TTP 56 by Turkish Exporters Assembly

YOUR COMPLIMENTARY COPY

TH YEAR

PANORAMA Global Trade On The Rise BRIEFING Major Actor of Humanitarian Aid IN DEPTH Invest in Greece

MARCH 2018 ISSUE 56

ECONOMY BUSINESS FOREIGN TRADE ANALYSIS

The Turkish Perspective

Contents 24 COVER

13 PANAROMA

15 BRIEFING 15 | Major Actor of Humanitarian Aid

GLOBAL TRADE ON THE RISE With the support of Turkey’s strong export performance, and the recovery in global trade, Turkey is content in achieving our 2023 targets in all areas.

As the Syrian civil war approaches its seventh year, Turkey continues to host growing numbers of refugees.

INVEST IN GREECE

Turkey always aims at enhancing bilateral relations in every possible field and attributes importance to the implementation of tangible projects to the benefit of two countries.

18 | Innovations Champions League

AntarcticA

InovaTİM members continue to perform their studies in every region and almost every province of Turkey.

23 |Immersive Technologies

in Education

Nara is the startup of educational technologies that develop new technologies and content for more effective use of virtual and augmented reality technologies.

46 | It was like a bull in a china shop

Marking a new beginning in the bilateral relations between Austria and Turkey...

57 BRANDS 57| PIONEER OF THE OFFICE FURNITURE SECTOR

Over 1,000 companies are expected to apply to InovaLIG 2018, Innovations Champions League that TİM will organize the fifth of the program this year.

20 | InovaTİM’s New Target is

46 INDEPTH

Bürotime, the leading company of the sector with its experienced, specialized, qualified staff, modern service concept and vision.

26 |Turkish Airlines Invites

You to Widen Your World with “Five Senses”

Turkish Airlines, the airline flying to more countries than any other with its motto “Widen Your World”, unveils its new global campaign, “Five Senses”, highlighted with a new commercial featuring Dr. Oz, during the Super Bowl.

62 AGENDA

FAIRS, EXHIBITIONS, SUMMITS, MEETINGS IN THE NEXT MONTH

63 FIGURES THE BASIC INDICATORS OF TURKEY IN THE December 2018

2 Online

Online

MANAGEMENT

theturkishperspective.com

Publisher on Behalf of Turkish Exporters Assembly/ CHAIRMAN of The Turkish Exporters Assembly

MEHMET BÜYÜKEKŞİ Strategıc Partner Presıdent of Prıme Mınıstry Investment support and promotıon Agency

Arda Ermut

The Turkish Perspective Digital

The Turkish Perspective website is to be launched soon. A new medium to learn, analyze and monitor everything about Turkish economy and business, is born. The Turkish Perspective Digital will share the latest news, interviews with decision makers, provide in-depth analyzes and will be the foreigner’s guide in Turkey regarding regulations and legislations.

Manager In Charge H. BADER ARSlan PhD

PUBLICATION BOARD M. İlker aycı Hc. DR. MUSTAFA ÇIKRIKÇIOĞLU BİLAL EKŞİ SÜLEYMAN KOCASERT BÜLENT AYMEN Furkan Karayaka

PUBLICATION MANAGEMENT President Mehmet Mücahİd Demİr

mdemir@theturkishperspective.com

VICE President YAŞAR MAMATİ Project COORDINATOR Ahmet Damgacıoğlu adamgacioglu@theturkishperspective.com

Edıtorıal Editors mustafa yİğİt myigit@theturkishperspective.com

RAMAZAN GÜZYURDU rguzyurdu@theturkishperspective.com

Business Culture t Investmen ce S and cien Innovation ay D e th Video of News keting d B r a n Ma r

european COORDINATOR İnanç atılgan contrıbutıng reporters İLHAN ALPAY OGAN ALPEREN ÇEVİKASLAN SERAP KAYA design CREATIVE DIRECTOR AHMET SAİD ÇELİK acelik@theturkishperspective.com

GRAPHIC DESIGNER UMUT DURUTUNA YOUR COMPLIMENTARY COPY

TH YEAR

BRIEFING National Era In File Transfer: Filegoes

YOUR COMPLIMENTARY COPY

TH YEAR

IN DEPTH All For A Smile

BRIEFING Art, Stories, Istanbul… Contemporary Istanbul

ECONOMY BUSINESS FOREIGN TRADE ANALYSIS

#c om et

INVESTMENTS IN

etoturkey om #c

key tur eto om #c

* The sun rises from the east.

BRIEFING Export Week 2017: Breakthrough Year of Exports

YOUR COMPLIMENTARY COPY

IN DEPTH The Country of Northern Lights: Finland

ECONOMY BUSINESS FOREIGN TRADE ANALYSIS

OF RISK PSROTRY

INDU

MEETING AND EXCEEDING INTERNATIONAL QUALITY AND SAFETY STANDARDS, TODAY’S TURKISH AUTOMOTIVE INDUSTRY IS HIGHLY EFFICIENT AND COMPETITIVE THANKS TO VALUE-ADDED PRODUCTION.

TH YEAR

BRIEFING The Only Thing We Need: Innovation

RECENT CHANGES

YOUR COMPLIMENTARY COPY

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IN DEPTH Invest in France

JANUARY 2018 ISSUE 54

ECONOMY BUSINESS FOREIGN TRADE ANALYSIS

TURKISH EXPORTERS:

BRIEFING Soda Ash: The Largest Producer in Europe IN DEPTH Turkey: Global Player in Defense

BRANDS Arzum: A 50-Year Brand In Household Electrical Appliances

BRANDS Beyoğlu Gazozu: Taste From The Past

DECEMBER 2017 ISSUE 53

LEGAL FRAMEWORK OF

#co me tot u

ey rk

TH YEAR

ECONOMY BUSINESS FOREIGN TRADE ANALYSIS

TURKEY RISES THE HOPES OF THE REGION AND SHAPES A CONCEPT THE SOCIETY INTERNALIZES MORE AND MORE DAY BY DAY.

Turkey,

BRANDS Pharmactive: Begun to Export to European Countries

NOVEMBER 2017 ISSUE 52

#cometoturkey

a key NATO member, has always held an important position in global affairs. Turkey has become a more prominent player on the world stage as both an economic force and a power in the last decade.

YOUR COMPLIMENTARY COPY

BRIEFING Connecting East And West: “Startup İstanbul” IN DEPTH Brand Country in Sport Organizations: Turkey

BRANDS Innovative Brand In The Sector: Seramiksan

OCTOBER 2017 ISSUE 51

key ur ot

EX ORIENTE LUX

7YEAR TH

IN DEPTH The Rise of the Heritage

BRANDS The Largest Simulator Training Center of Europe and Middle East

SEPTEMBER 2017 ISSUE 50

BRANDS Şölen: Re-Establishing the Chocolate Candy Rules

FEBRUARY 2018 ISSUE 55

ECONOMY BUSINESS FOREIGN TRADE ANALYSIS

THE YEAR OF

RECORDS

We’re grateful for your confidence

More than a magazine, the Turkish Perspective will now be more interactive and responsive, as expected from Turkey’s main voice for international audience.

info@theturkishperspective.com

Turkey has a “breakthrough year” in 2017 and gained the confidence of all world.

TuRkEy iS REaDy fOR ThE yEaR Of RECORDS afTER ThE bREakThROugh yEaR, 2017.

JR. GRAPHIC DESIGNER ÖZCAN AYHAN PRıntıng Promat Basım Yayın San. ve Tic. A.Ş. Orhangazi Mah. 1673 Sok. No.34 Esenyurt- İstanbul / TURKEY T. +90 212 622 63 63 F. +90 212 605 07 98 info@promat.com.tr

contact T. + 90 212 216 19 48 info@medyatr.com.tr www.medyatr.com.tr Neither text nor photographs from this publication may be reproduced in full or part without acknowledging the source and securing prior permission from the publisher.

MARCH 2018 ISSUE 56

The Turkish Perspective

Editorial MEHMET BÜYÜKEKŞİ PRESIDENT (TIM)

THE FOUNDATION IS SET FOR THE YEAR OF RECORDS

2017 has been a relatively successful year in terms of economic growth and export growth, for Turkey.

he recovery in the global economy and global trade, and the

incentives by the government played a significant role in Turkey’s growth. Moreover, our export growth was higher than the average global trade growth, helping our exporters to invest in new ventures and create additional employment in the past year. We announced that 2018 will be a year of records regarding to our estimated export numbers. Our positive perspective is also supported by our “Exporter Tendencies Survey”; the results pointed that there is a peak in the expectations among our exporters that they will increase their exports this year. 77% of the exporters whom participated in the tendencies survey stated that their exports will be higher than 2017. Production and employment forecasts are also positively correlated with the increase in exports, nearly 40% of exporters expect that their employment and production will also increase in 2018. The survey results indicate that the positive momentum in our exports, investments and growth in 2017 will also continue in the coming year. In fact, the annualized export numbers in January 2018 have set an all-time high for Turkey with $ 158 billion. We assume that this positive perception will continue and we will witness double-digit increases

in exports, reaching above $ 170 billion, which is above the Turkey’s Medium Term Program target for 2018. Undoubtedly, the support of the incentives, and the steps taken by the government to solve the specific problems of exporters, played an important role in this success. In February 2018, we hosted 6 of our ministers in TİM’s “Exporters Consultation Meeting” with our board members and Sectors’ Council representatives. With the initiative of the Minister of Economy; Ministers of Finance; Food, Agriculture and Livestock; Customs and Trade; Development; and Transport, Maritime Affairs and Communications spared

their time to listen the obstacles faced by our exporters. Moreover, our sectors had the opportunity to relay their demands and problems while receiving answers directly from the ministers. The importance of these “Consultation Meetings” can be revealed by reminiscing about the previous meetings. For instance, we presented 210 questions directly to our Prime Minister and the Cabinet with our resolution propositions, and within a considerably short time period like 2 years, 101 of these problems have been solved, some of which were waiting for a resolution for almost 30 years. Thus, every one of two resolutions we have suggested, were accepted by our government and applied with appropriate policies. These type of efforts and support from the government make us confident about 2018 that we will achieve new records in 2018. Plus, if we are to add to this assumption that the global positivity will continue in growth, the price increase in oil and commodities will be stable, and the EUR/USD parity will continue to be in our exporters favor, the foundation is set for the year of records.

The Turkish Perspective Content: Turkey Expects 12M Tourists P06 Strong Start in 2018 P07 Storage Operations Have Kicked Off P08 New Project to Lure More Chinese Tourists P09 TANAP to Start Gas Delivery P10 Turkcell Teams up with Samsung P11 Editor: Ramazan Güzyurdu

First

AGRICULTURE, ENERGY, ECONOMY, TOURISM, DEFENSE, AUTOMOTIVE, BUSINESS, EXPORT, TECHNOLOGY...

The new incentive package also covers and supports farmers who want to expand their land.

AGRICULTURE

support package for agriculture

In a bid to support Turkey’s livestock and agriculture, the government has launched an expansive incentive program for farmers to reduce food imports and facilitate farmers’ access to financial tools.

URKEY’S GOAL to become one of the 10-largest global economies has led to the launch of a new set of programs for industry and agriculture. Recently, the government has taken major steps to improve livestock and agriculture in Turkey. As part of this

expansive program, organic agriculture will be supported with government incentives and farmers will be provided low-interest loans. The overall purpose of the program is to nurture agriculture in the country as the population continues to increase and reduce the share of imports.

In a ceremony to announce the new agricultural support program, President Mr. Erdoğan elaborated on agricultural developments over the last 15 years and disclosed the details of the support package. “The rise and the fall of countries begin with agriculture. Therefore,

the road to a powerful Turkey passes through a strong agricultural sector,” Erdoğan said at the ceremony held at the Presidential Palace complex. Stressing the significance of the agriculture sector on the agenda of the governments over the past 15 years, he said

that the incentives provided to farmers were TL 103 billion ($27.2 billion). While the annual support for farmers was TL 1.8 billion in 2002 when the Justice and Development Party (AK Party) took power, the current annual amount is TL 13 billion, Erdoğan said.

First

economy

BUSINESS

need to ıncrease ‘readiness’

One of today’s most important tasks for Turkey is to increase its level of ‘readiness’ for the future of production, as startups might be used as transformation tools.

N tourısm

Turkey expects 12M tourists Turkey expects 12 million tourists will visit the country’s Mediterranean resort city of Antalya in 2018. “We are anticipating that we will reach the 12 million-tourist mark in Antalya in 2018,” Mediterranean Touristic Hoteliers Association (AKTOB) President Erkan Yağcı said during the group’s meeting. Former Minister of Culture and Tourism Ömer Çelik said Turkey had managed to attract 5.5 percent more tourists in 2014 compared to the previous year despite the political and geopolitical crises around the region. Separately, Russia sent more visitors to Turkey in 2017 than any other country, around 4.7 million. Germany followed with 3.5 million visitors in 2017, then Iran with 2.4 million. The total number of visitors to Turkey rose from 24.6 million in 2016 to 32 million in 2017. MARCH 2018 ISSUE 56

ew technologies have not only changed the way in which manufacturing and R&D is carried out but also corporate behavior and business models. Last month, the World Economic Forum (WEF) published a report on “readiness” in terms of the future of production. The report uses a benchmarking framework and a dataset as a way of understanding the current level of “readiness” in countries across the world. The index evaluates the “readiness” of 100 countries on a scale of 0 to 10 on the basis of these two components. The report demarcates 25 leading countries with the highest levels of “readiness” regarding the future of production and as you might guess, Turkey is not one of them. Apart from China and Malaysia, the top 25 are highincome countries.

Turkey is the 32nd country in the “structure of production” ranking. The current level of production in Turkey is not so bad but unfortunately, Turkey is not ready for the transformation of production systems. It is the 57th country with a below-average score in the “drivers of production” ranking. This shows that Turkey’s level of “readiness” for the adoption and diffusion of new technologies is problematic. Turkey needs to think more about new innovative tools to accelerate transformation. The world has changed with the arrival of new technologies. Looking at the Fortune 500 list, we see that 52 percent of the companies in the list have disappeared in the last 15 years. The ones that could not adapt either disappeared or changed shape.

busıness

Build Ring Road in Kazakhstan

Turkish and South Korean companies signed a concession agreement to build the Big Almaty Ring Road (BAKAD) project in Kazakhstan.

he Turkish firms, Makyol Construction and Alsim Alarko, and South Korean companies -- Korean SK and Korea Expressway Corporation -- inked the agreement to bring the BAKAD project into action, said Olzhas Raev, the investment advisor at Kazakhstan’s embassy in Seoul.

Olzhas Raev said the construction will begin this year. Kazakh Investment and Development Ministry previously said that the project, which will cost 150 billion Kazakhstani tenge (equal to $467.9 million), would be launched by Turkish and Korean investors.

cosmetic surgery hospital in Croatia Alvimedica, founded by the late İshak Alaton in 2007, is getting ready to open a hospital specializing in cosmetic surgery in Split, Croatia. The hospital, established with an investment of $22 million and set to open by the second half of the year, will work with a different business model involving multiple companies specializing in the field. Sharing their father’s vision, Vedat and Leyla Alaton are opening up Alvimedica, which sells health equipment to more than 70 countries, to the world. Leyla Alaton noted that they will open a cosmetic surgery hospital in Split, Croatia, stating that they are working for the service side as well as production in the health sector. Alvimedica is a company that has produced value-added healthcare devices in Çatalca since 2007 and worked on new discoveries in this area with its research and development center. Vedat and Leyla Alaton, are currently working on a series of new projects to globalize Alvimedica, which exports to more than 70 countries.

The Turkish Perspective

economy

automotıve

bilateral economic cooperation Turkey and China discussed ways to enhance bilateral economic cooperation. Turkey’s Customs and Trade Minister Bülent Tüfenkci said the rapid economic development of Turkey and China has a “significant” impact on the bilateral economic and trade relations between the two countries. For his part, the head of China’s General Administration of Customs Yu Guangzhou said the bilateral trade increased by 12 percent in 2017 compared to 2016.

energy

Zorlu Energy to set up Asia company Turkey’s Zorlu Energy will set up a company in Dubai to make investments in Asia, the company said. Zorlu said the investments would be mainly focused on renewable energy. The company, which will be named “Zorlu Enerji Asia Limited,” will be set up with an initial capital of $50,000.

defense

Ford Otosan to Produce First Local Transmission Ford Otosan, one of automotive giants in Turkey, is preparing to produce Turkey’s first domestic transmission in the heavy commercial vehicle segment.

he company, which is set

to invest 50 million euros, will increase locality ratio in transmission and truck production to 90 percent in parts and to 75 percent in turnover. General Manager Haydar Yenigün said that both manual and automatic versions of the domestic transmission will be used as of 2020, adding that he estimates the automotive market will produce some 950,000 to 1 million cars in 2018. “We have developed our domestic transmission after the rear axle and 13-liter E6 Ecotorq

engine. This first ‘domestic’ heavy commercial transmission, which started on plain white paper, is suitable to work up to 2,600 newton meters (Nm) and its patent right belongs to us. With this transmission, we will increase the locality ratio in transmission and truck production to 90 percent from 89 percent in parts and to 75 percent from 67 percent in turnover,” Yenigün said. Explaining that they spent 50 million euros on transmissions in 2017 alone, Yenigün stated that they will have a significant cost advantage with this investment.

fully compatible production Both the development and the production of transmission, which is fully compatible with the Ecotorq engine family developed by Ford Otosan, will be completed by 2019.

