THE TURKISH PERSPECTIVE 50 by Turkish Exporters Assembly

YOUR COMPLIMENTARY COPY

TH YEAR

BRIEFING National Era In File Transfer: Filegoes IN DEPTH All For A Smile BRANDS The Largest Simulator Training Center of Europe and Middle East

SEPTEMBER 2017 ISSUE 50

ECONOMY BUSINESS FOREIGN TRADE ANALYSIS

EX ORIENTE LUX *

Turkey, 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.

* The sun rises from the east.

KURBAN BAYRAMI 20X26cm.indd 1 KURBAN BAYRAMI 20X26cm.indd 1 KURBAN BAYRAMI 20X26cm.indd 1

17.08.2017 15:45 17.08.2017 15:45 17.08.2017 15:45

The Turkish Perspective

Contents 26 COVER 05 FIRST

Ex Oriente Lux

Turkey, 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.

13 BRIEFING

56 BRANDS

50 INDEPTH

13 | National Era in File Transfer: Filegoes

56 | The Largest Simulator Training Center of Europe and Middle East

GM Information Technologies Inc. has developed the completely native, cloud technology software “Filegoes. com”.

17 | South-Korea Burst of Exporters

Turkey-South Korea Business Forum and bilateral business negotiations held in South Korea’s capital city on July 7-9, 2017.

20 19 | The Export Compass Directs the Route to Ghana

Turkish Exporters’ Assembly (TİM) has addressed the Ghana market after South Korea with the 2nd leg of Export Compass event.

20 | ‘Fly Good Feel Good’ with Dr. Oz on board Turkish Airlines

Always aiming to provide the best service to its passengers, Turkish Airlines has initiated the new “Fly Good Feel Good” project to ensure that its passengers have the best in flight experience.

22 | Continue to Show Confidence in Turkey’s Economy

Turkey offers ample opportunities and continues to be an attractive investment destination.

The complex will also be an important educational tourism center in the area in the sense that it includes a great variety of flight training departments.

58 | Offering Its Services In A Seamless Way

TİKA has increased its activity and visibility with the momentum of new foreign policy expansions of the Turkish Government.

Offering its services in a seamless way since 1989, Mars Logistics is one of the strongest companies in the industry.

60 | Assan Hanil AIMS TO BE A GLOBAL COMPANY

50 | All For A Smile

Kibar Group’s company Assan Hanil aims to be a global company and have a strong position in export markets.

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

63 FIGURES turkey: the rıght address to buy a resıdence

2 Online

Online

theturkishperspective.com MANAGEMENT Publisher on Behalf of Turkish Exporters Assembly/ CHAIRMAN of The Turkish Exporters Assembly

MEHMET BÜYÜKEKŞİ

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

Strategıc Partner Presıdent of Prıme Mınıstry Investment support and promotıon Agency

Arda Ermut

and business, is born. The Turkish Perspective Digital will share the latest

Manager In Charge H. BADER ARSlan PhD

news, interviews with decision makers, provide in-depth analyzes and will be the

PUBLICATION BOARD

foreigner’s guide in Turkey regarding regulations and legislations.

M. İlker aycı Hc. DR. MUSTAFA ÇIKRIKÇIOĞLU BİLAL EKŞİ SÜLEYMAN KOCASERT Noyan gürel BÜLENT AYMEN ZEKERİYA METE Furkan Karayaka

PUBLICATION MANAGEMENT President Mehmet Mücahİd Demİr

mdemir@theturkishperspective.com

VICE President YAŞAR MAMATİ Project COORDINATOR Ahmet Damgacıoğlu adamgacioglu@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

Edıtorıal Editors mustafa yİğİt myigit@theturkishperspective.com

RAMAZAN GÜZYURDU european COORDINATOR İnanç atılgan contrıbutıng reporters İLHAN ALPAY OGAN ALPEREN ÇEVİKASLAN design

YOUR COMPLIMENTARY COPY

ExCLUSIvE INTERvIEw

The Minister of Economy expresses his views on economic developments in Turkey.

APRIL 2017 ISSUE 45

TH YEAR

panorama Q&A on Turkey’s Attraction Centers Program brieFinG Startup Business House Project By TİM and TEB in DepTh Invest to learn, Learn to invest

may 2017 issue 46

ECONOMY BUSINESS FOREIGN TRADE ANALYSIS

eConomy business ForeiGn TraDe analysis

Discover your own story with Turkish economy’s comprehensive transformation process.

