose innovative and business development projects were ranked the highest.

the turkish stream project a while ago because our demands were not met. Therefore, there is not an unfavorable situation here, caused by the recent developments. We do not approve of russia’s attitude to escalate the crisis.” “Turkey is not a tribal state”

“Turkey has achieved a grand transformation in economy” Expressing that turkey had achieved a grand transformation in economy in the last 13 years, president erdoğan said: “now, we have our 2023 goals ahead of us. The policies and practices that carried turkey to these days were very important but we cannot attain our 2023 goals solely with them. We have to raise the bar, develop new policies and realize them with determination.”Underscoring that turkey needed to shift its production from labor intensive businesses to innovative, high-tech businesses with high brand value, president erdoğan stressed the importance of domestic designs. “Turkey ranked 58th in global innovation index” Noting that turkey was ranked the 58th in the global innovation index in

President Recep Tayyip Erdoğan

2015 while it was 74th in 2012, president erdoğan expressed his belief that innovation would be turkeys’ driving force in economy. Recalling that the share of r&d in the national budged had risen from 5 per thousand in 2002 to 1% in 2014, president erdoğan declared that they aimed to increase r&d’s share to 3%. Emphasizing that culture of innovation should be firmly established both in institutional and individual areas, president erdoğan said: “the national innovation strategy for 2023, prepared by the turkish exporters assembly, is of significance.” “Turkey shelved turkish stream project” Stating that turkey did not have rich

natural resources, which was why it relied on foreign resources, president erdoğan noted that turkey used mostly natural gas for heating and producing electricity, that our biggest supplier was russia for natural gas, and iraq for crude oil. The president said, listing turkey’s other suppliers: “it is possible to find different suppliers. During our visit to qatar, we took an important step towards this end. During mr. Prime minister’s visit to azerbaijan, we also took different steps. There is no indication that the problems between us and russia will be reflected to natural gas or to energy projects such as the akkuyu nuclear power plant project. There is news that russia suspended the turkish stream project. On the contrary, turkey shelved

Turkey’s budget deficit at $7.4 billion for 2015

Turkey’s government ran a 22.6 billion Turkish Liras ($7.4 billion) budget deficit last year, Turkey’s finance minister announced in a press conference Jan. 15. The amount was 1.2 percent of the country’s GDP, and less than 2 billion liras ($656 million) than was forecast for 2015, Naci Ağbal said. “We can say that last year was very successful in terms of budget revenue performance,” he said. “The general government budget in 2015 will be a balanced budget and will be one of best performances in the last nine years,” Ağbal said.

The December budget deficit was 17.1 billion liras ($5.6 billion), with interest payments and personnel expenses such social insurance payments taking up a large part of revenue, Ağbal said.

According to the ministry, Turkey’s government budget revenue reached 483.4 billion liras ($158.7 billion) in 2015, a 13.6 percent increase compared to 2014. Budget expenditures for last year rose to 506 billion liras ($166.1 billion), marking a 12.8 percent increase year-onyear. Interest expenses stood at 53 billion liras ($17.4 billion) in that period, a 6.2 percent of increase from the previous year. The ministry estimated that budget

expenses for the 2016 fiscal year would total 570.5 billion liras ($188 billion), up by almost 10 percent compared to the 520.4 billion liras ($170.8 billion) forecast for 2015. “We forecast that the deficit will hit 1.2 percent of gross domestic product in 2016,” Ağbal said.

“We forecast the ratio of debt stock to GDP at 32.6 percent by the end of 2015. With this figure, we achieved a 0.9-point improvement compared to 33.5 percent in 2014,” he added. The biggest share of the budget was allocated to the Education Ministry with 109.3 billion liras ($36 billion), an increase of 24.9 percent from last year’s allocation. The country’s

Health Ministry will receive 95 billion liras ($31.2 billion) from the budget, according to the ministry. The minister said the government budget for investment would increase by 24.2 percent over the year to reach 60.1 billion liras ($19.7 billion). According to the Finance Ministry, the growth rate of Turkey’s GDP will be 4.5 percent in 2016, while the forecast for inflation is 7.5 percent for the end of the year. The ministry estimated exports for the year at $155.5 billion and imports at $210.7 billion. “Under the current conditions, we forecast that recovery in developed economies will continue and

Underscoring that turkey was using a diplomatic language, president erdoğan said turkey was patient and knew when to say what. The president stated: “everyone should know that turkey is not a tribal state. We previously warned those, who conducted operations over our borders and sovereign rights. Not once, not twice, not even three times. Despite all warnings, this development unfortunately led to such an outcome. Everyone imposed sanctions on russia in food supply but we did not. We sent all food products. When we were asked ‘why are you sending these?’, We said ‘russia is our strategic partner.’ Russia says ‘we do not buy turkish textile products.’ These are emotional reactions. Even if you import $1 billion worth of goods, turkey is not a country that would collapse because of such a loss. Other doors will open, other resources will emerge, which is already happening. Rest assured we will stand tall and never bow down. We will continue to increase our production and find new markets.” President erdoğan underlined that this incident showed how felicitous their will to strengthen the economy and develop the defense industry was.

that growth in emerging commodity importer economies will strengthen while growth in commodity-exporting countries will slow down,” Ağbal said. The country’s exports decreased by around 8.7 percent to $143.7 billion in 2015 from the previous year due to exchange-rate volatility, a plunge in commodity prices and escalating geopolitical risks, according to data from the Exporters’ Assembly of Turkey. The Turkish central government’s budget ran a deficit of 22.7 billion liras ($10 billion) in 2014.