€50

90%

the company set to ınvest

targeted locality ratio in transmission and truck production

MILLION

MILLION the number of cars wıll be produced ın 2018

strong start in 2018 In 2018, the defense industry has started offering new products for security forces. The defense and aerospace sector has also experienced an increase in export performance. Main and subcontractors operating in the defense industry continue to add new products to their activities with regard to contracts signed with procurement authorities. Thus, Turkey has moved its capabilities in the unmanned aerial vehicle (UAV) platform to a new level. The first UAV system capable of autonomous flight and navigation in night and day conditions beyond the sight line with satellite control has been made available to the Turkish Air Force. The ANKA-S system, consisting of two aircraft and related equipment, took its place in the inventory as one of the most competent systems in its class as safety and operational capability with national flight control computer, national air control computer and national friend/ hostile recognition systems. ANKA-S will contribute to security forces for intelligence, reconnaissance and surveillance purposes.

First

energy

operations have kicked oFF

Storage operations have kicked off in the first caverns (artificial caves) opened at the Lake Tuz Underground Natural Gas Storage Facility.

O economy

$40M to Turkish snacks firm The EBRD is providing €32 million (some $39.7 million) to a Turkish snack firm Peyman. According to a statement from the European Bank for Reconstruction and Development, the finance agreement with dried fruits, nuts, seeds and popcorn producer Peyman, owned by international private equity fund Bridgepoint, will enable the company to expand its business. The new 59,000 meter square plant will become operational in the first half of this year and double the company’s production capacity to 45,000 tonnes, the European Bank said. “The European Bank loan will also finance Peyman’s day-to-day operations such as buying fruits, nuts and seeds from local farmers, storing, processing, drying and packaging the produce,” it said. MARCH 2018 ISSUE 56

nce the facility starts to operate at full capacity it will provide 50 percent of the natural gas consumption of households in Turkey. The facility that was established in Aksaray’s Sultanhanı district, located 40 kilometers south of the lake, aims to store 5.4 billion cubic meters of natural gas. It is expected to reach full capacity with the completion of 60 caverns. Opened last year with a ceremony attended by President Recep Tayyip Erdoğan, Prime Minister Binali Yıldırım, and Energy and Natural Resources Minister Berat Albayrak, the facility will store a total of 1.2 billion cubic meters of natural gas in the 12 caverns planned for the first stage of the project. M. Talha Pamukçu, the deputy general manager of Turkey’s Petroleum Pipeline Corporation

company BOTAŞ, said Lake Tuz cavities were melted down using a special method to create empty volume and that the volume was turned into a storage area for natural gas. Pamukçu stated that the project was launched in 2011 and commissioned in February last year with the compression of the first gas. Recalling that in the first stage of the project, they commissioned six out of 12 total caverns as of 2018, he said with these caverns they will reach a volume of 550 million cubic meters. “Negotiations on loan contracts in terms of international financing provision and the tender process are in progress with regard to the second stage,” he added. Meanwhile, the procedures and principles regarding the use of the facility have recently been published by the Energy Market Regulatory Authority (EMRA).

defense

Turkish Defense Giant Receives $37M Order Aselsan gets additional order worth $37M to provide reconnaissance systems to Turkish government, the company said.

eading Turkish defense contractor Aselsan has received an order worth $37 million to supply reconnaissance systems to the Turkish government, the company announced. The deal comes under an agreement amendment that is bound up with the prime contract.

As part of the amendment, the delivery of the reconnaissance systems is set for 2019 to 2020, it added. Founded in 1975 in Ankara, Aselsan produces military radio and defense electronic systems for the Turkish Armed Forces. It is Turkey’s top defense systems producer.

Turkey leads Europe in 2017 The solar energy production capacity growth in Turkey in 2017 was nearly onefourth of the total growth in Europe, overtaking Germany, European solar energy body SolarPower Europe said in a report. According to sectorial publication pv magazine, the total photovoltaic capacity in Europe increased by 8.61 gigawatts (GW) in 2017, equal to a 28 percent rise in growth in 2016. Turkey led the way in Europe with an increase of 1.79 GW in solar capacity, overtaking Germany’s increase of 1.75 GW, making the country one of the most promising markets in terms of solar business. The growth in Turkey’s solar capacity meant a 213 percent rise in growth compared to 2016. Some 800 MW of Turkey’s solar projects is expected to provide power to national grid within a few months. Excluding Turkey and others, the solar capacity growth of the EU-28 stood at 6.03 GW, meaning the increase in growth only stood at 6 percent compared to 5.69 GW capacity growth in 2016. France and the Netherlands both posted strong growth at double digits, installing 887 MW and 853 MW respectively.

The Turkish Perspective

dıplomacy

look to cement bilateral relations Prime Minister Binali Yıldrım showed Turkey’s willingness to boost bilateral relations with Belarus.

“Neither Belarus nor Turkey has a hidden agenda. We only care about our countries’ development and welfare of our people,” Yıldrım said at a joint news conference with Belarus President Alexander Lukashenko. Yıldrım said he had a “fruitful” meeting with his Belarusian counterpart Andrei Kobyakov. The two premiers discussed a roadmap to enhance bilateral relations that was agreed in 2016 during President Recep Tayyip Erdoğan’s visit to Belarus. Lukashenko, for his part, said TurkeyBelarus relations gained a momentum in trade and economic areas and this momentum will continue in the future.

tourısm

busıness

New Project to Lure More Chinese Tourists After China declared 2018 as “Turkey Tourism Year,” Turkey’s Cappadocia has initiated the “Chinadocia Destination Project” as a welcoming gesture.

’The Year Against Child Labor’ The Prime Ministry has issued a public mandate, declaring 2018 “The Year Against Child Labor”.

ointly organızed

by Nevşehir Governor’s Office and Ahiler Development Agency, the project incorporates different activities to ensure a great experience for the Chinese tourists. As part of the project, posters and banners in Chinese were hung on the baskets of all the hot air balloons in Göreme municipality. A number of Chinese tourists took photographs with the banners after hot air balloon tours were canceled yesterday due to strong wind. Speaking to the media at a balloon takeoff site, Nevşehir Governor İlhami Aktaş said they are carrying out the project in order to attract Chinese tourists to Cappadocia throughout the year. “China is one of the biggest tourism markets in the world. We have launched the Chinadocia Destination Project’ in order to attract more Chinese tourists to Cappadocia,” Governor Aktaş said.

“Activities will be organized throughout the year both at home and abroad. We have started the project today and will strive to get a bigger share of Turkey’s tourism revenue.” Ahiler Development Agency Secretary General Bekir Varol said after the declaration of 2018 as “Turkey Tourism Year” in China, “China Year” has also been declared in Cappadocia as a welcome gesture to Chinese tourists. He added that as part of the project, they will host various activities and campaigns to promote the region all through the year. Varol said they were planning to organize a photo exhibition in China this year and the number of Chinese tourists coming to Turkey was expected to exceed last year’s figures. Cappadocia, one of Turkey’s most important tourism centers with its fairy chimneys, valleys covered with natural rock formations and historic monasteries carved in rocks, is expecting a rise in the number of Chinese tourists this year.

The Prime Ministry noted that child labor has become a serious problem at the global and national levels, adding that it is necessary for global institutions to take joint action with countries to address the lack of policies in this regard. The Prime Ministry said that a “National Program to Fight Child Labor” has been prepared under the coordination of the Ministry of Labor and Social Security, under the scope of Turkey’s 2023 goals. The program will aim to develop fundamental strategies and activities to prevent child labor, as well as set timelines for activities to be carried out by cooperating institutions and organizations.

First

ENERGY

Tanap to start gas delivery

Minister of Energy Berat Albayrak stressed Turkey’s importance in the transfer of hydrocarbons from the Caspian and Mediterranean Seas to Europe via TANAP, ensuring the country’s role in the continent’s energy supply security.

The pipeline will start operating before July, Minister of Energy Albayrak said.

nergy and natural Resources Minister Berat Albayrak met with the representatives of the Southern Gas Corridor (SGC) participant countries in Baku yesterday. Delivering an opening speech at the meeting, Minister Albayrak announced that the construction of the important stages of the Trans-Anatolian Natural Gas Pipeline (TANAP), which is the longest route in the SGC, has been completed and the tests have already begun. The pipeline will start operating before July, Albayrak said, and explained the strategic location of Turkey for the transfer of natural resources in the Caspian and Mediterranean to the huge target markets like Europe. During his speech at the Fourth Ministerial Meeting of the SGC Advisory Board in Azerbaijan’s capital Baku, Energy Minister Albayrak said, “Just as Turkey is of great importance for the transportation of the natural resources in the Caspian to the world markets through TANAP and TAP, it is also the most reasonable and rational alternative in

MARCH 2018 ISSUE 56

terms of transporting the natural resources in the Eastern Mediterranean to the European and the world markets.” He urged all international parties to use these opportunities well and to apply the win-win method instead of the tensions

More Than

bıllıon

ınvestment for tanap

1850 kilometers

TANAP is an important and vital project in terms of Turkey’s energy supply security and the National Energy and Mining Strategy.

tanap’s total length

2.6 trillion

cubic meters Turkey’sproven natural gas reserves

that will further increase conflict and uncertainty in the region. Noting that the important phases of the SGC, consisting of the South Caucasus Pipeline, TANAP and the Trans-Adriatic Pipeline (TAP), have been completed, Albayrak said with an investment of more than $45 billion, the project has created a huge value chain from production to the final consumer. Albayrak said TANAP’s first test work started last month and that the line will be opened before July. Stressing that TANAP is an important and vital project in terms of Turkey’s energy supply security and the National Energy and Mining Strategy, Albayrak said they have taken important steps toward the supply security in the last two years. Minister of Energy Albayrak pointed out that there have been significant developments in the Eastern Mediterranean in the recent period. Underlining that the Republic of Turkey is determined to use all rights stemming from international law until the end especially in the Eastern Mediterranean, Albayrak said they are committed to demonstrating a more effective seismic and drilling activity in the maritime jurisdictions in the coming period.

The Turkish Perspective

export

tomato juice exports to Japan ın 2017 Japan imported 7 liters of every 10 liters of tomato juice exported by Turkey last year. Turkey, one of the world’s biggest tomato producers, has secured a significant foreign currency inflow from the exports of various tomato products and exports tomato juice to 55 countries. Last saw an increase in exports of fresh tomatoes while tomato juice exports hit 3,238 tons, up 72 percent from 2016. The foreign currency inflow from the tomato and tomato-based products soared by 43 percent to reach $1.523 million. Japan’s growing demand played an important role in the increase of tomato juice exports. Shipments to the country rose by 156 percent last year to 2,271 tons, while in terms of value; it increased by 129 percent to an estimated $947,000.

energy

Turkish Engineer Creates Fuel Cell A Turkish engineer has developed an environmentally-friendly fuel cell that can power a vehicle for 450 kilometers after just five minutes of fueling.

he new cell, developed from nanomaterials, is the creation

of Ayşe Bayrakçeken Yurtcan, a faculty member at Atatürk University in eastern Turkey’s Erzurum province. “Lithium batteries have a charge time of 30 minutes to 12 hours, with a charge lasting about 240 kilometers (150 miles). The fuel cell we have produced can travel about 480 kilometers (280 miles) on a five-minute fill-up,” Yurtcan told Anadolu Agency in a special feature for the U.N.’s International Day of Women and Girls in Science celebrated annually on Feb. 11. The fuel cell produces energy from the chemical reaction of hydrogen and oxygen, which is obtained naturally through air flow to the cell. The fuel cell can continue producing energy as long as both elements are present. “When we feed hydrogen to the fuel cell, it takes about five minutes to fill up. As long as the internal combustion engine’s tank is full, the battery stays charged,” Yurtcan added. Yurtcan, who has been a faculty member at Atatürk University for 16 years, said the research project was the product of an effort by Turkey’s Ministry of Development to create a fuel-based energy cell. “Nano is the health, energy and defense industry we need to pay attention to,” Yurtcan said, adding that fossil fuels still constitute 75 percent of global energy use. “(With this fuel cell) we will have obtained electricity with a system that is environmentally very clean, using only hydrogen cylinders and emitting only water vapor.” In 2017, Yurtcan received the Outstanding Young Scientist Award (TÜBA GEBIP) from Turkish President Recep Tayyip Erdoğan for her work on fuel cells.

technology

Turkcell teams up with Samsung Turkcell and South Korea’s leading appliance manufacturer Samsung signed a letter of goodwill to collaborate on 5G technology in Turkey. “Samsung and Turkcell will collaborate to assess and test the 5G network technology in 2018 in Turkey,” it said in a statement. Turkcell said the partnership would accelerate commercialization of 5G technology and support Turkey’s digital transformation. “We expand our joint works’ extent of future generation technologies and commercialization of 5G in Turkey with the letter of goodwill,” Turkcell Chief Executive Officer Kaan Terzioğlu said. Companies will also collaborate on the Internet of Things (IoT), applications of smart devices, home security, energy consumption and automatization, Turkcell said. “This partnership between Turkcell and Samsung is an important step that will support Turkey’s innovation targets,” DaeHyun Kim, head of Samsung Electronics Turkey, added.

TURKEY EXPORTS CERAMIC TO 165 COUNTRIES

TURKEY EXPORTS WOMENâ&#x20AC;&#x2122;S SUIT TO 56 COUNTRIES

The Turkish Perspective

Panorama

by H. Bader ARSLAN, PhD Secretary General Turkish Exporters’ Assembly

GLOBAL TRADE ON THE RISE With the support of Turkey’s strong export performance, and the recovery in global trade, Turkey is content in achieving its 2023 targets in all areas.

s we leave February behind, the picture of global trade in 2017 is starting to become clearer. One of the most important studies’ that provides the best insight about global trade is the monthly newsletter published by the World Trade Organization (WTO). Covering the foreign trade data of the 70 countries that conducts about 90% of the global trade, the newsletter sheds light on the state of global trade in 2017 ahead of the definitive results, which will be announced in April. The long fall of global trade, which started in August 2014, finally ended in November 2016. Since then, global trade once again entered an upward trend, rising for 14 consecutive

months by the end of 2017. According to the WTO newsletter, the rate of increase was 10% in 2017. Based on this data, we can expect to see a global trade volume of $ 17.7 trillion; in other words, global trade will surge by $ 1.8 trillion compared to 2016. The greatest contribution to this rise was from the European Union with $ 520.5 billion hike in exports. A large portion of the countries’ displayed a positive performance in 2017, 63 of those in the list managed to uplift their exports, while only 4 faced decline. Turkey’s 2017 performance was outstanding as well; Turkey’s share in global trade reached 0.90% in 2017, and its share in the world’s greatest markets is also on the rise. Share

Panorama

imports of developing economies in the United States’ imports grow faster than developed climbed to 0.36% from 2016’s economies. 0.29%. Additionally, Turkey Another positive signal of a managed to grab a share of 1.26% rewarding year is the World Trade in EU’s imports and 1.3% in Outlook Indicator (WTOI) of the Germany’s imports. World Trade Organization. As Furthermore, Turkey has placed stated in the WTOI, which is a 28th in total exports among these composite index of trade related 70 countries. The country also indices prepared to serve as a placed 27th in terms of increase in short term indicator, strong global export value with a rise of $ 14.5 Level Direction trade growth of 2017 is going to billion and 35th by the proportional Drivers of trade of Index of Change continue in the first quarter of change in exports with 10.2%. 2018. Following such a prosperous year Merchandise trade volume (Q3) 102,7 These indicators suggest that, of recovery in terms of global trade, Export orders 102,8 building up on this rising trend, now it is time to set the sights on Turkey’s exports carry a great 2018 and beyond. Considering the International air freight (IATA) 103,2 potential to reach higher levels. In data at hand, anyone can safely order to officialize the forecasts, in say that the positive trend of 2017 Container port throughput 104,3 January, at the Annual Evaluation is very likely to continue in 2018. Meeting of Turkish Exporters’ However, trade growth will not Automobile production and sales 101,0 Assembly (TIM), we announced be as high as 2017, since global our estimates and targets for the trade will be measured against a Electronic components 94,1 New Year and declared 2018 as much stronger base year in 2018. Agricultural raw materials 100,8 the “Year of Records in Exports”. According to the World Trade Current export target for 2018 Organization; global merchandise Source: WTO, Values above 100 are above trend is $ 169 billion according to trade growth was expected to be the Medium Term Programme 3.6% in terms of quantity, and in the light of the latest data, near 10% in terms of value. As for (MTP). However, our estimates show that Turkey can surpass 2018, global merchandise trade growth in terms of quantity is this target with more than 10% rise in exports and reach expected to be in range of 1.4% and 4.4% with a median point above $ 170 billion in 2018, which will be the new all-time high in Turkey’s exports. of 3.2%. As for sector based targets and estimates, at least 10 of There is further positivity for developing economies such as Turkey within these estimates; WTO expects the merchandise 26 sectors are expected to break their respective records. In addition, records in most of the months throughout the year export volume of developed economies to increase by 2.8% will probably be seen. while the estimate for developing economies is 4.1%. In To summarize, with the support of Turkey’s strong export addition to exports, imports are expected to rise by 2.9% and performance, and the recovery in global trade, Turkey is 3.7% respectively for developed and developing economies. content in achieving our 2023 targets in all areas. The This shows that, developing economies will outperform country will continue to follow its export based growth model developed ones in terms of both export and import volume in order to reach new heights. growth. For the first time in the last 5 years, we will see the

Turkey will continue to follow its export based growth model in order to reach new heights.

