THE TURKISH PERSPECTIVE 44

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YOUR COMPLIMENTARY COPY

7

TH YEAR

PANORAMA “Turkish-Viennese Synergy ” in socıal housing BRIEFING ‘Sacred Tree’ Continues

to Grow

IN DEPTH Where Fantasy Meets

Reality

MARCH 2017 ISSUE 44

ECONOMY BUSINESS FOREIGN TRADE ANALYSIS

WHAT ARE THE REASONS TO TRUST TURKEY’S FUTURE? YOU DON’T NEED A FORTUNE TELLER TO GUESS IT. JUST FOLLOW THE TIPS.

The Turkish Perspective

30 COVER STORY

Contents

05 FIRST 05 | Exports Started 2017 with Increase 06 | Foreign Investors’ Purchases Increased In January 07 | Renewable Energy Deal With Pakistan 08 _ 7RIDû %XUVD 0RVW 3URGXFWLYH Fiat Chrysler Facility 09 _ $JUHHPHQW 2Q 0LOOLRQ Loan For Tanap Signe

WHAT ARE THE REASONS TO TRUST TURKEY’S FUTURE? YOU DON’T NEED A FORTUNE TELLER TO GUESS IT. JUST FOLLOW THE TIPS.

07 11 PANORAMA “TURKISH-VIENNESE SYNERGY ”

IN SOCIAL HOUSING

As World is facing housing troubles because of reasons like immigration, Austria may be a good example for Turkey to solve LWV SUREOHPV

13 BRIEFING 13 |WORLD TOURISM FORUM Organized with the concept k%RXQGDULHV DV %DUULHUV 6PRRWK and Secure Travel” The World Tourism Forum 17 took place in üVWDQEXO

16 | WHEN HISTORY MEETS INNOVATION Traditional shipbuilding skills combined with modern techniques and education has enabled Turkish shipbuilding industry to develop into an internationally known WUDGHPDUN

52

GAMING 2017 ISTANBUL

22 |‘SACRED TREE’ CONTINUES TO GROW

55 | RECORD HIGH GROWTH FROM TÜRK TELEKOM Türk Telekom continued to execute its vision to lead Turkey’s digital transformation in 2016

24 | MORGAN FREEMAN HYPNOTIZES IN SUPER BOWL AD FOR TURKISH AIRLINES

The highest increase in sectoral basis in December 2016 with 146% increase was olive and olive RLO VHFWRU

Turkish Airlines launches its new commercial starring OscarZLQQHU DFWRU 0RUJDQ )UHHPDQ

22 | THE ENVIRONMENTAL TECHNOLOGIES FOR A SUSTAINABLE WORLD

26 | ISPAT OFFERS JAPANESE INVESTORS INSIGHT INTO TURKEY’S M&A CLIMATE

IFAT Eurasia 2017 strengthens its position as Eurasia’s leading trade fair for environmental WHFKQRORJLHV

57 BRANDS

,QpXHQFHUV IURP WKH -DSDQHVH investment community came WRJHWKHU LQ 7RN\R IRU ,63$7 V 0 $ Investment Seminar that was held in cooperation with Japanese oQDQFLDO VHUYLFHV JLDQWV

60 | TÜRKTRAKTÖR AT THE TOP FOR 10 YEARS Turkey, being 4th largest tractor market in the world, has achieved a UHFRUG JURZWK LQ WKLV PDUNHW LQ

62 AGENDA FAIRS, EXHIBITIONS, SUMMITS, MEETINGS IN THE NEXT MOUNTH

63 FIGURES THE BASIC INDICATORS OF TURKEY IN THE FEBRUARY 2017

1

2 Online

Online

MANAGEMENT

theturkishperspective.com

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PUBLICATION MANAGEMENT PRESIDENT MEHMET MÃœCAHÄ°D DEMÄ°R mdemir@theturkishperspective.com

VICE PRESIDENT YAÅžAR MAMATÄ° PROJECT COORDINATOR AHMET DAMGACIOÄžLU adamgacioglu@theturkishperspective.com

EDITORIAL EDITOR MUSTAFA YİĞİT myigit@theturkishperspective.com

USA MEDIA COORDINATOR ŞENAY ÖZDEMİR

BUSINESS CULTURE T INVESTMEN CIENCE S D N A INNOVATION E DAY VIDEO OF TH NEWS KETING B R AND MAR

EUROPEAN COORDINATOR İNANÇ ATILGAN GULF COORDINATOR FEYZA GÜMÜŞLÜOĞLU CONTRIBUTING REPORTERS İBRAHİM AVCI KEMAL TUNÇSEL RAMAZAN GÜZYURDU SERPİL KASAP CONTRIBUTORS PROF. DR. ALİ ALP, YENER COŞKUN PhD, BORA AKÇAY DESIGN CREATIVE DIRECTOR AHMET SAİD ÇELİK

SPECIAL REPORT

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7YEAR TH

OCTOBER 2016 ISSUE 39

ECONOMY BUSINESS FOREIGN TRADE ANALYSIS

ECONOMY BUSINESS FOREIGN TRADE ANALYSIS

MEGA PROJECTS

SHINING BRIGHT AS DIAMONDS

715

TURKEY’S MEGA PROJECTS OF THE GOVERNMENT ARE SHINING BRIGHT AS

WHICH ARE BROUGHT INTO LIFE WITH THE HUGE SUPPORT DIAMONDS IN THE REGION

FIRST New Player: Turkey is joining the space race BRIEFING September has been a month for global dialogue

The True Story Behind The Coup Attempt: Turkey starts off with a clean slate

Chemicals sector of the rapid growth Turkish brand of the New World BRANDS With Moofio pets have a social network of their own!

YOUR COMPLIMENTARY COPY

DECEMBER 2016 ISSUE 41

7

TH YEAR

YOUR COMPLIMENTARY COPY

H

KEYUSTTORYCATC 4.0 TURIND

ECONOMY BUSINESS FOREIGN TRADE ANALYSIS

7

TH YEAR

PANORAMA Tailor Made Incentives for Project Based Investments BRIEFING Turkish Bureaucracy Concentrates on Energy IN DEPTH Trumponomics, Turkey and Infrastructure Investments

FEBRUARY 2017 ISSUE 43

ECONOMY BUSINESS FOREIGN TRADE ANALYSIS

TURKEY’S TOP

GAME OF TRANSFORMATION

WORLD IS GOING THROUGH A POLITIC TRANSFORMATION PROCESS WITH THE ELECTIONS HELD IN 2016 AND WILL BE HELD IN 2017 RISING STARS OF THESE ELECTIONS PROMISE NEW ECONOMIC ORDER IN THE WORLD. WHERE DO TURKEY STAY IN THIS PORTRAIT? WILL TURKEY MOVE TOWARDS TD SHANGAI PACT? HOW WILL THE FUTURE SHAPE?

GET READY!

acelik@theturkishperspective.com

A KEY FOR A

HEALTHIER W RLD

SEPTEMBER 2016 ISSUE 38

SERVICE EXPORTERS Explore the achievements of Turkey’s service sector explained by the skilledworkforce, cost effective service compared to international standards.

0RUH WKDQ D PDJD]LQH the Turkish Perspective will now be more interactive and responsive, as expected from Turkey’s main voice for LQWHUQDWLRQDO DXGLHQFH

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The Turkish Perspective

Editorial MEHMET BÜYÜKEKŞİ PRESIDENT (TIM)

RISE OF PROTECTIONISM AND TURKEY’S EXPORTS

The world economy has started 2017 rather hectic. Statements made and decrees issued since Donald Trump assumed the seat of presidency, are being watched carefully and anxiously by the whole world.

R

ECENT DEVELOPMENTS, such as

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3

The Turkish Perspective Content: Gazprom to Invest in Turkish Stream P06 Foreign Investors’ Purchases Increased in JanuaryP06 World Bank to Finance Lake Tuz Naturalgas Storage Plant P07 Turkey’s Giant Gas Storage Facility Opens P08 Turkey’s Gdp to Increase to $3Bn by 2030 P09 Editor: Serpil Kasap

First

TRADE, ENERGY, BANKING, AUTOMOTIVE,ECONOMY, INVESTMENT, EXPORT

According to TIM data, exports have increased by 15% in January reaching 10 billion 528 million dollars.

EXPORT

TIM:

EXPORTS STARTED 2017 WITH INCREASE

Turkey’s installed wind power capacity increased about 37 times to 5,500 megawatt thanks to 10 billion dollar worth of investments made in the past 10 years.

T

URKISH NATIONAL exports have started 2017 with a record. According to TIM data, exports have increased by 15% in January reaching 10 billion 528 million dollars. This increase is the greatest change since November 2012. In the press

conference, TIM President Mehmet Buyukeksi told the following: “We announced 2017 as a leaping point for exports. We expect an increase in petroleum and commodity prices, decrease in export losses in Russia due to normalization

of relations, and increase in petroleum exporting countries’ imports.” Mr. Buyukeksi told that 12-months exports, starting from February 2016 to January 2017 increased by 1.8% reaching as high as 143 billion 588 million dollars.

Leading exporting sector was automotive in January with 2 billion 69 million dollars, while apparel sector has conducted 1 billion 253 million dollars and chemicals 1 billion 234 million dollars. EU’s share in Turkish national exports has reached 49.9%. Middle

Eastern countries have 18.2% and African countries have 8.3%. Exports to Russia has increased by 57%, highest level since crises. Fresh fruits and vegetables sector has increased its exports to Russia with 27 million dollars, almost half the increase to Russia.

5

6

First

FDI

ENERGY

FOREIGN INVESTORS’ PURCHASES INCREASED IN JANUARY Foreign investors have made a net purchase worth $816 million in Borsa Istanbul.

ENERGY

GAZPROM TO INVEST IN TURKISH STREAM Investments in the Turkish Stream project will total $702.7 million in 2017. The investment program incorporates the Nord Stream-2 gas pipeline project with investments totaling 110.7 billion rubles ($1.9 billion). The pipeline was not present in the lastyear program. The Nord Stream-2 gas pipeline is intended to be commissioned at the turn of 2019. Investments in the Power of Siberia gas pipeline will also be 158.8 billion rubles ($2.7 billion rubles) this year, TASS reported. The program also comprises a liquefied natural gas production, storage and shipping facility in the Portovaya compressor station area near the Baltic Sea, with investments totaling 46.4 billion rubles ($776.2 million). MARCH 2017 ISSUE 44

F

OREIGN INVESTORS, who ended the year 2016 with purchases in Borsa Istanbul (BIST) Stock Exchange, have made a net purchase worth $816 million in shares in WKH oUVW PRQWK RI WKLV \HDU )RUHLJQ LQYHVWRUV ZKR ZHUH RQ the purchasing side of the stock exchange for the most part of last year, completed 2016 with a net purchase of $614 million. The foreign investors have made the strongest purchase since Jan. 2016 with net $ 816 million in January. Borsa Istanbul’s BIST 100 index increased by 10.44 percent in terms of Turkish lira and 3.25 percent in terms of U.S. dollar due to the strong purchases of foreign investors last month. While foreign investors generally preferred bank share markets in their purchases in January, strong purchases in Turkish Airlines (THY) shares were also noteworthy. Foreign investors preferred Garanti Bank’s share with a net purchase of $146.5 million last month, followed by Halkbank with $88.6 PLOOLRQ 7XUNLVK $LUOLQHV ZLWK PLOOLRQ üû %DQN & ZLWK PLOOLRQ DQG 9DN“I%DQN ZLWK PLOOLRQ 0HDQZKLOH $6(/6$1 ZDV WKH oUVW FKRLFH RI IRUHLJQ LQYHVWRUV ZLWK QHW VDOHV totaling $23.7 million during the same period, followed by Türk Traktör with $6.4 million, Tekfen Holding with $5.6 million, Migros with $3.4 million and Park Electric with $3.2 million.

816 MILLION

$146.5 MILLION

10.44%

FOREIGN INVESTORS’ NET PURCHASES

GARANTI BANK’S SHARE IN FOREIGN INVESTMENT

RATE OF INDEX IN JANUARY

INCREASE

NEW POWER PLANTS TO THE GRÄ°D IN JANUARY Turkey put into use ten new power plants. Ten new power plants, seven of which use renewal energy, which are capable of producing 103.9 megawatts of power, were put into use in January in Turkey. According to the data released by the Ministry of Energy and Natural Resources, Turkey’s installed capacity in electricity production has now reached 78,601 megawatts. Out of the power plants which went into service in January, 50 of the 103.9 megawatts are being produced by the coal and cogeneration power plant in northern Karabük province. Four wind power plants with a combined capacity of 37.09 megawatts were put into use in Manisa, Afyonkarahisar, .“UNODUHOL DQG %DO“NHVLU provinces. 7KH UHPDLQLQJ oYH percent added capacity in January came from biomass, geothermal and other resources.

The Turkish Perspective

ENERGY

RENEWABLE ENERGY DEAL WITH PAKISTAN Turkish Company Inks Renewable Energy Deal With Pakistan For 200-Megawatt Solar Power Plant. Pakistan’s largest province Punjab and a leading Turkish energy company on Wednesday inked an agreement for the construction of a 200-megawatt solar power plant. The deal –the second in less than two weeks– was signed by the Punjab government and Zorlu Enerji Holding in the provincial capital Lahore during a ceremony presided by &KLHI 0LQLVWHU 6KHKED] Sharif, a statement from the Punjab government said. Under the deal, the statement added, Zorlu will set up a 200-megawatt solar power plant at Quide-Azam solar park in Bahawalpur by December 2017. In his remarks, at the signing ceremony, the Punjab chief minister said the recent energy contracts were testimony of the growing economic cooperation between Pakistan and Turkey.

ENERGY

World Bank to Finance Lake Tuz Naturalgas Storage Plant The capacity of the Natural Gas Storage Facility at Lake Tuz will be increased.

A

S TURKEY RESOLUTELY continues its energy projects,

WKH FRXQWU\ DOVR GUDZV WKH VXSSRUW RI JOREDO oQDQFLHUV IRU ongoing energy projects and, following the recent World Bank loan for TANAP, the bank is working on another loan project for the Lake Tuz underground gas storage facility After a $400-million loan issued by the World Bank for the Trans-Anatolian Natural Gas Pipeline (TANAP) to Turkey’s VWDWH RZQHG 3HWUROHXP 3LSHOLQH &RUSRUDWLRQ &\ULO 0XOOHU YLFH SUHVLGHQW RI :RUOG %DQN V (XURSH DQG &HQWUDO $VLD UHJLRQ noted that the bank will continue to provide support for Turkey’s energy supply security projects. k,Q WKLV FRQWH[W ZH H[SHFW WR EH RQH RI WKH oQDQFLHUV LQ increasing the capacity of the Natural Gas Storage Facility at Lake Tuz in south central Anatolia which is estimated to supply 1 billion cubic meters of natural gas every year. We plan WR DSSURYH DQ LPSRUWDQW oQDQFLQJ IRU WKH VDLG SURMHFW ZLWKLQ the year,� said Muller, hlighting the World Bank’s determination to contribute to the energy supply security both in Turkey and the region. Stating that within the framework of a program designed in this context, the World Bank provided a fund of $23 million, adding that it aims to improve the living conditions across the regions affected by the pipeline, Muller said. “TANAP is a project in which international standards are applied for the effects on social life and the development of people’s living conditions in this region,� he said and further drew attention to the employment opportunities the project offers.

ENERGY

GE, GAMA ENERGY SIGN FOR THE FIRST DIGITAL POWER PLANT IN TURKEY

GE and Gama Energy will hi^kZm^ ma^ Ă–klm digital power plant in Turkey.

7KH GHDO PDUNV WKH oUVW use of industrial cloud software applications in a power plant in Turkey WR LPSURYH HIoFLHQF\ and productivity, according to the statement. GE will install GAMA’s 840 PHJDZDWW ߚ $QDGROX 1DWXUDO *DV &RPELQHG &\FOH 3RZHU 3ODQW LQ WKH FLW\ RI .“U“NNDOH with its advanced digital solutions, Asset Performance Management (APM) and Operations Optimization (OO) solutions using Predix, the operating system for the Industrial Internet. “Unplanned outages in power plants correspond to 3-8 percent of a plant’s capacityâ€? said Murat Demirel, GE’s Power Services Eastern Europe and Turkey General Manager.

7

8

First

INVESTMENT

TURKEY’S GIANT GAS STORAGE FACILITY OPENS Turkey’s Tuz Lake gas storage facility was opened in an h_Ă–\bZe \^k^fhgr on Feb. 10 Turkey’s Tuz Lake gas storage facility , which is expected to increase capacity from 1.2 billion cubic meters (bcm) to as much as 5 bcm per year, was opened in an RIoFLDO FHUHPRQ\ RQ )HE LQ WKH &HQWUDO Anatolian province of Aksaray. President 5HFHS 7D\\LS (UGRĂžDQ WKDQNHG RIoFLDOV and businesspeople who took part in the development of the project. “In addition to the facility with a 1.2 bcm of gas capacity, which we have opened today, we are also starting a new investment today. With this new investment, the gas storage capacity will increase up to 5.4 bcm. When this investment becomes online, Turkey’s daily gas storage capacity will rise to 80 million cubic meters,â€? he said. The project is composed of 12 wells and is worth $700 million. From each well, a total of 40 million cubic meters of gas can be pumped into the country’s gas network on a daily basis. MARCH 2017 ISSUE 44

BANKING

AUTOMOTIVE

Mh_Zý ;nklZ Most Productive Fiat Chrysler Facility Mh_Zý�l ;nklZ _Z\mhkr aZl [^\hf^ ?bZm <akrle^k Automobile’s (FCA) largest production facility in the world

TURKISH BANKS’ BRAND VALUE SURPASSES $10 BILLION Total brand value of the Turkish banks included in top 500 bank

T

H?:ß�L ;NKL: ?:<MHKR% with 383,000 cars rolling out RI LWV SURGXFWLRQ OLQH ODVW \HDU KDV EHFRPH )LDW &KU\VOHU $XWRPRELOH V )&$ ODUJHVW SURGXFWLRQ IDFLOLW\ LQ WKH ZRUOG ,W surpassed the groups other 69 factories around the world in number of cars produced. The factory, producing at almost full capacity, was previously ranked 14th in 2014, when it was producing at 50 percent of its LQVWDOOHG FDSDFLW\ 7RIDÝ IDFWRU\ ZDV IROORZHG E\ WKH IDFWRU\ LQ 0HOo ,WDO\ 7RIDÝ &(2 &HQJL] (UROGX VDLG k7RIDÝ ZDV UDQNHG WK DPRQJ )&$ V SURGXFWLRQ IDFLOLWLHV LQ EHFDPH HLJKWK LQ DQG PDGH D EUHDNWKURXJK WR WDNH WKH oUVW SODFH LQ The facility produced 1,566 cars on a daily basis and 40,000 FDUV HYHU\ PRQWK WR UHDFK XQSUHFHGHQWHG SURGXFWLRQ oJXUHV LQ the Turkish automotive industry.�

1,5

383

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DAILY PRODUCTION OF BURSA FACTORY

NUMBER OF BURSA FACTORY’S PRODUCTION

EXPORTED CARS IN 2016 BY TOFAĹž TURKEY

THOUSAND

THOUSAND

0

$

THOUSAND

A London-based consultancy company, released its report on the world’s 500 banks with the highest brand value. According to the report, the brand value of the top 500 global banks increased to $1.74 trillion while the brand value of 10 Turkish banks exceeded $10 billion. Akbank has kept its title as the most valuable banking brand in Turkey at approximately $1.6 billion, followed by *DUDQWL %DQNDV“ ZLWK a brand value of $1.5 billion and Ziraat Bank with $1.3 billion, which has shown a 39 percent increase compared to the previous year. 7Ă‹UNL\H ßÝ %DQNDV“ ranks fourth among Turkish brands with a brand value of $1.3 billion, followed by Yapi Kredi with $951 million.

The Turkish Perspective

ECONOMY

EXPORT

INVESTMENT

TURKEY’S GDP TO INCREASE TO $3BN BY

HUNGARIANS MAY ALSO TAKE PART IN TURKSTREAM

Turkey will be the 12th largest economy in the world by 2030, with its gross domestic product (GDP).

Hungary may participate in the TurkStream project that will carry Russian natural gas to Europe.

2030

The results of a study conducted by 3ULFHZDWHUKRXVH&RRSHUV

3Z& KDYH EHHQ released with predictions for the world economy in 2030. According to the study, Turkey will be the 12th largest economy in the world by 2030, with its gross domestic product (GDP) expected to rise to $2.996 trillion. According to the report, “Emerging 7� (E7) economies &KLQD ,QGLD %UD]LO Mexico, Russia, Indonesia and Turkey - will dominate the list of the top 10 economies in the world by 2050. Among the “Group of 7� (G7) &DQDGD )UDQFH Germany, Italy, Japan, the U.S. and the EU only the U.S. will take place among the six largest economies.

Agreement On $400 Million Loan For Tanap Signed Mnkd^rĂ?l ;HM:Ăź r^lm^k]Zr k^\^bo^] -)) fbeebhg loan from the World Bank for the TANAP Project.

T

HE PROJECT WILL BE OPERATIONAL by 2018 and

transfer Azeri gas to Europe via Turkey. The agreement for a $400-million loan issued by the World Bank to the 3HWUROHXP 3LSHOLQH &RUSRUDWLRQ %27$Ăş IRU WKH 7UDQV Anatolian Natural Gas Pipeline (TANAP) was signed on :HGQHVGD\ EHWZHHQ &\ULO 0XOOHU YLFH SUHVLGHQW RI WKH :RUOG %DQN V (XURSH DQG &HQWUDO $VLD UHJLRQ DQG %27$Ăş *HQHUDO Manager Burhan Ă–zcan, under the auspices of Energy and Natural Resources Minister Berat Albayrak. Stressing that the agreement signed today as part of the project is important not only for energy markets but also for HFRQRPLF DQG oQDQFLDO PDUNHWV 0LQLVWHU $OED\UDN VDLG “Today, signatures are being put on the project, which has been 7XUNH\ V ORQJ VWDQGLQJ PRWLYDWLRQ LQ WKH pHVK WR VXSSRUW WKH projects that serve three purposes in the energy markets.â€? The project is planned to be operational in 2018 with an initial capacity to carry 16 billion cubic meters (bcm) of Azeri gas through Georgia to Turkey. While 6 bcm will be for Turkey’s domestic consumption, the rest is destined for transfer to Greece, Albania, and Italy and further into Europe. Previously in December, the Asian Infrastructure Investment Bank (AIIB) also previously approved approximately $600 million in loans for the Trans-Anatolian Natural Gas Pipeline Project (TANAP).