Private short-term foreign debt of Turkey lowest in 5 years

ANKARA-According to data released by the Central Bank of the Republic of Turkey (CBRT) short-term foreign debt in Turkey’s private sector in November hit the lowest level in the last five years at $21.9 billion, with a decrease of $22.4 billion compared to the end of 2014. This figure was the lowest since February 2011. As of November, the remaining non-interest repayments by the private sector for one year stood at $68.7 billion. Long-term foreign debt in the private sector increased by $22.2 billion compared to 2014 and reached $189.8 billion in 2015.

Borrowing from banks via loans increased by $17.8 billion and $828 million through bond issues. In the same period, borrowing by non-banking financial institutions through loans decreased by $554 million, and bond stocks increased by $279 million to $3.4 billion. Loans by non-financial corporations increased by $2.9 billion, and bond stocks increased by $736 million to $5.7 billion. Both for long- and short-term profits, debt on the U.S. dollar, which has gained around 30 percent value against the Turkish lira over the past 12 months, constituted more than 60 percent of all debt

Property sales to foreigners in Turkey up 25.6 pct in November ISTANBUL-Property sales to foreigners increased a remarkable 25.6 percent in November compared to the same month of the previous year - amounting to 2,119 properties sold, according to data released by the Turkish Statistical Institute (TurkStat). Moreover, mortgaged property sales notably decreased 22.7 percent compared to the same month of the previous year - amounting to

28,553 in November, 26.9 percent of all property sales in Turkey. Istanbul was the top province with 703 sales, followed by Antalya and Bursa with 539 and 139 property sales, respectively. According to nationality, Iraqi citizens bought 495 properties in November, followed by Saudi, Kuwaiti, Russian and Afghan citizens with 226, 193, 136 and 98

properties, respectively. Overall property sales in November rose 2.1 percent compared to the same month of the previous year, amounting to 106,008. Istanbul captured the highest share with 18.9 percent of total sales with 20,082 properties sold. Istanbul was followed by Ankara and İzmir with 11,368 (10.7 percent) and 6,522 (6.2 percent), respectively.

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January February 2016

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Turkish textile exporters eye new markets in Africa to recover Russian losses

Russian ruble expected to weaken further

ISTANBUL -Anadolu Agency-Exporters of ready-to-wear textile products in Turkey, who have been hit by sanctions imposed by Russia, are eying new markets in Africa to compensate their losses. Speaking at a press conference in Istanbul, Hikmet Tanrıverdi, the head of the Istanbul Ready-Made Garment Exporters’ Association (İHKİB), said the Russiansanctions caused problems for the economies of both Turkey and Russia, which have had strong ties in the energy, food, tourism, and textile sectors. “Our textile export numbers with Russia were already declining due to the falling ruble and the Ukraine crisis. We had been planning to boost textile exports in 2016, but the Russian jet crisis damaged our plans,” Tanrıverdi said. “Until the political situation between Turkey and Russia clears up, we have decided to set new strategies to direct textile exports [originally destined for] Russia to the African market,” said Tanrıverdi, adding that the textile industry always thinks about the worst-case scenario. “We already have trade relations with Nigeria, and now we are having some talks with Cameroon. We are planning to reach six more countries and a market of 35 million people via Cameroon. I hope we will double ready-to-wear exports to Africa in three years,” he said.

“We have had a deep relationship with Russia for hundreds of years. The Turkish andRussian people also have friendly relations, like relatives,” Tanrıverdi added, saying he did not want to lose hope for ties with Russia. The foreign trade volume between Turkey and Russia was $31.2 billion in 2014, marking a 17.3 percent increase from the previous year.

Hikmet Tanrıverdi, Head of the Istanbul Ready-Made Garment Exporters’ Association (İHKİB)

MOSCOW-The lowest oil prices seen in the last 11 years is pushing the ruble to its weakest on record while market dynamics are expected to continue their downward pressure on the Russian currency, experts have said. “At the moment, the oil market is on downward trend and this does not seem to stop, so I would expect the ruble to go down,” Oleg Shibanov, the program director of Master of Science in Finance at the Moscow-based New Economy University, told the Anadolu Agency. The ruble has weakened nearly 7 percent in December - the second-biggest decrease among developing nation currencies. The Russian economy is heavily dependent on hydrocarbon exports, with more than 50 percent of the country’s revenue deriving from the sale of oil and gas resources. Oil prices have lost more than 60 percent of their value since the June 2014 peak with Brent crude currently trading at around $36 per barrel. “If that’s below $25 per barrel,

THOUGHT OF THE MONTH

Humor

Turkish central bank holds key interest rates ANKARA-The Central Bank of the Republic of Turkey announced that it would hold key interest rates at current levels, the bank said in a statement on its website. The one-week repo rate will be kept at 7.50 percent, and the overnight lending rate at 10.75 percent, the statement by the Monetary Policy Committee said. The Turkish lira rose to about 2.94 to the dollar immediately after the announcement. The euro moved to about 3.20 against the Turkish currency. The move surprised economists a majority of whom had forecast a rise in rates and a simplification of the monetary policy structure as promised by the central bank in August. The central bank had also indicated that it would follow the rate increase by the U.S. Federal Reserve on Dec. 16 with a similar move. “The bank seems more concerned with stimulating growth than with controlling inflation,” commented Attila Yesilada, an economist with Global Source Partners in Istanbul, adding that the Fed’s rate hike will have an effect on the value of the Turkish lira. But some economists welcomed the move.