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brieFinG Turkey the Champion of Diplomacy Traffic

YOUR COMPLIMENTARY COPY

in DepTh A New Era For Investors: Super Incentive System

TH YEAR

BRIEFING National Era In File Transfer: Filegoes IN DEPTH All For A Smile

branDs Assan Foods: Grow In Industry Scale Continuously

auGusT 2017 issue 49

eConomy business ForeiGn TraDe analysis

BRANDS The Largest Simulator Training Center of Europe and Middle East

SEPTEMBER 2017 ISSUE 50

ECONOMY BUSINESS FOREIGN TRADE ANALYSIS

TURKEY FORENERGY:

AN AMBITIOUS CANDIDATE Turkey is a vulnerable actor when it comes to energy supply.

EX ORIENTE LUX *

* The sun rises from the east.

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

CREATIVE DIRECTOR AHMET SAİD ÇELİK acelik@theturkishperspective.com

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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.

september 2017 ISSUE 50

The Turkish Perspective

Editorial MEHMET BÜYÜKEKŞİ PRESIDENT (TIM)

Global Trade Growing Steadily

Turkey is getting better day by day and which shows us that we were right on the spot in declaring 2017 as the “Breakthrough Year” in our exports.

lobal trade increased by 8.6 percent in the first half of 2017, while at the same time quantity based trade is also continuing to recover. We can say that, the increase in oil and commodity prices in the first quarter were especially effective in these positive developments. Similarly, the growth rate has increased in both Euro zone and EU in the second quarter by 0.6 percent. World Trade Organization’s leading indicators of global trade also point to a recovery in trade. Fitch Ratings revised its growth forecasts for the global economy upward, moving from 2.9 percent to 3.0 percent for 2017 and from 3.1 percent to 3.2 percent for 2018. Moving in the same direction, Turkey’s indicators are getting better day by day as well. In the first half of 2017, our exports increased by 8.2 percent in value and 12.6 percent in quantity. In the first seven months, exports increased by 10.7 percent, reaching 90 billion dollars. Which shows us that we were right on the spot in declaring 2017 as the “Breakthrough Year” in our exports. Moreover, our economy is experiencing many other positive developments in different areas. For instance, the current account deficit in June was $3.7 billion, down by 24.2 percent compared to the same month last year. Likewise, the unemployment rate, which stood at 13 per cent in January 2017, decreased by 2.8 points in May to 10.2 percent and continues to decline. Again, inflation, which was in double digits since February 2017, has fallen to single digits in July. Our stock

market breaks new records every day. JP Morgan also raised Turkey’s growth estimate from 3.8 percent to 4.6 percent in 2017. Undoubtedly, incentives and reforms offered by our government since the second half of 2016 in the fields of production, high added value, exports, investment and employment have had a serious effect on these positive developments. However, we need to make better use of these times, in which we are experiencing the highest growth rates since 2010. We have to redefine the way we do business, focus on the competition with R&D, innovation, design and branding in all processes, and create the resources needed to invest in areas that will provide the real change. Again, we must provide an appropriate investment environment to increase our production capacity for exports. In addition to these, we need to pay extra attention to export markets. Both increasing our share in the markets we are already operating in, entering new

markets have utmost importance for us to realize our export targets. For us, every country in the world, regardless of their location is a target market. With this in mind, we are organizing trade delegations to 48 countries ranging from Africa to Europe, Americas to Middle East. We take not only our goods but also our friendship to every country we visit. We know that, just buying and selling goods can make great contributions to exports. However, this effect is likely to be short-term, the important thing is to ensure mutual trust and to be able to create friendship between both sides. We build and develop our relations with the countries we trade with in this way. Until today, we have gained important friends and allies in the countries we export and we enjoyed the mutual benefits together. Our relationship with the EU countries is the best example in this aspect. We carry out half of our exports to the EU. Nearly 70 percent of the foreign direct investments coming to our country are from the EU. Our Governments have been working on updating the Customs Union for a long period of time, as the private sector, we also participate in the sub-study groups and share our views. Studies show that this update will make a great contribution to both sides. Our buyers in the EU are looking forward to this deal as well. However, this issue has recently been turned into a political tool. As businesspeople of Turkey, we hope the current dark clouds of politics scatter soon enough, and we can enter a period in which trade is the main focal point.

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CMY

4/19/17

14:23

The Turkish Perspective Content: Investors’ Confidence In Turkey Continues P05 Joint Mechanism With Russia in Idlib P06 World’s Second-Largest Contractor P07 Team Up In Defense P08 ‘Made In Turkey’ To Rule The World P09 $1B Worth Wind Power Plant P10 $7B Eergy Deal P11 Editor: Mustafa Yiğit

First

busıness, dıplomacy, tourısm, defense, automotıve, scıence, fınance, energy, economy, avıatıon... The successful investment environment in Turkey has been enabled both by the potential of Turkey and advantages the country.

busıness

Investors’ confidence in Turkey continues WITHOUT doubt

As investment projects accelerate across Turkey, the country is ensuring the safety and security of investors who have not regretted their investment decisions, President Erdoğan claims.