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The Turkish Perspective Content: Innovations Champions League P18 InovaTİM’s New Target is Antarctica P20 Gaming Istanbul: Bring Leaders of Sectors Together P21 Immersive Technologies in Education P23 Turkish Airlines Invites You to Widen Your World with“Five Senses” P26 President Erdoğan Meets Italian Investors P28 Editor: Mustafa Yiğit

Briefing

AID, EXPORTERS DIARY, TECHNOLOGY, FAIR, EXPORT, TİM-TEB, AVIATION, INVESTMENT...

Turkey continued to make strides in providing aid and support to refugees and asylum-seekers throughout 2017.

aıd

Major Actor of Humanitarian Aid

As the Syrian civil war approaches its seventh year, Turkey continues to host growing numbers of refugees. By mustafa yiğit

n 2016, Turkey was host to 2.7 million registered Syrian refugees. In 2017, that number grew to 3.4 million Syrian refugees. In addition, Turkey remains host to more than 350,000 Iraqi, Afghan, and Iranian asylum-seekers. Turkey continued to make strides in providing aid and support to refugees and asylum-seekers throughout 2017, including by proposing an opportunity for Syrian

refugees and Iraqi asylum seekers to obtain Turkish citizenship if they qualify after a series of background and security checks. Additionally, with over half a million Syrian refugee children receiving an education in Turkey and a remaining 40% still out of school, a cooperative program between UNICEF and the Turkish Red Crescent was established to support education for refugee chil-

dren. This program enables vulnerable families to send their children to school by providing them with monthly cash transfers to pay for educational expenses. Despite this progress, concerns regarding international non-governmental organization (INGO) aid operations in Turkey arose last year, most pointedly on March 7, when the Turkish government revoked U.S.-based Mercy

Corps’ registration, causing the organization to cease all operations in Turkey. Tension in the humanitarian aid sector continued when Turkey detained 15 members of the staff of the International Medical Corps and deported four of its foreign workers. While many international aid organizations operat ing in Turkey fear potential expulsion and feel uncertainty over their own registrations,

Briefing

Throughout 2017, Turkey underlined the need for greater global burden-sharing to meet the needs of refugee communities.

Turkish government officials have stated their own concerns regarding INGO operations in Turkey. Specifically, Turkey is concerned about some groups’ cross-border operations in northern Syria, which the government perceives to pose potential security threats due to the presence of terrorist groups in this region. Despite the emerging concerns over humanitarian assistance in Turkey, multiple UN organizations such as UNHCR and UNICEF continue to operate in the country and coordinate with Turkey’s own humanitarian response organizations, such as the Disaster and Emergency Management Presidency (AFAD) and the Turkish Red Crescent. Turkey’s response and international cooperation in this regard have not gone unnoticed by the U.S. In late May 2017, Ambassador Nikki Haley, the U.S. Permanent Representative to the UN, visited Turkey to observe the humanitarian response to the Syrian refugee crisis. Her stay included visiting the Bab al-Hawa border MARCH 2018 ISSUE 56

646

Million

TURKISH RED CRESCENT AID TO SYRIA as of september 2017

313

Thousand Tons

Of food ıtems gıven to syrıa

crossing between Turkey and Syria and attending the opening of a new school for Syrian refugees in Adana that was funded by the U.S. Department of State and built by UNICEF. Amb. Haley commended Turkey for welcoming refugees and “doing as much as they can” to support and train these communities. Throughout 2017, Turkey underlined the need for greater global burden-sharing to meet the needs of refugee communities. In February

2017, United Nations Secretary-General Antonio Guterres called for more effective burden-sharing alongside Turkish Prime Minister Binali Yıldırım at a press conference in Istanbul. Secretary-General Guterres emphasized the need to support countries of first asylum and host communities as well as to support projects that help both refugee populations and their host communities. Amb. Haley echoed the same sentiment during her trip to assess the refugee response in Turkey and Jordan, stating that, as the top-ranking provider of humanitarian aid, the U.S.’ “goal should be to support those host countries that are feeling the pressure and the strain. Turkey ranks second in the world behind the U.S. in terms of the amount of money its spends on humanitarian assistance,

The Turkish Perspective

though the majority of the $6 billion that Turkey spent on humanitarian assistance in 2016 (the latest year for which numbers are available) has been used to provide aid for refugees in Turkey. As host to the largest refugee community in the world, including the largest number of Syrian refugees, Turkey has continually appealed to the international community for help. Due to the current state of the conflict in Syria, refugees are still unlikely to return home in 2018, making global burdensharing even more important as host countries continue to struggle to provide the necessary aid to refugee populations.

Turkey’s International Humanitarian Aid Beyond its support to Syrian refugees, Turkey also continues to provide hundreds of thousands of dollars’ worth of humanitarian aid to communities affected by crises in countries such as Somalia and Yemen. In Somalia alone, Turkey has provided nearly $1 billion worth of humanitarian aid since 2011, with continuing efforts such as a delivery of 60 tons of aid for children in Somalia in August 2017. In July 2017, Turkey pledged $1 million of humanitarian aid to Yemen, after having sent over 5,000 tons of aid to Yemen earlier in the year. Additionally, last year Turkey contributed significantly to the international humanitarian response to the Rohingya crisis. In August 2017, a crisis in Myanmar broke out when an attack by Rohingya militants on police posts led to a brutal government response against the broader Rohingya Muslim minority.

The clashes brought more violence to the already highly persecuted minority group, with both Myanmar troops and local Buddhists carrying out a massacre against the Rohingya, forcing thousands to flee to neighboring countries such as Bangladesh. Following the outbreak of the crisis,

Turkey also continues to provide hundreds of thousands of dollars’ worth of humanitarian aid to communities.

Last year, Turkey contributed significantly to the international humanitarian response to the Rohingya crisis.

Billion Money Turkey spent on humanitarian aid in 2016

3.7 Million

Total number of refugees and asylum seekers in Turkey as of November 2017.

Turkey responded by pledging to send 1,000 tons of aid – including emergency kits, food, and clothing – to the Rohingya community in both Myanmar and in Bangladesh. Among Turkey’s humanitarian agencies, the Turkish Cooperation and Coordination Agency (TIKA) has been able to deliver food daily to about 25,000 Rohingya refugees in Bangladesh.

Briefing

Innovations Champions League

Over 1,000 companies are expected to apply to InovaLIG 2018, Innovations Champions League that TİM will organize the fifth of the program this year.

s the representa-

tives of seventy thousand exporters, Turkey Exporters Assembly (TİM), which believes that the most important way of increasing the exports of high value added products passes through innovation, is organizing the fifth of the Turkey’s first innovation development program InovaLIG this year. In 2014, InovaLIG was carried out for the first time, 460 firms have applied, this year exceed 1000 companies is expected to participate. TİM Chairman Mehmet Büyükekşi stated that the innovation has become indispensable for the companies that will compete in the global markets and said that the InovaLIG program they started in 2014 is welcomed

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with more interest every year and that very good results have been achieved. Büyükekşi said that, “440 companies applied in 2014, this number rose to 488 in 2015, to 761 in 2016 and to 971 in 2017. We expect this year’s attendance will exceed 1000. Companies will compete in 5 main categories as Innovation Strategy, Innovation Organization and Culture, Innovation Cycle, Innovation Sources, Innovation Results based

on IMP3rove methodology as in the past years. The IMP 3rove method is being used on a global scale as a methodology based on measuring work done for the gain of innovation management and systematic innovation competencies. With this methodology, it is targeted that innovation for the participating companies, is not just a result; must be a structural process that brings sustainable and repeatable awards”

How do the process work? Companies wishing to take part in InovaLIG will be able to pre-register for the program at www.inovalig. com without paying any fees. After the pre-registration period, applicants will fill out the questionnaire to be sent to them. When the participating companies fill out the questionnaire correctly, a 100-page innovation report is being prepared for each. This report, worth € 350, will be sent free of charge to all participants. This report is a comparative report comparing firms’ own competencies to similar ones in local and international markets. With this comparative report, companies are able to evaluate themselves in 5 categories. A total of 25 companies, including the top five in five different categories, will qualify for semifinals based on IMP3rove Academy reports. Semi-finalists will make 5-minute presentations about the innovation management approach to the Grand Jury. As a result of these presentations, the first 3 companies in each category will be determined. Awards will be given in Turkey Innovation and Entrepreneurship Week TİM Chairman Büyükekşi stated that TİM is giving great importance to the development of innovation culture and that it aims to spread this culture up to the SMEs with the works TİM have done. Companies wishing to take part in InovaLIG will be able to pre-register for the program at www.inovalig.com without paying any fees. The deadline for pre-registration is March 10, 2018.

The Turkish Perspective

PARTNERSHIP CALL FROM BRAZIL TO TURKISH EXPORTERS

Brazil as a market was on the agenda of the “Export Compass” event hosted by the Turkish Exporters’ Assembly.

uring his opening speech; Consulate

General of Brazil, França underlined that there has to be a free trade agreement between Turkey and Brazil and these two countries have to move their commercial relations further through partnership in third countries. Former Commercial Attaché of Turkey to Sao Paolo, Ramazan Kısa, mentioned that Turkey can export especially construction materials, parts of automobiles, textile products, flour and dried fruits to Brazil and added: “Our exporters should be patient when doing business in Brazil. Because Brazilian people have an easygoing character, things can be done a little bit slower

than you expect. However if you approach in a friendly manner, you can be friends besides the business. They have a similar culture and character to us.” The “Export Compass” event held by Turkish Exporters’ Assembly (TİM) focuses on promoting new target markets to the exporters with the assistance of COFACE. “Route: Brazil” was the second event of 2018, hosting more than 180 exporters and 7 guest speakers. Nevsal Zülküf Alhas, Director of the R&D department of TİM, briefly gave information about the economic structure of Brazil and the commercial relations with Turkey. Later on, the Consulate General of Brazil to Istanbul, Paulo Roberto

França expressed that Brazil is rapidly transforming its economy to a free market economy after Michel Temer, new president, elected.

Turkey and Brazil Should Act as Partners through 3rd Countries

“Brazil experienced 3.5% shrinkage in GDP during 2015 and 2016. However

The most favorable goods to export from Turkey to Brazil are; mainly construction materials, automotive parts, cosmetics, machineries, dried fruits, flour and confectioneries.

with the new government and economic policies, the inflation lowered from 12% to 2.5% just in two years,” said General Consulate França and added, “Brazil is an important center for industrial and agricultural sectors in South America. Therefore we have to improve our level of cooperation in order to experience better progress.” He also mentioned about the commercial relations of Turkey and underlined, “Turkey and Brazil should sign a free trade agreement and act as strategic partners through third countries. Especially construction and engineering sectors can be an example for such partnership. Turkey has a strong influence in Middle East, Caucasus and Africa markets while Brazil is strong in South America and Africa.” “Be Patient in Business, Watch Football Together” The former commercial attaché of Turkey to Sao Paolo, Ramazan Kısa gave detailed information about business environment in Brazil and taxation policies of Brazil. He said that the most favorable goods to export from Turkey to Brazil are; mainly construction materials, automotive parts, cosmetics, machineries, dried fruits, flour and confectioneries. Kısa also relayed information about the high taxes in Brazil and tips to minimize their costs with the ongoing taxation policy. On the other hand he warned our exporters not to expect immediate results from their first participation to a fair but they can build strong ties with seeking local friendships rather than business-tobusiness relationships. He added; “Brazilian people are similar to us regarding to our family and cultural life.”

Briefing

technology

InovaTİM’s New Target is AntarcticA

InovaTİM members continue to perform their studies in every region and almost every province of Turkey.

underwater vehicles and perform R&D activities in various fields, is very strong. InovaTİM members started to study with a mentorship that has achieved many international and national successes, proved that the team will continue same successful studies by adding a new addition to the national and international achievements last year. What are the Achievements? -2017 MATE ROV Competition America, representation in the finals. -2017 MATE ROV Competition Pillar of Turkey, first rank. Mentors of InovaTİM joined the finals of the Space-X Hyperloop Pod Competition in previous years with the same team and won the world championship in the CANSAT Competition which is a model satellite competition organized by NASA.

Idealist Bees novaTİM is a large family

of 2256 people working in the fields of innovation, information economy and entrepreneurship in 150 universities. Students in InovaTİM; go abroad together with businessmen, receive training on entrepreneurship and innovation, attend Turkey Innovation Week events, meet-ups and companies abroad visits, getting scholarships and developing projects. InovaTİM members continue to perform their studies in every region and almost every province of Turkey. Project teams, one of the most important pillars of our 2018 strategy, both produce high technology and make contributions to

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science with the products and projects they developed. We are trying to spread this culture to every region of Turkey. As a summary, InovaTİm members work harder to success and this team looks like bees working for beehives.

ITU - ROV Team This team, organized by InovaTİM members in ITU and organized to develop

InovaTİM members started to study with a mentorship that has achieved many international and national successes.

The goal of the ROV Team is not only to prepare for

international competitions. Their greatest ambitions are; to make a contribution to science with the products they have developed, and to work on the design of such high technologies by InovaTİM members in every region. In this context, to send the remotely operated underwater vehicle which they produced for scientific research campaign planned to be carried out in December in Antarctica, and to use it in research studies to be carried out under glaciers. A Note From Our 2018 Strategies; Many universities such as METU, ITU, Uludag University, Istanbul Aydin University and Dokuz Eylül University have formed the backbone of such project teams. By working together, we will spread the culture of providing added value and producing high technology to the younger generation in every region of Turkey and we will work tirelessly for a better future.

What is ROV? It means a Remotely Operated Underwater Vehicle. Underwater vehicles are used for maritime tasks, which are out of people's reach and difficult to accomplish, such as search and rescue. Many underwater tasks, such as installation, maintenance, and repair of offshore platforms and underwater pipelines, screening of underwater habitats, can be achieved with a high-resolution camera and a robot arm with an operator out of the water.