“Fed pressure on the lira hasn’t been severe and inflation acceleration has been quite moderate. The markets managed to price Fed’s hike almost perfectly. Avoiding hawkish monetary policy is important our days as tricky geopolitical environment and Russia’s sanctions could weigh on economic growth in 2016,” Vladimir Miklashevsky, an economist with Danske bank, said. “A rate increase would have harmed both the sentiment towards economic growth and the real economic expansion through cooling consumption and slowing investments. We see that in the current fragile situation a rate increase would be unnecessary damaging,” Miklashevsky added. But the bank was concerned about market volatility. “Considering the impact of the uncertainty in global markets on inflation expectations and taking into account the volatility in energy and unprocessed food prices, the committee stated that the tight liquidity stance will be maintained as long as deemed necessary,” the bank’s statement said. The bank said that economic growth, maintained by exports supported by

rising demand from the EU countries, was favorable, the statement said. Further, there has been a slowdown in consumer credit thanks to the bank’s tight monetary policies, according to the statement. “Energy price developments affect inflation favorably, while cumulative exchange rate movements delay the improvement in the core indicators. Considering the impact of the uncertainty in global markets on inflation expectations and taking into account the volatility in energy and unprocessed food prices, the committee stated that the tight liquidity stance will be maintained as long as deemed necessary,” the statement said. Some economists found the move difficult to understand, as the Turkish lira was likely to lose support. “This was an opportunity lost, and people will be struggling to understand/ comprehend the CBRT. Inflation is well above target, inflationary expectations are rising and growth surprised on the upside in the third quarter, so why no proper tightening?” asked Timothy Ash, credit strategist with investment bank Nomura in London, in a note published after the announcement.

we should start worrying a lot,” Shibanov said, adding that, “this large decrease impacts a budget deficit a lot and should lead to further ruble depreciation.” Although there was a decrease this year by more than 50 percent compared to 2014, another problem that the Russian economy is currently facing is capital outflows, mainly driven by western sanctions imposed on the country due to the crisis in Ukraine. Commenting on possible pressure on the Russian economy by the Federal Reserve’s (Fed) key interest rate decision Oleg Buklemishev, associate professor in the department of Economics at Moscow State University, said that as the move by Fed was widely expected, the market reaction in Russia was muted. “Of course, if continued, the tightening will bring rebalancing of the global system of yields and risks, but compared with Russia-specific factors, this effect won’t be significant, I believe,” Buklemishev said.

There is no better way to exercise the imagination than the study of the law. No artist ever interpreted nature as freely as a lawyer interprets the truth.” -- Jean Giradoux A Soviet journalist walks into the hospital and tells the desk nurse, “I want to see the eye-ear doctor.” “There is no such doctor” she tells him. “Perhaps you would like to see someone else?” “No, I need to see an eye-ear doctor,” he says. “But there is no such doctor,” she replies. “We have doctors for the eyes and doctors for the ear, nose and throat, but no eye-ear doctor.” No help. He repeats, “I want to see the eye-ear doctor.” They go around like this for a few minutes and then the nurse says: “Comrade, there is no eye-ear doctor, but if there were one, why would you want to see him?” “Because,” he replies, “I keep hearing one thing and seeing another.” Welcome to the Psychiatric Hotline. If you are obsessive-compulsive, please press 1 repeatedly. If you are co-dependent, please ask someone to press 2.

If you have multiple personalities, please press 3, 4, 5, and 6. If you are paranoid-delusional, we know who you are and what you want. Just stay on the line so we can trace the call. If you are schizophrenic, listen carefully and a little voice will tell you which number to press. If you are depressed, it doesn’t matter which number you press. No one will answer. If you are delusional and occasionally hallucinate, please be aware that the thing you are holding on the side of your head is alive and about to bite off your ear. Doctor, doctor, I keep thinking I am a set of curtains! Pull yourself together, man! Doctor, doctor, I keep thinking I’m a bell. Well, just go home and if the feeling persists, give me a ring. Doctor, doctor, people tell me I’m a wheelbarrow. Don’t let people push you around.

Doctor, doctor, I keep thinking I’m invisible. Who said that?! Doctor, doctor, nobody understands me. What do you mean by that? Doctor, doctor, People keep ignoring me! Next! Doctor, doctor, No one believes a word I say. Tell me the truth now, what’s your REAL problem? Doctor, doctor, I feel like a pack of cards. I’ll deal with you later. Doctor, doctor, people keep telling me I’m ugly! Lay on the couch, face down. Doctor, Doctor, I can’t stop stealing things. Take these pills for a week; if that doesn’t work I’ll have a computer. Doctor, doctor, I keep thinking I’m a spoon. Sit there and don’t stir

Well!!!

A consultant is someone who takes the watch off your wrist and tells you the time.

THE ECONOMIST What is a consultant?