resident Erdoğan asserted that investors who have made investments and trusted in Turkey’s investment environment have not experienced regret because of their decisions as investor confidence in the country

continues trending upward. President Erdoğan spoke at the opening ceremony of a beverage factory with a $110-million investment in the western province of Isparta by Anadolu Group, which owns more than 50 percent of Coca Cola İçecek in

Turkey. Erdoğan pointed out that the continuity of international investments is of great importance in a period in which questions concerning the Turkish investment environment have been raised. Stating that investors in Turkey have never experienced and will

not feel regret due to their investment decisions, he said, “Turkey, which borders the world’s most conflict-stricken regions Syria and Iraq, maintains strong neighbor ties with Europe, the Balkans and Russia. In this picture, Turkey has

no problems with the safety of individuals or investors.” The president said that the successful investment environment in Turkey has been enabled both by the potential of Turkey and advantages the country offers to investors with its regional position.

First

Automotıve

expandıng operations in Turkey Russian commercial vehicle firm expands their operations in Turkey. The GAZ Group, one of the largest commercial vehicle manufacturers in Russia, announced that it has expanded the range of GAZelle Next vehicles with minibus and panel van models in its Sakarya factory where it has been assembling GAZelleBusiness vehicles since 2012, and GAZelle Next vehicles since 2014. The group’s press department issued a statement that said: “The new models will be added to the previous models of GAZelle Next and will expand the range of GAZ automobiles in the Turkish market. More than 200 vehicle modifications will be produced for various business types on the basis of four main models.”

SEPTEMBER 2017 ISSUE 50

dıplomacy

busıness

Joint Mechanism with Russia in Idlib Ankara, Tehran and Moscow are gearing up joint efforts to find a way that favors the three countries that started the Astana talks to solve the problem in Idlib, Syria.

Second R&D, Innovation Summit in Istanbul next month

he Turkish and Iranian military chiefs in their meeting in Ankara earlier this week shook hands on a joint de-escalation zone mechanism in Idlib, which would also include the Russian military, high level sources said. The generals came to a mutual understanding for the controversial Syrian town to “easily sort out the issue.” Ankara, Tehran and the Kremlin have recently ramped up joint efforts to find a way out in Idlib after the United States signaled an offensive on the town on the grounds that it has become home to al-Qaida-affiliated groups. Following the unprecedented visit by the Iranian chief of staff, the Russian chief of staff will now pay a visit to Turkey in the near future, Foreign Minister Mevlüt Çavuşoğlu said. The sources stressed that even though Ankara and Tehran are on the same page regarding Idlib, experts from all three countries will work on the details of the three-way mechanism. “What mattered in the meetings was that there is a will from all three sides to take action,” one said. The tensions concerning Idlib quickly escalated after the U.S. special envoy for global coalition to counter Daesh, Brett McGurk, contended that the town has become a hotbed for al-Qaida terrorists. Speaking at a panel on U.S. President Donald Trump’s fight against terrorism in the Middle East Institute in Washington on July 30, McGurk said: “Idlib has turned into a safe zone for al-Qaida terrorists on the Turkish border. “

R&D, Innovation Summit and Expo will shed light on the future of Turkey for the second time. Turkey’s innovation and R&D leaders will attend the summit that will host R&D and innovation activities and leaders that will enable Turkey to accomplish the government’s 2023 vision. Turkey’s national and domestic projects, some for the first time, will be displayed during the event. R&D and innovation leaders, who are essential for Turkey’s goal of becoming a world leader, will meet in Istanbul, and new domestic and national projects, regarded as Turkey’s future, will be exhibited.

The Turkish Perspective

energy

turkey’s first floating solar power plant

The Floating Solar Power Plant, the first of its kind in Turkey, officially went into operation.

The project was undertaken by Istanbul Enerji, a subsidiary of the Istanbul Metropolitan Municipality, and Istanbul Water and Sewerage Administration (İSKİ), which administers the fluvial freshwater lake that provides water to Istanbul. The plant, constructed from non-corroding material, is comprised of 960 polycrystalline photovoltaic panels that provide 260 watts of energy each. Currently, the plant has an installed capacity of 250 kilowatts, which is planned to be increased in the future. The plant is expected to prevent 210 tons of carbon dioxide emission every year. Using the experience gathered in this project, the municipality wants to expand floating solar energy plants to other bodies of fresh water including dams, to cover Istanbul’s increasing energy demand and curb water loss due to evaporation.

fınance

busıness

World’s Secondlargest Contractor

first half sales reach $5.5 bln

The number of Turkish contractors on the list of The Top 250 International Contractors rose to 46 in 2016 from 40 in the previous year.