Just before Russian President Vladimir Putin’s visit to Hungary yesterday, Russian Vice President Yury Ushakov underscored that Hungary may also participate in the TurkStream project that will carry Russian natural gas to Europe via the Turkish-Greek border. Ushakov said that cooperation in the NordStream and TurkStream projects will occupy the agenda of the meeting. Estimated to have a capacity of 31.5 billion cubic meters through the two lines, the project’s oUVW DQG VHFRQG lines will transfer Russian natural gas to Turkey and European countries, respectively. The project involves two more pipelines which will increase the capacity to 63 billion cubic meters. In October, Alexey Miller, chairman of Russian state-owned energy giant Gazprom, announced that the construction of the TurkStream natural gas pipeline project will kick off in 2018.

9

The Turkish Perspective

Panorama

BY ARCHITECHT BORA AKÇAY

“TURKISH-VIENNESE SYNERGY ”

IN SOCIAL HOUSING

As World is facing housing troubles because of reasons like immigration, Austria may be a good example for Turkey to solve its problems.

T

URKEY FACED IN ITS REPUBLICAN HISTORY

a rapid urbanization, starting with the seventies and peaking in the last decade of the 20th century. 7KH pRZ RI WKH UXUDO SRSXODWLRQ WRZDUGV FLWLHV caused additionally unskilled rural inhabitants. In this framework, the existing housing and infrastructure systems were very big challenge. To face it, Turkey needs as an added value, examples and cooperation with foreign cities. The Turkish municipalities were confronted with this uncontrollable manner. Almost while overcoming this demographic problem, Turkey is nowadays faced with a huge migration from abroad. Next to several hundred thousands of labour migrants from neighbouring countries, there are already 4 million Syrian refugees living all over the land. This is indeed a big challenge which Turkey has to face. To overcome this, Turkey should take foreign examples into consideration and cooperate with cities like Vienna.

Vienna is growing The city-planners predicted the growth of Vienna before. The city would gain within ten years on population as big as Graz, with 250.000 inhabitants the second biggest city in Austria. The planned growth even speeded up. This said, we must see, that the city is investing in the infrastructure, healthcare and education to achieve stability in the high range of social and business development. Vienna is leading the global rankings for livable cities for years. Its high level of health, safety housing and education is the result of a continuous work of the city. The living conditions and the growth of the city alarmed investors and property developers. The last decade was focused on buying historic residential buildings and selling off the renovated ones. The increase in price was as high as 150% in seven years. Therefore, the focus was sliding to the unused roofs. The run on new built roof “penthouses” was big and the marge

11

Panorama

was high. You can see hundreds of roofs in construction, when you walk through the historical neighborhoods in districts one to eighteen. It turned out, that the market became so tight, that the classical building from scratch became more attractive again. And the city is prepared for this step. Beneath smaller building gaps in the city, there are noteworthy development areas.

Development is planned growth v 9LHQQD KDV UHVHUYHG ODUJH DUHDV IRU WKH FLW\ JURZWK 7KH master plans are made or in development and the infrastructure will be placed at the beginning of the constructions. v 7KH SXEOLF WUDQVSRUW LV RQH RI WKH oUVW LPSOHPHQWDWLRQV ,W LV oUPO\ DQFKRUHG LQ WKH FLW\ SROLWLFV WKDW WKH PDVV WUDQVSRUW occurs in public transportation as subway and tramway. The annual pass costs only 365,- € and is a catalysator in reducing the motorized individual transportation. v 7KH QHZ GHYHORSHG DUHDV DOVR EHFRPH bicycle ways. Cycling to work becomes the daily part of more and more citizens in Vienna. It is obligatory to reserve bicycle lots in new residential projects. v 0RVW RI WKH ZDWHU LQ 9LHQQD FRPHV DV spring water from the mountains and is therefore one of the best in the world. Tap water to drink is preferred in high-class restaurants. v 7KH KHDWLQJ IRU SURMHFWV LQ 9LHQQD KDV WR be green. It is not allowed to use fossil energy for new residential projects. And commercial projects have to produce photovoltaic energy on their roofs. This strategy will lead in bigger independency from gas and oil in further years. v 7KH UHFUHDWLRQDO DUHDV DUH DOVR DOZD\V SDUW of the new development. The citizens should get a park within 200m from the house door. :KLOH WKLV LV GLIoFXOW LQ WKH ROG JURZQ DUHDV the new developed neighborhoods have implemented the parks.

TOKI, the social housing program in Turkey Social housing is also a central socio-political issue in Turkey. The TOKI division of the Turkish Government has built hundreds of thousands of homes for the working class within the last WKLUW\ \HDUV $OPRVW RQH PLOOLRQ LQKDELWDQWV SURoWHG GLUHFWO\ RU LQGLUHFWO\ IURP 72., V SURMHFWV 7KLV KRXVLQJ SURJUDP DOVR studied the Viennese role model. The existing demand from the poor and middle class for TOKI properties far exceeds the present supply. Due to the very high demand, houses are sold to applicants through a lottery supervised by a public notary. The social housing program in 7XUNH\ LV OHWV FLWL]HQV EX\ pDWV WR DIIRUGDEOH FRQGLWLRQV ZKLFK also comes from another cultural background. In 2017 another 75.000 residential units will be developed. For years, the development was to build high density, high OHYHO KRXVLQJV ZKLFK OHG WR DQ DQRQ\PRXV HQYLURQPHQW oOHG With the growing experience, the TOKI program orients itself more in local architecture language and horizontal rather than vertical compounds.

Development in Vienna and in Turkey ,W LV WKH oUVW SHULRG FRROLQJ GRZQ IRU WKH social housing in Vienna after decades of constant growth. Local private developers try to build independent residential units to get a piece of the housing cake. It is actually a good time to get in the beginning market of private midscale and large-scale housing for bigger tenders. %ULQJLQJ WKH NQRZOHGJH RI FRVW HIoFLHQW constructing, whilst getting the service of very good Austrian architecture. It is good to know, that construction costs in Austria are calculated with 2.000,-€/m2 for residential buildings, while the TOKI in Turkey was calculating with 1.200,-TL/m2 in 2014 for midUDQJH pDWV ZKLFK ZDV DSSUR[ DERXW ø P 7KH JDS ZLOO become narrower due to taxes and higher requirements, but WKHUH LV D JRRG FKDQFH WR EHFRPH D SOD\HU DIWHU WKH oUVW SURMHFWV In Turkey, it is worth to take the Viennese municipal housing DQG LWV VRFLDO EHQHoWV LQWR FRQVLGHUDWLRQ 7R UHQW WKH pDWV instead of giving them away, has at least two positive effects. 7KH WHQDQWV FDQ EH VZDSSHG IURP RQH pDW WR DQRWKHU GXH WR different needs within the lifecycle. The public organization PXQLFLSDOLW\ 72., ZRXOG RZQ WKH SURSHUWLHV ZKLFK JLYHV another enormous credibility. Both countries made a good, but different development in social housing. It is time to pick the raisins of the systems to bring the housing segment into a new level. Not to forget, for the last decades, over thirty Turkish construction/contracting companies are selected for the Top International Contractors List prepared by the Engineering 1HZV 5HFRUG 7KLV PDNHV 7XUNH\ WR RQH RI WKH ZRUOG V leading countries in the construction sector. So, one can easily VHH WKH EHQHoW DQG V\QHUJ\ RI DQ\ ELODWHUDO FRRSHUDWLRQ LQ construction.

Another new aspect in social housing is the renewal of ma^ ^qblmbg` ×Zml' R^Zker *)'))) ngbml are modernized by fngb\biZebmr'

Social Housing in Vienna The vast size of social housing in Vienna is one of the outstanding improvements, studied from cities around the world for decades. 0RUH WKDQ FLWL]HQV RI 9LHQQD DUH OLYLQJ LQ municipal housing, which equals to one quarter of the LQKDELWDQWV 7KH oUVW PXQLFLSDO KRXVLQJ LV IURP DQG WKH last from 2004. Due to the municipal housing department in Vienna, Two-thirds of Viennese citizens live in municipal RU SXEOLFO\ VXEVLGL]HG KRXVLQJ DQG HLJKW RXW RI WHQ pDWV EXLOW LQ WKH FLW\ WRGD\ DUH oQDQFHG E\ 9LHQQD V KRXVLQJ VXEVLG\ scheme. This is a unique example in the world! After 2004, the housing policies went under a liberal policy and the city started promoting residential social-housing projects by the private sector. The promoted housing projects fell from yearly 80% to half of the projects in the last few years. This can be caused by the hard frame from the city at the construction phase or by the rental law and special requirements at social housing contracts. Another new aspect in social housing is the renewal of the H[LVWLQJ pDWV <HDUO\ XQLWV DUH PRGHUQL]HG ZLWK WKH KHOS RI the municipality. MARCH 2017 ISSUE 44

PHOTOGRAPH BYLOREM IPSUM

12

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Briefing

TOURISM, SHIP&YACHT, OLIVE, ENERGY, COMMUNICATION , AVIATION, INVESTMENT

TOURISM

Prime Minister Binali <“OG“U“P DWWWHQGHG WKH organization and gave VSHHFK RQ 7XUNH\ V WRXULVP SHUIRUPDQFH

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WORLD TOURISM FORUM Organized with the concept “Boundaries as Barriers: Smooth and Secure Travelâ€? The Phke] Mhnkblf ?hknf *0 mhhd ieZ\^ bg ĂťlmZg[ne' BY KEMAL TUNÇSEL

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he World Tourism Forum, also known as the Davos of Tourism was held at Istanbul Congress Center on February 16-18. Established XQGHU %XOXW %DÞF“ V OHDGHUVKLS in 2014, the World Tourism Forum is an Istanbul-based organization with global DVSLUDWLRQV 7KHUHIRUH LW GLVSHUVHV LWV HYHQWV LQWR WKH ZRUOG V GLIIHUHQW UHJLRQV The event brought together

D ODUJH QXPEHU RI VHFWRU managers, investors and SROLWLFDO DXWKRULWLHV LQ Istanbul. Nearly 150 LQWHUQDWLRQDO VSHDNHUV attended the summit. Randi =XFNHUEHUJ WKH &(2 DQG IRXQGHU RI =XFNHUEHUJ 0HGLD DQG D IRUPHU )DFHERRN GLUHFWRU DQG -DFN 6WUDZ DQG 'DYLG 0LOLEDQG ERWK IRUHLJQ VHFUHWDULHV XQGHU 7RQ\ %ODLU V SUHPLHUVKLS ZHUH DPRQJ WKH

VSHDNHUV DW WKH :RUOG 7RXULVP Forum. 7KH VHQLRU H[HFXWLYHV RI FRPSDQLHV SDUWLFLSDWLQJ LQ *OREDO 0HHWLQJ DOVR KDG WKH RSSRUWXQLW\ WR PHHW HDFK RWKHU DQG H[FKDQJH LGHDV ZLWKLQ WKH VFRSH RI k7RXULVP &(2 &OXEy 7KH HYHQW brought together 20 ministers of tourism from various FRXQWULHV RI WKH ZRUOG DW WKH Tourism20 meeting.

13

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Briefing

The World Tourism Forum DLPV WR DFKLHYH LWV YLVLRQ DQG ORQJ WHUP REMHFWLYHV E\ SURYLGLQJ D JOREDO PHHWLQJ SODFH IRU WKH :RUOG 7RXULVP )RUXP SDUWLFLSDQWV GHVLJQLQJ QHWZRUNLQJ RSSRUWXQLWLHV organizing the World Tourism )RUXP H[KLELWLRQ ZKLFK DLPV WR SURYLGH D WUDGLQJ SODWIRUP for tourism businesses ZRUOGZLGH SUHSDULQJ UHSRUWV MRXUQDOV DQG RWKHU SXEOLFDWLRQV WR IDFLOLWDWH D EHWWHU LQIRUPHG GHFLVLRQ PDNLQJ SURFHVV 7KH JRDOV DQG REMHFWLYHV of the summit are to share WKH :RUOG 7RXULVP )RUXP V YLVLRQ ZLWK UHJLRQDO H[SHUWV WR LQFUHDVH UHJLRQV PDUNHW share of international tourism, WR FRQYH\ QH[W JHQHUDWLRQ FRQVXPHU EHKDYLRU PRGHOV WR SDUWLFLSDQWV WR VKDUH WHFKQRORJLFDO WUHQGV LQ WKH tourism industry, to deliver an international marketing vision WR kJORFDOy FRPSDQLHV The World Tourism Forum DVSLUHV WR RUJDQL]H IXOO\ sustainable tourism events and believes that the best ZD\ WR DFKLHYH WKLV GHSHQGV RQ DFTXLULQJ D FROODERUDWLYH DSSURDFK 7R GDWH ZH KDYH UHFHLYHG LQFUHGLEOH VXSSRUW IURP KLJK OHYHO SXEOLF DQG EXVLQHVV oJXUHV RI WKH 5HSXEOLF RI 7XUNH\ 7KH VXPPLW FRQWLQXHG IRU WKUHH GD\V 7RSLFV VXFK DV RQOLQH WRXULVP WKH LPSDFW RI SROLWLFV RQ WKH WRXULVP VHFWRU QHZ WUHQGV LQ WKH VHFWRU WRXULVP FRQWULEXWLRQ RI LQWHUQDWLRQDO VSRUWV RUJDQL]DWLRQV FRQJUHVV KHDOWK DQG VKRSSLQJ WRXULVP ZHUH FRYHUHG GXULQJ WKH summit. The World Tourism Forum is organized four times a year LQ JOREDO FHQWHUV DURXQG WKH ZRUOG XQGHU WKH DXVSLFHV RI WKH 3UHVLGHQF\ RI WKH 5HSXEOLF RI 7XUNH\ 7KH QH[W VXPPLWV ZLOO WDNH SODFH LQ 4DWDU -RUGDQ ,QGLD 5XVVLD MARCH 2017 ISSUE 44

The World Tourism Forum DVSLUHV WR RUJDQL]H IXOO\ sustainable tourism events.

9LHWQDP DQG WKH 8 6 7KH Chairman of the Board, %XOXW %DþF“ VWDWHG WKDW WKH\ DWWHQGHG WKH SUHYLRXV HYHQW LQ 5XVVLD KH H[SODLQHG WKDW the event was fruitful and the WRSLFV RI 7XUNH\ 0RVFRZ DQG $UDELF FRXQWULHV ZHUH KDQGOHG during that summit. %DþF“ VDLG WKH VXPPLW gathers together leading WRXULVP FRPSDQLHV IURP 5XVVLD DQG 7XUNH\ WR SURYLGH WKHP D SODWIRUP WR GLVFXVV XSFRPLQJ SRWHQWLDO SODQV 3RLQWLQJ WR WKH VHVVLRQV LQ WKH VXPPLW %DþF“ VDLG WKH HYHQW ZDV DOVR DLPHG DW GLVFRYHULQJ more about the Russian market. The summit itself FUHDWHG PLOOLRQ LQ WUDGH YROXPH WKH IRUXP FKDLUPDQ stated. %DJFL H[SUHVVHG WKDW WKHVH VXPPLWV DUH YHU\ VXFFHVVIXO works for being organized DJDLQVW WKH SHUFHSWLRQ RSHUDWLRQ ZKLFK LV EHLQJ GRQH DEURDG HVSHFLDOO\ IRU 7XUNH\ +H VDLG WKDW KH JRW TXHVWLRQV DERXW WKH 5HLQD DWWDFN everywhere he goes, however, KH VDLG k7KH 5HLQD DWWDFN UHDOO\ KDSSHQHG \HV EXW WKHUH

DUH WHUURULVW DWWDFNV JRLQJ RQ all around the world, not only LQ 7XUNH\y It is stated that the World 7RXULVP )RUXP LV FUHDWLQJ DQ HFRQRP\ RI PLOOLRQ dollars from Istanbul this \HDU )OLJKWV DFFRPPRGDWLRQ FXOLQDU\ WUHDWV WULSV 7KLV is the volume that only the ,VWDQEXO PHHWLQJ FUHDWHV ,W LV FRPLQJ IURP RQO\ RQH event in Istanbul. They are DOVR PDNLQJ D 35 ZRUN E\ H[SODLQLQJ WKLV HYHQW LQ RWKHU FRXQWULHV 7KH JXHVWV GR QRW stay here for two or three days DV WKH\ FRPH %HFDXVH WKH\ are seeing it like a holiday destination and say ‘I am going to go to Istanbul for D ZKLOH 7KH WHDP RI :RUOG Tourism Forum has rented FORVH WR FDUV IRU WKH JXHVWV FRPLQJ WR WKLV HYHQW DQG WKH\ KDYH FORVHG WKUHH RU IRXU hotels for their stay. The World Tourism )RUXP *OREDO 0HHWLQJ SURYLGHV WKH RSSRUWXQLW\ WR meet 300 famous bloggers. The worldwide famous SKHQRPHQRQ =DFK .LQJ ZKR FDPH WR ,VWDQEXO WKLV \HDU

The Turkish Perspective

was among those bloggers. =DFN .LQJ LV D VRFLDO PHGLD SKHQRPHQRQ NQRZQ IRU KLV LOOXVLRQ YLGHRV DQG KH FDPH to Turkey only for the E-gen ,QpXHQFHUV :RUOG 7RXULVP )RUXP *OREDO 0HHWLQJ 2UJDQL]HG ZLWK WKH FRQFHSW k%RXQGDULHV DV %DUULHUV 6PRRWK DQG 6HFXUH 7UDYHOy LQ FROODERUDWLRQ ZLWK 7XUNXYD] 0HGLD DV WKH PDLQ PHGLD VSRQVRU WKH WZR GD\ VXPPLW ZDV RSHQHG E\ 3ULPH 0LQLVWHU %LQDOL <“OG“U“P ZLWK 'HSXW\ 3ULPH 0LQLVWHU 0HKPHW úLPûHN &XOWXUH DQG 7RXULVP 0LQLVWHU 1DEL $YF“ PLQLVWHUV RI FRXQWULHV DQG JXHVWV DOVR LQ DWWHQGDQFH The glitz and glamour of World Tourism Forum in Istanbul masked industry SXQGLWV DQJVW RYHU WKH GHFOLQLQJ VHFXULW\ FRQoGHQFH among would-be travelers. Given the global terror threat, UHYHUVLQJ WKH LQGXVWU\ V IRUWXQHV ZRQ W EH HDV\ IRU industry or governments. 7XUNH\ LV DV VDIH DV WKH 8 6 DQG (XURSHDQ FRXQWULHV 3ULPH 0LQLVWHU %LQDOL <“OG“U“P VDLG RQ )HEUXDU\ VXJJHVWLQJ WKDW kQR FRXQWU\ LQ WKH ZRUOG LV VDIH IURP WHUURUy k7KHUH LV QRZKHUH WKDW terror does not exist. Fearing

terror and being intimidated by terror only serves terror and terrorists. For that reason , DP VD\LQJ SURXGO\ DQG safely: Turkey is just as safe DV WKH 8 6 ,VWDQEXO LV MXVW DV VDIH DV (XURSH $QNDUD LV DV VDIH DV 6DUDMHYR ü]PLU LV DV VDIH DV %DNXy <“OG“U“P VDLG DW WKH RSHQLQJ FHUHPRQ\ RI the three-day World Tourism Forum in Istanbul. %DûDUDQ 8OXVR\ SUHVLGHQW RI WKH $VVRFLDWLRQ RI 7XUNLVK 7UDYHO $JHQFLHV 7²56$% said that Turkey is not only ZDLWLQJ IRU FXVWRPHUV EXW LV DOVR D JRRG FXVWRPHU LWVHOI 5HDFWLQJ WR YLVD DSSOLFDWLRQV

on the Greek islands, Ulusoy said that in Turkey, 16.5 PLOOLRQ SHRSOH WUDYHOHG LQ 2016, 9.5 million of whom ZHQW DEURDG k,I *UHHFH LV DSSO\LQJ IRU YLVDV WKHQ WKLV LV LWV SUREOHP :H KDYH D ORW RI SODFHV WR JR 7KHQ ZH JR WR &\SUXVy 8OXVR\ VDLG k:H DV WKH WRXULVP VHFWRU oQG LW GLIoFXOW WR XQGHUVWDQG WKH YLVD LVVXDQFH RQ 7XUNH\ 7XUNH\ LV QRW D FRXQWU\ WR VFUDWFK EXW D FRXQWU\ WR EH FDUHVVHGy Culture and Tourism 0LQLVWHU $YF“ EHJDQ KLV VSHHFK E\ UHFDOOLQJ WKH k%ULQJ <RXU 1HLJKERUVy FDPSDLJQ LQLWLDWHG E\ 3UHVLGHQW 5HFHS 7D\\LS (UGRþDQ DQG WKH k, DGRUH WKLV FRXQWU\y FDPSDLJQ LQLWLDWHG E\ 3ULPH 0LQLVWHU <“OG“U“P k, WKLQN WKDW WKHVH

FRPSOHPHQWDU\ FDPSDLJQV really have meaning beyond tourism and that they are very meaningful in terms of VKRZLQJ ZKDW CORYH RI FRXQWU\ LV HVSHFLDOO\ WKHVH GD\V , WKDQN WKHP YHU\ PXFKy $YF“ said. 'HSXW\ 3ULPH 0LQLVWHU 0HKPHW úLPûHN VDLG WKH WRXULVP LQGXVWU\ V FRQWULEXWLRQ WR 7XUNH\ V *'3 LV DURXQG SHUFHQW LQFOXGLQJ WKH VHFWRU V GLUHFW DQG LQGLUHFW HIIHFWV 6WUHVVLQJ WKDW LQIUDVWUXFWXUH investments in tourism KDYH DQ HIIHFW RQ LQFRPH úLPVHN VDLG k,I \RX FDQ DWWUDFW WRXULVWV \RX QHHG EHWWHU LQIUDVWUXFWXUH ,Q other words, tourism has DQ LPSRUWDQW HIIHFW RQ ORFDO HFRQRPLHV DV ZHOOy úLPûHN ZKR HPSKDVL]HG WKH IDFW that tourism is a driving SRZHU IRU JOREDO JURZWK DOVR FRPPHQWHG RQ WKH GHFOLQH in the number of tourists Turkey hosted last year and VDLG k ZDV D \HDU WKDW ZLWQHVVHG WHUURULVW DWWDFNV DV ZHOO DV D FRXS DWWHPSW 1HYHUWKHOHVV ZH ZHOFRPHG 25 million tourists. We believe WKDW WKH GHFOLQH LQ WKH QXPEHU RI WRXULVWV LV WHPSRUDU\ :H ZLOO JHW EDFN RQ WUDFNy Zack King iV D VRFLDO PHGLD SKHQRPHQRQ known for his illusion videos.

