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newsletter no. 8 november 2009m
Turkey and Iran plan to create free industrial zone Turkey and Iran plan to set up a free industrial zone, said Turkey's Industry and Trade Minister. The idea came up for consideration last year, while Turkey and Iran aim to conclude the project by year end. "The project to establish a free industrial zone at the border was suggested by Iran and we accepted it", said Nihat Ergun. "Our legal infrastructure and incentives system paves the way for such a project. Meanwhile, Iran's rich energy, natural gas and natural resources could make a huge contribution to it", Ergun noted. "We are attaching great importance to this project in order to make it the biggest and most important industry and production hub in the Middle East", he added. Ergun said the zone will cover the eastern Anatolian provinces of Van and Igdir, which are located along the border with Iran; Igdir in the north and Van in the south. AA 02.10.2009
Turkey eyes major share from China's foreign exchange reserve Following his talks in China, the Turkish State Minister for Foreign Trade Zafer Caglayan met with Chinese Deputy Prime Minister Wang Qishan. During the meeting, Caglayan briefed Qishan on Turkey's financial markets and in particular its treasury bonds with a view to securing a considerable share of China's USD 2.1 trillion worth of foreign exchange reserve, and to suggesting the use of national currencies in bilateral trade between the two countries. Dunya 02.10.2009
Istanbul and Athens stock exchanges create joint index In a landmark development, the Athens Stock Exchange and the Istanbul Stock Exchange have announced the creation of an index with the 30 largest companies to boost trading in the region’s largest stock markets. The “Greece and Turkey 30 Index” will be calculated, maintained and distributed by STOXX Limited, an index compiler, according to a joint statement by the two bourses this week. The index will comprise 15 of the largest and most heavily traded companies from each market. The number of stocks from the banking sector will be limited to four from each market. "The GT-30 will certainly add further visibility to both markets, which is a significant contribution at a time when the world markets are gradually recovering from the financial turmoil”, said Huseyin Erkan, Chairman of the Istanbul Stock Exchange (IMKB). The common index will facilitate cross-border access between the two markets and assist in the creation of exchange-traded funds and derivative products. Hurriyet Daily News 02.10.2009
Turkey’s natural gas production to be doubled Efforts are underway to finish the construction of the Turkish Petroleum Corporation's (TPAO) natural gas production and drilling platform in Romania which will double Turkey's natural gas production. A Romanian company is constructing the giant platform in a dockyard for TPAO in Constanza, on the Black Sea coast. The two-story platform will start extracting natural gas off the shores of Turkey's Black Sea town of Akcakoca, first discovered in 2003. Metin Kilci, Undersecretary for the Turkish Ministry of Energy and Natural Resources, told reporters after visiting the dockyard that Turkey's natural gas production will be doubled after the completion of the platform. minvest.gov.tr
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The platform, planned to go into service by the end of 2010, will cost USD 100 million. The first story of the platform will be used for natural gas production, while the second story will be used for exploration. Turk.net 05.10.2009
Foreign investors eager for Turkish public offerings “Foreign and domestic investors are awaiting initial public offerings of large Turkish companies”, said Huseyin Erkan, President of the Istanbul Stock Exchange (IMKB). “It is the perfect time for initial public offerings. The Privatization Administration should definitely consider making an initial public offering”, said Erkan. It is appealing for foreign investors that Turkey has managed the crisis well and performed admirably, he emphasized. “If large companies are offered to the public now, I expect the demand to be high. An initial public offering for one or two medium-size or large-scale companies may take place through the end of the year. The significant initial public offerings are likely to take place in 2010.” Erkan also said IMKB will launch an initial public offering campaign this month with the Union of Chambers and Commodity Exchanges of Turkey (TOBB). The meetings will be held in the chambers of various cities to supply information, he said, adding that intermediaries, corporate investors and consultancy companies will attend the meetings. The companies will also have an opportunity to meet directly with investors. AA 07.10.2009
Hormats: US sees Turkey as a strong economic partner Robert Hormats, Undersecretary for Economic, Energy and Agricultural Affairs at the US Department of State, said on Monday that his country is impressed with Turkey's economic achievements. Hormats said Turkey is an important economic partner of the United States in addition to the long-standing strategic alliance. Hormats is currently in Istanbul for the annual meetings of the International Monetary Fund (IMF) and the World Bank, and participated in a dinner hosted by US companies in Turkey. Prior to the meeting, Hormats told reporters that everybody appreciates Turkey's policies and leadership during the global crisis. Hormats said Turkey is pursuing the right policies during the crisis, and has a strong economic performance. The Undersecretary said the Turkish financial system has successfully overcome the storm, and that Turkish companies could still compete well. Hormats said one of the reasons for their visit to Turkey is to increase trade and investments between the two countries, and that the United States sees Turkey as a strong economic partner, rather than just a security or strategic partner. AA 07.10.2009