The Turkish Perspective

faır

GAMING ISTANBUL: BRING LEADERS OF SECTORS TOGETHER From the first day, the participants, who made queues at the door of the Istanbul Convention Center, attended the award-winning tournament, tried new games and had the chance to meet with their favorite internet publishers and game characters. By ramazan güzyurdu

he last day cosplay contest was completed

with the votes of the world famous jury members and distributed to the winners of a total of 10 thousand Turkish Liras. Gaming Istanbul 2018 saw a 35% growth over 2017, is now Europe’s 3rd largest gaming event GIST 2018, Europe’s fastest growing video games trade and consumer show cemented its place in the heart of the gaming industry with more than 35% growth in visitors over 2017, making GIST Europe’s 3rd largest gaming event. Located at Istanbul’s ICC International Congress Center and taking place Thursday

1st February to Saturday 4th February, GIST played host to some of the world’s most loved gaming brands, from Pearl Abyss’ Black Desert Online, to huge franchises from Xbox, PlayStation, Ubisoft, Blizzard and Nvidia. Cevher Eryürek, Director GIST at GL Events, said: “GIST is now an essential platform for the games industry across MENA, and the region’s most successful event, showcasing leading gaming franchises to a constantly growing audience. GIST has so much to offer consumers, business leaders, developers and brands looking to communicate directly whit their audience, and as we continue to see strong growth

GIST 2018, Europe’s fastest growing video games trade and consumer show cemented its place in the heart of the gaming industry.

in both exhibition and networking, we’re focused on ensuring GIST goes from strength-to-strength.” From February 1st – 4th, GIST Gaming Istanbul 2018, Turkey’s premiere B2B and B2C gaming expo, took place at Istanbul’s ICC International Congress Center, covering over 14,000 m² of expo grounds directly in Istanbul’s city Center. GIST Gaming Istanbul and GIST|DC debuted in February 2016, attracting approximately 50,000 visitors, while GIST 2017 attracted 33% more visitors than its first year. GIST 2018 continued that trajectory, firmly placing GIST as a central global event in the videogames industry. New games were introduced for four days, internet gamers who played games on social networks such as YouTube and Twitch met with fans, award winners and successful players were awarded and the young people who entered the character of their favorite character competed with the cosplay contest in Gaming Istanbul. Great support for local developers from Gaming Istanbul Gaming Istanbul, which provides free space and one-person B2B ticket for more than 30 independent developers under an annual net income of less than 50 thousand TL, has enabled domestic game companies to meet with actors and investors. Considering the sensitivities of the families to the games, at the Gaming Istanbul Fair, participants, aged 18 or younger, experienced only appropriate games for their playgrounds thanks to agespecific bracelets.

Briefing

The trade volume between both countries currently stands at 390 million dollars.

export

Ivory Coast:

Gate to the African Market

Turkish Exporters’ Assembly organized “Export Compass” event which is “Route: Ivory Coast” in order to introduce the target markets and tell advantages and risks for Turkish exporters last month. By alperen çevikaslan

is one of the important African Country when exporters would like to enter this region. Also some subsides and supports explained for Turkish exporters. Ivory Coast, also known as Côte d’Ivoire and officially as the Republic of Côte d’Ivoire, is a sovereign state located in West Africa. Ivory Coast’s political capital is Yamoussoukro, and its economic capital and largest city is the port city of Abidjan. Its bordering countries are Guinea and Liberia in the west, Burkina Faso and Mali in the north, and Ghana in the east. The Gulf of Guinea (Atlantic vory Coast

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Ocean) is located south of Ivory Coast. In recent years, there has been a significant increase in high level reciprocal visits between Turkey and the Ivory Coast. Former Ivorian Prime Minister Charles Koffi Diby visited Turkey in December 2014, followed by the visit of President Ouattara in March 2015. During the recent official visit of President Erdoğan to the Ivory Coast on 28-29 February 2016 nine documents between both countries were signed. Côte d’Ivoire is the largest economy in the West African Economic and Monetary Union (WAEMU), accounting for 40 percent of

the region’s total GDP. Ivory Coast supplies more than a third of the world’s cocoa and its exports for the global chocolate market were worth around 2.5 billion dollars. Oil and natural gas production are a growing sector of the economy. A major refinery at Abidjan processes crude oil from offshore rigs. Some petroleum is used locally and the rest is refined into oil products for export. After independence in 1960, Ivory Coast enjoyed decades of stable government and became the wealthiest country in West Africa, boasting the fourth-largest economy south of the

Sahara. Many state-owned companies, including electricity and water utilities were privatized over the last two decades. But with political divisions and coups, the economy slumped during the 1990s. It suffered further during the civil war of 2002 and the recent violence following elections in 2010. Cote d’Ivoire is the 75th largest export economy in the world and the 96th most complex economy according to the Economic Complexity Index (ECI). The top exports of Cote d’Ivoire are Cocoa Beans, Refined Petroleum, Cocoa Paste, Coconuts, Brazil Nuts, and Cashews and Gold, using the 1992 revision of the HS (Harmonized System) classification. Its top imports are Crude Petroleum, Rice,Refined Petroleum, Non-fillet Frozen Fish and Cars. In 2015 Cote d’Ivoire imported $9.4B, making it the 101st largest importer in the world. During the last five years the imports of Cote d’Ivoire have increased at an annualized rate of 3.5%, from $8.19B in 2010 to $9.4B in 2015. The most recent imports are led by Crude Petroleum which represent 14.3% of the total imports of Cote d’Ivoire, followed by Rice, which account for 5.06%. The trade volume between both countries currently stands at 390 million dollars. Turkish exports to the Ivory Coast are about 115,7 million Dollars while imports stand at around 274,3 million Dollars. Turkish export materials to the Ivory Coast include cement, iron and steel products, power cables, and various alimentary products. Turkey imports cocoa, rubber, wood, and cotton from the Ivory Coast.

The Turkish Perspective

TİM-TEB

Nara Edtech:

Immersive Technologies in Education

Nara, founded by three young entrepreneurs, is the startup of educational technologies that develop new technologies and content for more effective use of virtual and augmented reality technologies in education. BY RAMAZAN GÜZYURDU

ounded in Çanakkale Teknopark in

September 2014, has always kept education and 3D technologies in its focus since its foundation. In 2017, it was institutionalized as Nara Eğitim Teknolojileri AS. One of the founding partners Zafer Karadayı is an academic in Çanakkale Onsekiz Mart University and 20-year educational technologist. Zafer Karadayı is continuing to work on a doctorate for the use of virtual reality in education. Another founder, Ömer Yavuz, is an expert on 3D

modeling and animation. Ömer also established an animation studio, a 3D modeling-animation course classroom and an urban transformation company. After these jobs, he developed augmented reality applications for the real estate sector in New York for 2 years. The last founder, Öner Yavuz, is still a computer-engineering student. But he has been working on 3D modeling and game programming for 8 years. Öner also has an international Unity developer certificate from

Virtual, augmented and mixed reality technologies are blending together to have fun with traditional education.

Unity Technologies and international 3DS Max Certificate from Autodesk. In addition to the founders, Nara’s team has three fulltime experts in their field. Also, 4 other experts in their field are also supporting the nara team on a part-time basis. Everyone in the team has either a Unity developer certificate or Autodesk’s 3D modeling-animation program certification. When we asked how such a team is forming in a place like Çanakkale, an interesting story came out. Karadayı, who took the first step to bring the team

Briefing

Zafer Karadayı: “Nobody believed that such advanced technology could come from Anatolia.”

together and set up Nara, explained the stories as follows: “I am a grandson of a miner who had passed away on a working accident and a groom of a retired miner. The team that who established Nara and the first employees of the team were actually like a jewel under the ground. For example, Ömer were making accessories at his father’s stationery shop that also sells military goods. Even in the first years when we came to Istanbul for business, we went to Eminönü and bought accessory stuffs such as stones and other accessory parts. Öner was a student who did not hope to finish school. Our first employee Cem, which graduated from material engineering, was a waiter at a shopping mall in Çanakkale before he started working with us. In fact, they all had great potential. But in order for this potential to emerge, they had to come together and be guided for the right purpose. And Nara actually did it. Now this team is raising a technology start-up with a global vision in Anatolia. We believe that there are so many jewels MARCH 2018 ISSUE 56

Not only steping up with current technology, Nara is a start up company with a pioneer vision on every educational technology field.

in Anatolia. As long as the miners discover them and provide them the right environment. Nara’s 3-year story has had many successes. The first major successes were picked up by the 2016 Etohum startup. In 2017, this was followed by TİM / TEB Startup House and Türk Telekom Pilot. The only Turkish startup that could be among the “25 startups to be followed in Slush” in The Innovator magazine’s 2017 Slush, which is Europe’s largest startup event. It has also entered into 50 promising future startups (Bett futures 2018) selected by Bett, the world’s

most important education and training technology event. Besides Turkishtime magazine’s December 2016 issue of “Turkey will shape the future of the 100 startup” between the have managed to enter. Nara, who set out with a global vision at the beginning, has gone a long way towards this goal. It was established in a small city of Anatolia and it has experienced its very disadvantage at first. Especially because of the fact that the market, qualification staff, mentors and activities are mostly in Istanbul and Ankara, it is very difficult. But now they are explaining that they are turning this disadvantage into advantage, Karadayı: “We were very difficult in the beginning. Nobody believed that such advanced technology could come from Anatolia. They did not trust us. But both the acceleration programs we participated with were both prejudiced with the activities we were participating in and the products we developed during this period. We can even say that we are now enjoying the advantage of being in Çanakkale. Because Çanakkale is a great place to design and code. Everyone in our team is happy to be in Çanakkale. Many of our friends from outside the city also want to settle in Çanakkale and join our team.”

The Turkish Perspective

So what Nara does? The technology that Nara gives to both TIM / TEB Enterprise and Türk Telekom Pilot is “Teacher guided virtual reality education support system”. We asked why you have done such a project in, Karadayı, “We are an education company, although we follow high technology closely. Both Ömer and me graduated from education faculty. We therefore attach great importance to the fact that the work we do is educational and applicable to the field. Virtual reality is the technology we know best. But unfortunately, virtual reality is a technology that is still in its infancy state. There is a way to get more but it is developing quite fast. One of the biggest problems was the disconnection of the student from the class, students friends and most of all his teacher by wearing his glasses. Teacher guidance was indispensable. We have developed “Teacher guided virtual reality education support system” which focuses on how to solve this and guided the teacher through the tablet learning process. With this system, the students wear VR headset and the teacher can summon their students to the desired VR environment with their tablet. In addition, the teacher can see where the students gaze at the tablet. In fact, this section is almost identical to Google Expeditions. But the system that we have developed differs from here. First, the environment in which the teacher summons his students is a 3D environment. In addition, the teacher can intervene in the 3D VR center through the tablet. For example, for speed / motion problems, the teacher can teleport

Nara has set up its own academy and named it Nara academy, for both the improvement of its own team and the development of children.

students into the room of speed problems. They see a large table in front of them and on it there is two cars ready to move towards each other. First, the teacher enters the speed of the first vehicle (V1) from the tablet. In the meantime, students will immediately see the teacher’s changes in their VR environment. When teacher enters the speed of the second vehicle (V2) and distance

between vehicles then clicks to start, the simulation starts in front of the all students. As the vehicles start to move toward each other at defined speeds, the formulas and values are displayed on the students’ screens. Now our goal is to populate a content library for this system. Regarding our current state, we are looking forward to investments. If we can get an investment, we will start populating AR content into the system from the Q3 2018. Nara has set up its own academy and named it Nara academy, for both the improvement of its own team and the development of children. Firstly, last summer, Nara Academy provided education for children between the ages of 8 and 12 with 3D modeling and coding, progressively plans to educate high school students, adults and teachers.

Briefing

AVIATION

Turkish Airlines Invites You to Widen Your World with

“Five Senses”

urkish Airlines,

winner of Skytrax’s “Best Airline in Europe” award six consecutive years, has just debuted its new commercial during the NFL’s final game and the most-watched show in U.S. TV history, the Super Bowl. Award-winning Danish director Martin Aamund took the reins for the film, which will be broadcast in many countries that the national flag carrier flies to, across Europe, South Africa, the MARCH 2018 ISSUE 56

Far East, the Middle East, and the Americas including Canada, Latin America, and the United States. Shooting wrapped up within a month across diverse destinations served by Turkish Airlines in Northern Europe, Africa and the Far East. Filmed under extreme weather conditions, with temperatures up to 50° C in the Sahara Desert, and below 0° C for the Northern Lights, the commercial celebrates the magic of the human body to

excel in diverse conditions. “Widen Your World” is a call to the viewer to explore the world, and through it ourselves, with our five senses. Senses allow us to experience the world in a unique way. Touch, smell, sound, sight and taste are five magic ways of literally taking in a place and creating a moment, an experience, and a memory. Within the five senses are held some of the most precious memories,

which can transport us through time. Uniquely, these grand voyages are most often inspired through the tiniest of details, whether the scent of a flower, or the taste of a spice. The Five Senses campaign encourages viewers to experience a sense of awe at the universe inside our bodies, as well as the amazing planet that Turkish Airlines connects its passengers to. Ahmet Olmuştur, Chief Marketing Officer of Turkish Airlines, commented on the

photograph byLOREM IPSUM

The Turkish Perspective

new campaign’s debut at the Super Bowl; “As the airline that flies to more countries than any other, we strongly believe that our mission is so much more than bringing our passengers to their destination. We actively encourage them to discover the world and through it, discover themselves. Our new Five Senses campaign aims to emphasize the experience every journey brings toward discovering the unknown with our five senses. We are more than satisfied by the feedback and outcomes of our ad campaigns with world-famous figures so far. Our campaign last year ad with Morgan Freeman was a great hit. Now we are looking forward to this new cooperation with Dr. Oz. We will maintain our leadership with our ‘Widen Your World’ mission, which will inspire the whole world to seek new discoveries.” Dr. Mehmet Oz emphasizes the importance of a high quality passenger experience: “As a doctor who has dedicated his life to communicating the wonders of the human body to the world, I am thrilled to work with Turkish Airlines on their novel Five Senses project. Together we will explore the unique experiences we can have across diverse locations around the world as we invoke curiosity and a sense of wonder for our audience.” Turkish Airlines had cooperated with Dr. Oz before on its ‘Fly Good Feel Good’ project, aimed at increasing the comfort of its passengers before, during and after their flight via videos on various subjects, including pre-flight preparations, eating healthy, exercises and meditation. Offering these videos on its IFE system, the national flag carrier airline promotes an

excellent flight experience. The new campaign follows on from the launch of a highly successful commercial starring Morgan Freeman, which aired during the commercial break at the 2017 Super Bowl and went on to become the most watched Super Bowl commercial on

SEE HEAR TASTE SMELL TOUCH WIDEN YOUR WORLD

“Widen Your World” is a call to explore the world, as well as ourselves, with our five senses and to experience a sense of awe at the universe inside our bodies.

TASTE S E E H E A R S M E L L T O U C H W I D E N Y O U R W O R L D

PA R I S FRANCE

TROMSØ NORWAY

YouTube with 53 million views. In 2016, Turkish Airlines sponsored “Batman v Superman: Dawn of Justice”, and broadcasted its commercial as part of the sponsorship deal, at the Super Bowl for the first time with an estimated audience of over 800 million people worldwide. “Kobe vs. Messi: The Selfie Shootout”, another of the national flag carrier’s commercial deal with Lionel Messi and Kobe Bryant, was also selected the best commercial film of the last decade by YouTube. Turkish Airlines has been recognized as the winner of Skytrax’s ‘Best Airline in Europe’ award six consecutive years and awarded for ‘Best Business Class Airline Catering’, ‘World’s Best Business Class Lounge’, and also ‘Best Business Class Dining Lounge’ several times by Skytrax, one of the most prestigious passenger survey organizations in global aviation industry. The global carrier offers a seamless in-flight entertainment service with Planet which features content in 23 different languages including more than 800 TV shows, over 700 music albums, 7 in-flight live TV broadcasts, 11 “barrierfree” films with “descriptive subtitles” and “descriptive audio” techniques; as well as noise-cancelling headphones on all long-haul flights.

SMELL TOUCH HEAR S E E H E A R T A S T E T O U C H W I D E N Y O U R W O R L D

S A U LT FRANCE

S E E H E A R T A S T E T O U C H W I D E N Y O U R W O R L D

S E E TA S T E S M E L L TO U C H W I D E N Y O U R W O R L D

MERZOUGA MOROCCO

MONTEREY BAY USA

Briefing

INVESTMENT

President Erdoğan

MEETS ITALIAN INVESTORS, CALLS FOR MORE INVESTMENT In the first week of February, President Recep Tayyip Erdoğan addressed a delegation of Italian investors at an executive roundtable meeting hosted by ISPAT and the Pirelli Group, in collaboration with the Italian think tank Institute for International Political Studies (ISPI) in Rome.

enior representatives of major Italian companies with operations across a wide range of sectors, such as automotive, infrastructure, machinery, defense, food, and pharmaceuticals, attended the meeting to get the latest updates on Turkey’s investment environment, business opportunities in the pipeline, and economic reforms. Pirelli, Elettronica, Cementir, Ferrero, Astaldi,

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Salini, and Leonardo were a few of the companies in attendance. Reminding that Turkey and Italy have privileged investment bonds that have evolved over the years into grand projects, Erdoğan said that more than 1,400 Italian companies currently do business in Turkey and that they have injected more than USD 3.1 billion into the country since 2002. Erdoğan extended

The Turkish Perspective

his gratitude to the Italian investors for their unwavering trust in Turkey. He said, “I believe that foreign capital has no nationality, country, or belief. The intellectual property rights and reforms we have implemented over the past 15 years have transformed Turkey into a center of attraction for foreign capital. The Turkish government has developed a system of incentives based on the booming economy and in line with the expectations of investors. Attractive incentive packages can be ensured for strategically important investments even in the most developed regions. We have attached, and will always attach, the utmost significance to enhancing predictability and ensuring a transparent investment environment. We have full confidence that Turkey – currently the 13th largest economy globally – will have the potential to attract much higher FDI.” Inviting more Italian companies to invest in Turkey, Erdoğan called on investors to directly contact ISPAT for anything having to do with investment projects in Turkey, as ISPAT stands out as the embodiment of the government’s efforts to institutionalize reforms in the way of assisting investors during their entire investment process in Turkey.