Topics such as online tourism, the impact of politics on the tourism sector, new trends in the sector, tourism contribution of international sports organizations, congress, health, and shopping tourism were covered during the summit.

15

16

Briefing

Yachts and ships built in Turkey have EHHQ H[SRUWHG DOPRVW all over the world.

SHIP & YACHT

When History Meets Innovation MkZ]bmbhgZe labi[nbe]bg` ldbeel \hf[bg^] pbma fh]^kg m^\agbjn^l Zg] ^]n\Zmbhg aZl ^gZ[e^] Mnkdbla labi[nbe]bg` bg]nlmkr mh ]^o^ehi bgmh Zg bgm^kgZmbhgZeer dghpg mkZ]^fZkd' BY RAMAZAN GÃœZYURDU

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VKLSEXLOGLQJ LQ $QDWROLD GDWHV EDFN WR V 6KLSEXLOGLQJ LQ Turkey has evolved from an ROG WUDGLWLRQDO DFWLYLW\ LQ $QDWROLD WR DQ LQWHUQDWLRQDOO\ UHFRJQL]HG LQGXVWU\ HVSHFLDOO\ VLQFH WKH HDUO\ V 7KH industry has modern, TXDOLW\ FHUWLoHG VKLS\DUGV WKDW FDQ EXLOG VKLSV QDYDO vessels, offshore industry YHVVHOV \DFKWV PHJD \DFKWV and sailing boats, as well DV FDUU\LQJ RXW H[WHQVLYH UHSDLU DQG FRQYHUVLRQ ZRUNV 7XUNH\ V VKLS\DUGV DUH PDLQO\ ORFDWHG LQ WKH 0DUPDUD Region, namely Tuzla, <DORYD DQG ,]PLW ZKLFK KDYH GHYHORSHG LQWR G\QDPLF MARCH 2017 ISSUE 44

VKLSEXLOGLQJ FHQWHUV LQ DGGLWLRQ WR WKH \DUGV ORFDWHG LQ %ODFN 6HD DQG 0HGLWHUUDQHDQ Regions. Between 2002 and 2010, LQ SDUDOOHO ZLWK GHYHORSPHQWV in the global market, Turkish VKLSEXLOGLQJ H[SHULHQFHG D VHYHUDO IROG LQFUHDVH LQ LWV VKLSEXLOGLQJ DQG H[SRUW FDSDFLW\ LQFOXGLQJ D VLJQLoFDQW SURGXFW GLYHUVLoFDWLRQ 7KLV UHVXOWHG LQ 7XUNH\ EHLQJ UHJXODUO\ SODFHG LQ WKH WRS WHQ FRXQWULHV RQ WKH EDVLV RI LWV GHDGZHLJKW GZW SURGXFWLRQ DQG LQ WKH WRS oYH FRXQWULHV E\ WKH QXPEHU RI VKLSV ,Q UHFHQW \HDUV 7XUNH\ KDV LQFUHDVLQJO\ WDSSHG LQWR QLFKH PDUNHWV ZKLFK LQ WXUQ KDV

OHG WR D JURZLQJ SDUWLFLSDWLRQ E\ 7XUNLVK VKLS\DUGV LQ WKH international trade in new VKLSV 7XUNLVK \DUGV KDV VSHFLDOL]HG LQ WDLORU PDGH VKLSV VXFK DV FKHPLFDO SURGXFW WDQNHUV PHJD \DFKWV WXJV RIIVKRUH VXSSO\ YHVVHOV VSHFLDOL]HG oVKLQJ YHVVHOV SDVVHQJHU FDU IHUULHV VSHHG ERDWV DQG YDULRXV FRPPHUFLDO VKLS W\SHV ,Q SDUDOOHO WKHUH KDV also been strong growth LQ WKH PDULQH HTXLSPHQW PDQXIDFWXULQJ VHFWRU ZKLFK FRXOG LQFUHDVLQJO\ DOVR WDS WKH H[SRUW PDUNHW 7KHVH GHYHORSPHQWV UHpHFW LQ SDUW WKH VWUDWHJLF ORFDWLRQ RI WKH \DUGV WKH H[SHULHQFHG ZRUNIRUFH WKH TXDOLW\ RI

SURGXFWLRQ DQG 7XUNH\ V VLJQLoFDQW UROH DV D SROLWLFDO FXOWXUDO DQG HFRQRPLF EULGJH EHWZHHQ (XURSH DQG &HQWUDO $VLDQ DQG 0LGGOH (DVWHUQ HFRQRPLHV 7KH ORFDO FRQWHQW RI WKH SURGXFWV DUH JHQHUDOO\ UHDFKLQJ IRU WKH QDYDO VKLSV 7KH VKLSEXLOGLQJ DQG UHSDLU LQGXVWU\ LV FRQVLGHUHG WR EH RQH RI WKH PRVW SURPLVLQJ LQGXVWULDO VHFWRUV LQ 7XUNH\ DQG WKHUH KDYH EHHQ VLJQLoFDQW GHYHORSPHQWV LQ UHFHQW \HDUV $W SUHVHQW WKHUH DUH DFWLYH VKLS\DUGV LQ 7XUNH\ ZKLOH DQRWKHU PRVW RI ZKLFK PLJKW EH GHVFULEHG DV D PHGLXP VL]H DUH UHSRUWHG WR EH LQ WKH SURFHVV RI EHLQJ built, although this number PD\ EH DIIHFWHG E\ WKH UHGXFHG GHPDQG IRU VKLSEXLOGLQJ following the 2008 world HFRQRPLF VORZGRZQ 7KH FDSDFLW\ RI 7XUNLVK \DUGV LV HVWLPDWHG WR UHDFK PLOOLRQ ':7 VKLSEXLOGLQJ PLOOLRQ ':7 UHSDLU DQG PDLQWHQDQFH FDSDFLW\ WRQ VWHHO SURFHVVLQJ FDSDFLW\ 7XUNLVK VKLS\DUGV KDYH PDQ\ pRDWLQJ DQG GU\ GRFNV RI GLIIHUHQW VL]HV

The Turkish Perspective

7XUNLVK QDYDO VKLSEXLOGLQJ VHFWRU KDV GHYHORSHG GXULQJ WKH ODVW GHFDGH FRYHULQJ YHU\ ZLGH UDQJH RI SURGXFWV LQFOXGLQJ FRDVW JXDUG YHVVHOV SDWURO ERDWV FRUYHWWHV UHSOHQLVKPHQW VKLSV ODQGLQJ VKLSV RI YDU\LQJ VL]HV VXEPDULQH UHVFXH YHVVHOV WXJV HWF Turkish boat building VHFWRU IROORZ WKH WHFKQRORJLFDO GHYHORSPHQW LQ WKH \DUGV <DFKWV DQG ERDWV built in Turkey have been H[SRUWHG WR DOPRVW DOO RYHU WKH ZRUOG &ODVVLF ZRRGHQ \DFKWV DQG PHJD \DFKWV DUH SURGXFWV 7XUNLVK \DFKW building industry leads in the world. 7XUNLVK EXLOW VKLSV DQG \DFKWV DUH JHQHUDOO\ GHVLJQHG in Turkey. Turkish naval DUFKLWHFWV DQG PDULQH HQJLQHHUV KDYH GHYHORSHG VKLS DQG \DFKW GHVLJQV DFFHSWHG by all over the world. The FXVWRPL]HG FKDUDFWHU RI WKH SURGXFWV QHFHVVLWDWHV WKDW WKH GHVLJQV DUH SURGXFHG ORFDOO\ WR DFKLHYH EHVW SURGXFW RSWLPL]DWLRQ 7KH HFRQRPLF VORZGRZQ DOVR DIIHFWHG H[SRUWV ZKLFK SHDNHG DW 86' ELOOLRQ LQ EXW KDG GHFOLQHG WR 86' ELOOLRQ LQ 7XUNLVK VKLSEXLOGLQJ LQGXVWU\ KDV UHFHQWO\ EHHQ UHVWUXFWXULQJ LWV SURGXFW range moving into more LQQRYDWLYH SURGXFWV (QHUJ\ VHFWRU KDV LWV RZQ UHTXLUHPHQWV DQG PDULWLPH Turkish Yacht and Ship EXLOGLQJ VHFWRU KDV SURYHQ LWV WHFKQLFDO FDSDELOLWLHV

Turkish built ships and yachts are generally designed in Turkey too.

BAÅžARAN BAYRAK Ship and Yacht Industry Councilman

HQHUJ\ LV D GHPDQGLQJ oHOG 6KLS KDV WR LPSURYH WKHLU green house gas emission during the next ten years UHDFKLQJ UHGXFWLRQ RQ &22 emissions over 15 years of duration due to ,02 UHJXODWLRQV 7XUNLVK VKLSEXLOGLQJ LQGXVWU\ LV GHYHORSLQJ DQG EXLOGLQJ VXFK vessels with innovative energy HIoFLHQF\ LPSURYHPHQW measures. Floating energy SURGXFWLRQ VKLSV KDYH EHHQ EXLOW DV XQLTXH LQQRYDWLRQ SURGXFW LQ WKH ZRUOG 2IIVKRUH VXSSO\ YHVVHOV ZLQG WXUELQH PDLQWHQDQFH YHVVHOV DUH SURGXFHG LQ 7XUNLVK \DUGV <DFKW EXLOGLQJ VHFWRU KDV SURYHQ LWV WHFKQLFDO FDSDELOLWLHV VLQFH ZRUOG ZLGH ZHOO NQRZQ 0DOWHVH IDOFRQ WKH ODUJHVW G\QDULJ VDLOLQJ VKLS LQ WKH ZRUOG ,QQRYDWLYH SURGXFWV DUH GHYHORSHG QHZ JHQHUDWLRQ of designers are raising. ,QQRYDWLRQ UHVHDUFK DQG GHYHORSPHQW DUH WKH NH\ IDFWRUV RI 7XUNLVK VKLS DQG \DFKW EXLOGLQJ VHFWRU LQ IXWXUH

TURKISH SHIP AND YACHT BUILDING INDUSTRY IS RESTRUCTURING INTO HIGHER TECHNOLOGY INDUSTRY How do you consider the EXW DOVR XQFRQYHQWLRQDO KLJK current ship and yacht DGGHG YDOXH VKLSV building in Turkey and in the world? What do you think of 7XUNLVK VKLSEXLOGLQJ KDV Turkish Shipbuilding GHYHORSHG FRQVLGHUDEO\ VLQFH future? 2002. The yards has invested 7KH PDLQ SUREOHP RI 7XUNLVK LQ WHFKQRORJ\ ODUJH QXPEHU \DUGV LV VKLS oQDQFH ZH RI VKLS KDYH EHHQ EXLOW ZHOFRPH WKH GHYHORSPHQWV between 2003 and 2009. RQ WKH FUHGLW JXDUDQW\ IXQG :H HQFRXQWHU LQVXIoFLHQW WR LQFUHDVH WKH JXDUDQWLHV QXPEHU RI RUGHUV VLQFH WKHQ LQWR VKLSEXLOGLQJ VHFWRU :H This is mainly due to EHOLHYH WKLV VKDOO DOVR DIIHFW WKH GHPDQG VXSSO\ LPEDODQFH 7XUNLVK ([LPEDQN DQG oQDQFH RQ PDULWLPH WUDGH pHHW 7KH SUREOHPV VKDOO EH HDVLHG )DU (DVW VKLSEXLOGHUV KDYH The investment on built very large tonnage LQQRYDWLRQ FDSDFLW\ EXLOGLQJ with state subsidies, and on young engineers shall WKH WUDGH VKLS VXSSO\ KDV result on new highly H[FHHGHG WKH GHPDQG 7KH innovative high added value ORZ JURZWK UDWH VLQFH SURGXFWV LQ QH[W WHQ \HDUV FULVHV KDV :H DV VKLS DQG FRQWULEXWHG VXFK \DFKW H[SRUWHUV LPEDODQFH DVVRFLDWLRQ Turkish yards KDYH VXSSRUWHG have moved design and MILLION DWT into high innovation ESTIMATED SHIPBUILDWHFKQRORJ\ SURMHFWV HYHU\ ING CAPACITY OF RQ RII SURGXFWV year among TURKISH YARDS /DWHVW VKLSV the university from Turkish yards VWXGHQWV $QG ZH FDQ LQFOXGH HQHUJ\ SURGXFWLRQ HDVLO\ REVHUYH WKH FDSDFLW\ VKLSV /1* 'LHVHO GXDO IXHO LQFUHDVH RQ LQQRYDWLYH SRZHUHG IXOO HOHFWULF IHUULHV SURGXFWV RQ WKH LQGXVWU\ ZLWK EDWWHU\ EDFNXS :RUOG V 1RZ ZH QHHG oQDQFLDO oUVW /1* SRZHUHG WXJV ZLQG VFKHPHV IRU WKH LQQRYDWLYH WXUELQH IDUP PDLQWHQDQFH SURGXFWV WR EH IXOO\ GHYHORSHG YHVVHOV OLYH oVK FDUULHUV HWF FRPPHUFLDO SURGXFWV $OO WKHVH LQGLFDWH 7XUNLVK ,Q VXPPDU\ 7XUNLVK VKLS \DUGV DUH QRW RQO\ SURGXFLQJ DQG \DFKW EXLOGLQJ LQGXVWU\ VWDQGDUG WUDGH VKLSV VXFK DV LV UHVWUXFWXULQJ LQWR KLJKHU FKHPLFDO SURGXFW WDQNHUV WHFKQRORJ\ LQGXVWU\

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Briefing

Turkey has an LPSRUWDQW UROH LQ WKH PHJD \DFKW LQGXVWU\

SHIP & YACHT

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BRINGING TOGETHER LOCAL AND FOREIGN MARINE ENTHUSIASTS

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ORFDO and foreign marine enthusiasts, the k&15 (XUDVLD %RDW 6KRZ ,QWHUQDWLRQDO %RDW 0DULQH (TXLSPHQW DQG $FFHVVRULHV 6KRZ y ZDV KHOG DW &15 (;32 <HûLONÆ\ RQ )HE 6HDIDUHUV ZKR DUH ORRNLQJ IRU VSHHG DQG FRPIRUW RQ boats and boats found what WKH\ FRXOG oQG DW WKH &15 (XUDVLD %RDW 6KRZ )DLU WKRXVDQG SHRSOH YLVLWHG WKH IDLU GRPHVWLF DQG IRUHLJQ 7KH IDLU ZHOFRPHG IRUHLJQ YLVLWRUV IURP PDQ\ FRXQWULHV LQFOXGLQJ %XOJDULD *HUPDQ\

MARCH 2017 ISSUE 44

England, Russia, Ukraine, 86$ ,WDO\ )UDQFH 5RPDQLD DQG *UHHFH 7KH H[KLELWLRQ SURYLGHG WKH FKDQFH WR EH LQ WKH KHDUW RI PDULWLPH LQGXVWU\ ZKLFK ZLOO OHDG QHZ DQG OXFUDWLYH EXVLQHVV SDUWQHUVKLSV 9DULRXV PDULQH YHKLFOHV DSSHDOLQJ WR all levels of luxury and taste were tested and observed. 7XUNH\ KDV DQ LPSRUWDQW UROH LQ WKH PHJD \DFKW LQGXVWU\ *LYHQ LWV VWUDWHJLF JHRJUDSKLFDO ORFDWLRQ LW LV D SHUIHFW RSSRUWXQLW\ WR SHQHWUDWH WKH (XURSHDQ $VLDQ DQG 0LGGOH (DVWHUQ PDUNHWV

Turkey also has the longest seafront of all the 0HGLWHUUDQHDQ FRXQWULHV ZLWK RYHU NP RI FRDVWOLQH and with its almost year URXQG VXQVKLQH FXOWXUDO DQG KLVWRULFDO ZHDOWK LW LV DQ XQGRXEWHGO\ DWWUDFWLYH PDUNHW LQ ZKLFK WR GR EXVLQHVV The show hosted the world DQG 7XUNH\ SURPRWLRQV RI PLOOLRQ GROODU VXSHU \DFKWV and feature more than 300 VDLOERDWV PHJD \DFKWV VXSHU \DFKWV DQG FDWDPDUDQV UHSUHVHQWLQJ PRUH WKDQ EUDQGV 6KRZFDVLQJ DOO DFFHVVRULHV DQG HTXLSPHQW LQ

WKH VHFWRU WKH &15 (XUDVLD %RDW 6KRZ ZDV RUJDQL]HG RQ DQ DUHD RI VTXDUH PHWHUV LQ FRRSHUDWLRQ ZLWK WKH 7XUNLVK 0DULQH ,QGXVWU\ $VVRFLDWLRQ '(1785 The CNR Eurasia Boat 6KRZ D PHPEHU RI WKH International Federation of %RDW 6KRZ 2UJDQL]HUV ,)%62 DQG WKH ,QWHUQDWLRQDO &RXQFLO RI 0DULQH ,QGXVWU\ $VVRFLDWLRQ ,&20,$ LV VXSSRUWHG E\ WKH 7UDQVSRUW 0DULWLPH $IIDLUV DQG &RPPXQLFDWLRQV 0LQLVWU\ &XOWXUH DQG 7RXULVP 0LQLVWU\ 7XUNH\ V 6PDOO DQG 0HGLXP ,QGXVWU\

The Turkish Perspective

'HYHORSPHQW 2UJDQL]DWLRQ .26*(% DQG WKH ,0($. &KDPEHU RI 6KLSSLQJ 7KH PRVW DPELWLRXV PRWRU \DFKWV and sailboats of world brands, VXFK DV 3ULQFHVV 6HDOLQH +DQVH $]LPXW 0RRG\ 3UHVWLJH 'XIRXU -HDQQHDX $]XUHH DQG 6XQVHHNHU ZHUH exhibited along with all kinds RI HTXLSPHQW IRU WKH PDULWLPH LQGXVWU\ VXFK DV DPDWHXU oVKLQJ JHDU PDULQH WH[WLOH SURGXFWV GLYLQJ HTXLSPHQW LQpDWDEOH ERDWV DQG MHW VNLV The boat show hosted YDULRXV HQWHUWDLQLQJ DFWLYLWLHV DQG IDPRXV JXHVWV LQFOXGLQJ IDPRXV 7XUNLVK DFWRU DQG FRPHGLDQ $WD 'HPLUHU NQRZQ IRU KLV SDVVLRQ IRU VHD DQG ERDWV DQG DFFRPSOLVKHG FRPSRVHU DQG SLDQLVW 7XOX\KDQ 8ĂžXUOX ZKR WRRN WKH VWDJH DV D SDUW RI WKH VKRZ 6HPLQDUV ZHUH KHOG GXULQJ WKH VKRZ WR GLVFXVV PDQ\ WRSLFV UHODWHG WR WKH PDULWLPH LQGXVWU\ VXFK DV k(DVWHUQ 0HGLWHUUDQHDQ <DFKWLQJy DQG k0HWDO %RDW 0DQXIDFWXULQJ y In addition, Book The Boat, ZKLFK DOORZV FXVWRPHUV WR rent 14,250 boats around the world and 800 boats in Turkey in 681 marinas on a VLQJOH ZHEVLWH FDPH WRJHWKHU with sea lovers at the CNR (XUDVLD %RDW 6KRZ

WOMEN’S SUPPORT IS EXPECTED FOR THE TRANSITION FROM FOREIGN FLAG TO TURKISH FLAG ,Q &15 (XUDVLD %RDW 6KRZ VHPLQDUV DOO WKH WRSLFV WKDW FDXVHG FRQIXVLRQ DIWHU WKH UHJXODWLRQV LQ WKH VHFWRU ZHUH GLVFXVVHG 2QH RI WKH VHPLQDUV was also held with the SDUWLFLSDWLRQ RI WKH 0LQLVWU\ RI 7UDQVSRUW 0DULWLPH $IIDLUV DQG &RPPXQLFDWLRQV $FWLQJ 'LUHFWRU *HQHUDO WR 'LUHFWRUDWH *HQHUDO RI 0HUFKDQW 0DULQH &HPDOHWWLQ úHYOL DQG VHFWRU UHSUHVHQWDWLYHV ,Q WKLV seminar, all the details about transition the Turkish owned

25.5 METERS THE LONGEST YACHT IN THE FAIR

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THOUSAND PEOPLE WHO VISITED THE FAIR

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MILLION EURO THE PRICE OF THE MOST EXPENSIVE YACHT

All the details like “transition of the Turkish owned vessels mh ma^ Mnkdbla Ă—Z`Ă‹ were discussed.