Babacan: Our vision is to make Istanbul an international finance center Ali Babacan, Turkey's State Minister and Deputy Prime Minister, said the vision of the government is to make Istanbul initially a regional and eventually a “global finance center”. “According to a report issued by the Banks Association of Turkey, Istanbul is relatively better positioned than its competitors as regards the factors that are required to become an international finance center", Babacan said at a press conference held on the Strategy and Action Plan to Make Istanbul an International Finance Center. Babacan enumerated those factors as low business running costs, qualified labor force, domestic and regional economic minvest.gov.tr
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growth potential, and attractive style of living. The minister said courts specialized in financial matters will be set up to strengthen the legal infrastructure in Istanbul. "Another important aspect in the legal area is to establish an independent and autonomous institutional arbitration center in Istanbul", he stressed. Babacan said a mediation system will therefore be developed to solve disputes quickly and without resorting to courts. AA 09.10.2009
Turkey’s solid banking sector sets a successful example The booklet on Turkey's "Banking Experience" drew great attention during the International Monetary Fund (IMF) and World Bank Annual Meetings in Istanbul. The booklet, "From Crisis to Financial Stability: Turkey Experience" was distributed to delegations and NGOs attending the meetings. The Banking Regulation and Supervision Agency (BDDK), Turkey's Savings Deposit Insurance Fund (TMSF), the Central Bank and the Treasury contributed to the preparation of the booklet that explains the banking crisis in Turkey before 2001, the regulative principles adopted after the crisis and the recent outlook of the banking sector. Today’s Zaman 09.10.2009
Countdown for oil, natural gas exploration in the Black Sea The Turkish Minister of Energy and Natural Resources Taner Yildiz said this week that Turkey could launch an oil and natural gas exploration project off the Black Sea coast before the year end. Speaking to reporters ahead of the 2nd International Symposium on the Geology of the Black Sea region in Ankara, the Minister stated that a large offshore oil platform will set off from Norway this month and is expected to reach Turkey's northern coast in mid-December. Yildiz said oil explorations will be conducted in the Black Sea in cooperation with Brazil's state-run oil company, Petrobras. The Turkish Petroleum Corporation (TPAO) recently signed an agreement worth USD 800 million with Petrobras to jointly explore for oil in the Black Sea. Yildiz said joint exploration with Petrobras could last around two to three years and is expected to uncover significant oil reserves. The Minister stated that the government is determined to continue its exploration in the Black Sea and projected investing a total of USD 450 million to this end.
AA 09.10.2009
Turkey fifth in OECD privatization ranking Turkey has been ranked 5th among top ten countries belonging to the Organization for Economic Cooperation and Development (OECD) in a privatization ranking. In the list of "Privatization Top-10: OECD Countries from 2000 to 2007", prepared by taking into consideration the largest absolute amounts, Turkey ranked 5th after France, Italy, Germany and Japan, with USD 25 billion of privatization transactions. minvest.gov.tr
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The ranking was published in an OECD report, "Privatization in the 21st century: Recent Experiences of the OECD Countries-Report on Good Practices", which assessed successful privatization policies. Hurriyet Daily News 09.10.2009
“Investors’ interest in Turkey rises” The international community has full confidence in Turkey's economic policies and investors’ interest in Turkey is rising, said the country’s Deputy Prime Minister and Economy Minister Ali Babacan while evaluating the recent meetings of the International Monetary Fund (IMF) and the World Bank in Istanbul. Babacan met the high ranking officials of several countries and financial institutions during the annual meetings. In a press conference to assess the IMF-World Bank annual meetings in Istanbul, Babacan said, "Istanbul hosted all the prominent actors of the global economy, these meetings can also be considered as the world’s largest fair of finance and economy." He also noted that Turkish economic officials had the chance to meet executives of international rating agencies and informed them about Turkey's strong economic structure, its good macroeconomic performance in recent years, its superior stance during the economic crisis and the determination it displayed in pursuing its policies. Babacan said those meetings are also important for Turkey to announce an action plan to make Istanbul an international finance hub. Reuters 12.10.2009
Turkey’s Akbank aims for 15-16 percent loan growth in 2010 Akbank General Manager Ziya Akkurt said that the Turkish lender will target 15-16 percent loan growth in 2010, outstripping banking sector growth as a whole, which he forecast at 12-13 percent. The bank, which is Turkey's largest company by market value and in which Citigroup has a 20 percent stake, will take a more aggressive stance next year and open 50-60 new branches, he told reporters. Turkey's banking sector has proved highly resilient during the global downturn, benefiting from strict regulations in place since the 2001 domestic financial crisis and a lack of exposure to toxic or exotic assets. Eleven months of rate cuts by the Central Bank have also boosted Turkish banks' profits by making the cost of funding cheaper and allowing them to increase net interest income. Akbank posted a 44 percent rise in Q2 net profit.