Turkey and Italy have privileged investment bonds that have evolved over the years into grand projects.

TURKEY LOOKS TO SECURE ADDITIONAL FDI FROM ITALY

ollowing a visit to Rome earlier in the month, Terni and Milan were the focus of ISPAT’s second round of investor meetings in Italy on February 21 and 22 respectively. ISPAT Country Advisor Yasemen Korukçu was the featured speaker at the “International Forum: Focus on Turkey” held by Unicredit Group in collaboration with Confindustria Umbria, Umbria Export, ISPAT, and NCTM law firm in Terni on February 21. The forum provided a comprehensive overview of Turkey’s economic outlook and the business opportunities available to Italian companies willing to operate in Turkey. The second meeting on “Turkey: New Opportunities for Italian Companies” held by the Assolombarda Confindustria Milano Monza e Brianza, ISPAT, and the UniCredit Group convened on February 22 in Milan. This meeting focused on Turkey’s political-economic framework and provided insight into key sectors in the country.

Italy is a target country for Turkey and it is one of its most important trade and investment partners. Delivering a keynote address at the meeting, ISPAT President Arda Ermut said that Turkey offers abundant opportunities in a variety of sectors that need further investment, particularly from foreign investors. “Investments totaling more than USD 100 billion are required in the energy sector over the next decade to satisfy the increasing energy needs. Meanwhile, almost 30 percent of Turkey’s infrastructure investment need till 2023 is expected to be made through public-private partnership model mega projects,” said Ermut. Ermut also highlighted Turkey’s advantages compared to other developing countries. Turkey’s robust economy,

strong domestic market, strategic location, reforms and incentives, skilled labor-force, favorable demographics, and liberal investment climate are factors that Ermut hopes will further increase Italian companies’ engagement with Turkey. Italian companies in Turkey, of which there are currently more than 1,400, have contributed USD 3.1 billion in FDI. Italy is a target country for Turkey and it is one of its most important trade and investment partners with a bilateral trade volume of USD 19.8 billion in 2017. Turkey had USD 11.3 billion in imports from Italy, making it the fifth country in imports in 2017. Turkey also had USD 8.5 billion in exports to Italy, ranking the country as the sixth largest destination for Turkish exports. Along with ISPAT President Arda Ermut, ISPAT Coordinators Başak Avcı and Mustafa Erdönmez delivered presentations on investment opportunities available in Turkey’s chemicals, renewable energy, and machinery sectors.

Briefing

MITSUBISHI ELECTRIC TO ESTABLISH A NEW FACTORY IN TURKEY T

he inauguration of a new air-conditioner production facility backed by Japanese multinational electronics and electrical equipment manufacturer Mitsubishi Electric Corporation was held in Turkey’s Manisa Organized Industrial Zone. The TRY 382.5 million investment by Mitsubishi Electric is located on a 60,000 square-meter area, which includes 40,000 square-meters of indoor space, and will provide employment for around 400 people by 2021. During his speech to mark the plant’s inauguration, Minister of Science, Industry, and Technology Faruk Özlü said that Turkey is now a global attraction center. He added that Mitsubishi Electric’s new plant exemplifies the confidence that international investors have in the Turkish economy and its future. “As Turkey has successfully grown during the last 15 years, it has become an island of stability and confidence in its region,” Özlü said. Speaking at the ceremony, ISPAT President Arda Ermut said, “We have worked hard for this facility since 2013, including the data provision for feasibility, bureaucratic follow-up, site selection support, and various meetings in Japan. We are more than happy to see all of these efforts bear fruit today.” He further noted that Turkey has always turned crisis into opportunities. “Foreign investors use Turkey as a safe haven in the region. For companies that want to MARCH 2018 ISSUE 56

explore the opportunities in the region, Turkey has always been a relatively safe place to do business,” Ermut said. President and CEO of Mitsubishi Electric Corporation Masaki Sakuyama said during the inauguration that their AC systems segment, comprising Mitsubishi Electric Turkey, is

“Foreign investors use Turkey as a safe haven in the region,” said ISPAT President Arda Ermut.

an integral part of Mitsubishi Electric’s household appliances division. “Turkey – already a prime market for us – has now become our vital production hub,” he emphasized. President of Mitsubishi Electric Turkey Klima Sistemleri Üretim A.Ş. Katsu Wada acknowledged that Mitsubishi Electric will manufacture high-tech environmentally friendly products using the e-factory concept in line with the move towards Industry 4.0. Mitsubishi Electric operates in 43 countries with more than 138,000 employees. The new plant in Manisa is the company’s first residential airconditioner plant in Europe. Mitsubishi Electric Turkey was established in April 2016, and the construction of the plant was completed in June 2017 with an investment of TRY 382.5 million. The plant began production in December 2017 with more than 200 employees.

The Turkish Perspective

ISPAT ATTENDS WORLD BUSINESS ANGELS INVESTMENT FORUM T

ISPAT ATTENDS PRIVATE EQUITY EVENT IN LONDON T

he “Recap of the 3rd Annual Executive Briefing on Private Equity in Turkey and Environs” event, organized by EMPEA and GlobalTurk Capital at the London Stock Exchange, was held in London on the 7th of February. During his speech at the event, Deputy Prime Minister Mehmet Şimşek said that Turkey has substantially decreased the tax burden on companies and that it attracts international investors thanks to its competitive labor costs. “Turkey is an energy hub connecting the east and the west. Europe is the core market for Turkey, but we should not neglect Asia and Africa,” Şimşek said. He offered the participants insights into Turkey’s economic agenda, supporting his speech with a presentation that focused on the drivers of growth in Turkey, inflation and fiscal policy, the structural reform agenda, and Turkey’s long-term prospects. ISPAT President Arda Ermut also addressed private equity executives during the event, touching on Turkey’s investment climate and growth prospects. “Thanks

to Turkey’s location offering access to markets in Europe, the Middle East, and Africa, export-oriented companies have significantly grown in recent years. With managerial skills, extensive international networks, and equity financing, private equity investors can enable these companies to realize their potential,” Ermut said. During the last 10 years, private equity driven investments have claimed a 65 percent share in all inbound investments. The London Stock Exchange has a strong private equity track record and is Europe’s leader for number and size of initial public offerings. Turkey is one of the most attractive destinations for private equity as well. Over the past 5 years, private equity deals amounted to more than USD 11 billion. Thanks to top-quartile returns of the first funds raised back in early 2000s, Turkey’s private equity scene has been transformed dramatically with small to large capital investors as well as local, regional, and international players actively pursuing new deals in the country.

he World Business Angels Investment Forum (WBAF) 2018 took place on February 18-20 in Istanbul. The global organization brought together hundreds of angel investors, angel network managers, policymakers, academics, business owners, bank executives, presidents of international associations, and stock exchange executives from more than 82 countries. This year’s forum focused on the theme “Unlocking the Potential for Innovation: Angel Investors Partnering with Family Offices and Wealth Management Institutions”. Hot topics such as “Global Action Plans of Global Leaders”, “New Rules of Wealth Management”, “The Rise of the Secondary Market”, and “New Roles for Development Banks” were discussed during the forum. Speaking at the opening ceremony of the forum, Minister of Development Lütfi Elvan said that the Turkish Government has taken “Venture Capital Initiative” and “Young Entrepreneur Centers”

on to its agenda. “Turkey will work on a venture capital initiative in order to produce high value-added products and services,” Elvan said. He noted that 428 angel investors are licensed in Turkey and that 94 percent of them are actively engaged in networks. Commenting on the total amount of angel investment, venture capital, and private capital investment of USD 177 million, Elvan said that this amount is low for a country of Turkey’s stature and that the Government is working to improve the entrepreneurship ecosystem. Evidence of this are the steps the Government is taking to further strengthen the legal framework, financing opportunities, and R&D capacity. ISPAT Vice President Ahmet Burak Dağlıoğlu was a speaker on the panel “Global Action Plans of Global Leaders”, where he talked about unlocking potential for innovation and developing global partnerships for economic development. The panel also touched upon how to achieve the sustainable development goals of the United Nations.

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Technological advances have driven dramatic increases in industrial productivity since the dawn of the ndustrial Revolution. The steam engine

powered factories in the nineteenth century, electrification led to mass production in the early part of the twentieth century, and industry became automated in the 1970s. In the decades that followed, however, industrial technological advancements were only incremental, especially compared with the breakthroughs that transformed IT, mobile communications, and e-commerce. BY MUSTAFA YİĞİT

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The Turkish Perspective

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echnology is transforming not just the manufacturing sector but many others as well, and is affecting every segment of society. In cities, for example, Internet of Things technologies are expected to have an economic impact worth 0.9-1.7 trillion dollars by 2025. It is predicted that just the benefit provided by smart traffic management systems will amount to approximately 500-900 billion dollars per year. The world has experienced the First Industrial Revolution with the invention of steam engines. The reporter of the Second Industrial Revolution was the mass production and the use of electricity. The Third Industrial Revolution has begun when electronic and digital technologies are part of mass production optimization. Today, the world is now talking about Industry 4.0. In other words, the heartbeats of a new system in which the machines talk about each other are heard at every stage of the production process of the technology. Industry 4.0 refers to a period in which communication between machines is started by the internet, robots are engaged in production processes made by human power, and almost all production processes are digitized. It means that the existing production concept in the industry is being reshaped together with the developing technology. It is not possible to explain this new mode of production and its understanding with technology alone. We can perceive it as a new understanding emerged by adding many different concepts and applications such as Cyber-Physical Systems (intelligent electronic systems integrated with various in the production process, equipped with sensors and internet), Internet of Things and Big Data. MARCH 2018 ISSUE 56

A new science feld: Data science The new platform for the scientifc process that takes us to this reconnaissance adventure is undoubtedly â&#x20AC;&#x153;Data Scienceâ&#x20AC;? This new scientifc discipline with mathematical and informatics technology involves fnding and using the methods necessary to collect, compile, analyze and reach the results of a large and broad digital world. Although the data science examines the current programs and software since the beginning of the 21st century, its main

The digital world, with its revolutionary progress, brought together incredibly large amounts of data generated in seconds and minutes.

goal is to focus on how the resulting data can be used more effectively and how an analytical mechanism can be built at the decision-making stage. Undoubtedly, the studies to be done in order to evaluate the digital data collected and made available to human beings on health, environment, politics, economics and many other areas will be one of the main topics of this science branch. The digital world, with its revolutionary progress, brought together incredibly large amounts of data generated in seconds and minutes. At every stage of daily life, in online processes, in short, complex, processed and unprocessed digital information about all our movements in the internet world is collected. The compilation and analytical comprehension of this pile is a great and indispensable reTuirement for the media, the fnancial world, private and public institutions.

Manfavcturing Revolution Industry 4.0 was first introduced in Germany as a concept. It was a project of the German government to encourage

The Turkish Perspective

production volume and quality will increase. In developed economies, where a large part of the energy production is consumed by the manufacturing industry, the idea that RFID (radio frequency identification) and improvements in robot technology should be included in the processes is increasing day by day in order to use resources more efficiently. Methods such as gathering data on production processes, integrating them into planning and control processes, modeling and simulation, cloud computing and large data analysis are some of the phases of the new industrial revolution. While globalization offers wider markets for industrial companies, improved purchasing conditions and opportunities for more comfortable production opportunities, it also presents some challenges for the industrial sector. Global competition is more intense and actors must be constantly more flexible and efficient in order to stand out in this competitive position. In this process, it is a necessity to offer pajara products in a shorter time as well as having the ability to produce new, high quality, efficient and personalized products. traditional industries like manufacturing and to equip them with high technology. According to the Boston Consulting Group (BCG) analysis, Germany has begun to implement Industry 4.0, achieving productivity gains in industrial production, while reducing total production costs by 5 to 8 percent. This decline shows that Germany will have a cost advantage of 90-150 billion euros over the next 10 years. When material costs are excluded, processing costs are expected to decline by around 20 percent. In order to achieve these gains, it is thought that German producers will invest 250 billion euros in the next 10-year period to make their production systems and processes compatible with Industry 4.0. At the same time, it is anticipated that the increase in demand will result in an additional income of 300 billion euros and an increase of 6% in employment, with the increase in interest of enterprises in advanced technologies and consumers in privatized products. Above all, Industry 4.0, unlike other revolutions, is accompanied by an evolution of sustainability in itself. The

financial gain that this revolution will emerge is said to be groundbreaking due to the changes in the workforce profile and the huge investments it will trigger. Countries that are rapidly adapting their manufacturing processes seem to be leaders in the new economic system, as Industry 4.0, along with cost advantage, creates competitive advantage. Industry 4.0 basically aims to bring together information technology and industry.

A New Era Technology Among the main components are new generation software and hardware, which is different from todayâ&#x20AC;&#x2122;s conventional hardware, low cost, small footprint, low energy consumption, low heat production, but also high reliability. The most important goal is that the operating and software systems that will run these hardware are sparing in terms of resource and memory usage. If the Industry 4.0 strategy is to take place, the production cycle, costs and energy requirements for production will be reduced, and

Age of Robots Industry 4.0 is the age of robots and intelligent machines. It is the footsteps of a technological development that goes right into the days when robots will take command with radio waves coming from the human brain. The industry standard traditional craftsmanship will leave its place to expert engineers. Future factories are beyond imagination, as it will be a necessity. Demand for changing consumer behavior and specialized products prevents an enterpriseâ&#x20AC;&#x2122;s success from being measured only by high productivity. Now, success makes it necessary to produce specialized and differentiated products in the same manufacturing process. The manufacturing process envisaged by Industry 4.0 is possible by fully automatic production. It is expected that a production process using robots in smart factories is expected to begin in the new industry era, which requires analysis of production to be more productive in line with data collected from customers and suppliers.

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Intelligent robots know what to do with the sensor technology, such as the RFID tag, and how to handle the materials moving in the traditional production band. Thus, each differentiated product can be processed and followed with zero errors in the same production line. At the next stage, the connected machines talking to each other can check the quality of the product and detect errors in the production process more quickly. All of this process is planned to be managed by cyber-physical systems (CPS) linked to each other. It is envisaged that the production process in which supply chain and consumer data are used will be more coordinated and integrated. Another feature of the imagined factories is that they can speed up the design process of prototype products using 3D printers.

No More Human Power It is a reality that the human factor, which has an important role in the production processes in the industry up to now, has left its place to the intelligent machines to a great extent with the passing of the industry 4.0 fully. The use of intelligent machines in production processes leads to a significant loss of employment, but with Industry 4.0 it is thought that the need for more qualified human power will increase. Industry 4.0 also opens the way for the creation of a qualified human power to adapt to the process and to support training models with new technologies. The increase in the quality of all economic returns, including production in industry, is supported not only by technological adaptation but also by the increase in qualified human power and quality of life. The development of training models, the implementation of vocational and technical schools and universities at the point of responsibility is also a great responsibility. It is another reality that in the new world created by Industry 4.0, when humanity and intelligent systems are integrated with the education system which has a good infrastructure, it goes to an unmanned industrialization.