Sabancı Holding saw its consolidated sales increase 11 percent to 5.45 billion dollars year-on-year in the first half of 2017.

he total revenue generated by Turkish contracting companies from the projects that they undertook abroad last year was $25.6 billion. Among the Turkish firms, the first three were Rönesans, Polimeks and Enka. In the recent period, fluctuations in the global economic environment and risk appetite increased its influence on the international construction industry which is on the top of the sectors most affected by the global economic uncertainty. According to Engineering News-Record (ENR) data and opinion for the construction industry worldwide, the market size of the world’s largest 250 international contractors dropped to $501 billion in 2015 with a 4.1 percent decline in two consecutive years and to $468 billion in 2016 with a 6.4 percent shrinkage from $544 in 2013. The list is prepared based on the revenue gathered by contractors from their overseas activities in the previous year in consideration of the tightening in global liquidity conditions and the effects of geopolitical issues.

a tremendous success Despite the adverse developments in major markets, it is a tremendous success that Turkey’s firms have increased their share of total revenue.

25.6 5,5% $468

bILLION

The total revenue of Turkish contracting companies ın 2016

The total market share of the listed Turkish companies ın 2016

BILLION

the market size of the world’s largest 250 international contractors ın 2016

According to a Sabancı statement, operational profitability increased by 21 percent to 4.3 billion liras ($1.22 billion) in the first six months of 2017, compared to the same period of the previous year, according to data compiled by Anadolu Agency. Its net profit rose to 790.2 million liras ($224.15 million) in the second quarter from 712.1 million liras a year ago. Total assets rose to 326.58 billion liras ($92.74 billion) in the first half of 2017 and the total equity capital of the consolidated main shareholder rose to 24.56 billion liras (some $6.97 billion).

First

defense

Turkey, Indonesia Team Up in Defense As part of its defense strategy, Ankara is enhancing cooperation with Jakarta to boost bilateral projects in defense industries and the sharing of military experience.

tourısm

extension of Eid al-Adha public holiday Turkey’s embattled tourism sector is pleased with the extension of a public holiday to 10 days. Speaking after a cabinet meeting on Aug. 15, Deputy Prime Minister Bekir Bozdağ announced that the Eid holiday would extended to 10 days in Turkey this year. The cabinet agreed at a meeting chaired by President Recep Tayyip Erdoğan to extend the holiday to the full 10 days for public employees, Bozdağ said. According to the cabinet decision, the Eid al-Adha holiday will start on Aug. 28 and end on Sept. 3. Bozdağ told reporters the decision was taken in the context of “helping family visits, reviving the tourism sector, and having a positive effect on commerce.” SEPTEMBER 2017 ISSUE 50

ollaboration between Turkey and Indonesia in the defense industry and the military is increasing as the two countries are engaged in joint production of tanks, drones, submarines, weapons and radar systems. High-level diplomatic sources in Ankara told Daily Sabah that Ankara and Jakarta have recently intensified efforts to jointly develop defense industry mechanisms and share military experience. In this respect, a prototype for the Turkish-Indonesian tank has already been created and is set to partake in an official military parade in Jakarta in October. The sources did not provide the number of tanks that would be produced, but demand will be a determining factor. Defense industry experts said the tank will weigh around 35 tons, and will have a 700-horsepower engine. There will be two tanks in the first leg of production, one for Turkey and one for Indonesia. The development cost for the medium-weight tank is estimated at $11.5 million. The FNSS, a subsidiary of Nurol Holding, which operates in the industry, eyes the production of 40 tanks, while that number could go up to 200 if Indonesia is satisfied. The KAPLAN MT tank is expected to make a powerful contribution due to its firepower and large ammunition options as well as its superior agility. A CMI Cockerill 3105 tower, equipped to fire high-pressured 105mm shells, provides the tank’s firepower. One of the striking points in the joint venture is the production of submarines. The senior sources stressed that Indonesia wants to gain know-how and the deal is near completion. Experts said that the Turkish defense industry is producing six submarines in Turkey’s Gölcük shipyard under the license of ThyssenKrupp. The first submarine is set to be delivered in 2021.

scıence

Turkey to establish metrology lab in Sudan Sudanese researchers will also be trained in Turkey, Turkish Scientific and Technological Research Council president says. Turkish Scientific and Technological Research Council’s National Metrology Institute will establish labs in Sudan, the council’s President, Prof. Dr. Arif Ergin, told Anadolu Agency Friday. Ergin said the project worth $1.13 million was essential and would boost cooperation between the two countries. He said the decision to establish the labs was taken after talks with the Sudanese Standards and Metrology Organization. The project will be carried out in three years by the institute’s Medical Metrology Laboratory, including installation of electrocardiogram, patient simulator, ultrasound calibrator for diagnosis, phototherapy radiometer, lung simulator, pressure, humidity and temperature measurement systems. Sudanese researchers will also be trained in Turkey, Ergin added.