YHVVHOV WR WKH 7XUNLVK pDJ ZHUH GLVFXVVHG &HPDOHWWLQ ĂşHYOL stated that the arrangements WR PRELOL]H WKH VHFWRU FRLQFLGHG ZLWK WKH &15 (XUDVLD %RDW 6KRZ k:H IRXQG WKH RSSRUWXQLW\ WR WHOO WKH fairs about the arrangements ZH PDGH LQ WKH VHFWRU :H GLG RXU GXW\ 3OHDVH GR \RXU GXW\ as well. Transit to the Turkish pDJ DV VRRQ DV SRVVLEOH :H H[SHFW VXSSRUW IURP WKH women who determine WKH GHVWLQ\ RI RXU FRXQWU\ HVSHFLDOO\ DERXW WUDQVLWLQJ WR WKH 7XUNLVK pDJ y KH DGGHG ĂşHYOL DOVR UHPLQGHG WKDW WKRXVDQG WHFKQLFLDQV DUH H[HPSW IURP YLVD H[HPSWLRQ k7KHUH LV D VHQVH WKDW WKH WD[ LQFHQWLYHV DUH OHYLHG RQ luxury boats like 5-10 million SRXQGV 7KLV SHUFHSWLRQ LV not true. There are many good ERDWV DW UHDVRQDEOH SULFHV :H GR QRW FKDUJH WD[HV RQ ]HUR DQG VHFRQG KDQG ERDWV :H H[SHFW \RX WR DSSO\ WR WKH SRUW DXWKRULWLHV y KH VDLG

“THE PROBLEM OF TYING THE BOAT WILL BE ADAPTED TO EVERYONE’S FINANCIAL SITUATION.â€? $OSDUVODQ 6LUNHFLRĂžOX 3UHVLGHQW RI '(1785 DQG

)DUXN 2NX\XFX 0HPEHU RI WKH %RDUG RI 'LUHFWRUV RI Ăź0($. &KDPEHU RI 6KLSSLQJ SDLG DWWHQWLRQ WR the need for Turkish-owned vessels to transit to the 7XUNLVK pDJ )DUXN 2NX\XFX VWDWHG WKDW WKH oUVW FRQGLWLRQ of being a maritime FRXQWU\ LV WR IDFLOLWDWH DPDWHXU PDULWLPH k:H were thinking what would KDSSHQ WR RXU DPDWHXU VDLORUV 5HVHWWLQJ WKH 6&7 6SHFLDO &RQVXPSWLRQ 7D[ DQG UHGXFLQJ WKH 9$7 9DOXH $GGHG 7D[ WR SHUFHQW LV D great deal for our amateur sailors. These regulations FDPH ZKHQ WKH LQGXVWU\ ZDV XQLWHG $PDWHXU VDLORUV PXVW FROODERUDWH ZLWK HDFK other. We will see that the SUREOHP RI W\LQJ WKH ERDW ZLOO EH DGDSWHG WR HYHU\RQH V oQDQFLDO VLWXDWLRQ 7KH 6HD 7RXULVP 5HJXODWLRQ LV also undergoing a rigorous revision. I do not know how to do it but after that, Turkish-owned foreignpDJJHG ERDW ZLOO QRW EH OHIW 7KLV ZLOO EH RQH RI WKH SRLQWV WR EH QRWHG LQ WKH 0DULQH 7RXULVP 5HJXODWLRQ k KH DOVR added.

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Briefing

Dnkmnefnรฝ stated that the world is going through a process of very important changes

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MARCH 2017 ISSUE 44

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20

The Turkish Perspective

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Cupica eti, sederox medo, TXH LV QRQGXFLG SHFULPXUDFLR LQF videmedit. Bem te WHP VLV LQLKLOODULF tum

SURFHVV RI UHVWUXFWXULQJ DIWHU WKH FROG ZDU SROLWLFDOO\ DQG HFRQRPLFDOO\ .XUWXOPXû stated that the events KDSSHQHG LQ WKH ODVW \HDUV ZLOO KDYH LWV SODFH LQ WKH future as well. .XUWXOPXû DOVR VDLG WKDW k2XU HQWUHSUHQHXU IULHQGV DUH doing every kind of work to PDNH XVH RI WKH SRVVLELOLWLHV at the maximum level and HQGHDYRU WR SXW RXW DOO NLQGV RI SURMHFWVy $IWHU WKH VSHHFKHV WKH 'HSXW\ 3ULPH 0LQLVWHU 1XPDQ .XUWXOPXû DQG *ü9 3UHVLGHQW 0HKPHW .R¹ DZDUGHG WKH ZLQQHUV RI HQWUHSUHQHXUVKLS LQ WHQ FDWHJRULHV ,Q -DQXDU\ 'HSXW\ 3ULPH 0LQLVWHU 0HKPHW úLPûHN also made a statement DERXW HQWUHSUHQHXUVKLS in Turkey and the H[SHFWDWLRQV IURP LQ WKH oHOG RI HQWUHSUHQHXUVKLS

WINNERS OF ENTERPRENEURSHIP AWARDS

The leader firms and people of entrepreneurship were awared in ten categories by Mehmet Koç and Numan KurtulmuÅ&#x;.

Category University Entrepreneurship Award New Entrepreneur Award LE-Commerce Venture Award

Winner Project/Company Bilkent University Young Entrepreneurs Club Monro Energy Yasin Sert – Chapputz.com

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Prof. Dr. Mustafa Soylak / King Saud University -A -& ) Ä¡'( 5 ` - $4 . )$1 -.$/4

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21

Briefing

OLIVE

‘SACRED TREE’ CONTINUES TO GROW

Ma^ ab`a^lm bg\k^Zl^ bg l^\mhkZe [Zlbl bg =^\^f[^k +)*/ pbma *-/ bg\k^Zl^ pZl hebo^ Zg] hebo^ hbe l^\mhk' BY KEMAL TUNÇSEL

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ROLYH WUHH 2OHDVWHU oUVW DSSHDU" 7KHUH DUH GLIIHUHQW YLHZV LQ VFLHQFH about where in the world this savage but generous WUHH LV oUVW WDPHG +RZHYHU WKHUH LV VWLOO QR GHoQLWH RSLQLRQ $FFRUGLQJ WR WKH IDPRXV ERWDQLVW 3HOOHWLHU the motherland of these ZLOG ROLYH WUHHV LV $QDWROLD $QDWROLD LV ZKHUH PDQ\ RI these wild olive trees form jungles. The olive tree is

MARCH 2017 ISSUE 44

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DJULFXOWXUH DQG SURFHVVLQJ of olive and olive oil in our FRXQWU\ JR EDFN WR WKRXVDQG \HDUV DJR 7KH ROLYH SODQW ZDV WDNHQ IURP (DVW $VLD DQG VSUHDG WR WKH 0HGLWHUUDQHDQ basin by the Greeks and 5RPDQV 7RGD\ LW LV SURGXFHG QRW RQO\ LQ WKH 0HGLWHUUDQHDQ HQYLURQPHQW DQG WKH 0LGGOH (DVW EXW DOVR LQ FRXQWULHV OLNH 86$ &KLOH $UJHQWLQD 3HUX $XVWUDOLD ZKLFK KDYH D PRGHUDWH FOLPDWH (VSHFLDOO\ ROLYH RLO KDV EHFRPH DQ

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IMPORTANCE OF SECTOR FOR TURKEY AND TURKEY’S ECONOMY ,Q 7XUNH\ WKH ROLYH VHFWRU SURYLGHV LPSRUWDQW FRQWULEXWLRQV WR WKH formation of the market DQG HPSOR\PHQW ZLWK WKH SURGXFWV WKDW DUH SURGXFHG DQG XVHG 2YHU families make their living IURP ROLYH FXOWLYDWLRQ To summarize, the olive

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The Turkish Perspective

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INCREASE IN EXPORT OF OLIVE OIL

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FRPSHWLWRUV ZLWK LWV PRGHUQ DQG K\JLHQLF LQIUDVWUXFWXUH 7KH LQFUHDVLQJ XVH RI KHDOWK\ SURGXFWV E\ WKH ZRUOG V SRSXODWLRQ PDNHV WKH SURGXFWV DQG WKH LQGXVWU\ more valuable for Turkey. 7KH oUVW DQG RQO\ XQLRQ LQ ROLYH DQG ROLYH RLO VHFWRU ZKLFK LV DPRQJ WKH ROGHVW H[SRUWHU VHFWRUV RI RXU FRXQWU\ ZDV HVWDEOLVKHG LQ Izmir in 1940. In time, the

OLIVE TREE EXISTENCE

Union has endeavored to VROYH WKH SUREOHPV RI WKH VHFWRU DQG WR UHPRYH WKH EDUULHUV WR H[SRUWV

THE IMPORTANCE OF SECTOR IN THE WORLD When we look around the world, we see that olive and ROLYH RLO DUH LQGLVSHQVDEOH SDUWV RI WKH IRRG PDUNHW DQG ZRUOG FXLVLQHV )RU WKLV UHDVRQ ZH FDQ WDON DERXW

PDQ\ EHQHo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new markets.

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23

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Briefing

ENERGY

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THE ENVIRONMENTAL TECHNOLOGIES FOR A SUSTAINABLE WORLD B?:M >nkZlbZ +)*0 lmk^g`ma^gl bml ihlbmbhg Zl >nkZlbZĂ?l e^Z]bg` mkZ]^ _Zbk _hk ^gobkhgf^gmZe m^\agheh`b^l' BY Ä°BRAHÄ°M AVCI

FAT EURASIA 2017 ZKLFK WRRN SODFH EHWZHHQ February 16 and 18, again GHPRQVWUDWHG WKH FRQWLQXLQJ LPSRUWDQFH RI 7XUNH\ DV D hub for the environmental VHFWRU LQ WKH (XUDVLDQ UHJLRQ 7KH VSDFH WDNHQ XS by this exhibition in the ,VWDQEXO ([SR &HQWUH ,)0 LQFUHDVHG WR RYHU VTXDUH PHWHUV $ WRWDO RI H[KLELWRUV‹UHSUHVHQWLQJ FRPSDQLHV‹WRRN SDUW LQ WKH VHFRQG HGLWLRQ RI (XUDVLD V Leading Trade Fair for (QYLURQPHQWDO 7HFKQRORJLHV ,)$7 LV WKH ZRUOG V OHDGLQJ trade event for environmental

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MARCH 2017 ISSUE 44

WHFKQRORJ\ 'XULQJ WKH HQWLUH WUDGH IDLU H[SHUWV IURP LQGXVWU\ DQG UHVHDUFK shared their knowledge on water, wastewater, waste DQG UHF\FOLQJ PDQDJHPHQW LQ FRQIHUHQFH SUHVHQWDWLRQV GLVFXVVLRQ JURXSV DQG seminars. The trade fair was DFFRPSDQLHG E\ D VXSSRUWLQJ DQG FRQIHUHQFH SURJUDP featuring high-ranking VSHDNHUV $WWHQGHHV FRXOG EHQHoW IURP LQVLJKWV LQWR FXUUHQW WUHQGV DQG QHZ GHYHORSPHQWV LQ WKH HQYLURQPHQWDO VHFWRU 7KH oUVW GD\ RI WKH HYHQW

The products and solutions showcased at IFAT Eurasia are li^\bĂ–\Zeer mZk`^m^] to the needs of the Eurasian market.

H[SHUWV IURP LQWHUQDWLRQDO LQGXVWU\ DVVRFLDWLRQV DQG RUJDQL]DWLRQV GLVFXVVHG what a sustainable, environmentally friendly GHYHORSPHQW VWUDWHJ\ IRU Turkey might look like. 7KH 5HSXEOLF 2I 7XUNH\ 0LQLVWU\ 2I (QYLURQPHQW $QG 8UEDQL]DWLRQ ZDV DOVR there with several sessions and deal, among other WKLQJV ZLWK WKH WRSLFV RI k=HUR :DVWH $SSURDFK LQ ,QGXVWU\y k)HUPHQWHG 3URGXFW 0DQDJHPHQW ZLWK 0HFKDQLFDO 6HSDUDWLRQy k%LRGU\LQJ DQG %LRPHWKDQL]DWLRQ )DFLOLWLHVy

The Turkish Perspective

DQG k8UEDQ ,QGXVWULDO Wastewater Treatment and 5HF\FOLQJ 3UDFWLFHVy 2Q WKH VHFRQG GD\ RI WKH HYHQW WZR WRSLF DUHDV IRFXVHG RQ WKH ZDWHU VHFWRU 7KH k'HVLJQ DQG 2SHUDWLRQ RI 6HZDJH 6\VWHPVy VHVVLRQ held by the German :DWHU 3DUWQHUVKLS *:3 GHDOHG ZLWK KRZ DOO W\SHV of wastewater systems DUH UHSDLUHG DQG SXW LQWR RSHUDWLRQ 7KH VSHDNHUV LQFOXGHG UHSUHVHQWDWLYHV IURP %LQGHU )HVWR 0LFURG\Q 1DGLU 3:7 :DVVHU XQG $EZDVVHUWHFKQLN 6ËO]OH .OHLQ and WE-Consult. 'XULQJ WKH VHFRQG SDUW RI WKH GD\ WKH SUHVHQWDWLRQV WULHG WR oQG DQ DQVZHU WR WKH TXHVWLRQV k+RZ FDQ VOXGJH EH SXW WR JRRG XVH" :KDW SRWHQWLDO GRHV FR GLJHVWLRQ KDYH LQ WKLV UHJDUG" $QG KRZ FDQ WKH HQHUJ\ UHTXLUHPHQWV RI VHZDJH WUHDWPHQW SODQWV EH RSWLPL]HG"y 6ROXWLRQV IRU PRGHUQ sustainable waste management ZDV RQ WKH SURJUDP RQ February 18. The highlights LQFOXGHG WKH k$JULFXOWXUDO :DVWH %LRJDV 3DQHOy KHOG E\ WKH ,QWHUQDWLRQDO 6ROLG :DVWH $VVRFLDWLRQ ,6:$ DQG .$.$' LWV UHSUHVHQWDWLYH RIoFH LQ 7XUNH\ ,W GLG QRW RQO\ IRFXV RQ WKH WKHUPDO XWLOL]DWLRQ of waste and the use of biogas, EXW DOVR SUHVHQW FXUUHQW HQHUJ\ SURMHFWV LQ 7XUNH\ 6WHIDQ 5XPPHO 0DQDJLQJ 'LUHFWRU RI 0HVVH 0ËQFKHQ H[SODLQV k7KH LQFUHDVH LQ VSDFH RI DOPRVW WHQ SHUFHQW shows that the exhibitors, WRR DUH FRQWLQXLQJ WR KDYH FRQoGHQFH DQG WUXVW LQ WKH Eurasian market. Now and in the future, Turkey is an LPSRUWDQW WUDGLQJ SDUWQHU and the link between east DQG ZHVW 7KDW LV ZK\ ,)$7 (XUDVLD LV RI VXFK LPSRUWDQFH LQ WKH ORQJ WHUP y This view was shared E\ 0ËQËI .RUNPD] 6DOHV

Osman Bayazit Genç: “To increase the level of waste treatment in Turkey, there are plans to increase solid pZlm^ lmhkZ`^ Zk^Zl'Ë

0DQDJHU RI %XVV 606 &DQ]OHU k:H ZHUH YHU\ VXUSULVHG DERXW WKH DPRXQW RI LQWHUHVWHG FOLHQWV HVSHFLDOO\ from the waste treatment VHFWRU ,)$7 (XUDVLD KHOSHG XV WR VXFFHVVIXOO\ LQWURGXFH RXU SURGXFWV WR WKH (XUDVLDQ HQYLURQPHQWDO PDUNHW y $OVR *ÆNKDQ +DVDQ *ÆNPHQ *HQHUDO 0DQDJHU DW .¶UFKHU 6HUYLV 7LFDUHW $ ú ZDV YHU\ VDWLVoHG ZLWK WKH UHVXOWV RI WKH HGLWLRQ k,)$7 (XUDVLD serves as both a valuable QHWZRUNLQJ RSSRUWXQLW\ DQG D SODWIRUP IRU VLJQLQJ EXVLQHVV deals. From the business

SHUVSHFWLYH WKH HYHQW ZDV H[WUHPHO\ EHQHoFLDO 7KH RYHUDOO DWPRVSKHUH DQG YLVLWRU volume of the exhibition H[FHHGHG RXU H[SHFWDWLRQV y 7KH SURGXFWV DQG VROXWLRQV VKRZFDVHG DW ,)$7 (XUDVLD DUH VSHFLoFDOO\ WDUJHWHG WR WKH needs of the Eurasian market. $ WRWDO RI H[KLELWRUV IURP FRXQWULHV WRRN SDUW LQ WKLV HQYLURQPHQWDO WHFKQRORJ\ fair, making the most of the RSSRUWXQLWLHV LW SUHVHQWV IRU HQWHULQJ QHZ PDUNHWV $IWHU 7XUNH\ WKH FRXQWULHV RI RULJLQ PRVW VWURQJO\ UHSUHVHQWHG among the exhibitors at the

show were Germany, China, $XVWULD )UDQFH 6ZLW]HUODQG DQG ,WDO\ LQ WKLV RUGHU This year there was no exhibitor night on the evening RI WKH oUVW GD\ RI WKH IDLU instead the money saved was donated to a reforestation SURMHFW LQ 7XUNH\ RQ EHKDOI RI DOO H[KLELWRUV ,Q FRRSHUDWLRQ with the Turkish Foundation IRU &RPEDWLQJ 6RLO (URVLRQ for Reforestation and the 3URWHFWLRQ RI 1DWXUDO +DELWDWV 7(0$ E\ WKH HQG RI WKH year a total of 4,000 trees will EH SODQWHG LQ WKH SURYLQFH RI %DO“NHVLU k3URWHFWLQJ WKH environment also means PDNLQJ VDFULoFHV y H[SODLQHG 2VPDQ %D\D]LW *HQ¹ k:LWK WKLV SURMHFW ZH DQG WKH exhibitors are together making RXU V\PEROLF FRQWULEXWLRQ WR D JUHHQHU IXWXUH y Turkey has above average oJXUHV RI ZDVWH SURGXFWLRQ in both urban waste and industrial waste in the region due to its urbanization rate, SRSXODWLRQ RI PLOOLRQ DQG rate of industrialization. 7KH FRQGLWLRQV IRU LQYHVWPHQW DUH HQFRXUDJLQJ IRU HQYLURQPHQWDO WHFKQRORJLHV and the renewable energy VHFWRU LQ 7XUNH\ ,Q DGGLWLRQ to the existing investment RSSRUWXQLWLHV LQ WKH DUHDV RI ZDVWH PDQDJHPHQW ZDWHU wastewater and environmental FRQVXOWDQF\ JURZWK LV H[SHFWHG DOVR LQ WKH DUHDV RI FRQWUROOLQJ DLU DQG PDULQH SROOXWLRQ 7R LQFUHDVH WKH OHYHO RI waste treatment in Turkey, WKHUH DUH SODQV WR LQFUHDVH solid waste storage areas DQG VROLG ZDVWH SURFHVVLQJ HTXLSPHQW VXIoFLHQWO\ DQG WR XVH PRUH DGYDQFHG WHFKQRORJ\ &RQVWUXFWLRQ RI QHZ ZDWHU WUHDWPHQW SODQWV DQG UHQHZDO of existing ones is on the DJHQGD IRU DUHDV WKDW LQFOXGH DOPRVW KDOI WKH SRSXODWLRQ ,Q DGGLWLRQ PDQ\ FRPSDQLHV WKDW SURGXFH ZDVWH DUH ORRNLQJ IRU waste treatment solutions.

25

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Briefing

COMMUNICATION

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The Turkish Perspective

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BRINGING TOGETHER 19 CONSORTIUM MEMBERS FROM 18 COUNTRIES

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Freeman, a licensed SLORW KLPVHOI OHQGV KLV GHHS EDULWRQH YRLFH WR WKH FRPPHUFLDO ZKLFK SLWFKHV 7XUNLVK $LUOLQHV DV WKH bridge between worlds.