Turkish Effect Turkey is positioned in a highly competitive position in the global value chain, thanks to its geographical location providing logistical advantage and the relatively low cost labor that enables MARCH 2018 ISSUE 56

flexible, low cost production. In the BCG Global Production Cost Index, which is formed by considering production costs, efficiency, energy costs HOW WILL SMART FACTORIES WORK? and exchange rates, Turkey produces at an average unit cost of 98, while the US produces 100 at an average unit cost. In other words, the average direct production costs in Turkey are 23 percent below Germany and 2 percent below the US. Six pilot sectors were identified on the basis of various socio-economic assessments, including competence areas within the context of the Industry 4.0 transformation, technology perspective, employment size, economic magnitude, and role within the supply chain. These sectors are; Automotive, machinery, white goods, food and beverage, textiles and chemistry. Turkey is one of the worldâ&#x20AC;&#x2122;s leading production centers, and even if the production capacity makes the Turkish industry attractive, the need for human

Turkey should be in a position to catch and compete with the developing technology in the world.

power will be reduced by taking over production of robots in the future and will enable foreign companies to invest in their own countries. For this reason, our country needs to find its place in the global market, which is developing as the innovation center instead of the production center. Turkey should be in a position to catch and compete with the developing technology in the world. A basic strategy to follow in order to adapt to the industrial transformation that Turkey faces is to be determined first. The necessity of industrial transformation must be accepted by policy makers, producers and society, and care should be taken to put a common mind in search for solutions. Turkey must identify the sectors in which industrial innovations can be applied and focus on these sectors instead of changing the entire economic system. The education system should be restructured according to the education model of information technologies in order to provide the information, technology and qualified human infrastructure that the sector needs. If Turkey fails to transform its industrial and educational infrastructure within the context of information processing and communication technologies, it will face the danger of losing global competitive power with increased productivity in developed countries. If we succeed in structuring the information society that the century needs, Turkish economy will reach the targets with the help of increased productivity, growth, employment and investment.

#discoverthepotential

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The Skies

University-industry collaboration is a partnering method in which trained manpower in the universities and industrial opportunities come together to carry out R&D tasks and mutually beneficial activities. Through this way of working, universities

benefit from industrial experience; industry makes use of rich human capital and R&D potential, inherent in the universities. The development of technology out of scientific knowledge, dissemination of information, improving the quality and reliability of the products, increasing product variety, meeting customer needs on time, even managing these requirements, benefit from this business model. MARCH 2018 ISSUE 56

The Turkish Perspective

and Beyond

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urkish Aerospace Industries (TAI) aims to improve the transfer of information between institutions, since it is believed that university-industry collaboration activities constitute the most important stage of R&D activities. Hence, universityindustry collaboration helps to capture the rapidly advancing technology, to develop indigenous and competitive products. TAI, in line with the mission to lead Turkey’s aerospace industry, gives utmost importance to the university-industry collaborations to improve research, technology development, and education and training activities. “Ensuring Sustainable Growth and Profit” was one of the items in TAI’s 2012-2016 Strategic Plan; to fulfill this objective “Strengthening the Institutional Structure” has been set as a target. One of the sub-targets of this objective is defined as “Supporting the Corporate Structure through University, Research Organization and Industry Collaborations.” TAI, having established road map for projects, to be carried out with partnership with the universities and academic institutions, has begun to sign collaboration protocols with universities for education and research activities. Within the scope of these protocols, meetings and workshops with university departments, research centers and academic staff are being held and ideas for concrete cooperation projects are studied. In addition to research and technology development with universities, education and training protocols are signed for basic and advanced engineering courses specifically shaped for TAI’s staff. Further discussions are ongoing with academic MARCH 2018 ISSUE 56

institutions. In addition, company’s staff is supported and encouraged for their postgraduate studies in line with prioritized technology areas in TAI Technology Roadmap. Around 200 of TAI’s personnel attend to post-graduate studies in this context.

Historical Background TAI was established on 1973 under the auspices of the Ministry of Industry and Technology in order to reduce the foreign dependency in defense industry in Turkey. With the decision of meeting the combat aircraft requirement of Turkish Air Force (TurAF) with F-16s, TAI Aerospace Industries, Inc. (TAI) was established by Turkish and US partners in 1984 for a period of 25 years with the aim to realize the manufacture, systems integration and flight tests of F-16 that would be delivered

to TurAF. TAI was restructured in the year 2005, just before the 25 years of period came to an end, with the acquisition of foreign shares by Turkish shareholders. Along with this restructuring, Turkish Aircraft Industries and TAI have merged under the roof of Turkish Aerospace Industries, Inc. (TAI) and have broadened its activities. Today TAI has become Turkey’s center of technology in design, development, modernization, manufacturing, integration and life cycle support of integrated aerospace systems, from fixed and rotary wing air platforms to UAVs and satellites. TAI, which ranks among the top hundred global players in aerospace and defense arena, based its business on five strategic pillars as shown below; • Aerostructures Group, • Aircraft Group, • Helicopter Group,

The Turkish Perspective

Turkish Aerospace Industries (TAI) aims to improve the transfer of information between institutions,

COLLABORATIONS REALIZED BY TAI RESOURCES AND SUPPORTED BY NATIONAL/ INTERNATIONAL RESEARCH PROGRAMS • UAS Group, • Space Systems Group In addition, integrated logistics service is also provided for all products designed and produced by TAI. Within the scope of the Scientific and Technological Collaboration, the activities conducted with universities are listed below.

ROTARY WING TECHNOLOGY CENTER (DKTM) Within the scope of Indigenous Helicopter Program Contract signed between Undersecretariat for e Industries (SSM) and Turkish Aerospace Industries, Inc. (TAI) on June 26, 2013, Rotary Wing Technology Center has been launched at METU Technopark Facility. This center aims to improve R&D and acquisition of technologies in the area of helicopter, to enhance university-industry collaboration, and to contribute human resources qualified in the area of helicopter technologies in the long term. Rotary Wing Research Center was established in order to develop unavailable technologies in Turkey and in the world. Within this scope, SSM and TAI identified the project topics having priorities in line with TAI Rotary Wing Technology Road Map. In accordance with these topics, project contracts have been signed and activities are being carried out with various universities.

RESEARCHER TRAINING PROGRAM FOR DEFENCE INDUSTRY (SAYP) The Researcher Training Program for Defense Industry (SAYP) aims to make the knowledge transfer between defense industry companies and universities more systematic in line with the priorities of the defense industry and under the guidance of SSM. In addition, the program aims to structure the postgraduate thesis prepared in the universities by the people working in the defense industry companies in a way to comply with the R&D needs of the companies and to direct the said thesis to priority areas of the defense industry sector. In line with R&D strategies in the priority areas of defense industry, the graduate students are trained as skilled R&D personnel through the opportunities provided by the defense industry companies. Within this scope, the protocols have been signed with Middle East Technical University (METU), Gazi University, Ankara University, TOBB ETU, Gebze Technical University, Bilkent University and Air Force Academy. The projects were initiated under these protocols.

Research studies determined and launched in accordance with TAI Technology Roadmap are carried out with universities in terms of university-industry collaboration programs generated by The Scientific and Technological Research Council of Turkey (TUBITAK)Technology and Innovation Support Programs within the Ministry of Science, Industry and Technology; and in terms of new generation research programs of European Union such as Research and Innovation Framework Program Horizon 2020 and CleanSky-2. Within those research studies, it is accessed to the researchers through the Technology Transfer Office and President’s Office (Rectorate) of universities. If required, common research subjects are determined by organizing workshops and inviting experts in related areas (Rotary Wing Technology Center Workshop-14 March 2014, Nanotechnology Workshop-6 sessions in 2015, Space/Satellite Technology and Applications Workshop, 11-12 November 2015). Within this context, experts for the planned research can be accessed through technology transfer offices, information days and workshops organized by universities. Alternatively, research subjects determined in Technology Center are announced by TAI-PROSIS Project Management System. PROSIS can be reached from the link below and by PROSIS, current research topics can be followed and project proposals can be prepared.

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Technology Is The Path To Turkey’s Future The Scientific and Technological Research Council of Turkey (TÜBİTAK) is the leading agency for management, funding and conduct of research in Turkey. It was established in 1963 with a mission to advance science and technology, conduct research and support Turkish researchers. The Council is an autonomous institution and is governed by a Scientific Board whose members are selected from prominent scholars from universities, industry and research institutions.

ÜBİTAK is responsible for promoting, developing, organizing, conducting and coordinating research and development in line with national targets and priorities. TÜBİTAK acts as an advisory agency to the Turkish Government on science and research issues, and is the secretariat of the Supreme Council for Science and Technology (SCST), the highest S&T policy making body in Turkey. Setting its vision as to be an innovative, guiding, participating and cooperating institution in the fields of science and technology, which serves for improvement of the life standards of our society and sustainable development of our country, TÜBİTAK not only supports innovation, academic and industrial R&D studies but also in line with national priorities develops scientific and technological

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policies and manages R&D institutes, carrying on research, technology and development studies. Furthermore, TÜBİTAK funds research projects carried out in universities and other public and private organizations, conducts research on strategic areas, develops support programs for public and private sectors, publishes scientific journals, popular science magazines and books, organizes science and society activities and supports undergraduate and graduate students through scholarships.

The Turkish Perspective

economic benefits; • in the 100th Anniversary of our Republic in line with the target pointed out by Ataturk as reaching the level of modern civilizations.

More than 1,500 researchers work in 15 different research institutes of TÜBİTAK where contract research as well as targeted and nation-wide research is conducted. The main theme of the project has been determined as creation of an “affluent society” which, • is competent in science and technology; • uses technology consciously and capable of developing new technologies; • possesses the skill of converting technological developments into social and

TÜBİTAK is responsible for promoting, developing, organizing, conducting and development in line with national targets and priorities.

The project plans to cover the following activities: • Assessment of current status of Turkey in the field of science and technology • Assessment of the long termed scientific and technological developments in the world • Identification of the strategic technologies required for achievement of said targets • Recommendation of policies aiming at development and/or acquisition of said technologies. • Vision 2023 Project is composed of the following sub-projects: Technology Foresight Project National Technology Competence Inventory Project Researcher Information System Project TÜBİTAK National Research Infrastructure Information System Project

COVER UPCOMING PRODUCTION REVOLUTION

Technology Foresight Project The task of implementation of the Technology Foresight Project in coordination with the related institutions and establishments, pursuant to the decision of the Supreme Council for Science and Technology, constitutes the main axis of the Vision 2023 Project that has been assigned to TÜBİTAK. The foresight panels, formed in 12 socio-economic areas commenced their activities in July 2002. The panels completed their preliminary reports in July 2003 and presented these to the opinion and recommendation of the related sectors. Delphi inquiry, realized in order to extend the content of the preliminary report and to call for opinions of the experts, was completed in July 2003. The panel conclusion reports were completed in July 2003 with due consideration of the opinions and recommendations obtained from the extension activities and the output of the Delphi query. The conclusion reports were synthesized and 8 strategic technological areas, on which all panels have focused, were determined by June 2004, and “strategic technology roadmaps” were elaborated after formation of the workgroups on said areas. Strategy document, covering the science and technology policies for the next 20 years of Turkey, has been elaborated with the assessment of namely the outputs of the foresight project, synthesis report, Delphi findings and the outputs of the strategic technology workgroups. The strategy document, which were presented for consideration to the member establishments of the Supreme Council for Science and Technology in April 2004 were finalized in line with the official opinions and recommendations, and presented in the SCST meeting in March 2005. A comprehensive survey was applied to approximately 2500 firms in FebruaryMarch 2003 in order to determine the technological competence level of Turkey within the scope of the National Technology Competence Inventory Project. The analysis of the survey was completed in September 2004 and the report provided objective data to the technology Foresight Project. MARCH 2018 ISSUE 56

TÜBİTAK acts as an advisory agency to the Turkish Government on science and research issues.

Turkish National Researcher Information System Turkish National Researcher Information System (ARBİS) has been designed as a system for the research personnel in universities, public and private sector establishments in Turkey and the Turkish researchers serving abroad. ARBIS is a dynamic system, which provides collection of researcher information, and updates collected data and evaluation of said data by different establishments for different purposes. The planned outputs of this system are compilation of data on areas of scientific activities of the researchers inland and abroad, industrial work branches on which the R&D activities may be applied and the products and technologies developed as a result of said activities, creation of the national scientists database and bibliometrical analysis.

National Research Infrastructure Information System TÜBİTAK National Research Infrastructure Information System (TARABİS) is a web-based application designed and developed by TÜBİTAK. It aims to create the database for machine/ system/device stock related to research; experimental development, test/analysis, diagnosis activities and R&D project accumulation. By means of TARABİS, it is possible to obtain coded information about features, location, and capacity of machine/system/ device related to research, experimental development, test/analysis, diagnosis activities and industrial business line in which this potential could be used together with the products and technologies developed as a result of these studies. Information entered to TARABİS by unit/division executives enables: • Querying to the extend allowed by unit/division executives, • Collaboration and communication in product and technology development activities between the laboratories and industry, • Assistance in finding the sources required to improve capacity and competence of the laboratories, • Increase in the joint projects performed in the laboratories.

APRIL 16-19, 2018

İSTANBUL HILTON BOMONTİ HOTEL

www.gec.co

In Depth / Relations Between Austria and Turkey

It was like a bull in a china shop Marking a new beginning in the bilateral relations between Austria and Turkey... By Dr. İNANÇ ATILGAN

MARCH 2018 ISSUE 56

The Turkish Perspective

s an Austro-Turk, I am naturally concentrated on the mutual relations on many layers between both countries. It is inevitable that I tirelessly endeavor to act a matchmaker between them. Dr. Karin Kneissl, Federal Minister for Europe, Integration and Foreign Affairs of Austria, paid an official visit to her counterpart Turkish Foreign Minister Mevlüt Çavuşoğlu on 25 January 2018 which marked resumption of mutual relations on both political and economic levels and meant for rebuilding the basis for strengthening common interests. “The situation in the past was similar to that of a bull in a china shop. I would like to leave that behind me and begin a new chapter in our bilateral relations” Karin Kneissl during her visit in Istanbul. One short summary of the meeting is that both ministers reiterated their common desire to start a new era in Turkish-Austrian relations. The Turkish side made a very important gesture and announced that the Austrian archaeology team conducting excavations at Ephesus since 1895, which was banned from doing so in 2016, might resume their activities in Ephesus again. If we wanted to refresh our memories a bit; the scientific contribution of the Austrian scholars has had a considerable contribution in making Ephesus, one of the most visited archaeological sites in the world. Well, coming back to the politics, Dr. Kneissl, who is both a respected expert on Middle East affairs and a former diplomat, became member of the newly established Austrian coalition government between center-right People’s Party (OVP) and far-right Freedom Party (FPO). Surprisingly, she was nominated by FPO as the highest

In Depth / Relations Between Austria and Turkey

diplomat of the country, even though she is not a member of that party which also is reknown as the “problem child” in Brussels EU headquarters. Parallel to recent developments in world politics, there is a similar strengthening of right wing politics in Austria too. Altough Austria was established on the condition of being a neutral country in 1955, there is now enough skepticism on whether Austria is still neutral and can fulfill its role as a political matchmaker between conflict parties and regions or not. Indeed, Austrian government has recently come up with three major topics which challenges Turkey’s foreign affairs and mutual relations at EU level. Dr. Kneissl is of course responsible for these three issues in her areas of responsibilities, which are mentioned in the name of her Ministry, namely for Europe, Integration and Foreign Affairs:

Europe: The new government in Vienna is for a halt to Turkey’s EU accession negotiations and there is even a short-sighted statement in new government’s program. This is unfortunately and surely a concern for Turkey, which is perceived as a discriminative action against Turkey in Europe. Integration (+migration):

Austria’s new government pledges in a very provocative rhetoric that a tougher approach to migration and a stronger domestic security measures policy are to be introduced. This toughened policy will sure affect the Turks in Austria. Ironically, it is worth to mention that Austria’s President Van der Bellen’s mother is a native Estonian, and his father is a native Russian with Dutch ancestors. After fleeing from the Soviets, his family found a new home in Austria, first in Vienna and then in Tyrol. That being said, almost a quarter million of Austrian inhabitants are of Turkish origin! Migration is about people and this has to be communicated intensively! Turkey was known in Europe as a country of emigration. From 1960s to 1990s, millions of Turkish workers migrated to western European countries and also to Austria. But for the last decade, Turkey became a country of immigration and transit to the European MARCH 2018 ISSUE 56

Austrian archaeology team conducting excavations at Ephesus since 1895, which was banned from doing so in 2016, might resume their activities in Ephesus again.

“The situation in the past was similar to that of a bull in a china shop. I would like to leave that behind me and begin a new chapter in our bilateral relations,” saıd Karin Kneissl on durıng her vısıt in Istanbul.