EconomicNewspaper

January February 2016

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Turkish Deputy PM: No need for discussions over central bank Climate change pressures İbrahim Küpeli ibnahim.kupeli@img.com.tr

Deputy Prime Minister Mehmet Simsek said the discussions regarding the independency of the Central Bank of the Republic of Turkey (CBRT) should end with the start of the opening of the 17th chapter in membership negotiations with the European Union. ISTANBUL- The chapter deals with economic and monetary policies and opened at the intergovernmental conference in Brussels. This chapter requires enhanced economic coordination and stronger economic structures among the member states. Speaking on Bloomberg HT TV, Şimşek explained that the 17th chapter is more meaningful to Turkey than EU membership, saying “the 17th article is very important in terms of the

Mehmet ŞimŞek Deputy Prime Minister

permanence of the low levels of inflation and interest rate.” Şimşek underlined that the process of membership, which has been reinitiated by this article, contributes to Turkey’s dynamism and prompts the country to make reforms. He also emphasized that the 17th article will result in ensuring the macro financial stability of Turkey. Moreover, stressing that with the contribution of the EU as an anchor, Turkey has lowered its interest rate to single digits and has been attempting to keep the inflation rate below 5 percent. Portraying this as a success story, Şimşek said the 17th chapter, which will further contribute to Turkey’s macroeconomic stability, makes the discussions on the CBRT senseless. Furthermore, Şimşek said “the fundamental mission of the Central Bank is price stability. Price stability is crucial for Turkey. Along with price stability, Turkey can enhance its growth potential; thereby, it can increase its welfare. Price stability is correlated with macroeconomic stability which brings about growth.” Noting that the implementation of the road

map will bring about a positive atmosphere and commenting on the Federal Reserve’s possible initial interest rate hike, Şimşek said, “I expect an interest rate hike from the Fed, which would be beneficial. We [the government] are a team with the CBRT and in the U.S., there is the same team vibe. It is not possible for the U.S. to act independently from global developments. What matters is that the amount of the hike is reasonable. It is important for the CBRT to simplify its monetary policy. Although the Fed implements a rate hike, I do not foresee a synchronized rate increase.” Şimşek also added that “along with the collapse of commodity prices, the risk appetite for the emerging economies has been diminishing. The impact of the decrease in commodity prices is permanent since it narrows our trade deficit. Making reforms is hard; therefore, we established a committee to track reforms. We are clear about the issues such as political ethics, rents, public bid law. We are ready to work [on reforms] with the opposition.” Moreover, Şimşek added that they have been working to alleviate the burden to be taken on by the private sector in regards to the minimum wage hike.

Turkish Government put new incentives into action for entreprenuers Science, Industry and Technology Minister Fikri Isik announced that a Growth and Innovation Fund will be established with a budget of TL 200 million ($68.3 million) as part of the Smalland Medium-Sized Enterprises (SME) Development Support Program. Isik delivered a speech during the Entrepreneurship Awards Ceremony organized by the Small and Medium Industry Development Organization (KOSGEB) at the ATO Congressium in Ankara, which welcomed Prime Minister Ahmet Davutoglu as the guest of honor. The 2016 Action Plan of the 64th government, which includes various promises for tradesmen, workers, farmers, students and women, and is to be implemented within the next three months, was announced by Davutoğlu . The plan promises various supports for students, graduates and youth including TL 50,000 in financial support plus up to TL 100,000 in interest-free loans for young entrepreneurs. The first step to realize this was taken at the ceremony. Stressing that technology-driven entrepreneurship enables companies to grow more rapidly and gives rise to the emergence of giant companies, Işık said the ministry provided 628 entrepreneurs with techno-enterprise capital support this year. The minister vowed to increase the upper limit of this incentive from TL 100,000 to TL 150,000. Furthermore, the government will cover the wages of new graduates being employed for the first time, and the related regulation will enter into force within the next three months. According to the plan, value-added tax (VAT) will not be imposed on feed and fertilizers, and financial support of up to TL 30,000 will be granted to younger farmers for projects they submit. Programs to extend rural development incentives to 81 cities are also in progress. Referring to Turkish Exporters Assembly (TİM) data, Işık said the share of the largest 2,000 export companies in overall annual exports has decreased by around 1 percent on a regular basis in recent years, and the share of com-

food system

The number of 195 nations agreed the agreement at the UN climate conference following discussion held in Paris, as well as other global problems pose a threat for the entire world peace between 30th November and 11th December. The leaders provided political leadership and support to reach an ambitious and effective climate change agreement in order to set a low-carbon, climate-resilient future to keep average global temperature below two degrees Celsius. Despite some protesting after the agreement, Paris conference regarded an opportunity to secure a global climate change agreement might pave the way towards a safer, healthier, more prosperous and sustainable future.

panies that rank after the top 1,000 exporters increases 1 percent on a regular basis every year.

Pointing to the fact that KOSGEB provided SMEs with TL 14.5 million in support in the first 12 years of its founding and this figure has soared to TL 3 billion since 2002, Davutoğlu said he was even happier that KOSGEB has substantially used the budget allocated for this support and us requesting a larger budget. “We are very happy with the emergence of an excited and motivated entrepreneur stratum,” Davutoğlu said. Davutoğlu added that the most important yield of the environment of trust and stability is that the people of Turkey can now make medium- and long-term plans. “We have institutionalized both political and economic stability in Turkey, and our people can see their future now,” he said.