AVIATION

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The Turkish Perspective

XQH[SORUHG WKRVH RI XV ZKR go out there with a sense RI ZRQGHU y WKH \HDU ROG DFWRU VDLG k5HDFKLQJ ZRUOGV oQGLQJ GHOLJKW LQ RXU GLIIHUHQFHV ,I \RX DUH one of us, and you would like WR H[SORUH PRUH RI WKLV JUHDW SODQHW ZH UH UHDG\ WR WDNH \RX WKHUH LW V WLPH y 7KH FDPHUD SDQQHG RXW WR VHH PXOWLSOH LQFDUQDWLRQV RI WKH oYH WLPH 2VFDU QRPLQHH VHDWHG RQ DQ DLUFUDIW UHOD[LQJ amid his travel. Then, it showed him seated amid a QXPEHU RI OXVK EDFNJURXQGV VXFK DV D JRUJHRXV JUHHQ oHOG D VQRZ\ PRXQWDLQ DQG D WURSLFDO EHDFK VHWWLQJ 7KH $FDGHP\ $ZDUG ZLQQLQJ 0LOOLRQ 'ROODU %DE\ VWDU WKHQ SOXJJHG WKH DLUOLQH ZLWK 7XUNLVK $LUOLQHV VORJDQ k:LGHQ \RXU ZRUOG 7XUNLVK $LUOLQHV y Commenting on the deal PDGH ZLWK WKH 2VFDU ZLQQHU DFWRU GLUHFWRU YRLFH DFWRU DQG SLORW 0RUJDQ )UHHPDQ 0 ,ONHU $\FL &KDLUPDQ RI WKH %RDUG DQG WKH ([HFXWLYH Committee of Turkish $LUOLQHV VDLG k:H QRW RQO\ p\ WR PRUH FRXQWULHV WKDQ any other airline in the world, but also invest in SDVVHQJHU H[SHULHQFH DW HYHU\ GHVWLQDWLRQ ZH UHDFK ,Q line with our global growth VWUDWHJ\ ZH ZLOO FRQWLQXH DW IXOO VSHHG WR ODXQFK QHZ pLJKW GHVWLQDWLRQV :H DUH FRPPLWWHG WR LQQRYDWLRQ and we always aim for the best. We are more than VDWLVoHG E\ WKH IHHGEDFN RQ DQG RXWFRPHV RI RXU FHOHEULW\ DG FDPSDLJQV ZLWK ZRUOG IDPRXV oJXUHV VR IDU 2XU QHZ DG FDPSDLJQ ZLWK 0RUJDQ )UHHPDQ KDV already been a smash hit. We value our deal with Freeman IRU KLV FRQWULEXWLRQ WR RXU global image and brand DZDUHQHVV y 0RUJDQ )UHHPDQ VDLG k$V D OLFHQVHG SLORW , KDYH KDG

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AFTER MEETING THE AUDIENCE WITH A FANTASTIC AD CAMPAIGN “BATMAN V. SUPERMAN: DAWN OF JUSTICE” IN LAST YEAR’S SUPER BOWL, TURKISH AIRLINES MADE AN IMPRESSIVE COMEBACK THIS YEAR WITH A NEW COMMERCIAL STARRING MORGAN FREEMAN.

than any other airline in the ZRUOG y 7XUNLVK $LUOLQHV KDG DOVR VSRQVRUHG k%DWPDQ Y 6XSHUPDQ 'DZQ RI -XVWLFHy RQH RI ODVW \HDU V PRVW SRSXODU PRYLHV DQG EURDGFDVWHG LWV FRPPHUFLDO video starring world famous oJXUHV OLNH %HQ $IpHFN +HQU\ &DYLOO DQG -HVVH (LVHQEHUJ DV SDUW RI WKH VSRQVRUVKLS GHDO RQ 6XSHU %RZO IRU WKH oUVW WLPH k.REH YV 0HVVL 7KH 6HOoH 6KRRWRXWy WKH pDJ FDUULHU V DQRWKHU FRPPHUFLDO GHDO ZLWK /LRQHO 0HVVL DQG .REH %U\DQW ZDV DOVR VHOHFWHG WKH EHVW FRPPHUFLDO oOP RI WKH ODVW GHFDGH E\ <RX7XEH 7KH DG FDPSDLJQ ZLWK 0RUJDQ )UHHPDQ ZLOO EH EURDGFDVWHG LQ HYHU\ GHVWLQDWLRQ 7XUNLVK $LUOLQHV p\ WR ZRUOGZLGH 'XULQJ 6XSHU %RZO 7XUNLVK $LUOLQHV DOVR KDG a real-time Twitter game with the hashtag #itstime, offering 20 free business FODVV pLJKW WLFNHWV WKDW FDQ EH used on all destinations that 7XUNLVK $LUOLQHV pLHV WR

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Briefing

INVESTMENT

ISPAT OFFERS JAPANESE INVESTORS INSIGHT INTO TURKEY’S M&A CLIMATE Bg×n^g\^kl _khf ma^ CZiZg^l^ bgo^lmf^gm \hffngbmr \Zf^ mh`^ma^k bg Mhdrh _hk BLI:MÍl F : Bgo^lmf^gm L^fbgZk maZm pZl a^e] bg \hhi^kZmbhg pbma CZiZg^l^ ÖgZg\bZe l^kob\^l `bZgm Fbsnah ;Zgd% ma^ CZiZg >qm^kgZe MkZ]^ Hk`ZgbsZmbhg !C>MKH"% fnembgZmbhgZe eZp Ökf ;Zd^k F\D^gsb^% Zg] BlmZg[ne&[Zl^] bgo^lmf^gm [Zgdbg` \hfiZgr IkZ`fZ'

MARCH 2017 ISSUE 44

The Turkish Perspective

T

op executives from the FRRSHUDWLQJ LQVWLWXWLRQV DORQJ ZLWK 7XUNH\ V $PEDVVDGRU WR -DSDQ %ËOHQW 0HUL¹ DQG ,63$7 6HQLRU $GYLVRU LQ -DSDQ <XLFKL $RNL FRQWULEXWHG WR WKH VHPLQDU ZLWK WKHLU VSHHFKHV IRFXVHG RQ WKH 7XUNLVK HFRQRP\ DQG WKH PDUNHWLQJ H[HFXWLRQ DQG OHJDO LVVXHV LQ 7XUNH\ V 0 $ FOLPDWH <XLFKL $RNL IRUPHU JHQHUDO PDQDJHU RI 0LWVXL 7XUNH\ SULRU WR KLV UROH ZLWK ,63$7 VDLG LQ KLV VSHHFK that Istanbul, and Turkey

in general, is no different IURP DQ\ (XURSHDQ FLW\ DQG that it is safer than most RWKHU FLWLHV LQ WKH ZRUOG LQ WHUPV RI FULPH UDWHV $RNL further stated that the -DSDQHVH SHRSOH PD\ HDVLO\ visit Turkey for business RU WRXULVWLF SXUSRVHV $RNL DOVR HPSKDVL]HG WKDW PRVW -DSDQHVH LQYHVWPHQWV in Turkey in 2016 were DQQRXQFHG DIWHU -XO\ q SURRI RI -DSDQHVH LQYHVWRUV FRQoGHQFH LQ WKH 7XUNLVK HFRQRP\ 7KH ,63$7 6HQLRU $GYLVRU LQ

Arda Ermut in his closing speech highlighted the fact that; “Turkey is an attractive investment base for Japanese \hfiZgb^l'Ë

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31

Briefing

FDI INFLOWS IN TURKEY (USD MILLION)

3,582 3,203

2,752 2,579

2016 Q1 2016 Q2 2016 Q3 2016 Q4 Source: CBRT

2016 Second Half Sees FDI Gain Momentum in Turkey Turkey passes a series of laws that attract additional foreign bgo^lmf^gm'

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ccording to the VWDWLVWLFV RI WKH 0LQLVWU\ RI (FRQRP\ )', LQpRZV WR 7XUNH\ UHDFKHG 86' ELOOLRQ LQ 'HVSLWH DGYHUVH LQFLGHQWV RYHU WKH \HDU SHUFHQW RI this number was realized LQ WKH VHFRQG KDOI RI where average monthly FDI LQpRZV WR 7XUNH\ ZHUH 86' ELOOLRQ FRPSDUHG WR 86' PLOOLRQ LQ WKH oUVW half of 2016. 7KDQNV WR WKH UHFHQW UHIRUPV LPSOHPHQWHG DQG WKH YDULRXV LQFHQWLYHV WKDW ZHUH LQWURGXFHG 7XUNH\ KDV H[SHULHQFHG D FRQVLGHUDEOH DPRXQW RI UHFRYHU\ LQ total FDI in 2016. In the oUVW KDOI RI )', LQ 7XUNH\ GHFOLQHG DOPRVW SHUFHQW \HDU RQ \HDU DIIHFWHG LQ ODUJH SDUW E\ MARCH 2017 ISSUE 44

JOREDO FRQWUDFWLRQ 7XUNH\ regained momentum in the VHFRQG KDOI RI WKDQNV to measures taken and the FRQoGHQFH SURYLGHG LQ WKH ZDNH RI -XO\ IDLOHG FRXS DWWHPSW 7KH 86'

billion of investments in WKH oQDO TXDUWHU SOD\HG D NH\ UROH LQ 7XUNH\ V RYHUDOO )', DPRXQW 7KH UHFRYHU\ FDPH TXLFNHU WKDQ H[SHFWHG beating the year-end IRUHFDVW IRU )', WKDW KDG

been adjusted due to the WHPSRUDU\ VKRFNV RYHU WKH year. /RRNLQJ LQWR WKH XSWUHQG LQ )', LV H[SHFWHG WR FRQWLQXH ,QYHVWRU FRQoGHQFH VLJQDOV WKDW 7XUNH\ LV OLNHO\ WR DWWUDFW PRUH )', LQ WKDQ LQ SUHYLRXV \HDUV 7R JLYH D YHU\ UHFHQW H[DPSOH %%9$ RI 6SDLQ DQG *DUDQWL %DQN RI 7XUNH\ UHFHQWO\ DJUHHG RQ D GHDO WKDW ZLOO DOORZ %%9$ WR DFTXLUH DQ DGGLWLRQDO SHUFHQW RI *DUDQWL DQ investment worth around 86' ELOOLRQ

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PHOTOGRAPH BYLOREM IPSUM

32

The Turkish Perspective

*OREDO %XVLQHVV $QJHOV 1HWZRUN WKH (XURSHDQ 7UDGH $VVRFLDWLRQ IRU %XVLQHVV $QJHOV (%$1 WKH $IULFDQ 7UDGH $VVRFLDWLRQ IRU %XVLQHVV $QJHOV $%$1 WKH 0LGGOH (DVW 7UDGH $VVRFLDWLRQ IRU %XVLQHVV $QJHOV 0%$1 DQG WKH United Nations Industrial Ma^ Phke] ;nlbg^ll :g`^el Bgo^lmf^gm ?hknf !P;:?" +)*0 'HYHORSPHQW 2UJDQL]DWLRQ 7KH /RQGRQ 6WRFN ([FKDQJH mhhd ieZ\^ hg ?^[knZkr *+&*- bg BlmZg[ne' *URXS /6(* %13 3DULED V 7(% $QJHO ,QYHVWPHQW Forum, and Istanbul 7HFKQLFDO 8QLYHUVLW\ V $UL 7HFKQRSDUN DOVR VSRQVRUHG the event. During the Forum, an 0R8 ZDV VLJQHG ZLWK :%$) DQG WKH SDUWQHU LQVWLWXWLRQV (%$1 $%$1 0%$1 /6(* DQG WKH :RUOG $VVRFLDWLRQ RI ,QWHUQDWLRQDO ,QYHVWPHQW 3URPRWLRQ $JHQFLHV :$,3$ 7KH 0R8 DLPHG DW SURYLGLQJ VXSSRUW WR EXVLQHVV DQJHOV DQG HDUO\ SRVW HDUO\ VWDJH investment markets around the world. 2QH RI WKH XQLTXH IHDWXUHV RI :%$) ZDV WKH investment delegations IURP *XOI FRXQWULHV VXFK he global organization 2(&' UHSRUWV VKRZ DV %DKUDLQ .XZDLW 4DWDU WKDW RYHU SHUFHQW RI WKH brought together more 6DXGL $UDELD DQG WKH ZRUOG HFRQRP\ LV GULYHQ WKDQ UHQRZQHG HTXLW\ 8QLWHG $UDE (PLUDWHV DOO RI E\ 60(V HQWUHSUHQHXUV PDUNHW H[SHUWV FRYHULQJ whom looked for investment DQG VWDUW XSV ,Q (XURSH FRXQWULHV XQGHU WKH WKHPH RI RSSRUWXQLWLHV LQ KLJK VFDOH PRUH WKDQ SHUFHQW RI k3DUWQHULQJ ZLWK &RUSRUDWH VWDUW XSV early-stage investments 9HQWXUHV IURP 6WDUW XS WR During the awards FHUHPRQ\ During the awards FRPH IURP DQJHO LQYHVWRU 6FDOH XS WR ([LWy DW WKH )RUXP ,63$7 ZDV FHUHPRQ\ DW WKH )RUXP FDSLWDO &RUSRUDWH YHQWXUH :LWK FRRSHUDWLRQ DPRQJ named the Best Government $JHQF\ LQ WKH :RUOG LQ ,63$7 ZDV QDPHG WKH %HVW JURXSV LQYHVWHG 86' FRUSRUDWH EXVLQHVV DQG 6XSSRUWLQJ D &URVV %RUGHU *RYHUQPHQW $JHQF\ LQ ELOOLRQ LQ GHDOV LQ DQJHO LQYHVWRUV VWDUW XSV ,QYHVWPHQW (FRV\VWHP WKH :RUOG LQ 6XSSRUWLQJ D and by 2020 the total size 60(V EHLQJ D IRFDO SRLQW Cross-Border Investment RI WKH ZRUOG V HDUO\ VWDJH RI WKH HYHQW KRW WRSLFV VXFK (FRV\VWHP ,63$7 UHFHLYHG investment market is DV k%HVW 3UDFWLFH &RUSRUDWH WKH DZDUG GXH LQ SDUW WR LWV 9HQWXUHV DV DQ ([LW 6WUDWHJ\y H[SHFWHG WR H[FHHG 86' DQG DFWLYH VRFLDO PHGLD FRQWULEXWLRQV LQ VXSSRUWLQJ billion. k)RFXV RQ WKH :%$) users of 42 million as of investments that are 7XUNH\ V DQJHO LQYHVWPHQW 2015, Turkey harbors great 5HJLRQDO 5HSRUW (DUO\ UHTXLUHG IRU 7XUNH\ V IXUWKHU HFRV\VWHP KDV FRPH D ORQJ 6WDJH ,QYHVWPHQW 0DUNHWV SRWHQWLDO IRU WHFKQRORJ\ GHYHORSPHQW ,63$7 VWDQGV 6RXWKHDVW (XURSHy k*OREDO ZD\ GHVSLWH EHLQJ DW LWV VWDUWXSV LQ SDUWLFXODU RXW DV WKH oUVW JRYHUQPHQW early stages. With half of its 7UHQGV DQG ([SHFWDWLRQV IRU 2IoFLDO VSRQVRUV RI WKH SRSXODWLRQ XQGHU WKH DJH RI )LQ7HFK y DQG k7KH )RUXP LQFOXGHG WKH %XVLQHVV LQYHVWPHQW DQG SURPRWLRQ D WRWDO SRSXODWLRQ RI $QJHOV $VVRFLDWLRQ RI 7XUNH\ DJHQF\ LQ WKH ZRUOG WR ,PSDFW RI %UH[LW RQ (DUO\ SULRULWL]H DQJHO LQYHVWPHQWV 6WDJH ,QYHVWPHQW 0DUNHWV LQ million, internet users of 7%$$ KRVWV RI WKH HYHQW DQG FURVV ERUGHU LQYHVWPHQWV PLOOLRQ PRELOH SKRQH (XURSH DQG 2WKHU 3DUWV RI as well as international on its agenda. VXEVFULEHUV RI PLOOLRQ WKH :RUOGy ZHUH GLVFXVVHG LQVWLWXWLRQV VXFK DV WKH

Istanbul Hosts World Business Angels Investment Forum

PHOTOGRAPH BYLOREM IPSUM

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34

Cover Story / Why Turkey?

TURKEY IS A NATURAL BRIDGE BETWEEN BOTH EAST-WEST AND NORTH-SOUTH AXES, THUS CREATING AN EFFICIENT AND COST-EFFECTIVE OUTLET TO MAJOR MARKETS. WHAT ARE THE REASONS TO TRUST TURKEY’S FUTURE? YOU DON’T NEED A FORTUNE TELLER TO GUESS IT. JUST FOLLOW THE TIPS. MARCH 2017 ISSUE 44

The Turkish Perspective

BY MUSTAFA YİĞİT

T

urkey, which is outside the Arab world, but whose majority of the population is Muslim, appears to be a strong candidate for a larger international role.” in near future says the “Global Trends 2025” report of The National Intelligence Council, which brings together all 16 US intelligence agencies in 2008. The report also underlined: “Turkey’s recent economic track record of increased growth, the vitality of Turkey’s emerging middle class and its geo-strategic locale raise the prospect of a growing regional role in the Middle East.” Turkey’s increasing concerns over its chances of becoming an EU member one day will likely hit planned political reforms, the agencies said. “The question of Turkey’s EU membership will be a test of Europe’s outward focus between now and 2025. Increasing doubts about Turkey’s chances are likely to slow its implementation of political and human rights reforms,” the NIC said in 2008. Almost 10 years has passed since the publication of this report? Where is Turkey now? Is it advancing ahead or going backwards? Let’s look at the answers closer together.

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Cover Story / Why Turkey?

Importance of Strong Middle Class for Democracy The failed coup attempt of July 15 highlighted a newly developed and highly potent asset in Turkey: “a strong middle class willing and able to mobilize against extremist threats� In the recent years, with the reforms and liberal laws it has registered “Turkey has made remarkable economic strides, transforming itself from Europe’s sick man into one of its most vibrant economies and a new center of gravity for trade in the Middle East.� Turkey has concentrated on infrastructure investment, VXSSRUW IRU PHGLXP VL]H oUPV H[SDQVLRQ RI regional trade, and development of the tourism sector. According to the data gathered from Wolrd Bank as the result of its hardworking, wealth of Turkish nation has raised. Income per capita has tripled and poverty rate has halved. Adeel Malik from Oxford Centre for Islamic Studies summarizes this period as the following: “This has underpinned tremendous economic mobility among Turkey’s rural labor force, small entrepreneurs, and lower-income workers, taking masses of people from the margins of society to the mainstream. Even foreign policy was, wherever possible, aligned with the economic interests of the rising middle class WKRXJK WKH 6\ULDQ LQWHUYHQWLRQ UHpHFWV D VKLIW MARCH 2017 ISSUE 44

ACCORDING TO THE DATA GATHERED FROM WOLRD BANK AS THE RESULT OF ITS HARDWORKING, WEALTH OF TURKISH NATION HAS RAISED. INCOME PER CAPITA HAS TRIPLED AND POVERTY RATE HAS HALVED. IN LAST DECADE.

in foreign-policy priorities). For Turkey’s new middle class, the survival of democracy could not be more important - and, as recent events have VKRZQ WKH\ DUH ZLOOLQJ WR oJKW IRU LW ,QGHHG ZKDW KDV RFFXUUHG LQ 7XUNH\ GRHV QRW UHpHFW RQO\ D SRZHU VWUXJJOH EHWZHHQ (UGRÞDQ DQG KLV challengers; it also highlights the determination of the middle class to ensure that Turkey does not revert to a political system that would damage its economic and political fortunes.� Especially Western governments who don’t understand the sociological infrastructure of Turkish society claims that democracy in Turkey is under danger. As Adeel Malik said the middle class who sees economic stability vital for their own wealth will never let the democracy in Turkey to collapse. Protests took place in city VTXDUHV DIWHU WKH FDOO RI (UGRÞDQ LQ WKH QLJKW of failed coup attempt is the main proof. Even to the armed forces civil middle class defended their democracy therefore their economic conditions. Another proof can be the answer of middle FODVV WR (UGRÞDQ V FDOO RQ kWR H[FKDQJH GROODUV with Turkish Lira.� Because of the weak position of Turkish Lira against dollar the president made a call for Turks to sell foreign exchange and buy gold or liras. After the call market met ZLWK KRW PRQH\ pRZ DQG OLUD IHOO WR D UHFRUG ORZ of 3.58 from 3.90 (23 February 2017)

The Turkish Perspective

IN THE LAST 10 YEARS, WITH THE REFORMS AND LIBERAL LAWS IT HAS REGISTERED IN COMMERCIAL REGIMES, IT HAS MADE A SIGNIFICANT EXPLOSION IN FOREIGN DIRECT INVESTMENT (FDI). PROVIDING FDI OF 15 BILLION DOLLARS IN 80 YEARS PERIOD FROM THE FOUNDATION OF THE REPUBLIC UNTIL 2002, TURKEY HAS ACHIEVED THIS AMOUNT OF FDI OF 144 BILLION DOLLARS IN THE LAST 10 YEARS.

5th RANK

Integration of Turkey with International System Until 2002, a total of 15 billion dollars of foreign investment came to Turkey, in the last 10 years this amount of investment has received 9 times more. The amount of foreign investment that entered the country between 2005 and 2004 alone was $ 144 billion. In the last 10 years, with the reforms and liberal laws it has registered in commercial UHJLPHV LW KDV PDGH D VLJQLoFDQW H[SORVLRQ LQ Foreign Direct Investment (FDI). Providing FDI of 15 billion dollars in 80 years period from the

Turkey’s rank in Most Liberal Trade Policies List

500

$

BILLION

Turkey’s 2023 Export Revenue Target

foundation of the Republic until 2002, Turkey has achieved this amount of FDI of 144 billion dollars in the last 10 years. Turkey, the fastest-growing economy IROORZLQJ WKH JOREDO oQDQFLDO FULVLV RI accelerated the structural reforms in the economy. Bearing the title of the fastest growing economy among the OECD countries, Turkey has become a safe haven for multinational LQYHVWRUV ZLWK WKH SXEOLF VHFWRU oQDQFLDO sector, social security and tax reforms. In order to increase the role of the private sector in the economy, it was ensured that the key markets were regulated by independent agencies, the acceleration of privatization and the new R&D and innovation support laws to improve the investment climate. According to World Trade Indicators’ 2010 data, Turkey is the 5th country with the world’s most liberal trade policies. Turkey, which has a customs union agreement with the EU, has signed a Free Trade Agreement with 21 countries. These countries are Albania, Bosnia and Herzegovina, Egypt, Georgia, Iceland, Israel, Lichtenstein, Macedonia, Morocco, Norway, Palestine, Switzerland, Tunisia, Montenegro, Serbia, Chile, Lebanon, Mauritius Mauritania, Approval phase). In Turkey, where equal treatment of national and global investors is guaranteed by law, today

37

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Cover Story / Why Turkey?

a company can be established in 6 days. In 2003, a company could only be established in 38 days. In OECD countries, the average duration of establishment of a company is 12 days. Turkey, which has a dynamic economy with 33.7 million internet users, 69 million GSM and 57 million credit cards, is the 8th largest in the world and the 2nd largest steel producer of the EU besides the educated young population. As the 16th largest automobile manufacturer in the world, Turkey, which has increased its activity in the global level in the production sector, also comes to the forefront with its natural beauties and quality service sector. Turkey, the 6th most visited tourist country in the world, has 22 out of the top 100 hotels in the world. With its strategic location between the continents and being one of the actors to be able to direct the world economy, Turkey attracts international investors with the opportunity of global energy transit points and easy access to different markets.