The Turkish Perspective

automotıve

economy

‘Made in Turkey’ to Rule The World Turkey’s Economy Minister Nihat Zeybekci says the winds of Turkey will soon blow across the world.

hybrid ferries for Norway: shipbuilder Turkey has so far built nine hybrid ferries for Norway.

Turkey has so far built nine hybrid ferries for Norway, which is one of the world’s leading maritime nations, deputy board chairman of YalovaAltinova Shipbuilders Inc. “Norway is looking to replace (a part of) its fleet of ferries with hybrid ones (which combine diesel power with electric battery power) until 2020,” Orhan Gülcek told, adding the Nordic country was preparing to get at least 80 new ferries in this regard. “Some 20-25 ships have already been built of which nine has been built in Turkey,” Gulcek said, adding this number would increase further considering Turkey’s success in this area.

urkish Economy Minister Nihat Zeybekci announced in a written statement that the “Regulations on the Establishment and Assignments of Turkey’s Promotional Group” has today been published in the Official Gazette. “Globalization is a concept that leads competition to maximize, as well as converging the world economies. Contrary to belief, global competition is not only among companies. Today, the companies and economies which cannot be backed by its country’s image fail. Therefore, global competition is also important in terms of promotion. The TTG, which we have established to this end, will be an active element that brings all export and manufacturing components together, where the promotional activities will be planned within the framework of rationality.” Zeybekci pointed out that Turkey will not move on in passive manner that shapes its strategies according to other countries’ patterns, and that they aim to create a new active Turkey which will determine consumption habits, fashion and trends at all stages of manufacture. “A wind of Turkey will blow across the world in the forthcoming period,” Zeybekci added. “We will bring our industries, brands, achievements and ambition into view everywhere, particularly in our cultural geography, thanks to our magnificent and ancient culture, art and values. Supported by a wind of regular and continuous production, and an image which is based on a strategy, our export and the foreign investments, which are expected to increase, will have a pioneering role for the country’s economy, and contribute to the realization of Turkey’s real potential. Our effort is that any consumer from all corners of the world who purchases a product sees the inscription: ‘Made in Turkey.’”

fınance

ease stock exchange procedures Turkey is set to remove obstacles before companies that cannot trade on Borsa Istanbul. Şimşek told staterun that a respective exemption was introduced to companies that cannot post periodic profits for a consecutive two-year period due to their heavy investment plans. He noted said that the government passed this amendment to provide flexibility for companies with a market value of more than 100 million Turkish Liras to be traded on Borsa Istanbul. “Upon the condition that a company posted an operational profit in the previous year and in the semi-periods of that term, the stock exchange will be able to decide for this company, which cannot meet the condition to post periodic profits for a two-year period, to be traded on the Star Market by taking its activities, financing structure and plans how to use its yields from an initial public offering,” he said. The stock exchange will also consider such companies’ amortization and redemption costs, which do not require any cash outflow, in calculating their operational profits, Şimşek added.

First

ENERGY

labor

$1B Worth Wind Power Plant

Turkey has taken an important step towards increasing the share of domestic and renewable energy resources.

scıence

joinıng World Solar Challenge Istanbul Technical University Solar Car Team will participate in “World Solar Challenge 2017”. Istanbul Technical University’s (ITU) Solar Car Team, Turkey’s first internationally awarded solar car team prepares to take part in “World Solar Challenge 2017,” which will be held in Australia on Oct. 8-15, with their eighth solar vehicle “B.O.W ISTKA.” Supported by the Ministry of Development and Istanbul Development Agency (ISTKA) and designed by ITU’s Solar Car Team, “B.O.W ISTKA” was launched at Istanbul Technical University. The students produced a significant work as a result of an intensive one-and-a-half year study, ITU’s Vice Rector Prof. Dr. Tayfun Kındap said. He also expressed his gratitude to the sponsors who supported the development of the solar car. SEPTEMBER 2017 ISSUE 50

t a time when TurkishGerman ties are shadowed under the political rift, a TurkishGerman consortium, consisting of Siemens Gamesa-TürkerlerKalyon, win the tender for the wind power renewable energy areas by offering $3.48 per kilowatt hours (kWh), which was $10.3 per kWh for wind power. Bids for the second project were received last week and eight of the world’s 10 largest wind turbine producers competed for the establishment of a 1,000-megawatt (MW) wind power plant. Four of those eight companies were from German, two from China, one from Denmark and one from the U.S. The tender on the wind power plant, the second project in the scope of the YEKA strategy, was held at the Energy and Natural Resources Ministry

headquarters Thursday. Wind turbines will be built in five different regions of Turkey, including Kayseri-Niğde, Sivas, Edirne-Kırklareli-Tekirdağ, Ankara-Çankırı-Kırıkkale and Bilecik-Kütahya-Eskişehir. The winners will activate a total installed capacity of 1,000 MWs, provided that it installs wind power of at least 50 MWs in each of these five regions. With the YEKA competition, domestic production will also be provided for the first time in the field of technology. According to the tender specifications, the successful bidding company will establish the factory with over $100 million in investments. An average of 300 to 450 domestic wind turbines, with a power of at least 2.3 MWs, will be produced in the factory.