Today’s Zaman 12.10.2009
RES enters Turkish wind energy sector Renewable Energy Systems Holdings Limited (RES), one of the world's leading renewable energy companies, announced on Friday that it has concluded the acquisition of a portfolio of wind power projects in the Turkish market. In a written statement released by the company, RES stated that this acquisition, representing a capacity of nearly 500 MW, is the first important step for RES's entry into the Turkish market, which has a large, mostly untapped potential for wind power generation. According to the statement, the projects will be realized over a period of three to four years following the acquisition of generating licenses, which is expected to be completed within the next few months. The projects will involve EUR 750 million of investment. "We have been actively reviewing our expansion in the Mediterranean markets and have identified the Turkish market as one of the major growth areas for our business," Jean-Marc Armitano, CEO of RES Mediterranean, is reported as saying in minvest.gov.tr
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the statement. Expressing his approval of the acquisition, Alpaslan Korkmaz, President of the Investment Support and Promotion Agency of Turkey (ISPAT), said the acquisition is fully in line with Turkey’s target of liberalization in the energy market. AA 14.10.2009
More than 30 Greek companies to join business forum in Izmir More than 30 Greek companies will take part in a business forum in the Aegean province of Izmir this week, said a Greek diplomat on Tuesday. Hara Skolarikou, the Consul General of Greece in Izmir, said the Greek Embassy in Ankara and the Izmir Chamber of Commerce will co-host a "Turkish-Greek Business Forum" in Izmir on October 15-16. "More than 30 Greek companies will participate in the forum", said Skolarikou at a press conference. Skolarikou said the main theme of the forum will be the food and beverages industry. "The aim of the forum is to boost economic and commercial relations between Turkish and Greek business worlds, local organizations and local administrations, and increase trade between the Greek islands and the west coasts of Turkey", Skolarikou added. Ekrem Demirtas, Chairman of the Izmir Chamber of Commerce, said that around 50 Turkish companies will attend the forum. Referans 14.10.2009
Turkey gears up for privatizations, starting with electricity distribution The Turkish Privatization Administration (OIB) has sped up its studies to implement privatizations worth TRY 10 billion, which are planned to be implemented in 2010. The OIB has put out tenders for the electricity distribution companies Coruh Elektrik Dagitim, Osmangazi Elektrik Dagitim and Yesilirmak Elektrik Dagitim, as well as several sugar factories. “We have already surpassed the pre-set privatization value for 2009, which was TRY 4.5 billion. We will see more activity in November and December”, said an official from the OIB. The OIB has appointed a consortium consisting of Citi Group-Oyak, Yatirim-Master and Danismanlik-Socoin as advisers for the planned tenders. OIB announced that October 20, 2010 will be last day to bid for Coruh Elektrik Dagitim-Osmangazi Elektrik Dagitim, owned by the Turkish Electricity Distribution Company (TEDAS) and Yesilirmak Elektrik Dagitim. The last day to bid for the sugar factories in Kastamonu, Kirsehir, Turhal, Yozgat, Corum and Carsamba has been announced as November 19, 2010, while the last day to bid for tobacco facilities in Camalti and Ayvalik is December 4, 2010. The privatization target was set at TRY 4.3 billion, TRY 10.4 billion, TRY 9.4 billion and TRY 8.9 billion for 2009, 2010, 2011 and 2012 respectively. Ziraat Bank is still waiting to be privatized, as another privatization wave is expected to roll in with sales of telecommunications and harbor establishments. Hurriyet Daily News 16.10.2009
Hungarian spice company eyes Turkish market Kotanyi GmbH, a Hungary-based spice company, has announced plans to enter the Turkish market. “Turkey ranks among the top three challenging markets in Central and Eastern Europe with its high growth potential”, Erwin Kotanyi, CEO of minvest.gov.tr
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Kotanyi GmbH, said during a press conference held in Istanbul on Wednesday. “The total value of Turkey’s packaged spice market is EUR 75 million. We are aiming to grab a 15-20 percent share in this market”, Kotanyi noted Turk.net 16.10.2009
Turkey is 8th largest agricultural economy in the world Turkey’s Agriculture and Rural Affairs Minister Mehmet Mehdi Eker said Turkey is the 8th largest agricultural economy in the world. "Turkey has a USD 58 billion agricultural GNP and a USD 24 billion agricultural trade volume", said Eker while addressing the Turkish-German Economy Congress in Cologne this week. "The Turkish agriculture sector has shown positive growth in recent years despite the drought and the global economic crisis in the past two years", he stressed. AA 16.10.2009