Increasing Power of Turkey as “Brand� “Made in Turkey�, is not merely a group of words used to mark the products manufactured in Turkey, instead, it symbolizes, represents an era. As the young republic managed to create a manufacturing industry almost from scratch, necessities arose such as specialization, creating trademarks and distinguishing the national products from the rest in the global market. As the Turkey’s export volume and circulation of Turkish goods in the global market increased, MARCH 2017 ISSUE 44

143 239

$

BILLION

Turkey’s Total Export in 2016

COUNTRIES

Number of Countries Turkey Export

Made in Turkey logo has earned itself a reputation and shaped its identity. This was the oUVW EUHDNWKURXJK RI 7XUNH\ V SURJUHVV WRZDUGV becoming a trademark country. With regard to economy-brand relationship Turkey’s economy is providing a strong infrastructure for creating new brands and improving the existing ones. The Turkish export is another success story highlighting Turkey’s economic dynamism. Increasing its export to $143 billion by the end of 2016, which accounts for a nearly 5 folds LQFUHDVH LQ oIWHHQ \HDUV 7XUNH\ PDQDJHG WR VHOO its products to 239 countries and free zones. But the real success in this story is that it well integrated the export codes to its economic DNA by increasing the number exporters to 72 thousand. Furthermore developing a crucial UHpH[ DJDLQVW JOREDO PDFURHFRQRPLF VKLIWV DQG UHJLRQDO pXFWXDWLRQV WKH 7XUNLVK H[SRUWHUV became more agile at reaching out to new markets in times of economic and political instabilities that affect their existing markets. Turkey’s economic dynamism is a compound of many components. Some are more discernible such as political stability, geopolitical position, \RXQJ DQG TXDOLoHG SRSXODWLRQ DQG LQGXVWULDO infrastructure. The synergy between the private VHFWRU DQG WKH SXEOLF RIoFHV KDV SURYHG WR EH D valuable contribution to the economy. Thanks to the mutual understanding built on a two-way communication platform between the economic actors of Turkey and its policy makers, Turkey created a more business-friendly economic environment. In accordance with numerous advantages like a wide range of incentives, tax reductions, low costs of doing business, Special Investment Zones both domestic and foreign business people are seizing various opportunities and conveniences that Turkey offers. Moving forward in the light of all these and much more, Turkey is becoming a brand LWVHOI ZLWK LWV SURoOH DV D VWDU DPRQJ HPHUJLQJ markets. A growing economy based on a ZHOO HVWDEOLVKHG DQG GLYHUVLoHG LQGXVWULDO infrastructure, a young and dynamic population with entrepreneurial spirit, a strong perception of R&D and innovation, a unique geopolitical and geoeconomic position and determination towards achieving the 2023 goal of becoming one of the ten largest economies in the world by reaching $2 trillion of GDP, $500 billion export revenue and having 10 global brands. Of course there are still challenges to be met and progress to be made. Especially in terms of branding Turkey is a new player warming up for the tournament which will carry it to the big league. It has a good physical condition, a nice technique and most important factor of them

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40

Cover Story / Why Turkey?

WHAT IS TURKEY’S INVESTOR IMMIGRATION PROGRAMME? The programme allows high-net-worth individuals from other countries to invest between $1 million and $3 million in real estate, shares of Turkish companies or government debt bonds. BY SAAD HASAN AND ASENA BOŞNAK*

I

n return, they would be legible for Turkish nationality if they retain the investment for three years. Ankara revised its Regulation on the Implementation of Turkish Citizenship law on January 12. But there are only a few details available about the programme. When investors will get citizenship cards and passports remains unclear. Turkey already offers residency to foreigners who buy property in the country but the permit is valid only for six months before it needs to be renewed. Is Turkey doing this to increase its foreign exchange reserves? Turkey’s currency, the lira, has lost more than 17% of its value against the US Dollar in 2016. Attempts to stem the fall of the OLUD LQFOXGLQJ DQ RIoFLDO DSSHDO WR FRQYHUW GROODU holdings into local currency, have not helped so far. “This program is not the right remedy to solve the economic problems,� vice president of Istanbul Kemerburgaz University, Dr Emre Alkin told TRT World. “But I don’t think it’s a bad idea either to raise foreign exchange through the immigration investment program.� The lira’s depreciation is linked to the high foreign currency debt of the private sector. Most of those loans were borrowed by small-scale companies which employ up to 10 people, Alkin said. “These are small family-owned businesses such as restaurants. They owe billions of dollars to international banks and they are feeling a lot of heat,� he said. A drop in tourism, a big source of foreign exchange, has further dented the economy.

1

$

MILLION

TOTAL AMOUNT OF AN INVESTMENT TO GAIN TURKISH CITIZENHIP

Has selling citizenship worked for other countries? The use of economic citizenships, the legal term for this process of naturalisation, to boost state revenue, has been used by other countries before. The Caribbean nation of St. Kitts and MARCH 2017 ISSUE 44

*This articles is written for TRT World and permission for publishing is taken from the authors.

Nevis was almost bankrupt in 2006 when it invited investors to buy its nationality. In three years it was able to slash its debt from 164 percent of the GDP to 104%. By 2014, passports became its biggest export, accounting for 25% of the GDP – that’s the value of all the goods and services produced in a year.

How much investment is expected to come to Turkey? It’s too early to tell. Turkey’s economy is much bigger and more advanced than many countries that have adopted an immigration investment programme. The ailing real estate sector, that saw a 19% drop in sales to foreigners, could JDLQ IURP WKH LQLWLDWLYH k:LWKLQ WKH oUVW IHZ years the amount of foreign exchange Turkey earns will be between $5 billion to $10 billion,�

The Turkish Perspective

Who is likely to buy a Turkish passport?

Istanbul Builders Association’s chairman, Nazmi Durbakayim told TRT World. He projected that the investment could rise to $20 billion.

“Muslim migrants would be potentially interested in moving to a Muslim country,” the Investment Migration Council’s chairman Dimitry Kochenov said. “The unfair treatment Muslims face in the United States and the European Union will SOD\ LWV SDUW LQ LQpXHQFLQJ WKH GHFLVLRQ RI WKH migrants.” Investors who live and work in the United Arab Emirates, where nationality is not offered to non-Arabs, will also be interested in Turkey, he said. Kochenov said price is not a factor for investors who want to come to Turkey. “As long as they are getting back their initial investment after a few years, it’s okay for them.”

Should investors be concerned? Turkey hasn’t mentioned anything about guaranteeing the exchange rate at which the investment will be made. That means if the lira appreciates three years down the road then the $1 million invested today would be worth less in Turkish liras later. Since the value of real estate always tends to rise, investors normally profit. However, real estate developers see some hurdles in the scheme. Ahmet Kayhan, CEO of Zingat, a real estate information platform, told TRT World that $1 million seemed too high, as an investor can pay less to become a Portuguese citizen and be entitled to European Union benefits. “There are also operational issues when it comes to real estate investment. The process for buyers to transfer title deeds in their names is hefty and takes six months, we don’t know about other things such as the inheritance rules.” With so many countries selling citizenship, is Turkey too late? Some in the immigration industry are sceptical. “If you are a rich businessman from Asia, you’d like to have a passport of an EU country,” said a Karachi-based immigration consultant Sikander Lalani, who has assisted dozens of wealthy Pakistanis in buying nationalities of other countries. Besides the initial price tag, investors who want to escape the uncertainty of their own country, look at other factors when deciding whether to buy another nationality. “Some want ease of movement and don’t want to wait weeks and months for the passport. Others are interested in better education of their children. And some do it for tax reasons,” Lalani said. Cyprus, a stone-throw away, is Turkey’s biggest competitor in the sale of nationalities, even though it costs more. The island-state offers grants nationality immediately and as a member of the EU has become a more luring destination for the investors.

NATIONS RANKED BY PROJECTED GLOBAL GROSS DOMESTIC PRODUCT BY PURCHASING POWER PARITY

TRILLION $

1. China 2. USA

“MUSLIM MIGRANTS WOULD BE POTENTIALLY INTERESTED IN MOVING TO A MUSLIM COUNTRY,” THE INVESTMENT MIGRATION COUNCIL’S CHAIRMAN DIMITRY KOCHENOV SAID.

3. India 4. Japan 5. Indonesia 6. Russia 7. Germany 8. Brazil 9. Mexico 10. United Kingdom 11. France 12. Turkey

$38.008 $23.475 $19.511 $5.606 $5.424 $4.736 $4.707 $4.439 $3.661 $3.638 $3.377 $ 2.996

COUNTRIES HAVE VARYING CONDITIONS FOR ACQUIRING PASSPORT UNDER THE PROGRAM COUNTRY

INCEPTION YEAR

Portugal

2012

$530K

A stay of 7 days in a year

6 years

Easy access to European countries

Hungary

2013

$320K

None

8 years

Visa-free travel within Schengen

Dominicia

1993

$ 100K None

Immediate

Visa-free travel to EU, UK and Turkey

Malta

2014

$ 1,22M

6 Months

1 years

Visa-free travel to 166 countries

Turkey

2017

$1M

N/A

N/A

Visa-free travel to more than 100 countries

Source: TRTWorld

MINIMUM INVESTMENT RESIDENCY REQUIREMENT C. QUALIFYING PERIOD BENEFITS

41

42

Cover Story / Why Turkey?

FIXED INVESTMENTS AND REAL ESTATE INDUSTRY IN TURKEY Real estate industry is, of course, not so speculative, but arguably represents a less effective investment channel compared to “real� industries. denoting the industries of Finance, Insurance, and Real Estate, is essentially unproductive GHVSLWH WKHLU ELJ SURoW FDSDFLW\ ,Q WKLV DUWLFOH ZH DQDO\]H WKH IDFWV RI SXEOLF SULYDWH VHFWRU o[HG investments by sectors and their impacts on the country’s future. We also ask whether Turkey really VSHQGV WRR PXFK PRQH\ RQ VSHFLoF OHVV SURGXFWLYH sectors, such as real estate.

BY PROF. DR. ALÄ° ALP AND YENER COĹžKUN PhD

Gross Fixed Investments in Turkey

C

reating a dynamic economy requires investment of three basic kinds: in people (human capital), in equipment and physical structures (infrastructure) and in new ideas and technologies (innovation). (Aghion P., Besley T., Browne J., Caselli F., Lambert R., Lomax R., Pissarides C., Stern C., Van Reenen J., 2013, “Investing for Prosperity�, LSE Growth Commission.) Then, investment on infrastructure is critical to improve productive capacity of an economy which may SURYLGH VLJQLoFDQW FRQWULEXWLRQ WR HFRQRPLF development. However, this is a very clear fact, the recent data shows that Turkey might spend KHU kYHU\ FRVWO\y PRQH\ LQ OHVV SURGXFWLYH oHOGV Taken into account the huge investments in shopping malls and the brand new residentials in big cities of Turkey, economists have long asked whether high level of investment into real estate market is really a good idea in terms of UHVRXUFH DOORFDWLRQ HIoFLHQF\ This question is also connected to long-term HIoFLHQF\ RI VRPH LQGXVWULHV LQ WKH 7XUNLVK economy. According to some, “FIRE Sector�, MARCH 2017 ISSUE 44

PUBLIC AND PRIVATE SECTOR PLAYERS HAVE INVESTED MOSTLY ON MANUFACTURING IN TURKEY DURING THE PERIOD OF 1965-2014

According to observations on Brazil, India, Indonesia, Malaysia, Mexico, South Africa, Thailand and Turkey, Fincke and Greiner (2015) (Fincke, Bettina and Greiner, Alfred. (2015). Public Debt and Economic Growth in Emerging Market Economies. South African Journal of Economics, 83 (3): pp. 357-70.) say that emerging market economies are on the transition path that is characterized by high growth rates and by an expanding public sector that invests a lot in growth enhancing infrastructure. This fact is also very typical for Turkey, too. Public and private sector players have invested mostly on manufacturing in Turkey during the period of 1965-2014. According to Public & Private Sectors Total Gross Fixed Investments by Sectors, the average investment on manufacturing sector is 27.7% followed by housing and transportation & communication sectors with the average 23.4 % and 18.5 % investments, respectively (Table 1). Table 2, focusing on the 2000-2015 period, also suggests interesting points regarding to VHFWRU VSHFLoF WUHQGV LQ 3XEOLF 3ULYDWH 6HFWRUV Total Gross Fixed Investments in Turkey. First WUHQG LV WKDW JURVV o[HG LQYHVWPHQWV LQ 7XUNH\ KDV increased substantially over the period of 20002015 despite the local banking crisis in 2001 and WKH JOREDO oQDQFLDO FULVLV LQ ZLWK VHYHUDO LQWHUQDO DQG H[WHUQDO oQDQFLDO VKRFNV ,Q IDFW the higher investment level in various industries seems to be the primary reason of the relatively better economic growth performance in last decade in Turkey. Second, with 1600 % increase,

The Turkish Perspective

TABLE 1: PUBLIC & PRIVATE SECTORS TOTAL GROSS FIXED INVESTMENTS BY SECTORS IN TURKEY (%; 1965-2014) 1965 1980 1990 2000 2005 2010 2014 AVERAGE (1965-2014)

AGRICULTURE

MINING

MANUFACTURING

ENERGY

TRANSPORTATION & COMMUNICATION

TOURISM

HOUSING

EDUCATION

HEALTH

OTHER SERVICES

TOTAL

14,0 7,6 5,1 4,5 4,0 3,5 3,7 6,7

3,9 2,8 1,7 1,1 1,7 1,9 3,3 2,4

26,2 28,8 20,9 20,2 34,1 28,1 26,4 27,7

4,2 7,1 6,4 6,6 3,9 5,4 3,8 5,2

11,0 13,3 16,5 29,4 21,3 24,0 22,2 18,5

0,5 0,6 4,0 3,6 6,2 6,5 6,5 2,9

26,9 31,0 35,6 18,2 13,1 12,8 12,5 23,4

4,5 1,5 2,2 4,3 2,9 3,4 6,2 3,0

1,4 0,7 1,4 3,8 4,8 6,3 6,4 2,6

7,4 6,6 6,2 8,2 7,9 8,0 9,1 7,4

100 100 100 100 100 100 100 100

Source: Republic of Turkey Ministry of Development.

manufacturing industry is one of the primary ORFDWLRQV RI o[HG LQYHVWPHQWV LQ 7XUNH\ GXULQJ VDPH SHULRG 7KLV oJXUH LV VSHFLoFDOO\ LQWHUHVWLQJ because it suggests that manufacturing is still important despite growing importance of real estate, construction, and housing sub-sectors. Private investments were the driving force in accelerating economic activities in recent years in Turkey. The liberalization of capital movements and the willingness of foreign creditors to lend to Turkish investors contributed to the high growth rate of private investment. Turkey attaches a high priority to the encouragement of foreign investment and provides a variety of incentives.!ammil3(( dif`']^(]h\l(Bgo^lmf^gm&bg&Mnkd^r&+)*,'i]_8PM' f\Xb]6]^XA@FXGEXMnkd^r" Moreover, recently

announced new investment incentives scheme may also increase the investments on manufacturing LQGXVWU\ 7KLV VFKHPH LV VSHFLoFDOO\ GHVLJQHG WR encourage investments with the potential to reduce dependency on the importation of intermediate goods vital to the country’s strategic sectors. !ammi3((ppp'bgo^lm'`ho'mk(^g&NL(bgo^lmf^gm`nb]^( bgo^lmhkl`nb]^(IZ`^l(Bg\^gmbo^l'Zliq"

Rising Real Estate Market 'HVSLWH ULVLQJ o[HG LQYHVWPHQWV LQ OHDGLQJ industries in recent decades, economists have discussed negative effects of booming real estate investments in Turkey. Turkish real estate market is one of the hot markets in the world according to various criteria. For example, the total investment volume of the Turkish shopping mall sector stands at $52 billion ($15 billion foreign investment) as of January 2016 with 360 shopping malls. The Shopping Mall Investment Association predicts that 40 new shopping malls, worth $3 billion in potential investment, will be constructed by 2019. In addition to the shopping malls, Turkey recently witnessed growing volume of residential investment. It is indicated in Emerging Trends in Real Estate Europe 2016 that the Turkish market has always attracted medium-to-high-risk private investors. However we have no clear knowledge on the UHODWLYH HIoFLHQF\ RI WKH UHVRXUFH DOORFDWLRQ LQ

REAL ESTATE INDUSTRY IS, OF COURSE, NOT SO SPECULATIVE, BUT ARGUABLY REPRESENTS A LESS EFFECTIVE INVESTMENT CHANNEL COMPARED TO “REAL” INDUSTRIES.

different sub-sectors in Turkish economy, common sense and perception suggests that there is an overinvestment in Turkish real estate industry ZKLFK PD\ UHGXFH HIoFLHQF\ RI UHVRXUFH DOORFDWLRQ and growth quality of the country. It may be HDUO\ WR DUJXH WKH UHODWLYH HIoFLHQF\ RI WKH FDSLWDO allocation among different sub-sectors in Turkey. However, we probably all agree that there is no country in the world having a reliable growthdevelopment path investing mostly on speculative industries. Real estate industry is, of course, not so speculative, but arguably represents a less effective investment channel compared to “real” industries.

Coming Years The data suggest that we did not spend all of our money to real estate even though the last decade was recorded as the golden years of the industry. Despite criticisms on distorted incentives in real estate investments in Turkey, it seems that real estate continues its star status in the foreseeable future. Recent initiatives of the government still aim to provide a wide support to real estate industry. This maybe too much to be derived IURP DQ DVVHW DOORFDWLRQ HIoFLHQF\ SHUVSHFWLYH and might need some corrections in the coming years. But it seems that there is still some room for development for real estate industry in Turkey despite raising concerns.

TABLE 2: PUBLIC & PRIVATE SECTORS TOTAL GROSS FIXED INVESTMENTS BY SECTORS IN TURKEY (VALUE, CURRENT PRICES) 2000 AGRICULTURE MINING MANUFACTURING ENERGY TRANSPORTATION TOURISM HOUSING EDUCATION HEALTH OTHERS TOTAL

2010

1.573.941 7.487.126 383.337 4.100.280 7.011.352 59.484.185 2.276.819 11.452.310 10.218.015 50.724.835 1.259.040 13.724.163 6.303.568 26.995.794 1.506.270 7.087.355 1.318.072 13.338.500 2.862.213 16.935.421 34.712.629 211.329.969 Source: Republic Of Turkey Ministry of Development.

2013

2014

2015

12.482.646 8.905.396 97.323.936 11.805.699 70.247.606 21.027.706 38.240.958 19.272.409 14.882.764 28.951.734 323.140.853

12.114.635 10.341.397 106.067.456 13.394.383 71.262.251 22.545.220 50.575.304 22.589.906 17.393.976 30.487.040 356.771.569

14.813.555 11.700.709 119.478.130 13.040.099 90.284.528 19.182.834 53.222.289 23.976.079 20.543.176 37.865.246 404.106.645

43

44

Istanbul 2017 In Depth / Gaming Lorem Ipsum

MARCH 2017 ISSUE 44

The Turkish Perspective

GAMING 2017 ISTANBUL

BY KEMAL TUNÇSEL

T

he second fair of Gaming Istanbul (GIST 2017) took place at the Istanbul Congress Center on February 2-5. Gaming Istanbul 2017 invited the gamers and people who want to have good time to the fair with many different shopping stands and playgrounds which is set up on the 14,000 square meter area. The exhibition space was designed to offer an array of options for international publishers, and with the publishers already signed up to the event, it promises to put Turkey on the map for international gaming events.

45

46

In Depth / Gaming Istanbul 2017

Hundreds of people made long queues in the early hours of the morning.

The fair, which started with the concept of “Family Size Fun and Gamesâ€?, attracted great attention and was participated by YLVLWRUV LQ WKH oUVW \HDU *DPLQJ ,VWDQEXO &RUSRUDWH Communications and Marketing Director Meriç EryĂźrek said that the second of this digital entertainment and game fair attracted great attention by the visitors as well. The fair was visited by 83.000 people in 4 days. EryĂźrek also pointed out that more than 83.000 people visited the fair in four days and used expressions: “The number of visitors doubled when compared to last year, the number of 83.000 for such a fair in Turkey is not bad, but we need to work a little bit. Population of Istanbul is almost 20 millions but this is a young fair, we are working to increase the number of visitors even more, 83.000 visitors are very good because the entrance fee was 10 TL for weekly and 15 TL for weekendâ€?. Hundreds of people made long queues in the early hours of the morning. EryĂźrek VDLG k2XU oUVW \HDU ZDV OLNH D WHVW GULYH IRU XV ZH NQHZ WKDW such a fair was on demand in Turkey, but we were not so sure it ZRXOG JHW DWWUDFWLRQ VR ZH ZHUH D ELW KXPEOH LQ RXU oUVW \HDUy The fair has also attracted a great deal of interest from local and international investors. Apart from the entertainment areas, there was also a developer conference, GIST Seminars, and a B2B zone at the fair where speakers who are important contributors to the gaming sector participate. EryĂźrek stated that many companies from Europe and the Far East have participated in the fair and the biggest game companies in Korea and Turkey took their places. 9LVLWRUV ZHUH ORRNLQJ IRUZDUG WR YLUWXDO UHDOLW\ VSHFLoF FRQWHQW MARCH 2017 ISSUE 44

“The number of visitors doubled when compared to last year, the number of 83.000 for such a fair in Turkey is not bad, but we need to work a little bit.�

a wide range of panels and presentations on art, design, concept and programming, all linked directly to one of Europe’s largest in-event career ]RQHV ZKLFK DUH VSHFLoFDOO\ designed to put talent in touch with job creators. EryĂźrek also stated that the Turkish people are very ambitious in the field of digital gaming and entertainment, and said: “Turkish firms have announced these names, and young Turkish people are showing interest in games and entertainment, and there are about 2,000 people representing the game and movie characters at the fairâ€?. International Game Developers Association (IGDA) Executive Director Kate Edwards spoke about game development, saying: “We try to encouraging game developers with kickstarter campaigns. We also keep in touch with local game developer associations. The profile of the average game developer has changed over the last five years. Many game developers consider themselves “amateurs,â€? choosing to do this for fun

The Turkish Perspective

There was a game competition in the Cosplay area and for the competition; some participants attended the fair with special costumes.

rather than professionally. Many gamers are accountants, bankers and professionals from a variety of sectors but at night, they become fullblown game developers”. In its second year of the fair, the number of participating firms increased almost four times. There was a game competition in the Cosplay area and for the competition; some participants attended the fair with special costumes. The costumes of Spider Man from American comic book publisher Marvel Comic, the main character of Assassin’s Creed Ezio Auditore da Firenze and Harley Quinn from Suicide Squad attracted big attention. The winner of this Cosplay competition was Enhar Güreşçi with his Wargreymon costume from Digimon. However, the costumes of all attendants were quite successful. Participants in Gaming Istanbul 2017 had the chance to try out the entertaining games of Star Wars: Force Arena, MARVEL Future Fight, Parramania and Netmarble and also had the chance to win different gifts.