FINANCE

Akbank Secures $1.2 billion Loan for 2017

Turkey’s Akbank announced on Aug. 15 that it had secured another $1.15 billion equivalent multi-currency syndicated loan for 2017.

he loan, which breaks down into facilities of $542.6 million and 515.1 million euros, marks the bank’s second round of refinancing in 2017 and will be used for general corporate purposes. “On the back of favorable political and macroeconomic developments in Turkey

and Akbank’s strong fundamentals, the facilities received an overwhelming global response,” the bank said in a statement. “The transaction has received strong support from Asian banks with a share of received 27 percent of the final allocation, excluding Japan,” it added.

a steady decrease ın may Turkey’s unemployment rate dropped to 10.2 percent in May, which covered the April-June period, falling further from a seven-year high at the start of the year but up from 9.4 percent in the same month last year, data from the Turkish Statistics Institute (TÜİK) showed on Aug. 15. Turkey’s unemployment figure showed a steady decrease during the first five consecutive months of 2017, with the jobless rate standing at 10.5 percent in the MarchMay period. However, the youth unemployment rate for people aged 1524 was 19.8 percent, with a 2.4 percentage point increase in May compared to the same period of 2016. The number of jobless people aged 15 and above jumped to 3.2 million in the month, marking an increase of 330,000 from the same month last year, according to TÜİK data. The unemployment rate for people aged 15-64 was 10.4 percent, with a 0.8 percentage point year-on-year increase. The employment rate was 47.7 percent with a 0.2 percentage point increase, according to TÜİK data.

The Turkish Perspective

energy

$7B energy deal Turkish energy firm Unit International A.Ş. has signed a $7 billion agreement with Russia’s state-owned Zarubezhnet and Iran’s Ghadir Investment Holding . In a statement, Unit International, which is owned by the former chairman of Turkish football club Galatasaray Ünal Aysal, said that it has struck a deal with its Russian and Iranian partners for drilling in three oil and a natural gas fields. The oil fields were reported to have an estimated reserve of 10 billion barrels and will produce 100,000 barrels per day. The natural gas field, on the other hand, has an annual production capacity of 75 billion cubic meters. The consortium will also be allowed to carry out drilling projects in other regions of Iran, the statements said.

economy

avıaton

Turkey’s External Assets Rise Over In June Assets abroad advanced by 3.8 percent by end of the first half of 2017 compared to end-2016, says Central Bank.

14 pct growth in a decade

urkey’s external assets rose by 3.8 percent in the first half of this year to reach $223.7 billion compared with the end of 2016, Turkey’s Central Bank announced. The country’s liabilities against non-residents also increased by 13.1 percent to $647.8 billion in the same period, bank data revealed. The net international investment position (NIIP) -- the gap between Turkey’s assets abroad and liabilities -- was minus-$424.2 billion in June compared to minus-$357.3 billion at the end of last year. Reserve assets, a sub-item under assets, stood at $108.7 billion at the

end of June, marking an increase of 2.3 percent compared with the end of 2016, while other investments were recorded at $72.4 billion, up 5.7 percent from the end of last year. Currency and deposits of banks, a sub-item of other investments, were recorded at $32.2 billion, indicating an increase of 8 percent in the same period. On the liabilities side, direct investment at the end of June rose by 22.8 percent to $167.8 billion compared to the end of 2016 “with the contribution of the changes in the market value”, the Central Bank stated.

advanced furthermore Turkey’s external assets rose in the first half of this year compared with the end of 2016.

3,8

percent ıncrease ın turkey’s external assets ın the fırst half of 2017

$223.7

13,1

turkey’s external assets in h1 of 2017

the country’s liabilities against non-residents

bıllıon

percent

Outperforming many world superpowers, the Turkish air transport sector recorded 14 percent growth in the past decade. With a staggering 14 percent growth rate in the last decade, Turkey’s air transport sector has become the world’s fastest growing aviation industry, according to the General Directorate of Civil Aviation. As European countries and some developing nations struggled with economic problems, Turkey’s developing economy has helped record high growth rates in many sectors, and especially in the aviation industry. Compared to a 5.6 percent growth in the international air transport sector over the last decade, Turkey’s aviation and air transport sector has grown by an impressive 14 percent.