Union for refugees but also from Asian and African countries, not only from Syria and Iraq. On 18 March 2016, EU and Turkey agreed on termination of refugee flow from Turkey to the EU and managing it via organized, safe and legal channels to Europe. Turkey sharply criticizes the Austrian government for what it considered to be illiberal integration policies, its extremenationalistic rhetoric and growing racism and Islamophobia. Turkey and Austria should therefore act together in favor of a better integration of the Turks living in Austria. They can serve as a bridge of mutual understanding to overcome these challenges. The Turkish community in Austria is one of the best-integrated Muslim communities in Europe, with an average higher education degree of over 50%!

Foreign affairs (+bilateral relations): I dealt with the issue of

a closer look to the relatıons For those who want to look more deeply at the relationship Austria and Turkey, it can be checked that book, the editor is Dr. Atilgan and published by Wieser Verlag, and examined the relations between two countries more detailed. The book “Turkey-Austria Economic Relations” is available on both German and Turkish languages.

the Turks living in Austria just above. Here in this framework, there are some challenges on Austrian authorities by Turkey. Such as, Turkey claims that a number of institutions linked to Fetullah Gülen have made Austria their home and Austria does not support Turkey in its struggle with this movement. The sect is accused of nurturing and leading the military putsch attempt on July 15 2016. Likewise, a similar problem exists also in connection with Austrian authorities’ treatment of PKK in Austria.

The Turkish Perspective

There is actually another heightened tension between Turkey and Austria. Since Turkey is disappointed with Austria for its anti-Turkish policy with regard to an EUMembership, Turkey as the second-largest military power within NATO blocked the NATO cooperation with the government in Vienna for the last two years. Austria has condemned the Turkish action as irresponsible. Austria criticizes Turkey for its interference in Austrian politics via its direct influence over Turks living in the country. The Austrian parliament has changed the country’s century-old law on Islam. The bill, which should also tackle religious radicalism in Islam, bans foreign funding for mosques and imams, which again targets directly the ATIB-Union of Turkish origin. Austria aimed to stop Muslim countries, Turkey as well, using financial means to exert political influence. Austria wants to “reduce the political influence and control from abroad and give Islam the chance to develop freely within the Austrian society and in line with so called common European values”. Austria with this approach put itself on theological sheet of ice whilst international support is still permitted in Austria for the Christian and Jewish faiths. Last but not least, lack of respectful rhetoric in the Austrian public space, media and political arena towards Turkey is not only for the Turkish government but especially for the Austrian Turks a source of distress. Since both ministers reiterated their common desire to start a new era in TurkeyAustria relations and start to restore the ties, both countries should first resume business activities. Thus a supporting basis for normalizing the political relations will have been established by means of stronger economic relations.

Invest in Austria: The Business

Location Austria with its business environment is certainly very attractive for Turkish investors. Austria is stable and secure. In productivity, Austria presents high technology standards and motivated and highly qualified employees. Austria and Turkey had already before the last very silence years deepened relations on mutual business locations. Austrian and Turkish important

Economic data of Austria Real GDP growth rate (percentage change on previous year)

2015 1,0%

2016 1,5%

2017* 2,4%

339,90

349,49

360,34

Gross domestic product (at current market prices) Billion €

GDP per head of population

36.910 € 36.540 € 37.110 €

(at current market prices)

Gross fixed capital formation (Gross fixed capital formation)

22,6%

22,9%

23,0%

77,0% 5,7% 0,8%

77,2 6,0% 1,0%

77,3% 5,7% 2,0%

3,12%

3,14%

38,7%

37,5%

Employment rate (Proportion of resident population in gainful employment) Unemployment rate Inflation rate

Research and development expenditures (percentage of GDP)

Export rate (as a percentage of GDP) (*) Forecast Source: Eurostat, European Commission (Ameco database), Austrian Institute of Economic Research, Statistics Austria (07/2017)

companies are present in both countries. The Turkish associate DenizBank AG is located in the Austrian banking sector and the Unicredit-daughter Bank Austria is a shareholder of the Turkish Yapi Kredi Bank. Some of largest Austrian companies in energy and infrastructure sector like OMV, Strabag, Andritz etc. are contributing to the Turkish progress in the quality of human living. There are enormous

strong economic relations

Economic relations between two countries in 2017 were promising for coming years. IMPORT

Billion Dollar EXPORT

1,47 1,12

data: tüik

Investments of Austrian companies from forestry and paper industry like Mayr-Melnhof, Dunapack, Egger Holz. On the other hand, the traditionally well-known Austrian brand Elektra Bregenz is owned by the Turkish Arçelik. Brigitte Weber Architects are refining the face of Istanbul and Ankara. The Turks living in Austria are entrepreneurs, customers, workers and taxpayers. They contribute to the domestic economy. Did you know that the best known Viennese confectionery Demel at the Kohlmarkt, the Do & Co as Partner of the Turkish Airlines and the Ay-Ka Bau, which reconstructs the half of the Viennese inner city, actually belong to native Turks? Would you ever expect that the Austrian cattle breeders see in Turkey their biggest and reliable partner? Did you really know that the Austrian company Nova Idea is established by a Turkish woman entrepreneur to consult a Slovenian bank, which is bought by Americans? It is an example for an economic contribution of migrants to the Austrian business environment? Some Austrian and Turkish political representatives have themselves allowed to be taken hostage by populistic conspiracy. Both should see the reality and the potential of economy and support it as the connecting element!

In Depth / Invest Lorem Ipsum in Greece

INVEST I Gree Turkey always aims at enhancing bilateral relations in every possible field and attributes importance to the implementation of tangible projects to the benefit of two countries. By RAMAZAN GĂ&#x153;ZYURDU

MARCH 2018 ISSUE 56

ST IN reece

The Turkish Perspective

In Depth / Invest in Greece

new era has begun in the Turkish-Greek relations as of 1999, marked with the establishment of a variety of dialogue mechanisms such as regular political consultations, exploratory contacts on Aegean Issues, ConfidenceBuilding Measures, High-Level Cooperation Council meetings as well as high-level visits and contacts. Enhancing bilateral relations with Greece in every possible field and the implementation of tangible projects to the benefit of two countries is one of Turkey’s priorities. In 2010, the High-Level Cooperation Council (HLCC) between Turkey and Greece was set up. Co-chaired by the Prime Ministers of both countries and under the coordination of Foreign Ministers, the HLCC is envisaged to convene in Turkey and Greece alternately. The HLCC aims at addressing various issues of Turkish-Greek relations at high level, thus contributing to progress in existing and prospective areas of cooperation, and rendering an “institutional” ground for Turkish-Greek relations. Four HLCC meetings have so far been held. The first meeting in Athens on May 14 and 15, 2010; the second meeting in Istanbul on March 4, 2013; the third meeting in Athens on December 6, 2014, and the last one in Izmir on March 8, 2016. 54 agreements/protocols/ MoUs were signed during those meetings. Business Fora are also being held on the side-lines of the HLCC Meetings. High-level visits have also picked up momentum over the last couple of years. Upon the invitation of Greek President Mr. Pavlopoulos, the Turkish President Mr. Erdoğan paid a historic visit to Greece on the 7th and 8th December 2017, the first official visit by a Turkish President in 65 years , since the official visit to Greece of the then President Celal Bayar in 1952. Prime Minister Mr. Yıldırım paid a working visit to Greece on 19 June 2017, upon the invitation of his counterpart Mr. Tsipras. Prime Minister Mr. Yıldırım after completing his programme in Athens visited Western Thrace to meet with the Turkish Minority. Regular political consultations are held between the Foreign Ministries at the level MARCH 2018 ISSUE 56

President Recep Tayyip Erdoğan and First Lady Emine Erdoğan attended an official dinner, hosted in their honor by President Prokopis Pavlopoulos and First Lady Vlasia Pavlopoulos of Greece.

Prime Minister Mr. Yıldırım paid a working visit to Greece on 19 June 2017.

The Turkish Perspective

of Undersecretary/Secretary General. The last political consultations were held in Ankara on January 18th, 2018 Commercial and economic relations with Greece have also gained momentum since 1999 along the lines of positive developments witnessed in bilateral political relations. The establishment of the HLCC mechanism in 2010 in particular has also paved the way for a substantial increase in commercial relations. The bilateral trade volume thus doubled between 2010 and 2014, reaching 5.6 billion USD by the end of 2014. However, according to the Turkish data, the bilateral trade volume in 2016 totaled 2.6 billion USD. In 2012, during the Second HLCC Meeting, 10 billion USD of trade volume, was declared as a common goal and both sides are committed to exploring ways and means to reach this target. The stock of direct investments from Greece reached 6.1 billion USD by the end of 2016. Greek investors, apart from the financial sector, operate in information technology (IT), agricultural applications, packaging, plastics, pharmacy, cosmetics, fisheries, tourism and construction sectors in our country. The stock of direct Turkish investments in Greece, including the investments via the other European countries amounts to approximately 500 million USD. Turkish investors mostly focus on investing in marinas, ports and the overall tourism sector in Greece. Furthermore, Ziraat Bank has branches in Athens, Xanthi, Komotini and Rhodes. Transport is another field where

Turkish investors mostly focus on investing in marinas, ports and the overall tourism sector in Greece.

both sides are willing to intensify their cooperation. Currently, Turkish airline operators are conducting 49 flights a week between Turkey and Greece. The implementation of projects regarding the Izmir-Thessaloniki Ro-Pax ferry line and the high-speed train link between Istanbul and Thessaloniki will pave the way for an intensified cooperation in maritime and railroad transport between Turkey and Greece. Tourism is one of the promising fields of cooperation between the two countries. In 2016, 785.905 tourists from Turkey visited Greece. In the same year, Turkey attracted 593.150 tourists from Greece. The facilitated visa procedure for visiting seven Greek islands close to Turkish shores has been in effect since 2012. It has also been instrumental in the increase of the number of Turkish tourists visiting Greece.

Exclusive Interview

e made an interview with Mr. Konstantinos Makriyannis, the Head of Office for Economic and Commercial Affairs / Embassy of Greece in Ankara. We talked about the relationship and future of these two countries.

First of all, can you generally evaluate the economic and diplomatic relations between Turkey and Greece? It is an honor for me to address the current edition of the TİM’s “The Turkish Perspective” magazine, featuring GreekTurkishEconomic Relations as well as

investment opportunities in Greece, which hopefully will contribute to the promotion and further development of economic relations between Greece and Turkey. The Bilateral Economic and Commercial Relations legal Framework is quite comprehensive, including our bilateral Investment Promotion and Protection Agreement and the Convention for the Avoidance of Double Taxation with respectto taxes on income. Since 2010, through the establishment of the High Level Cooperation Council, a new impetus has been given to bilateral economic relationship, underlining the

will to promote economic cooperation at the highest possible level. At the last session of the High-Level Cooperation Council (Izmir, 08.03.2016) Greece and Turkey expressed their readiness to cooperate in the field of rail and inter-modal transport, agreeing, more specifically to examine the development of the rail and multi-modal corridor Igoumenitsa-Thessaloniki-Istanbul. In addition, Greece and Turkey encourage commercially viable projects of the private sector, such as the establishment of a Ro-Ro, Ro-pax line between the two ports of Thessaloniki and Izmir (Alsancak).

In Depth / Invest in Greece

After many years of turbulence, Greek Economy has returned to growth in 2017. Greece’s investment and growth revival has been the result of the government’s new NationalDevelopment Strategy (NDS), which aims to establish a new investment-friendly environment and promote an export-oriented production model. This model is based on enhanced domestic industrial production of internationally tradable high valueadded and knowledge-based goods and services, by increasing employment within the well-educated and highly skilled part of the labor force. Moving forward to 2018, the outlook for the Greek economy is even more positive. Confidence in the economy will be further increaseddue to the successful conclusion of the ESM program in August. According to the State Budget for 2018, the annual economic growth rate for 2017 is estimated at 1.6% of GDP and primary surplus will close at 2.44% of GDP. For the year 2018 GDP growth rate will reach 2.5% and the primary surplus will also follow with an increase and expected to stand at 3.82% of GDP. Can you talk about the export figures between Turkey and Greece? Within the last several years, the volume of trade between Turkey and Greece is significant although there are big fluctuations in its annual figures since a large part of it consists of refined oil products. In 2013 the volume of bilateral trade was 5.6 billion $ whereas in 2017 it reached3.5 billion $ (according to the latest statistics of the Turkish Statistical Institute) . The volume of trade in nonoil products remains fairly stable (2.1 billion in 2013, 2.2 billion in 2017) The Balance for the overall trade remains generally in Greece’s favor but the balance in non-oil products is heavily in favor of Turkish products. Thus in2017 the overall balance was -166 million$ (in favor of Greek products)but that of non oil products was 559 million $ (in favor of Turkish products). Trade, after some years of negative developments due to the economic conditions in both countries, increases significantly in 2017 (by 33.6%) but we do MARCH 2018 ISSUE 56

believe that it is below potential and can be furtherenhanced. For Greece, at a crucial period for its economy, Turkey has proven to be a major economic partner. Turkey remains amongst the four top destinations for Greek goods exports. As far as investment flows between our countries are concerned, it is noteworthy that the aggregated Greek capital invested in Turkey, during the last decade has been much higher than the Turkish capital invested in Greece during the same period. This picture has been rapidly changing during the last three years and several Turkish companies have been actively involved in the Greek market especially in the sector of Tourism. R&D and Innovation are very important issues in recent years. What steps are being taken in this field to develop investment? Greek research and development investment increased from 0.23% of GDP in 2011 to 0.41% in 2016. Greece is listed as a stage 3 economy (innovation driven), together with 36 developed economies in the world. Also according to the Global Competitive Index, Greece ranks 44th in Higher Education & Training, 50th in Technological Readiness and 58th in Market Size. (*) It is no surprise that Greece has an important pool of well-educated and talented labor force with global experience and entrepreneurial drive. The ICT sector offers several opportunities of investment in highend, value added services with a global reach. IT sector in Greece consists of a group of hard working, highly qualified professionals with global experience and entrepreneurial talent. The strength of this sector is the “versatile minds” of its people. Investors can recruit top talent at a highly competitive cost. Public and EU funds are available for cooperation and development. Many Greek start-ups are competing successfully abroad and major international players have a strong presence in the Greek market. Indicative investment opportunities in Information and Communication Technologies: • Data Centers • Call Centers/ service centers staffed by English-speaking staff

• Mobile Marketing & advertising • Software development • Information Security Services • Assembly and distribution of ICT devices • B2B cloud services • Information security services • Innovation and research activities Greece’s Life Sciences industry has been developing at a vigorous rate, with new start-up and spin-off companies increasingly pursuing international R&D collaborations for the development of competitive, technology-based products and services. Essential to this dynamic growth is the Greek R&D infrastructure, which includes internationally renowned Research Institutes, research teams and University Research Groups. There are several Greek companies already competing successfully in the international pharmaceutical markets, with a strong shift towards R&D, innovation and marketing. Which sectors are more interesting forTurkish investors? Tourism is the most attractive sector by far for Turkish investors. DOGUS GROUP has the management of three marinas in Attica in cooperation with the Greek company LAMDA DEVELOPMENT and of other two in the islands of Corfu and Lefkada. DOGUS has also acquired shares of luxury hotels in Attica (ATHENS HILTON, ASTIR PALACE VOULIAGMENI). On the other hand KOC GROUP has the management of Mytilini marina in cooperation with FOLLIE FOLLI GROUP. There are also other marinas for long term lease to hire after relevant planned tenders. Another attractive sector is real estate mainly for retail investors purchasing plots or apartments over 250.000 € in order to get residence permit in Greece. Apart from this investment category important developers search for big plots to buy for constructing residential apartments and malls. Among others there is interest for acquisition of industrial units producing packaging materials as well as participating in marble mining in cooperation with Greek marble companies.

The Turkish Perspective

7. Fast licensing procedures Also residence permits for investment activity (more than 250.000 Euros) are granted to non EU/EEA citizens (investors or executives) in the context of the implementation of an investment project following a positive assessment of the investment by the Directorate for Foreign Capital at the Ministry of Economy and Development.

Within the last several years, the volume of trade between Turkey and Greece is significant.

HORECA sector is also attractive for Turkish investors (MADO) as well as jewelry sector (GASIA). Furthermore Greek and Turkish companies could seek further opportunities for expanding their cooperation and mutual benefits by establishingpartnershipsin order to explore businessactivities in third countries. In case of an investment made by a Turkish exporter in Greece, what kind of support Turkish exportersexpect from Greek authorities? New Development Law 4399/2016 provides to local and foreign investors special incentives according to their size and activities. More specifically to take advantage of the incentives the minimum investment amount for Large sized companies should be 500.000€, for Medium sized companies and clusters 250.000€, for Small sized companies: 150.000€, for Very small sized companies 100.000€ and for Social Cooperative Companies (SoCC): 50.000€. The participation of the entity in the cost of the investment project can take place either through own funds or through external financing, provided that 25% of the total investment cost does not contain any state aid, support or subsidy whatsoever. Eligible economic activities are manufacturing, energy and tourism. Concerning investments incentives these are the following :

Greek and Turkish companies could seek further opportunities for expanding their cooperation and mutual benefits by establishing partnerships in order to explore business activities in third countries.