European Free Zone to set up a wind power plant The European Free Zone’s (EFZ) work on the construction of a 500 kilowatt per hour (kWh) wind power station are ongoing, said Zafer Atbakan, General Manager of the zone, located in the industrial center of the Tekirdag region. “We aim to offer companies and investors low-cost and uninterrupted power. The feasibility study has been completed. We have confirmed that the area gets enough wind to feed the turbines”, Atbakan said Adding, “We are planning to invest EUR 1 million in a power station that will produce 500kWh.” The EFZ aims to set up a four-megawatt wind power plant. Free zones’ trade in Turkey totaled USD 23.4 billion last year, he noted. “Our trade volume for the period was USD 1.5 billion. We attained a trade volume of USD 846 million between January and September. We rank 5th in terms of employment figures. We aim to become a brand”, Atbakan stated. Hurriyet Daily News 19.10.2009
Italian business delegation to visit Turkey A delegation from the Italian Chambers Union consisting of businessmen is set to pay a visit to Turkey. The delegation consisting of representatives from 25 Italian companies operating in the sectors of furniture, home appliances, metalmechanics, and bathroom accessories will hold meetings with business people and business organizations. Udine, Massa-Carrara and Frosinone commerce chambers will also be represented in the delegation which will visit Istanbul and Ankara on October 18-22. The delegation is expected to visit the Turkish Union of Chambers and Commodity Exchanges, the Turkish Industrialists' and Businessmen's Association, the Istanbul Chamber of Industry and the Istanbul Chamber of Commerce. AA 19.10.2009
Turkey, Russia and Italy sign pipeline deal Turkey, Russia and Italy signed an agreement on Monday for the construction of a pipeline that will carry crude oil from Samsun in the Black Sea to the Mediterranean port of Ceyhan, said the Italian oil company Eni in a statement.
The pipeline, which will be built by Eni and Turkey's Calik Enerji, will carry Russian and Kazakh oil and provide an alternative minvest.gov.tr
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route to the congested Bosporus strait. It is part of a project to transform Turkey into a global energy corridor. Syracuse.com 21.10.2009
London hosts "Turkish Investment Summit" The Turkish Embassy in London and the European Bank for Reconstruction and Development (EBRD) are jointly organizing the "Turkish Investment Summit” this week. Speaking at the event, Alpaslan Korkmaz, President of the Investment Support and Promotion Agency of Turkey (ISPAT), said, “Turkey is the country of the future and we are here to make investors see this”, adding that Turkey is attracting investments in sectors such as renewable energy, food, hi-tech, manufacturing and shipbuilding. Korkmaz pointed out that many investors in Europe will be feeling uneasy about investing for the coming decade and it will take at least 4-5 years for the US economy to rebound. “Turkey is emerging as a new destination for investments and we will see investor interest surge by the next year”, Korkmaz noted. Haber Turk - Yeni Safak – Taraf 21.10.2009
Turkey, Italy’s most favored investment destination Turkey will attract the largest share of Italy's foreign investment, said Antonio Paoletti, the Vice President of the Italian Chambers of Commerce and the President of the Trieste Chamber of Commerce, on Monday, adding that they have been working to improve cooperation between the two countries. Speaking at a press conference in Istanbul, Paoletti noted that they have been working to improve bilateral economic relations between Turkey and Italy for around six years. About 800 entrepreneurs from Trieste and its neighboring cities have visited Turkey over the past three years, while 640 Turkish entrepreneurs have gone to Italy in the same period, Paoletti said. The Italian Chambers of Commerce as a whole, along with a number of Italian businessmen, is in Turkey to hold talks and discuss opportunities for cooperation with Turkish companies, in a bid to further improve economic ties between the companies of the two countries, he noted. “Despite the global financial crisis, the companies of the two countries can enjoy growth if they act in cooperation”, Paoletti stressed, adding that there are lucrative opportunities in the fields of transportation/logistics, the wood industry and the machinery and construction sub-industries. Paoletti pointed out that Italy currently has an important number of small and medium-sized enterprises (SMEs) operating in Mediterranean countries nearby. Italy mostly has SMEs whose size prevents them from expanding into distant markets. For this reason, Paoletti noted, Turkey will get the largest amount of Italian foreign investment. The number of Italian SMEs currently in Turkey is around 800, he underlined. Giuseppe A. Moggi, the President of the Italian Chambers of Commerce, also said that some 2,500 meetings took place between Turkish and Italian entrepreneurs over the last year, adding that cooperative opportunities in the fields of energy, information technology, decoration and food were primarily discussed at these meetings. Today’s Zaman 23.10.2009