Işık said the role of SMEs in the rise of exports and income is clearly seen in the ministry’s Entrepreneur

Information System data. Stressing that SMEs will be the greatest strength of Turkey while achieving its economic and social targets in the upcoming period, Işık said SMEs will push up Turkey’s exports to $500 million and national income to $2 trillion.Işık said the ministry runs studies on SMEs and entrepreneurs in two main areas, adding that it wants to expand the pool of entrepreneurs in the country and enable the establishment of more

In the future, world food production must rise 60% so as to keep pace with demographic change. Climate Change can transfer risks of food-borne diseases from 1 region to another, threatening public health in new ways. “Ecosystems, and food and water supplies are under increasing pressure. The hardest hit is the poor and vulnerable – including small farmers, fishing communities and indigenous peoples,” warned the UN chief.

So, in order to achieve the target foreseen 1.5 or 2 degrees by 2030, the world’s use of fossil fuels will need to be reduced. The importance of climate conference Removing fossil fuel subsidies is predicted emerges forefront in terms of rising sea to reduce greenhouse gas emission by 10 level, food systems and rural livelihoods. per cent by 2050. Because of climate change is already putIn order to be successful fossil fuels ting stress on food systems and rural livelishould be replaced with renewables. Wind hoods all around the globe. plants and solar energy offer major potenThe countries of which economies de- tial for reducing poverty and limiting greenpends on a climate-sensitive natural re- house gas emissions. source base, including rain-fed subsistence Transport sector is responsible for a agriculture, are vulnerable to the effects of quarter of all energy related CO2 emisclimate change. sions and this is predicted to grow to a According to FAO, 75% of the world’s third by 2050, faster than any other secpoor & food insecure people rely on agri- tor. According to the International Energy culture & natural resources for their liveli- Agency, “we actually need three quarters of all new vehicle sales to be electric to keep hoods. warming below two degrees Celsius.” It is also expected to help address the As vehicles become more concentrated needs of the nearly 634 million people, or a tenth of the global population who live in urban areas concerns are also mounting in at-risky coastal areas just a few meters around impacts on local air and noise polluabove existing sea levels, as well as those tion, which will disproportionally affect the living in areas at risk of droughts and floods. areas in which up to 66% of the global population will live and work by 2050. Rising temperatures are also predicted EVs offer a powerful and increasingly to reduce catches of the world’s main fish popular solution in achieving sustainable species by 40%. urban mobility. If the necessary precautions would not So, economies are urged to shift from be taken from now on, the problem would grow like avalanche in the upcoming years. fossil based to green based models. enterprises. Also, we want to enhance quality while increasing quantity and boost the number of innovative and competitive SMEs. The Science, Industry and Technology Ministry will respond to the International Incubation Center and Accelerative Support Program’s call next month, and both the ministry and the KOSGEB will focus on works in the fields of residual risk capital funds, incubators and accelerators, according to Işık.

Fikri Isik Industry and Technology Minister

Currently, the food production is not sufficient to meet need of the world population.

Berkosan Insulation Inc. won the Successful SME Grand Award of the Year, while Makersan Machines Ltd. won the Innovative SME of the Year Award; Besa Bakery Products Ltd. won the Collaborative SME of the Year Award; Tamsan Fasteners Inc. won the Exporter SME of the Year Award; Lucas Electricity Inc. won the Environmentally Friendly SME of the Year Award; Mira Industrial Training Ltd. won the Young Entrepreneur of the Year Award; Desa Food Products Inc. won the Female Entrepreneur of the Year Award; Arar Machines Inc. won the Global Entrepreneur of the Year Award; AKY Technology Ltd. won the Innovative Entrepreneur of the Year Award; and Mora Software Ltd. won the Jury’s Special Award.

Turkish packagers rank third at global awards ISTANBUL-Turkish packaging manufacturers received a total of 13 awards in the WorldStar 2016 Competition, ranking third in the world, said the Packaging Manufacturers Association (ASD) in a written statement. A total of 293 products competed from 35 countries in the WorldStar 2016 Competition, which was organized by the World Packaging Organization in Mumbai this year. A total of 13 Turkish products were awarded in the competition. Turkey thus ranked third, just following Britain with 15 awards and the U.S. and China with 14 awards each. Japan and Austria also received 14 awards each, according to the ASD statement. Saying that Turkish packaging manufacturers have raised their competitive power by focusing on developing products with higher added value, ASD President Sadettin Korkut added: “The WorldStar [Competition], which has been organized since 1970, is the most significant competition in the sector. The products that receive the Competency Award in our Crescent and Stars of Packaging Competition and bigger awards can have the chance to enter into the WorldStar Competition. “Our global awards have shown how Turkish products become global brands.” The companies will receive their awards in a gala ceremony in Budapest in May 2016, according to the statement. Turkish companies also received a total of 18 awards at the AsiaStar Competition this year, which ranked fourth.