The Turkish Perspective Content: National Era in File Transfer: Filegoes P13 Exports Increased by 31.2 Percent to $ 11.4 Billion in July P16 South-Korea Burst of Exporters P17 Focuses on the Financing Problems of Exporters P18 The Export Compass Directs the Route to Ghana P19 ‘Fly Good Feel Good’ with Dr. Oz on board Turkish Airlines P20 Continue to Show Confidence in Turkey’s Economy P22 Editor: Mustafa Yiğit

Briefing

tim-teb, exporters dıary, avıatıon, ınvestment... TİM-TEB Startup busıness houses

National Era In File Transfer:

FILEGOES

GM Information Technologies Inc., operating in the field of information technology in Konya, has developed the completely native, cloud technology software “Filegoes.com”, which can instantly transfer files from anywhere in the world. By RAMAZAN GÜZYURDU

Briefing

e interviewed with Gamze and Mehmet Özcan couple (the founders of GM Information Technologies Inc.), who came to Konya for university education 13 years ago, developing the completely native, cloud technology software “Filegoes.com”, which can instantly transfer files from anywhere in the world.

SEPTEMBER 2017 ISSUE 50

have developed over a period of about 5 years, and filegoes. com, which we launched in 2016, started to spread much faster than we anticipated. FileGoes.com offers a variety of underground services for cloud storage and file transfer, including individual users, corporations and universities. We have already taken part in this sector, which has just started to spread in the world, and we continue to develop with our team which becomes crowded and experienced every day. Of course, you will earn instant money for companies with low capital, like us. Instead of going to commercial software, it is very difficult to enter into long, difficult and costly development processes that are focused on producing advanced technology and compete with huge companies in the world. We have to give up ourselves whenever we are forced and we have many reasons to give up because we need prolific young people who know how

to get out of every difficulty that this country has not given up and we have worked even harder. Because, since the day we were founded, our primary goal of our and our friends working with us is to develop creative solutions nationally at the highest level of technology in our country and to make our country a production place in the field of information technologies in a high reputation structure from every direction.

“Our goal is to become a global brand in the field of cloud technologies by opening to Europe, America and Middle East markets within 4 years.”

Despite being a platform established in 2007, there is a serious road that is shortlived. What do you depend on this? Information technologies are developing and spreading very fast, and developing companies like us should be developing systems that people need in a very short time, by sensing the future of these rapidly developing technologies. We have done a lot of research before we developed filegoes.com,

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How did Filegoes, which was completely national, born and how did it develop? Could you tell the process a bit? Filegoes.com started in 2007 with two university students, Gamze Özcan and Mehmet Özcan, to set up their own software company. Since its foundation, GM Information Technologies Inc., which has always carried out studies with focus on innovation and innovation. In 2012, the company started to make researches on cloud storage technologies and file transfer platforms that will serve the whole world from Turkey by carrying out researches in the field of cloud technologies which is spreading rapidly in the world. The need for high-resolution picture and video sharing, which occurs when smartphones enter our lives, needs to be done quickly and easily in one go. Having set out from this need, we decided to implement a platform in which people can share their files, pictures, videos and documents reliably, easily, quickly and most importantly. We aimed to use the platform we developed not only in Turkey but all over the world, we called our project name filegoes.com. With a staff of 15 engineers, including software engineers, system engineers, designers and graphic designers, we

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The Turkish Perspective

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what kinds of services are available in the world, how convenient they are to people, and how fast they are doing, how easy they are to use their services and how safe they are. Our biggest focus was that these developing systems should be completely domestic and national. We think that we are one of the rare countries where intelligent and intelligent people live together, and it is no longer uncomfortable for us to use technology that is always produced outside in such a country. If we develop our product and give it to people, we are not the only owner of this thinker, and now we want to use domestic and national products in our users like this, and this field is developed by Turkish engineers who have many superiorities according to all the competitors in the world, Everyone has adopted it and started to use it. Of course, before all this, we were luckier than the generations before us because a government that gave us a capital to build our company developed all the steps of our project by taking advantage of the support that encourages us to do business again in many ways. After having spent our life with our project, Konya Karatay University and Turkish

Gamze and Mehmet Özcan, the founders of GM Information Technologies Inc.), came to Konya for university education 13 years ago and developed Filegoes. com”

Exporters Assembly started to be used and spread with the support of many institutions, universities and private companies. Everyone who knows that we are a national and national product owns the product and gets incredible returns, which has strengthened and motivated us even further. At the moment we have reached 50 thousand unique visits per day and more than 100 thousand Premium users. Our goal is to become a global brand in the field of cloud technologies by opening to Europe, America and Middle East markets within 4 years.