1. Tax exemption: exemption from payment of income tax that results from the current tax legislation, on the profits realized before taxes from all the activities of the company 2. Subsidy: free provision from the State of funds to cover part of the eligible expenses of the investment plan, determined as a percentage of the total investment cost 3.Leasing Subsidy: the State covers part of the installments paid for the leasing agreement concluded for the purchase of new machinery and other equipment, with a total duration that cannot exceed 7 years. 4. Wage subsidy (for jobs created): covers the cost of the new jobs created and are associated with the investment plan. 5. Financing instruments (capital participation, loan) 6. Fixed corporate income tax rate

Finally, what advice would you give to the investor who wants to invest in Greece? First of all we underline the positive momentum for investing in various business sectors. Greece’s massive reform efforts and newly designed investment framework support the creation of new businesses, synergies, and partnerships, mainly in the sectors of Tourism, Information and Communication Technologies, Energy, Environmental Sciences, Food, Beverage and Agriculture, Logistics, and Life Sciences. Greece’s exceptional human capital, advanced infrastructure, strategic position, and potential for economic expansion are attracting investing interests from all geographical areas. In any case the future investor must be well informed about the procedures and the relevant legal framework as well as the business and tax environment in Greece. For these reasons we would suggest the investor to contact, • the Offices for Economic & Commercial Affairs of our Embassy in Ankara (ecocom-ankara@mga. gr) and/or the Consulate General in Istanbul (ecocom-istanbul@ mga.gr) in order to receive specific information for the investment environment and the contact details of the competent authorities in Greece which will guide and support the potential investor in the realization of his/her business plan. The competent agency for investment promotion in Greece is the • Enterprise Greece Agency http:// www.enterprisegreece.gov.gr/en

Brands / Lorem

The Turkish Perspective

Content: Bürotime: Pioneer Of The Office Furniture Sector P57 Bien:Power Of The Ceramic Market P60 Editor: Ramazan Güzyurdu

furnıture, ceramıc...

Bürotime performs world- class productions in manufacturing technology with its modernization works.

furnıture

Bürotime:

PIONEER OF THE OFFICE FURNITURE SECTOR

Bürotime, the leading company of the sector with its experienced, specialized, qualified staff, modern service concept and vision which is not limited by Turkey, is the largest office furniture producer of Turkey. By SERAP KAYA

ounded in 2000 capitalizing on the experience of Tosunoğulları AŞ dating back to 1980, Bürotime performs world- class productions in manufacturing technology with its modernization works, eco- friendly infrastructure and sustainable environmental policy. Bürotime, first office furniture manufacturer awarded GREENGUARD

certification in Turkey at seats & furniture product groups, is the first choice of the worldwide known organizations that demand the highest green building certificates such as LEED and BREEAM. Leader manufacturer contributes to development of the local economy by expanding its export markets and increasing production capacity every year.

Bürotime Modern Furniture Manufacturing Process Bürotime, focusing on human health and environmentally friendly, ergonomic products has been operating in the field of office furniture sector. With a production area of 140.000sqm and a showroom area of 40.000sqm in Konya Industrial Zone”, Bürotime has the capacity to produce

more than 2000 furniture units per day and maintains the claim of “the fastest production & delivery” to reach its customers in an efficient way. Bürotime, which provides the most creative and innovative solutions for the individual and collective work areas, aims to design today the offices of the future, owing to its global vision, initiative spirit and dynamism.

Brands /Bürotime

Bürotime, which is frequently spoken about in the international arena owing to the products which are not only sold throughout Turkey, but also exported worldwide, is proud and happy to be “The National Brand of Turkey”. With its never-ending energy and its determination for applying the correct strategies, Bürotime, which had realized the long-term targets in a very short time such as 14 years and achieved being the leader of the sector, is aware of the fact that remaining on the top is harder than reaching top and acts accordingly in all the areas of its operations knowing this.

Fully furnished with high-tech Using advanced technologies and applications starting from the project stage to raw material procurement, production, packaging, delivery and after-sale support, the production processes have been growing dynamically. Having reshaped its production scheme in line with the evolving needs

Bürotime uses raw materials that comply with environment and human health based on E1 quality standards.

MARCH 2018 ISSUE 56

Bürotime is proud and happy to be “The National Brand of Turkey”.

the number of countries Bürotime export

30%

Bürotime’s yearly growth in 2017

Bürotime’s concept showrooms abroad

in the journey of Industry 4.0 (New Generation Production Technology), which started five years ago, Bürotime first established the “Bürotime Data Collection System”, which can instantly evaluate production data by ERP systems. By launching CRM, B2B service modules, the Company produces products and services that are highly competitive and sustainable by placing importance on the applications that provide cyber security as well.

Sustainable Production Bürotime has been producing at world

standards with its modernization works coupled with environmental friendly and sustainable environmental policies. In accordance with “Integrated Management System Policy”, Bürotime uses raw materials that comply with environment and human health based on E1 quality standards.

Quality Assurance System In order to reach the targets that are determined within the scope of “Total Quality Management”, Bürotime has its main strategy to provide quality inputs, to implement quality plans without interruption, to train employees, to increase production quality controls, by providing employee participation. Bürotime complies with the international standards such as Greenguard Gold, GeprüfteSicherheit (German Product and Equipment Safety Certificate), TÜV Rheinland (Quality Management System Certificate), US Trademark Registration Certificate (Trademark, Patent and Intellectual Property Register), TS EN ISO 18001 Certificates of Health and Safety Management System), TS EN ISO 9001 (Quality Management

The Turkish Perspective

free of charge during the warranty period by concept showrooms and dealers. In case of mistakes or malfunctions caused by shipment or production, the company performs service and maintenance free of charge.

Exporting All Around The World

System Certificate), TSE EN ISO 14001 (Environmental Management System Certificate).

Delivery & Assembly All the processes that a product passes from order confirmation to dispatch are controlled by optical barcode and RF ID applications. Input and final product controls are made by quality control team and operating operators based on control and process criteria. During the delivery process, the installation of the products and the layout suitable for the project are undertaken in line with the requests of the users.

Architectural Project Support Working with more than 600 architects and project offices in the country, Bürotime

Bürotime made its first abroad sale in 2002 and now exports more than 50 countries and 150 sales points all around the world.

has a series of innovations in its working and living spaces through sustainable projects. The company closely following the design trends in the world and develops its own designs in an efficient and charming way.

After sales services After sales services by Bürotime are provided

Bürotime made its first abroad sale in 2002 and now exports more than 50 countries and 150 sales points all around the world. With Sarajevo store opening in 2013, Bürotime has laid the foundations of a franchiseoriented growth in target markets and continues to accelerate its existing investments and projects by converting sales points into concept showrooms. Keeping up its franchise structures in Georgia, Egypt, Germany, Iraq, Jordan, Kenya and Saudi Arabia, Bürotime has achieved 30% growth in 2017 and that the company will corroborate their knowledge and experience in the sector by increasing the number of concept showrooms abroad from 7 to 25 within this year and also use them to contribute to the cultivation of qualified work force to work in the industrial field.

Brands / Bien Seramik

Bien Seramik which will use 10 thousand 500 tons capacity pressing machines for the first time in Turkey.

ceramıc

Bien:

POWER OF THE CERAMIC MARKET

Being a prominent leader of the world’s ceramic market, Bien exports its products to six continents and 66 countries, particularly to USA, Canada, Spain, Israel, and Greece. By İlhan alpay ogan

ien which carries on business within Ercan Companies Group; keeps on its existence in two different groups as Bien Seramik and Bien Sanitary Wares. Following the latest technology and integrating these techniques to its manufacturing power, Bien is the first manufacturer of wall tiles produced with digital technology.

MARCH 2018 ISSUE 56

Starting a big ceramic health tools (SSG) investment in 2011, Bien adds vitrified products to its tile ceramic production with new investments and manufactures an average of 25 millions square meters of floor tiles, wall tiles, porcelain tiles, technical porcelain in its factory. Bien; presents to the Turkish and World ceramic

market its products which are manufactured as matt/ polished porcelain tiles and ceramic wall & floor tiles through Bien Seramik brand. Bien Seramik, which markets its products through more than 3.500 selling points, domestically through more than 130 authorized dealers, claims its place in the sector with its worldwide awarded designs and a product

collection of more than 100 products. Bien Seramik which produced in its factories in Bilecik and Bozüyük, realizes according to Turkish standards by certificating its products through TS EN 14411 and TSE YILDIZ/ ÇİFT YILDIZ. Bien Seramik, having received its “Authorized Economic Operator” certificate at 2018

The Turkish Perspective

in the month of January, keeps on its activities through that certificate and which it obtained within the context of the customs procedure simplification regulations. The company is also the first manufacturer of wall tiles manufactured through Digital Technology and the Technical Porcelain tiles of 20 mm.

Bien Seramik Aims at Increasing Its Production Capacity With 20% Thanks to Its New Investments Bien Seramik, whose production volume exceeds 25 million m2 per year on ceramic tile, manufactures a 10% of the ceramic tiles produced in Turkey. Bien Seramik which has grown on an average of 26% each year for the last three years, aims at increasing its production capacity with a 20% thanks to its new investments in 2018. Bien Seramik which exports to about 70 countries at 6 continents

abroad, exports 35% of its production. The brand which also aims at extending its market share alongside with its new investments, participates in the important fairs are held abroad Bien Seramik which will use 10 thousand 500 tons capacity pressing machines for the first time in Turkey, plans to produce larger sizes and more qualified products which are called as the technical porcelain, polished porcelain.

Owner of Various Prestigious Awards There is an experienced team at Bien Seramik’s design and production development department, which conducted important studies on Re-De. The brand which prioritizes the subject of design, follows the world and Turkey trends regularly with its Re-De team and realizes its product designs in accordance with these trends. Having so many prestigious awards both

Bien Seramik which exports to about 70 countries at 6 continents abroad, exports 35% of its production.

domestically and abroad, Bien had big investments on environmental friendly technologies since the day it was founded, both with its tile and vitrified designs. Bien Seramik which has attached importance to the

exposition in its dealers, has showrooms starting from 500 m2 and reaching up to 5000 m2. Bien, which has studies on the subject of energy and water economy thanks to domestic recycling, enables nearly a hundred percent of the water purified in the waste water treatment facility. Bien, which had investments in the field of ceramic sanitary ware (SSG) field, has founded Bien Banyo Ürünleri Sanayi and Ticaret A.Ş. in the year 2017. Bien Banyo Ürünleri, which drives forward the specialization and capacity increase in the product range, has started to attract attention in the sector thanks to its sales and marketing activities since January 2018.

Bien and Environment Bien accomplishes its responsibility against nature with its environment friendly approach across its manufacturing processes. Stressing the important issue that require attention for all our lives, Bien continues to all its business operations with this consciousness. Continuing its investments on recycling and as well as energy and water savings, Bien recycles almost 100% of the waste water in its factories located at Bilecik and Bozüyük in line with its investments made for the environment.

Bien and Water Acting with the consciousness that every drop of water must be preserved, Bien produces closets that consumes minimum 2.5 and maximum 4 liters of water with full functionality and provides 38 tons of water savings in a family of 4 compared to the closets with 6 liter of water capacity.

Agenda

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

20-24

Konya Agricultural 2018 TÜYAP Konya International Fair Center KONYA AGRICULTURE 2018 Konya 16th International Agriculture, Agricultural Mechanization and Field Technologies Fair will be held in TUYAP Konya İnternational Fair Center between 20 – 24 March 2018.Konya Agriculture 2018 Fair will be a big opportunity to show Anatolia’s Power of Agriculture to Eurasia and to the world.The main target of the fair will be to present the latest technologies, the process of EU membership, in the agriculture sector. Konya being a center of agriculture and a city where traditional food production is very high, increases the importance of the fair.

22 - 25 MARCH

İstanbul Jewelry Show CNR EXPO / İSTANBUL FAIR CENTER

İstanbul Jewelry Show is used to be a comprehensive marketplace for international jewelry community and professionals. The ever growing number of participants and attendants accompanied with the value added trade show services have created a unique business environment in one of the fastest developing regions of the world.

Eurasia Glass

Tüyap FaIr Center. / İSTANBUL

7-10 March

Expomed Eurasia

TÜYAP FAIR CENTER / İSTANBUL

MARCH

21-25

22-25 MARCH

Idev 2018 WIN EURASIA Metalworking and WIN EURASIA Automation fairs will be coming together under the same roof between 15-18 March 2018 in Tüyap, Istanbul. Inline with the demands of the sector, the leading trade fairs of Eurasia region will merge their power for 2018 edition. As 6 trade fairs will be coming together within the scope of WIN EURASIA, exhibitors and visitors will have unique opportunity to showcase and experience the 360° Manufacturing Industry. MARCH 2018 ISSUE 56

The fair attracted a total of 34,086 professionals, including 4,972 international and 29,114 local visitors, and was participated by 705 companies and company representatives. Simultaneously held with the fair, the “City Hospitals, Health Tourism and PPP Symposium” organized by Healthcare Management and Training Society and Public Private Partnership Society, covered the city hospitals in full detail.City Hospitals, Health Tourism and PPP Symposium hosted Ministers of Health from five countries.

KOCAELİ Tüyap Anadolu Fuarları AS cooperates with Kocaeli Chamber of Commerce; İDEV 2018 - 4. East Marmara Ideal Home, Wedding and Housing Fair, East Marmara Real Estate Fair and Cosmetic and Personal Care Fair, prepared with the valuable support of Kocaeli Metropolitan Municipality, İzmit Municipality and Kocaeli Chamber of Industry between 21-25 March 2018, Kocaeli International It will take place at the Exhibition Center.

Figures TURKEY’S ECONOMIC CONFIDENCE INDEX

SECTORAL INDICES AND THE RATE OF CHANGES

Turkey’s economic confidence index increased month on month in January, soaring 10%, according to Turkish Statistical Institute (TurkStat).

“Economic confidence index is a composite index that encapsulates consumers’ and producers’ evaluations, expectations and tendencies about general economic situation, ” TurkStat said.

2018

Index

2017

December 2017

January 2018

120 110

104.9 96.4

99.8

100.8

103.7

65.1

106.4 103.4 101.8

99.3

91.9

100

109.2 110.9

95.3 Index reaches nearly 105 points

86.3

1.6%

96.2 102.0

6.0%

100.6

70 Month

11.1%

72.3 98.3

5.6%

106.2 81.6

Data: Anadolu Agency

Number of Energy Production Plants in Turkey ( As Of July 2017 )

6.7%

Data: Anadolu Agency

Turkey’s economıc growth projectıons

Turkey as an R&D Hub TECHNOPARKS, R&D CENTERS, AND DESING CENTERS

OECD

SOLAR

Early Projection for 2017

1,773

3.4%

2017

2018

Now, Projection for 2017

HYDROPOWER

613

Projection for 2018

4.5% - 5%

NATURAL GAS

TECHNOPARKS

773

1,000

288 WIND

186 EUROPEAN COMMISSION

COAL

Early Projection for 2017

2.8 % Nov. Projection

GEOTHERMAL

for 2017

33 OTHER 165

TOTAL

3,098

5.3% Projection for 2018 4%

WORLD BANK

R&D CENTERS

Early Projection for 2017

2.7%

Jan, 2018 Projection for 2017

6.7%

142

DESING CENTERS

250

DESING CENTERS

Projection for 2018

3.5%

As of the end of 2017, Turkey was home to:

By the end of 2018, Turkey expect to have:

64 Figures

GERMANY

10,72

BELGIUM

2,47

NETHERLANDS

3,33

FRANCE

4,76

6,10 USA

5,02

share of tOP 20 COuNTRIES ın total export (%) Turkish exports shares to most prominent 20 markets in January 2018.

SPAIN

4,79 MOROCCO

1,16

poland

2,24

ROMANIA

2,44

RUSsıa

2,04

ITALY

5,90 BULGARIA

1,77

china

1,86

IRAN

GREECE

2,18

1,40

ISRAEL

2,40

EGYPT

1,79 saudı arabıa

1,44

Data: TİM

MARCH 2018 ISSUE 56

ıraq

4,65

L A DIE S FIRS T SINCE T HE FIRS T DAY

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