EconomicNewspaper

January February 2016

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Turkey to focus on natural gas storage, Energy Minister says Political tensions with Moscow are forcing Ankara to search for alternatives to Russian imports to ensure energy supply security. Energy Minister Albayrak said Turkey will focus on building natural gas storage facilities first while also holding talks with different suppliers. Energy and Natural Resources Minister Berat Albayrak said that the ministry’s priority will be increasing the natural gas storage capacity of the country. Albayrak gave a briefing about energy policies, investments and plans of the energy ministry to deputies representing the Marmara region. The government will support investments in two natural gas storage facilities with a total capacity of 4 billion cubic meters with a comprehensive stimulus package. The investment aims to make a major contribution to natural gas supply security and trade in Turkey as a part of endeavors to increase the natural gas storage capacity. The government is set to offer a stimulus package for two new natural gas storage facilities to be constructed in Mersin by Bendis Energy via Toren Natural Gas Storage and Mining Inc. and Gas Storage and Mining Inc. Bendis Energy will invest nearly $10.5 billion in the storage facilities that will have a total capacity of 4 billion cubic meters. The natural gas supply from Russia to Turkey was brought to the agenda right after a Russian Sukhoi-24 fighter jet violating Turkey’s airspace in the southern province of Hatay was downed by Turkish F-16 fighters. The Russian government decided to implement some economic sanctions against Turkey including banning

Russian sanctions against Turkey are ‘unsustainable’

some Turkish goods from entering the country. Yet due to binding agreements, the Russian natural gas flow to Turkey continues uninterrupted; however, Turkey held talks with several natural gas suppliers since the incident to ensure energy security. Albayrak said the government does not think or expect that Russia will cut natural gas flow to Turkey due to the crisis, adding that, nevertheless, all possibilities are taken into consideration and necessary measures have been taken. He added that Turkey has hydroelectric power plants, coal plants and other alternatives regarding liquefied natural gas (LNG), gas capacities and cargo handling. Pointing to the fact that Turkey imports 56 percent of its natural gas from Russia, Albayrak stated the government will take steps to diversify this supply. The minister also said that Turkey is holding positive talks with Qatar,

Turkmenistan and Azerbaijan on natural gas import. Underlining that the first thing to be done is to increase the capacity of natural gas storage facilities in Turkey, Albayrak said investments in this area will be rapidly actualized. Also, storage facilities will be put into operation in Thrace and Lake Tuz. Turkey’s first underground natural gas storage facility in Silivri, which has a storage capacity of 2.6 billion cubic meters, is operated by the Turkish Petroleum Corporation (TPAO). The second one will be put into operation in Lake Tuz as of 2016 and will have a storage capacity of 500 million cubic meters in the first phase. Its total capacity will be increased to 1 billion cubic meters in the second phase, which will be put into use in 2019. The Ministry of Energy and Natural Resources is developing projects to store around 10 percent of the imported natural gas in Turkey

every year over the next five years. Toren Natural Gas Storage and Mining Inc. will invest nearly $7 billion in a 3-billion-cubic-meter storage facility. The company will import machines and equipment worth more than $695 million for the facility that will employ 48 people. Gas Storage and Mining Inc. will make a fixed investment of nearly $3.5 billion in a storage facility where 1 billion cubic meters of natural gas will be stored. The company will import machines and equipment worth more than $360 million for the facility that will employ 24 people. The natural gas storage facilities will be supported with investment incentives such as value-added tax returns, value-added tax exemptions, customs duty exemptions, a 90 percent tax deduction, investment support of 50 percent, seven years of support for an insurance premium employer deal, the allocation of investment placement and interest support.

Moscow flared following two Turkish F16s’ downing of a Russian jet near the Turkish-Syrian border. After the incident, Moscow tightened restrictions on economic and trade relations with Turkey, among them a ban on charter flights between Russia and Turkey, to whereRussian travel agencies have also been told to stop selling tours.

Mahir Ünal Turkish Culture and Tourism Minister

ANKARA- Speaking during Anadolu Agency’s editors’ desk meeting in Ankara, Turkish Culture and Tourism Minister Mahir Ünal said the tourism sector had been affected by the Kremlin-imposed restrictions, meanwhile calling the sanctions “unsustainable.” “Turkey does not want to lose the Russian market in tourism, but we will not depend only on Russian tourists,” he said, elaborating. Tensions between Ankara and

Stating that about 3-4 million Russian tourists visit Turkey annually, Turkish Culture and Tourism Minister Mahir Ünal said, “We are working on some measures against the sanctions. The crisis will end eventually, but we need to diversify the tourism sector.” According to Ünal, energy and tourism have always functioned as constructive factors between Turkey and Russia. “There lots of Russian citizens who are in love with Antalya [a resort destination in southern Turkey],” the Minister said. “Moscow has been making black propaganda about Turkey, but we will correct this misunderstanding,” he added.

EconomicNewspaper

January February 2016

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Third bridge over Bosphorus to open first half of 2016

Fear of $30 a barrel haunts oil-dependent economies ANKARA-Due to a 65 percent fall in prices since mid-2014, economies of oil producing countries that are highly dependent on oil sales for revenues are likely to be affected next year if prices reach $30 a barrel. Goldman Sachs announced in January this year that it anticipated oil prices would fall as low as $30 per barrel due to oversupply and low global demand. The international investment bank revised this forecast in September, and stated that if the current high level of oil stock persists, oil prices could fall to $20 a barrel next year. Such a forecast puts pressure on major oil producing countries, especially on those that have high production costs and are largely dependent on revenues generated from oil sales. The full cycle production costs -- all costs associated with production excluding dividends or interest on debt