The exhibition space ^HZ KLZPNULK [V VɈLY an array of options for international publishers, and with the publishers already signed up to the event, it promises to put turkey on the map for international gaming events.

Players at the Netmarble stand raced to win in the Star Wars: Force Arena. Netmarble also held a festival with the Wolfteam Tournament on the main stage and the Mstar Dance Workshop. The launch of the 5v5 mobile MOBA game “Strike of Kings” by Tencent, the world’s largest game producer, also took place in GIST 2017. During the fair, Tencent gathered the game players in a “Strike of Kings” tournament with a 120.000 TL prize. More tournaments will be held at the exhibition, including “League of Legends” with a $14,000 prize, the “FIFA 17” tournament featuring a $15,000 prize and the “VainGlory” tournament with a $4,000 prize, all sponsored by GameCell Hive Fest. Microsoft Turkey will launch its new gaming console, Xbox One S while Sony PlayStation will also launch its “VR” (Virtual Reality) at the exhibition. Thanks to these “VR” glasses that are connected to the PlayStation 4, the player can play the game with a 360-degree view, and thanks to the three-dimensional sound feature of the device, it can accurately determine the direction and distance the sounds come from. Eryürek pointed out that the game fairs are usually aimed at people around the age of 15-24 but that Gaming İstanbul 2017 has family size characteristics, and that the visiting fellow can found everything about games at the fair. It is also stated that with Gaming Istanbul fairs, Turkey will become a bridge between the East and the West in this sector and she will become the “game bridge” of Eurasia. We can say that Turkey may reach her goal by looking at the attention to Gaming Istanbul 2017 which is a new step in the technology sector for Turkey.

47

48

In Depth / Eurasia Tunnel Museum

MARCH 2017 ISSUE 44

The Turkish Turkish Perspective Perspective The

Eurasia Tunnel Museum

WHERE FANTASY MEETS REALITY BY MUSTAFA YİĞİT

The Eurasia Tunnel is one of those rare megaprojects whose story must be told. It is an endeavor as grand as any crossing, another one of those transport “linesâ€? on a map that are drawn across the face of the earth. Turkey is going through many such endeavors recently and indeed 2016 has seen a few such grand projects come to fruition. Istanbul for one has its fair share, with the Yavuz Sultan Selim Suspension Bridge across the north of the Bosporus, and the Eurasia across the south end, topping and tailing the strait as it were. A tunnel seems less glamorous but it is no less glorious, making a crossing in a location of the continents that are perhaps the most sensitive and delicate historically. The Tunnel connects the Unesco protected Sultanahmet district of Istanbul rich with some of the most valued remains of the Byzantine empire topped by centuries of rule by the Ottomans who have endowed this peninsula with some of the most important historical remains of the World. No less important but not as delicate is the exit point of the Tunnel, some NP ODWHU RQ WKH $VLDQ VLGH DW WKH KHDUW RI .DG“NÆ\

49

50

In Depth / Eurasia Tunnel Museum

T

HE IDEA, THE REALIZATION, THE TECHNOLOGY

and expertise as well as the people that made it possible weave an interesting story that was waiting to be told and the Eurasia Tunnel Museum on the Asian side is designed to do just that. Located in the entrance hall of the Eurasia Tunnel Control Building, the museum is an 80sqm area, which also doubles up as the reception to the Eurasia Tunnel Control Building. THE DESIGN The approach to the exhibition was to be simple and clear in telling the story of the Tunnel, addressing four main questions that come to mind when studying any similar endeavor: Why is there a need for connecting Europe and Asia? How was the tunnel built? What is the machinery that made it possible? Who are the people who made it possible? These questions became the chapters of the storyline presented to the visitors of the exhibition, starting with an historical overview of many previous attempts to connect Europe with Asia at this point, going back to the times of the Persians crossing the water to invade ancient Greece. There is also an overview of similar projects around the world, making reference to other long tunnels compared with Eurasia. The story moves clockwise, taking us through how the design was carried out, focusing in on important project details, breakthroughs in construction technology, approaches to earthquake safety, minimizing damage to the environment, and research and development during the course of the project. There is a timeline of major PLOHVWRQHV DQG oQDQFLDO PDNH XS RI the project, with behind the scenes facts about the people involved in the development which connects to the machines that made it possible and of course most notably the TBM (Tunnel MARCH 2017 ISSUE 44

THE MUSEUM MATCHES THIS WITH ITS OWN CREATIVE TECHNIQUES OF STORYTELLING FROM AN INTERACTIVE TOUCH TABLE, VIRTUAL REALITY GLASSES, INTERACTIVE TOUCH-PADS TO AN ALL IMMERSIVE ‘SURROUND VISION’ PROJECTION ENVIRONMENT.

Boring Machine) that was manufactured in its entirety in Germany. The story ends with the people behind the story including the names of hundreds of individuals who had a hand in the project as well as the visionaries who drove the vision. The story of the Eurasia Tunnel is told with cutting edge digital mapping technology, engaging the visitor in the Tunnel’s head spinning process of creation, which is itself a wonder of human resource, creativity and endeavor. The museum matches this with its own creative techniques of storytelling from an interactive touch table, virtual reality glasses, interactive touch-pads to an all immersive ‘surround vision’ projection environment, which will absorb visitors like never before in Turkey. The most engaging characteristic of the museum is the multilayered way in which the story is told. The most absorbing

The Turkish Perspective

is the massive wall projection, which immerses the visitor in a joy of its vision immediately upon entering. Quickly he realizes that through the many elements of physical objects, wall graphics that surround him, iPads in which deeper layers of information and data are exposed, a ‘mapped’ model cross section through the Bosporus and a round “touch table� which invites the visitor to interact with the information in a unique way, one element complements the other and all together they form a complete whole. THE IMMERSION INTO BIG DATA Four main projection devices are used to project dynamic wall mapping information on to a 16m long screen, which is a constantly changing massive data source that immerses the viewer upon entry to the exhibition. In each section information under the headings of Why – The Dream Come True, How –

From Dream to Reality, What – Dream Technology, and Who – United by a Dream, is transmitted through linear information loops that thematically link and integrate vertically with the other sources of information available. Forming a continuous base line to the :DOO 3URMHFWLRQV LV D VWULS RI o[HG WH[W panels overlaid on to a map of the route of the tunnel starting with the motorway entry point on the European side and ending with its exit and link to the E5 motorway system on the Asian side. 6XEWOH FRORXU FRGLQJ RQ WKH o[HG ZDOO JUDSKLFV FODULoHV WKLV YHUWLFDO WKHPLQJ DQG WKHVH FRORUV DUH UHFDOOHG LQ WKH o[HG elements that are spread around the space below the Wall Projections. A Tunnel Section mapped digitally shows how the tunnel passes the Bosporus below the sea, encountering the geological make up of the strait, and indicating where “seismic joints�

are placed to deal with the earthquake fault lines that run through this part of Istanbul. The designers of the tunnel will surprise with a statement that during the largest magnitude earthquake, the tunnel would be the safest place to be for anyone. We hope that this is an experience we will never have but nevertheless it is comforting to know that the design has taken in to account the worst that can happen. The Tunnel Boring Machine model that gradually turns acts as a centerpiece of the section describing the machines that achieved this seemingly impossible task. In the Who section there are even the heard hats of some of the many people who worked to make this a reality as well as the signed hard hat of the President RI WKH 5HSXEOLF ZKR oQDOO\ RSHQHG WKH tunnel on the 20th of December 2016 as promised.

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In Depth / Eurasia Tunnel Museum

THE INTERACTIVE TOUCH-TABLE A project like Eurasia Tunnel brakes UHFRUGV FRPHV oUVW RU QHDU WKH WRS LQ VRPH oHOGV DQG LV UHpHFWHG LQ VRPH surprising statistics – information of this kind is presented to the visitors in a uniquely designed and interactive way as “10 Facts about Eurasia� on the Round Touch-table in the center of the room. The table becomes active when a movement sensor activates it. In the opening sequence through an animation we see the satellite image of the Bosporus as seen from outer space; we come nearer to the sea surface and dive into the sea and then the rocks and sand. Then the TBM face appears, spinning and cutting through WKH JHRORJLFDO IRUPDWLRQ DQG oQDOO\ EHFRPLQJ WKH oQLVKHG WXQQHO ZLWK WUDIoF pRZLQJ WKURXJK LW Then an interaction interface appears RQ WKH WDEOH VXUIDFH ZLWK WHQ oHOGV around its perimeter, each representing one fact with one catchword or phrase. When a visitor touches one in front of them, it opens into an animation about that fact (ca 10 sec). Touching some IDFWV LQpXHQFH WKH UHVW RI WKH WDEOH IRU seconds, then they reappear. DEEPER LAYERS OF INFORMATION In any project of this kind, which takes many years to realize, and in which many thousands of documents are produced, there just is not enough space to put all that information in to an exhibition without overwhelming the visitor who is there for a short visit. For those who are further interested and academics and researchers who wish to know more seven iPad touch screens are placed around the perimeter of the space. Most of these iPads are positioned on a linear folded metal element that draws a line around the perimeter of the space DOVR GHoQHG E\ WKH ZDOO SURMHFWLRQV 7KH metal element changes form to at times support a physical model, at other times to contain physical documents such as drawings, and sketches and yet other times makes a convenient surface on which to rest virtual reality glasses which take you inside the TBM machine. The theme generated by the ‘folding’ of the metal element is taken through in to the design of all elements whether these are showcases for the worn out MARCH 2017 ISSUE 44

FOUR MAIN PROJECTION DEVICES ARE USED TO PROJECT DYNAMIC WALL MAPPING INFORMATION.

cutting ‘teeth’ that are in the center of the room, or supports for the awards and construction helmets that are placed in the space as an integral part of a whole which makes sense both visually and thematically. THE REMAINS OF THE PROCESS When visitors leave the building, they are shown around the corner to the area where remains of pieces of machinery are positioned on large concrete plinths

under a canopy. The space is dominated by a reconstructed composition overlaying a large technical drawing for clarity, showing clearly where these machine parts took a role in the bigger scheme of things. Other machinery pieces are arranged into more abstract compositions, the roles of which are, however, still explained by diagrams and drawings. Further still in the gardens of the building are placed parts of the mock ups which were built for the seismic joints, and the concrete segments that make up the tunnel surface, as well as some elements from the pre-cast entrance portico to the tunnel itself. A COMPLEX ORCHESTRATION Any modern exhibition of this kind is itself an orchestration of the work and product of many professionals. In WKH (XUDVLD 7XQQHO ([KLELWLRQ $YF“ $UFKLWHFWV OHDG E\ 6DQMD -XUFD $YF“ DV the designer and curatorial planner, undertook to deliver the whole project as a one stop “turnkey� project where the client was given one point of contact. The work was not only delivered in an extremely short time scale, (6 weeks from start of contract), it also entailed R&D time creating an unusually large interactive table using high-tech touch surfaces of the kind seen in modern telephones today, hitherto not seen in Turkey.

Brands / Lorem

The Turkish Perspective

Content: Record High Growth from Türk Telekom P55 Tuzla Thermal Spa Can Be the Center of Health Tourism P58 Türk Traktor at the Top for 10 Years P60 Nordborn: The Bridge Between People and Nature P62 Editor: 0XVWDID <LþLW

TECHNOLOGY, HEALTH TOURISM, AGRICULTURAL INDUSTRY, APPAREL

Türk Telekom reached a subscriber base of 38.9 mn in 2016 with 1.5 mn record high net subscriber addition since IPO.

TECHNOLOGY

M kd M^e^dhf3

RECORD HIGH GROWTH FROM TÜRK TELEKOM

Türk Telekom continued to execute its vision to lead Turkey’s digital transformation in 2016 BY İBRAHİM AVCI

T

ürk Telekom revenues increased to TL 16.1 bn with 10.9% y/y growth, the highest annual growth since IPO. Announcing 2016 oQDQFLDO DQG RSHUDWLRQDO results, Türk Telekom completed the year with the record high revenue growth and excellent operational performance. Türk Telekom completed a quite successful year operationally. In addition

to record high revenue and subscriber growth, EBITDA grew increased to TL 5.5 bn, the record high level since IPO. Additionally, Türk Telekom has continued to make investments in 2016 and contributed to Turkey’s digital future by investing TL 3 bn. Completing a year with strong operational results, Türk Telekom reached a subscriber base of 38.9 mn in 2016 with 1.5 mn record

high net subscriber addition since IPO. Broadband subscriber base increased to 8.7 mn in 2016 with 691K increase in full year – again the highest annual growth since the IPO. Türk 7HOHNRP oEHU VXEVFULEHUV exceeded 2 mn, with 228 thousand kilometers length and 13.9 million homepasses. Following 932K net additions in 2015, Türk Telekom has

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Brands /TĂźrk Telekom

once again expanded its mobile subscriber base by 1.3 mn to 18.6 mn in 2016. Smartphone penetration also increased materially to 75% compared to 66% a year ago.

ABOUT TĂœĂœRK TELEKOOM GRROUP TĂźrk Telekom, with 176 years of history, is the first integrated telecommunications operator in Turkey. In 2015, TĂźrk TelekomĂźnikasyon $ Ăş DGRSWHG D kFXVWRPHU orientedâ€? and integrated structure in order to respond to the rapidly changing communication and technology needs of customers in the most powerful and accurate way, while maintaining the legal HQWLWLHV RI $YHD ĂźOHWLĂťLP +L]PHWOHUL $ Ăş DQG 771(7 $ Ăş LQWDFW DQG DGKHULQJ WR the rules and regulations WR ZKLFK WKH\ DUH VXEMHFW Having a wide service network and product range in the fields of individual and corporate services, TĂźrk Telekom unified its mobile, internet, phone and TV products and services under WKH VLQJOH k7Ă‹UN 7HOHNRPy brand as of January 2016. k7XUNH\ V 0XOWLSOD\ Providerâ€? TĂźrk Telekom has 13.1 million fixed access lines, 8.7 million broadband and 18.6 million mobile subscribers as of December 31, 2016. TĂźrk Telekom Group Companies provide services in all 81 cities of Turkey with 33,224 employees with the vision of introducing new technologies to Turkey and accelerating Turkey’s transformation into an information society. TĂźrk TelekomĂźnikasyon MARCH 2017 ISSUE 44

2016 with numbers $ ú SURYLGLQJ 3671 and wholesale broadband services, owns 100% of mobile operator Avea ßOHWLÝLP +L]PHWOHUL $ ú retail internet services, IPTV, satellite TV, Web TV, Mobile TV, Smart TV services provider TTNET $ ú 79 %URDGFDVWLQJ DQG VOD services provider Net Ekran Companies, convergence technologies FRPSDQ\ $UJHOD <D]“O“P YH %LOLÝLP 7HNQRORMLOHUL $ ú ,7 VROXWLRQ SURYLGHU ,QQRYD %LOLÝLP ŽÆ]ËPOHUL $ ú RQOLQH HGXFDWLRQ software company Sebit (ÞLWLP YH %LOJL 7HNQRORMLOHUL Þ J M $ ú FDOO FHQWHU FRPSDQ\ ú FDOO FHQWHU FRPSDQ\ AssisTT ssisTT Rehberlik ve 0ËÝWHUL +L]PHWOHUL $ ú ZKROHVDOH ú ZKROHVDOH data ata and capacity service ervice provider Tßrk ßrk Telekom International nternational and itss subsidiaries.

3

billion dollar INVESTMENTS MADE

million NUMBER OF NEW SUBSCRIBERS

%10,9 RECORD GROWTH RATE

Cristiano Ronaldo was the face of TĂźrk Telekom in 2016.

1,5

The Turkish Perspective

Paul Doany said that they have delivered excellent operational results.

THE CEO’S VIEWS ON 2016 RESULTS We successfully harmonized our group capabilities with an effective synergy, which \e^Zker k^×^\m^] mh hnk k^lneml' We strengthened our leader position We are pleased to announce oQDQFLDO DQG RSHUDWLRQDO results of 2016, in which we strengthened our leader communication and entertainment technologies company position and recorded very important developments in Tßrk Telekom history. We started the year by realizing Turkey’s largest brand XQLoFDWLRQ DQG ZH EHFDPH capable of offering mobile, internet, phone, TV and innovative digital services. We successfully harmonized our group capabilities with an effective synergy, which FOHDUO\ UHpHFWHG WR RXU results. 7KDQNV WR RXU XQLoHG infrastructure, sales channels and value added services, we delivered excellent operational results. Our subscriber number reached 38.9 with record high subscriber additions of 1.5 mn in 2016. In the same period,

we realized 10.9% record revenue growth as well. 2016 was an important milestone for our mobile services, affecting our customers’ lives considerably. We accelerated rollout of 900 MHz band for 3G services with improved indoor FRYHUDJH DQG D FRQoGHQW start to LTE services as we acquired the most essential bands for LTE, resulting in improved network quality and enhanced data growth. We eased the way that our customers access information and added speed to their lives. With the increased speeds, data consumption grew considerably. As of 2016 end, 53% of our smartphone users are on LTE compatible devices, and average monthly mobile data usage of LTE users increased to 3.9 GB. We are pleased to see that the value we offer to our customers has increased.

In the same way, we are SURXG WKDW RXU oEHU QHWZRUN reached 228 thousand kilometers length and 13.9 million homepasses, covering around 60% of households in Turkey. In addition, we also focus heavily on extending Tßrk Telekom’s strength in infrastructure to superstructure services. Our oUVW H[DPSOHV DUH 7XUNH\ V most loved online digital music platform Tßrk Telekom Mßzik, TV platform Tivibu with UEFA content, leader digital gaming platform Playstore, and Turkey’s leading online educational support service Vitamin. We will continue our focus RQ XSVHOOLQJ FURVV VHOOLQJ and providing value to our customers via our premier OLQH XS RI SURGXFWV $V 7ËUN Telekom, we always work in D SHRSOH RULHQWHG ZD\ %DVHG on this vision, we focus on offering technological products and services that meet the needs of users living in each corner of Turkey. As the leader integrated operator with a wide range of product and service portfolio, we will work QRQ VWRS WR FUHDWH D XQLTXH value by closely touching the customer segments that we have not accessed before, through our regional directorates in Turkey’s 81 provinces. We are also proactively taking bold steps towards placing Turkey among the global technology giants and contributing to the digital convergence of the country. Through our subsidiary Argela, we are leading the development of

* HQDEOLQJ WHFKQRORJLHV LQ Turkey and making Turkey to take place in the league of mobile technology exporting countries with our 28 patent applications to the US Patent DQG 7UDGHPDUN 2IoFH LQ this regard. Moreover, we contribute to the digital transformation of health services in Turkey, by taking part in Heath Campuses 3URMHFW ODXQFKHG E\ RXU Government. Within this SURMHFW LQ FRRUGLQDWLRQ ZLWK our subsidiaries, Innova and Assistt, we will serve in various segments ranging from data center preparation, information management system implementation and integration, and call center services. In the upcoming period, we will strengthen our subsidiaries and make each of them leader in their oHOGV In conclusion, towards the end of 2016, we made organizational changes, which enable us to operate under a more streamlined structure with better operational agility. With the new organizational design, we streamlined WRS OHYHO SRVLWLRQV WR EH H[WHQGHG WR VXE OHYHOV further, and our aim is to DFKLHYH PD[LPXP EHQHoW from the synergies of shared operations and strengthen execution while keeping the previous underlying market segmentation structure, i.e., Consumer and Corporate Customers. I believe the new organization will be extremely effective in preparing the company for the next market development stage. I would like to thank our employees for all their contributions and efforts in 2016. Looking ahead, we will continue to capitalize on our integrated structure, explore DQG LPSOHPHQW HIoFLHQFLHV to create value for all our stakeholders.

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Brands /Tuzla Thermal Spa

There are historical documents \hgĂ–kfbg` maZm Tuzla Hot Springs have been used as a healing resource for about 5 thousand years.