Turkey and Kazakhstan sign strategic partnership agreement Kazakhstan's President Nursultan Nazarbayev said on Thursday that there are positive relations and cooperation between Turkey and Kazakhstan. Speaking at a joint news conference with the Turkish President Abdullah Gul in Ankara, Nazarbayev stressed that Turkey and Kazakhstan signed a "strategic partnership" agreement on Thursday, indicating that minvest.gov.tr
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the agreement in question will further boost bilateral relations. Nazarbayev said Turkey is eager to become a transit country in transportation of the Caspian gas to Europe, and that the "flow of Kazakhstan’s oil and gas via Turkey will be to the advantage of both Turkey and Kazakhstan." BalkanInsight.com 28.10.2009
Europe's largest solar panel factory to be opened in Turkey Ahmet Arslan, General Manager of AYT Group’s energy division, has announced that the EUR 300 million solar panel manufacturing plant in Kutahya's Tavsanli district will be fully operational by June 2010. Once completed, the plant will be the largest solar panel-producing facility in Europe. Arslan also noted that the factory, which is being established in a 50:50 partnership between AYT and the German Sitizn Group Holding AG, will be the first solar panel-producing plant in Turkey. "The factory will not produce for the Turkish domestic market alone but is eyeing consumers all around the world. Due to our country’s close proximity to European markets, our facilities will provide an advantage in freight time and cost", Arslan noted. The German company has all the required patents and licenses in solar technology, the General Manager underlined. He further added that the partners are planning to combine three different high technology procedures of solar energy panel manufacturing -- monocrystal, polycrystal and thin-film -- under a single roof at their Tavsanli manufacturing plant. The factory will initially employ 250 people, and the number of workers will increase to 750 by 2013. Arab News 28.10.2009
Turkey and Serbia sign bilateral pacts The presidents of Turkey and Serbia, Abdullah Gul and Boris Tadic, agreed in a Belgrade meeting on Monday that the two countries' relations constitute a "strategic partnership". Gul, the first Turkish Head of State to visit Serbia since 1986, arrived in Belgrade for a two-day state visit, as the two countries look to strengthen their economic and political ties. Since "Belgrade and Serbia are located at a key position in the Balkans”, Gul said that Turkish companies are interested in infrastructure projects in Serbia, such as highway Corridor 10. Serbia and Turkey signed five bilateral agreements in the Belgrade meeting including an agreement on cooperation in the area of infrastructure projects and an agreement on economic cooperation RBC (Moscou) 28.10.2009
Turkey and Saudi Arabia to map out cooperation in agricultural investments Saudi Arabia and Turkey will hold talks to map out a future strategy for cooperation in the agriculture sector. The talks will be led by Saudi Arabia’s Minister of Agriculture Fahd Balghunaim, while Turkey's Minister of Agriculture and Rural Affairs Mehdi Eker will attend from the Turkish side. “Saudi Arabia and Turkey are eager to enhance their relations in the field of agriculture”, said Sadik Arslan, charge d’ affaires at the Turkish Embassy, when asked about the agenda for the talks. Arslan said that Eker and his seven-member entourage were on a three-day official visit to Saudi Arabia following an invitation extended by Balghunaim. He said that Riyadh and Ankara are keen to explore a new cooperation agenda, especially in the agriculture sector. minvest.gov.tr
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Turkey has emerged today as one of the preferred destinations for Saudi investments in agriculture projects. Turkey is one of the few self-sufficient sufficient countries in the world in terms of food. Its fertile soil, adequate climate, and abundant rainfall allow the farming of almost all kinds of crops. In terms of agricultural land, Turkey is also one of the largest countries in the world. Around 35.5 percent of the country has h arable lands, while 15 percent of it consists of forests. The cultivated land is more than 26.5 million hectares. “The alluvial land and their availability for growing crops have generated a lot of interest among Saudi businessmen, who are willing to make agriculture investments in Turkey�, said a recent report. Moreover, Turkey also wants wan to undertake joint projects with Saudi Arabia, it said.
minvest.gov.tr
Reuters 28.10.2009
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