Transport Minister Binali Yıldırım has said the third bridge over Bosphorus will likely open in the first half of 2016, either in April or May. He noted that there would be four motorway lanes on the Northern Marmara Motorway and one railway line in each direction over the bridge during an Q&A session with a number of deputies at parliament late Dec. 22. Yıldırım said some 95 percent of the bridge’s road has been laid and some 97 percent of the cables have been mounted over the bridge. Around 88 percent of the all construction activities have been completed, including the 115-km-long roads connected to the bridge. “All works on the bridge will be completed in the first half of the next year, probably in April or May 2016. After this bridge and its connecting roads are opened for service, Istanbul’s heavy vehicular traffic will be canalized to this route, thus relieving the intra-city traffic. The first and second bridges over

payments -- are estimated to be in the $40-50 per barrel range on average for Russia. While Fear of $30 a barrel haunts oil-dependent economiesaround $55-60 per barrel, new Canadian oil sands projects are around $7080 per barrel. This amount is estimated to be around $60-70 per barrel in Venezuela, $25-35 a barrel in Nigeria, and around $20-30 in Middle Eastern countries such as Iraq and Saudi Arabia.

Bombardier plans to invest in Turkey’s high-speed rail Transport Minister Binali Yıldırım

Bosphorus will mainly for light vehicles,” he said. The groundbreaking ceremony for Istanbul’s $3-billion third bridge, named the Yavuz Sultan Selim Bridge for the Ottoman Sultan who was famous for his conquests in the Eastern world, over the Bosphorus was held in May 2013. He also added that the number of cruise tourists has increased to 1.8 million in a total of 12 ports this year. Yıldırım said the number of motor vehicles increased from 8.5 million to 20 million in the last 12-year period.

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BERLIN-The head of Canadian train maker Bombardier said on Dec. 23 that his company would invest in Turkey’s high-speed rail network construction. Speaking to Anadolu Agency in Berlin, Bombardier head Laurent Troger said Turkey was one of the world’s most important railway markets as it connects Europe and the Middle East. As Turkey invests in a high-speed railway network to connect the Turkish capital Ankarawith other provinces, Bombardier would participate by investing in a manufacturing plant and maintenance center in the country, Troger said. “The modernization process is proceeding very fast and government’s commitment of $45 billion investment to the railway sector boosts this importance to further levels,” said Troger,

who on Dec. 9 was named president of the company. According to Troger, if the company wins one of the local high-speed train tenders, a technology transfer to Turkey will take place. “We already have local employees in Turkey. But if we win one of the highspeed train tenders, surely there will be many more Turkish employees,” Troger said.

for high-speed train systems.

“We attach great importance to maintain quality at this point. We commit to providing comprehensive training in a sector which is technology-oriented and exciting,” he added.

The government intends to increase the length of the network to 26,000 kilometers, nearly double today’s 12,485 kilometers, including 10,116 kilometers of high-speed lines.

According to the train maker’s chief operating officer, Canadian aerospace and transportation company Bombardier wants to boost cooperation with local companies

“Turkey is one of the most important rail markets in the world. We want to produce high-speed train systems in Turkey with a strong partner,” he said.

A number of railway projects in Turkey are currently underway in the western, eastern and northern parts of the country.

EconomicNewspaper

January February 2016

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Turkey to strengthen tourism amid Russia row

Global energy demand to increase by 47 pct by 2040 ANKARA- Energy demand is expected to increase by 47 percent to 399 million barrels oil equivalent per day (mboe/d) by 2040, according to OPEC. Based in Vienna, the Organization of the Petroleum Exporting Countries (OPEC), released a report, ‘World Oil Outlook for 2015’, examining the main drivers of the global energy demand and revealed its projections for the oil markets in the medium to long term up to 2040. The report shows fossil fuels will continue to dominate the energy mix with a 77.7 percent share by 2040. Out of global energy demand, natural gas is expected to have the largest share, making up 27.9 percent by 2040. Oil is projected to follow with 25.2 percent and coal with 24.6 percent. Regarding the rise in energy demand, the organization’s report

says, “Much of this growth will continue to be concentrated in the developing world as industrialization, population growth and the unprecedented expansion of the middle class will propel the need for energy.” Developing countries’ demand within the total energy demand in 2040 is projected to be the highest contributor at 63 percent, 13 percent higher compared to 2014. “OECD energy consumption, on the other hand, will only increase 4 percent from 2014–2040 due to its continued focus on low energy-intensive industries, improved energy efficiency and slower economic growth,” the report highlights. Additionally, in the medium term by 2020, global oil demand will reach 97.4 mb/d. In the OECD region, oil demand is projected to experience a decline of 0.2 mb/d, to 45.6 mb/d

in 2020. Oil demand in developing countries is anticipated to increase by 6.1 mb/d between 2014 and 2020, reaching 46.4 mb/d, the report shows. For the long-term, global oil demand is expected to increase by over 18 million barrels per day (mb/d) by 2040, to reach 109.8 mb/d, the report said. Demand in the OECD region is expected to decrease by 8 mb/d, down to 37.8 mb/d, while demand in developing countries is expected to increase significantly (by almost 26 mb/d) to reach 66.1 mb/d, the report adds. OPEC crude supply is expected to increase to 40.7 mb/d in 2040. “The share of OPEC crude in the total world liquids supply is projected to increase to 37 percent in 2040, which is above 2014 levels of almost 33 percent,” the report stresses.