HEALTH TOURISM

MnseZ Ma^kfZe LiZ3

TUZLA THERMAL SPA CAN BE THE CENTER OF HEALTH TOURISM

The historical Tuzla Hot Springs started to make Tuzla a center of attraction for health tourism with modern investments. BY RAMAZAN GĂœZYURDU

T

he historical Tuzla Hot Springs, which many of the statesmen healed from Fatih Sultan Mehmet to Atatßrk and also told in the ERRN RI (YOL\D ŽHOHEL VWDUWHG to make Tuzla a center of attraction for health tourism with modern investments. The thermal springs in Tuzla Hot Springs, which GDWH EDFN WR oYH WKRXVDQG years ago, are regaining the YDOXH WKDW LW GHVHUYHG .ÆNVDO .ÆVH ZKR LV D EXVLQHVVPDQ made great effort to do this. .ÆNVDO .ÆVH ZKR DFTXLUHG the operating rights of 7X]OD ßFPHOHUL ,QF LQ MARCH 2017 ISSUE 44

has made an important contribution to the Turkish tourism and health sector with an investment of 60 million TL. Istanbul Medical Thermal Spring Training, Research and Application Center, which is Istanbul’s oUVW DQG RQO\ PHGLFDO WKHUPDO IDFLOLW\ KDV D VLJQLoFDQW potential for both domestic and international tourism. There are historical GRFXPHQWV FRQoUPLQJ WKDW Tuzla Hot Springs have been used as a healing resource for about 5 thousand years. The sources describing the more recent history tells that in the

1300s, after the Turks came to Anatolia, they discovered it by chance in the expeditions to Rumeli that the water sources of region have healing effect. The Ottoman army left their patient horses in the oHOGV RI 7X]OD GLVWULFW ZKLFK could not continue their MRXUQH\ IRU PRQWKV +RZHYHU when they came back to the district, they found these poor horses more robust than the others. This situation has attracted attention when observed that the members of the army, who are discomfort, are recovering from passing through this region. When the physicians decided that the source water in the region was healing, Tuzla became more important now. The Ottoman sultan Fatih Sultan Mehmet, who conquered Istanbul, is also said to have given great importance here. The healing given by the region, which LV FDOOHG k\XQDNy DQG WKHQ kLFPHOHUy LV LQWHUQDWLRQDOO\ renowned.

INTERNAL ORGAN CLEANSING (YOL\D ŽHOHEL ZKR LV NQRZQ for his travel books, tells Tuzla Hot Springs in his notes that he received in 1611. k3HRSOH pRRG LQ IURP WRZQV they build tents. They drink from water in awe. It was doing such an internal organ cleansing that he seemed to be born from his mother.� 7KH oUVW LQVWDOODWLRQ studies of the region started in the 1900s. In 1923, it is possible to see the waters operated by the French and the water receipts of the vessel. After

The Turkish Perspective

the establishment of the 5HSXEOLF .DPLO $EGXÝ %H\ took all the rights of thermal resources and he established Tuzla Thermal Springs and Havalisi Turkish Incorporated Company in partnership of two businessmen and three doctors in 1927. Mustafa Kemal Atatßrk is signing the business license for the healing waters in the region. Ataturk himself was called k6DUL =H\EHNy EHFDXVH LW LV EDVHG RQ WKH =H\EHN JDPH which is played during the period where he is resting. ,Q WKH oUVW afforestation work is being GRQH LQ WKH UHJLRQ 7KH oUVW tourism facility is established in 1930 as Grand Hotel. In 1935, the company ZDV OLFHQVHG DV D kQRQ institutional enterprise�. The destiny of Tuzla Thermal Springs, which has attracted great interest from domestic and foreign tourists for many years, changed ZKHQ .DPLO $EGXÝ %H\ GLHG LQ .DPLO $EGXÝ %H\ V true heirs were not interested in the facility. It was remained LGOH XQWLO .ÆNVDO .ÆVH ERXJKW it in 1990. 7X]OD ßFPHOHUL ,QF ZKLFK is established under the roof of Istanbul Medical Thermal, offers medical treatment powers of healing waters ZLWK VFLHQWLoF PHWKRGV E\ specialist doctors and health SHUVRQQHO ,Q WKH URRP center, there is a wide range of services. In the center, there are 52 standard rooms as well as 16 thermal rooms, 8 connected rooms, two disabled rooms and two suites. There are nine pools in Istanbul Medical Thermal Spa Education, Research and Application Center, for oYH WKHUDSHXWLF SXUSRVHV In the center, many diseases can be treated from neck and waist to diabetes and

land belonging to Tuzla Icmeleri Inc., which has an area of 70 thousand square meters, at the age of 39 in 1990, he emphasized that the region is covered with nature and he added more. k:KHQ .DPLO $EGXÝ %H\ the former owner of the region, passed away, the heirs could not agree between them and these valuable resources remained idle for 20 years. When we took medicinal waters, the creeks were polluted. First of all, we protect the thermal resources with the drainage works. 7KHQ ZH FDUULHG RXW MRLQW studies with the Department of Medical Ecology and Hydro Climatology at Capa Medical Faculty, Istanbul University. The contents of the waters have been examined. The effect on the diseases was measured. It has been reported that the treatment of many diseases affects the process positively such as the treatment of orthopedic problems and strengthening of the immune system� he said.

IT IS BOTH DRINKING AND HOT SPRING WATER

MnseZ Ăť\f^e^kb Bg\' h__^kl f^]b\Ze mk^Zmf^gm ihp^kl h_ a^Zebg` pZm^kl pbma l\b^gmbĂ–\ f^mah]l [r li^\bZeblm ]h\mhkl Zg] a^Zema i^klhgg^e'

skin problems. In case of need, special curative water and nutritional cures are applied to cleanse the body completely from toxins. The center also provides SPA and wellness services. The Chairman of the Board RI 'LUHFWRUV RI 7X]OD ßFPHOHU Incorporated Company, .ÆNVDO .ÆVH XQGHUOLQHG that they had been carrying out both environmental PDQDJHPHQW DQG VFLHQWLoF studies for many years to make the historic Tuzla Hot Springs’ waters reach its old value again. :KHQ .ÆVH WRRN RYHU WKH

.ÆNVDO .ÆVH VWDWHG WKDW WKHUH are 3,000 mineral water sources in Turkey and 200 of them can be operated. k7KHUH DUH RQO\ WZR IDFLOLWLHV LQ WKH TXDOLoHG FDVH 2QH LV LQ ß]PLU %DOFRYD DQG WKH RWKHU LQ 'HQL]OL .DUDDKLW 7X]OD ßFPHOHUL KDV D GLIIHUHQW feature according to others. It is both drinking and hot spring water. This facility provides a concept, which is covering the process starting from the diagnostic stage to the treatment and the IROORZ XS 7KHVH VRXUFHV have been used for drinking FXUH DQG GHWR[LoFDWLRQ IRU centuries. Many people from the Balkans are visiting our facility,� he added.

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Brands / TĂźrk TraktĂśr

TĂœRKTRAKTĂ–R AT THE TOP FOR 10 YEARS Turkey, being 4th largest tractor market in the world, has achieved a record growth in this market in 2016. BY ALPEREN ÇEVÄ°KASLAN

T

ßrkTraktÜr, WKH ORQJ established manufacturer of the Turkish automotive industry that is still active, DQQRXQFHG LWV oQDQFLDO UHVXOWV for 2016. 7ËUN7UDNWÆU SURGXFHG D total of 46 thousand 31 units, with the operations carried outin Ankara and Sakarya Erenler factories in 2016. The company continued its domestic market sales in the last quarter of the year without slowing down and broke a new UHFRUG 7ËUN7UDNWÆU ZKLFK increased domestic sales by 23% based on quarters, reached 33,605 in total sales in the domestic market during the year. The company sold 12,625 units in foreign markets, in 2016. The tractor giant of Turkey completed the year with a total revenue of 3,4 billion TL and achieved another successful result. Domestic revenue of the company reached 2,5 billion TL with an increase of 14%. The export revenue reached 974 million TL with an increase of 4%. 7ËUN7UDNWÆU WKH 7XUNLVK tractor market leader for 10 consecutive years, also continued to increase its SURoWDELOLW\ $FFRUGLQJ WR WKH end of year 2016 results, the company’s EBITDA reached 512 million TL with a 23% MARCH 2017 ISSUE 44

increase from the previous \HDU ZKLOH LWV QHW SURoW LV increased by 44% and reached 370 million TL. 7ËUN7UDNWÆU *HQHUDO Manager Marco Votta made the following assessment regarding the year 2016: k7KH \HDU ZDV D \HDU in which both the world and Turkey were very active, with different agendas and experiences of change. Nevertheless, the tractor market in Turkey, which is the world’s fourth largest tractor market, grew with a record ULVH LQ $V 7ËUN7UDNWÆU we only focused on our business in 2016: To work and produce more and to achieve all the goals we set. We applied this approach to our work through the year.

M—kdMkZdm’k% ma^ Mnkdbla mkZ\mhk fZkd^m e^Z]^k _hk *) \hgl^\nmbo^ r^Zkl% Zelh \hgmbgn^] mh bg\k^Zl^ bml ikhÖmZ[bebmr'

We produced our 800 thousandth tractor in 2016, which is the 62nd year of our establishment, and we introduced the new series of New Holland and Case IH branded tractors. We have, once again, shown our difference with our work in R & D and continued to offer products that make life easier for our farmers. We also continued our competitiveness in production in 2016, thanks to our planned improvement and development work with the World Class Manufacture methodology. As a result of this, our Ankara factory earned WKH ULJKW WR UHFHLYH WKH k%URQ]H Factory� title.We were proud of adding more to our wide range of awards, ranging from human resources to exports, from technology to R&D.�

Brands /Lorem Ipsum

Indicating that they completed the 18 years of the last 30 years as market leader, Marco Votta said, k:H DUH YHU\ KDSS\ WR NHHS our leader position in that important market for 10 years in a row now. When we look DW WKH oJXUHV UHOHDVHG E\ WKH Turkish Statistical Institute (TĂœIK), in 2016, we see that the domestic tractor market grew by 5% and reached 70.205 units. This is a record for Turkish tractor market.â€? Marco Votta also gave information about the Miracles of Sprouts, the QHZ SURMHFW RI7Ă‹UN7UDNWÆU that took place among the FRPSDQ\ V &65 3URMHFWV k2XU C0LUDFOHV RI 6SURXWV SURMHFW KDV EHHQ EXLOW WR support the increase in the female labor force in the agriculture and automotive sectors, and it is also a product of our approach to gender equality. We designed the Miracles of 6SURXWV SURMHFW WR RZQ WKUHH GLIIHUHQW VXEMHFWV (GXFDWLRQ Agricultural Production, and Employment. While working continuously to increase women’s employment, we will visit 58 vocational schools in 5 cities and we will meet with about 3 thousand female students within the scope of the Education part of our SURMHFW y

The Turkish Perspective The Turkish Perspective

Marco Votta, stated that, in the Agricultural Production SDUW RI WKH SURMHFW WKH\ involved female farmers and their families in an effort to contribute to the country’s agriculture and economy: k:H ZLOO VXSSRUW RXU IHPDOH farmers and their families who SDUWLFLSDWH LQ RXU SURMHFW WR grow buckwheat. At the same time, we will provide academic studies for the cultivation of this product nationwide. With RXU SURMHFW ZH ZLOO WUDLQ IURP planting to marketing and entrepreneurship, the female farmers and their families in GLIIHUHQW oHOGV :H DOVR DLP to contribute the country’s economy with buckwheat cultivation. I also want to thank all the partners ofour SURMHFW y

ABOUT TĂœRKTRAKTĂ–R 6WDUWHG LQ DV WKH oUVW producer of the Turkish automotive industry and still DFWLYH WRGD\ 7Ă‹UN7UDNWÆU has now become one of the biggest tractor producers of (XURSH 7Ă‹UN7UDNWÆU V units of annual production in 1955 reached 46,000 units at WKH HQG RI 7Ă‹UN7UDNWÆU the market leader of Turkey successively for 10 years in D URZ KDV H[SRUWHG WR PRUH than 130 countries so far. 25 percent of the stocks of the company partnered by Koç

ĂŠHnk ĂŒFbkZ\e^l h_ LikhnmlĂ? ikhc^\m aZl [^^g [nbem mh lniihkm ma^ bg\k^Zl^ bg ma^ _^fZe^ eZ[hk _hk\^ bg ma^ Z`kb\nemnk^ Zg] Znmhfhmbo^ l^\mhkl% Zg] bm bl Zelh Z ikh]n\m h_ hnk ZiikhZ\a mh `^g]^k ^jnZebmr'Ă‹

*URXS DQG &1+, RQH RI the world’s biggest tractor SURGXFHUV DUH WUDGHG RQ WKH Istanbul Stock Exchange. The second production plant of the company, the 7ËUN7UDNWÆU (UHQOHU IDFWRU\ commenced production in July 2014. In addition to the production of New Holland, Case IH, and Steyr brand tractors, agricultural equipment, and machinery GLVWULEXWLRQ 7ËUN7UDNWÆU LV also the only design and main production center of the New Holland TD and Case IH JX series tractors in the world, the only production center of the Utility Light series tractors and transmissions in the world, the only engineering and production center for the TD series transmissions in the world, and the main production center of the S8000 series engines. Located in Ankara DQG (UHQOHU 7ËUN7UDNWÆU facilities nearly 3,000 employees. Acting with WKH PLVVLRQ kWR EHFRPH WKH company that steers the present and future of modern DJULFXOWXUH y 7ËUN7UDNWÆU is the biggest supporter of productivity in our country’s farming economy, and a true friend that increases the welfare of our urban population with its more than 60 years of experience.

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Brands /Nordbron

Ghk][khg3

THE BRIDGE BETWEEN PEOPLE AND NATURE

The company, which is manufactured accessories since 1978, created a brand for the global fashion and sport market but mass-market selling requires careful steps. BY SERPÄ°L KASAP

A

ccessories are the most useful things that people can identify them easily and of course, by the cheapest way. The sector is growing up fast especially in last 5 years. 0DQ\ UHDG\ WR ZHDU EUDQGV develop their own accessory collections but none of them are specialized in this sector, neither do they have an own identity and the market is not controlled. ALK Group Chairman úËNUË $/.$1 EHOLHYHV WKDW greatness comes by focusing on one thing and one thing only. AKAL is in accessory business since 1978, and Mr. $/.$1 VD\V WKDW k2XU VXFFHVV come from our origin where

MARCH 2017 ISSUE 44

we started all this 40 years ago and we became market OHDGHU LQ 7XUNH\ LQ MXVW DERXW oIWHHQ \HDUV ZLWK RXU ORFDO EUDQGV NLWWL VX\XWWL :H already started to sell these brands in foreign markets in 10 years and we had a very good success in private label business.�

ĂŠ@k^Zm ikh]n\m Ă‹

:ED @khni <aZbkfZg ߗdk— :ED:G [^eb^o^l maZm `k^Zmg^ll \hf^l [r _h\nlbg` hg hg^ mabg` Zg] hg^ mabg` hger'

Nordbron Brand Director 7DKD 72=$/ VD\V k:H KDYH a great product as winter accessories and we are very lucky as being in Turkey which has a very good and TXDOLoHG SHUFHSWLRQ LQ JOREDO Textile Industry, is a very popular for all high level brands who wants to produce quality items. We have a good

manufacturing capability and able to combine good yarns with this ability. We are very keen to use this advantage better by the following years in our collections. We have the only made in Turkey products in this market, young and dedicated team, better pricing and conditions, stylish and trendy products and good marketing tools in order of importance.� After launching the brand in ISPO Munich 2013, Nordbron sales soared by %400 from 2013 to 2016, in Switzerland, UK, USA, France, Germany, Spain and 1HZ =HDODQG 0U 72=$/ VD\V k:H DUH LQ JURZWK DQG expansion mode. We only see opportunities around us! With the season of FW 17/18, our brand continues to growing up in 13 countries in Europe, Canada and USA.� The brand has been becoming a cultural phenomenon. It is enough to convince people asks to sales points swiftly after experiencing the items. The spirit of the brand and the quality helps customers remember why they bought WKH LWHP LQ WKH oUVW SODFH 4XDOLW\ DQG oQH GHWDLOV DUH NH\ GLIIHUHQWLDWRUV k<RX GR QRW EXLOG ELJ FXOW EUDQGV MXVW RQ WKH VXSHUoFLDO SRVLWLRQLQJ in advertising,� said marketing and branding expert Alan Middleton of York University’s Schulich School of Business. This season, Nordbron makes Odda/Bergen a focal SRLQW IRU LQVSLUDWLRQ XVLQJ the energy and creativity of the Scandinavian megalopolis as the scenery for the FW 2017/18. The quintessential point of this inspirational MRXUQH\ SUHFLVHO\ UHVLGHV in the sophisticated city’s duality: untouched backcountry nature vs. endless entertainment and creativity.

62

Agenda

FAIRS, EXHIBITIONS, SUMMITS, AND MEETINGS IN THE NEXT MONTH

ENSCON’17 HILTON ISTANBUL KOZYATAGI

The International Congress of Energy, Economy and Security / ENSCON’17 will be held in 25-26 of March 2017 at the Hilton Istanbul .R]\DWDJL +RWHO (16&21 RIIHUV FKDQFH WR SUHVHQW VKDUH DQG discuss new ideas to researchers from all over the world. The topics of WKH FRQJUHVV FRYHULQJ DOO oHOGV RI VRFLDO VFLHQFHV SDUWLFXODUO\ UHODWHG WR energy, security and economics.

MODEKO 2017

WIN EURASIA AUTOMATION 2017

Ä°zmir KĂźltĂźrpark Expo Center / Ä°zmir 01-07 MARCH

TĂœYAP / Ä°stanbul 16-19 MARCH

Modeko (Izmir Modeko Furniture Fair) takes SODFH DW ß]PLU .ËOWËUSDUN 8OXVODUDUDV“ )XDU 0HUNH]L in Izmir, Turkey between 1st-5th of March. This event showcases products like most comprehensive furniture and decoration fair of Turkey. In 2014 Modeko attracted more than 26312 visitors and 187 exhibitors.

WIN EURASIA Automation provided many solutions required for a factory under a single roof, from cables to pXLG SRZHU WHFKQRORJLHV driver technologies to software products, robotic arms to unmanned forklifts. With WIN EURASIA Automation fairs such as; Otomasyon EURASIA, Electrotech EURASIA, Hydraulic&Pneumatic EURASIA and CeMAT EURASIA fairs you will be able to see that, technology’s future started in Istanbul under the theme of Industry 4.0 earlier then other Eurasian countries.

MARCH 2017 ISSUE 44

EURASIA RAIL IFM YEŞİLKÖY / İstanbul 02-04 MARCH Eurasia Rail which will be organized for the 7th time in 2017 is the key international platform to bring together the sector giants with professional visitors under one roof. The exhibition not only determines the pulse of the sector in Eurasia Region but also the gateway to the development of existing relationships and new collaborations. The conferences and seminars which take place concurrently with the exhibition shares the industry knowledge and experience at the senior level.

29-01

ISTANBUL LIGHT IFM YEŞİLKÖY / İSTANBUL

MAR.

EURASIA GLASS 2017

MAR.

25-26 MARCH

IstanbulLight is an international platform, where all the players in the lighting industry come together under a same roof and where the latest technologies and collaboration opportunities are offered, will take place in Istanbul Expo Center, YesilkĂśy in Istanbul between 21-24 September, 2017 with the collaboration of the Turkish National Committee on Illumination and Turkish Lighting Luminaires Manufacturers Association.

08-11

TĂœYAP / Ä°STANBUL

As the prime trade hub and the most prestigious Glass Fair of the region, Eurasia Glass 2017 will be held on 0DUFK DW 7Ă‹\DS )DLU Convention and Congress Center. The Fair which has a extensive scope such as; Industrial Glass Products,Glass Production Technologies,Tampered Glass,Glass Production Machinery,Glass Processing Machinery, Tempered Glass, Flat Glass, Laminated Glass, will bring leading manufacturers and decision makers of the industry.

63

Figures TURKEY MAINTAINS ITS IMPORTANCE IN EU’S IMPORT Turkey with its solid economy maintains its strong position in European Union’s import share as a vital partner. BILLION EURO

371.3 350.3

USA CHINA

102.4 136.4

SWITZERLAND RUSSIA TURKEY JAPAN NORWAY SOUTH KOREA INDIA BRAZIL

246.8 344.6

61.7 59.9 74.1 42.4 39.5 28.3

121.6 118.7 667 66.4 62.9 41.4 39.3 29.1

2015

Data: Eurostat

>qihkm H_ F^f[^k Companies (Unit)

RISE OF APPAREL EXPORT

SOLID GROWTH IN EXPORT

Apparel export has increased its ^qihkm kZm^ ]nkbg` ma^ Öklm fhgma h_ +)*0 \hfiZk^] mh CZgnZkr h_ +)*/'

Total automotive export increased by 21 i^k\^gm ]nkbg` ma^ Öklm fhgma h_ 2017 and the sector continues to its leadership as well as in 2016.

COUNTRY JAN 2016 JAN 2017 2016/2017 % IRAQ 32.955 45.697 38.7 BULGARIA 6.958 14.500 108.4 HUNGARY 957 13.947 1.357.7 KIRGHYZSTAN 4.732 12.798 170.5 RUSSIA 7.166 12.421 73.3 SYRIA 4.012 7.698 91.9 LITHUANIA 856 6.459 655.0 LEBANON 3.481 5.608 61.1 IRALAND 3.816 5.217 36.7 FINLAND 2.471 5.153 108.5 Data: IHKIB

2016

January\2017

131.741

Export

104.349

OYAK RENAULT

TOFAŞ HYUNDAI ASSAN TÜRK TRAKTÖR HONDA TÜRKİYE

79

Export %

FORD OTOSAN

TOYOTA

Unit

Production

JANUARY 2017

M. BENZ TÜRK

2017

2017/2016 (%)

MAN TÜRKİYE

Total Component Industry

729.591.404

9%

HATTAT TARIM

Total Vehicle Industry

1.353.874.802

54%

OTOKAR TOTAL

22.926 22.534 22.122 19.788 15.119 905 490 191 129 84 43 70.140/104.349 Data: OSD

64 Figures

SHARE OF TOP 20 COUNTRIES IN TURKEY’S TOTAL EXPORT(%)

BELGIUM

NETHERLANDS

2,08

2,63

FRANCE

4,74

Turkish exports to most prominent 20 markets bg ma^ Öklm fhgma h_ 2017.

UK

6,35

ITALY

5,81

USA

4,84

SPAIN

4,26

POLAND

2,12

RUSSIA

1,42 GERMANY

ROMANIA

10,54

1.85 BULGARIA

1,58

CHINA

2,07

IRAN IRAQ

SAUDI ARABIA

5,93

2,59

1,95

ALGERIA

1,16

EGYPT ISRAEL

2,10

Data: TIM

MARCH 2017 ISSUE 44

1,49

UAE

2,32

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