ISTANBUL-Turkey’s Prime Minister has revealed new measures for the tourism industry as tension between the country – a highly popular destination for Prime Minister Ahmet Davutoğlu Russian tourists – and Moscow remains high. Ahmet Davutoglu’s remarks came at a press conference to start a major national and international publicity campaign – dubbed ‘Discover the potential’ – in Istanbul. Davutoglu said that some measures had already been taken to strengthen Turkey’s competitive tourism capacity earlier in 2015. As part of those measures, Davutoglu said, travel agents from eight countries which are part of the Commonwealth of Independent States had already received special incentives. “We will continue [this] practice by expanding its content. In this regard, we increased the number of tourist-bringing countries to 27,” Davutoglu said, without specifying the new nations. Addressing a crowd which included some of the country’s leading business figures, bankers, academics and sportspeople, Davutoglu said that Turkey

had already financially supported some travel agents for non-scheduled touristic flights to the tune of $6,000 each. “We paid around 22,173,000 TL [$7.6 million] for 983 flights in the April-May 2015 period,” he said, adding that this practice would continue increasing in the 2016 season. “The support that we will give flights which bring tourists to Antalya, Mugla and Izmir airports, is no longer for aircraft coming from a particular country,” Davutoglu said. “[The new implementation] will apply to any aircraft from all countries regardless of their starting point,” he added. During the new campaign, which started on Dec. 1 this year, French, English and Arabic-language promotional videos will be shown around the world, while a Turkish video clip is being prepared for the domestic market.

Investments in startups have aimed more at high-tech companies TECHNICAL SPECIFICATIONS Model No Input Power max Vacumm Rated Voltage Air Flow Water Suction Capacity Pump Power Pump Pressure Extra Basin Volume Waste Basin Volume Container Dust Capacity Dust Bag Capacity IP Code Gross Weight Size

: 114H : 1300 W : 1950 mmH2O : 220-230 V AC, 50/60 Hz : 200 m3/h : 1,5 L/S : 26 W : 2,5 bar :7L : 8,5 L :5L :5L : IPX4 : 13,5 kg : 410x510x593 mm

ANKARA-Anadolu Agency-Investments in startups in Turkey have aimed more at high-tech companies with high-end products for business, experts have told Anadolu Agency. “The Turkish startup scene is vibrant, but it is changing,” said Serkan Ünsal, an entrepreneur and investor who runs the Turkish portal Startups.Watch.

TECHNICAL SPECIFICATIONS Model No Input Power max Vacumm Rated Voltage Air Flow Water Suction Capacity Pump Power Pump Pressure Extra Basin Volume Waste Basin Volume Container Dust Capacity Dust Bag Capacity IP Code Gross Weight Size

: 114R : 1300 W : 1950 mmH2O : 220-230 V AC, 50/60 Hz : 200 m3/h : 1,5 L/S : 26 W : 2,5 bar : 3,5 L :6L :5L :5L : IPX4 : 11,5 kg : 385x485x485 mm

TECHNICAL SPECIFICATIONS Model No Input Power max Vacumm Rated Voltage Air Flow Dust Bag Capacity IP Code Gross Weight Size

: 114L : 1300 W : 1950 mmH2O : 220-230 V AC, 50/60 Hz : 200 m3/h :5L : IPX4 : 8,5 kg : 390x418x440 mm

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before,” said Solvoyo’s chief operating officer, Nilufer Durak.

Durak is talking to venture capitalists about taking her company international. About 277 such companies have received funding this year in Turkey, according to Startups. Watch, out of about 400 in total which have received money from investors. The hottest area is In the first half of 2015, investcompanies offering software and ment increased by 50 percent, while service platforms (SaaS), Ünsal the amount of total early-stage said. investments grew by more than 200 SaaS means that applications percent, Ünsal told Anadolu Agency. The Turkish government offers for users are hosted by others, either a vendor or third party, and a 75 percent tax deduction for this made available to customers via kind of investment, and that is helping to greatly increase investor the Internet. “SaaS providers are getting a lot of attention in Turkey interest, he added. today,” Ünsal said, adding, “But “But, today, more investment also companies that offer services is shifting toward companies with for business, and business software high-tech products and services for producers, are getting particular businesses, and away from consum- interest.” er services and e-commerce,” he About 50,000 companies of all said. Ali Karabey, from the Istanbul types were started in Turkey in investment firm 212 Capital Part2015, according to the Union of ners, said domestic investors were Chambers and Commodity Exwarming to the idea of high-tech changes of Turkey (TOBB). firms. “Venture capitalists in Turkey now have a better understandBut only a fraction of these fit ing of this type of company, which is likely to grow at a regular rate for the description of startups, companies with innovative ideas that a long time,” he said. traditionally start out in an ownTypical of such companies is Ho- er’s garage and grow to become a Google or Microsoft. telRunner, which provides a platform to connect hotels of all sizes There have only been about with reservation services and travel 5,000 of these in Turkey since 2010, agencies, or Solvoyo, which offers Ünsal said. Of these, only 277 have supply-chain improvements using been funded so far this year, with its own software. a total of $39.9 million paid out in “It is challenging for companies 2015 for Turkish high-tech startups. like ours to make our case to inves- “The number of companies is far tors, but, in Turkey, they seem to be too small - it should be closer to a getting the idea better than they did thousand,” Karabey said.