“Since the day we were founded, our primary goal of our and our friends working with us is to develop creative solutions.”

What contribution did TİM-TEB Startup Business Houses have to you, could you talk a little about this support? We met with the TİM-TEB Startup Business Houses after we produced the public part of filegoes.com and we have had considerable support for our products, including setting up our product strategies, setting

goals, and what customers should offer us. We hope that the same process will continue after that and we think that TİM-TEB Startup Business Houses will support many other projects like ours. We believe that a long-term cooperation with TİM-TEB Startup Business Houses will be beneficial for both sides.

What are you doing to move Filegoes forward and improve it? There is a strong and powerful team of experts in their fields who are working hard to develop and move FileGoes.com. Analyzes needs, evaluates user turnarounds and constantly develops new services and services. He is currently working on new methods of security and encryption algorithms that have critical presets. It is moving with great sensitivity to prevent data loss and to protect personal data. At the same time, they never compromise on speed and software quality. FileGoes.com designers are constantly creating new designs and providing fun content to provide users with easier and more convenient interfaces. We increase our file transfer capacity and free premium cloud disk space every day. We are striving to move our point where we can be called impossible. Thus, we aim to be the number one in file transfer and cloud disk service in the world. What recommendations would you like to have for young people who would like to do this kind of work like you? Like us, we work with friends regularly and programmatically to address their friends’ recommendations, their place, and their goal. They are never on their way to keep their ideals and never believe they are right. They forget that the greatest key to success is stability. We believe that we know that young people will change the fate of this country. As long as you believe in young people and support them.

Briefing

EXPORTS INCREASED BY 31.2 PERCENT TO $ 11.4 BILLION IN JULY

Turkish Exporters Assembly (TİM) announced July 2017 export figures at Vestel City in Manisa, which was placed 6th in the TIM 1000 research, with the attendance of Economy Minister Nihat Zeybekci. ccording to the

Chairman of TİM Mehmet Büyükekşi, Turkey’s exports in July were 11 billion 474 million dollars with an increase of 31.2 percent compared to the same period of last year. Exports in the first seven months was 88 billion 926 million dollars with an increase of 10.7 percent compared to the same period of last year while exports in the last 12 months amounted to 150 billion 22 million dollars with an increase of 7.5 percent compared to the previous year. Mehmet Büyükekşi said, “According to TURKSTAT, this is the highest rate since the 31.9 percent increase we had in August of 2011. In other words, the best of the last 6 years, the second best performance of the last 8 years.” Büyükekşi also expressed that they are happy that Minister of Economy Nihat Zeybekci continued to be “the captain of the export ship” in the new cabinet. The Chairman also added, “Because being a leader who knows the exporters at the head of our foreign trade makes a great contribution to the development of our exports.” In July, the best performing sector was automotive with an increase of 41.1 percent compared to the same month the previous year. Automotive sector was followed by apparel sector with 1 billion 483 million dollars and chemical SEPTEMBER 2017 ISSUE 50

materials sector with 1 billion 190 million dollars. In export markets, exports to 173 countries and regions increased while exports to 54 countries and regions decreased. Büyükekşi said, “Germany has been in the top of our exports for many years. This month, our exports to Germany increased by 28.2 percent, securing Germany’s place. We are glad that the environment of temporary crisis we recently experienced has not affected our trade.”

According to TİM data, exports in July increased by 17.7 percent on quantity basis and increased by 12.8 percent in the first seven months.

The highest increase in exports among the top 20 countries with the highest export value was in Russia with 95.7 percent. Exports to the EU rose 29.1 percent in July compared to the same period last year. The EU’s share in total exports was 51.1 percent. According to TİM data, exports in July increased by 17.7 percent on quantity basis and increased by 12.8 percent in the first seven months. By provinces, while 71 cities increased their exports in July, 9 cities’ exports dropped. All of the top 10 exporting provinces have increased their exports. Sakarya scored the highest increase in exports with 175 percent. Büyükekşi also spoke about Manisa and Vestel City in his speech, Manisa was the 9th largest exporter with 1.84 billion dollars last year. As one of the leading exporters in Turkey, Vestel is also always among the top 10 exporting companies.

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The Turkish Perspective

Bülent Aymen,TİM Trade Delegation Chairman, stated that Turkey and South Korea have very important historical and economic ties.

SOUTH-KOREA BURST OF EXPORTERS

Turkey-South Korea Business Forum and bilateral business negotiations held in South Korea’s capital city on July 7-9, 2017.

urkey-South Korea Business Forum

and bilateral business negotiations, which is under the coordination of the Ministry of Economy and TİM organization, held in South Korea’s capital city on July 7-9, 2017. Bülent Aymen, who is Member of the Audit Committee of the Assembly and Head of the Coordinator of the AKİB, was the Head of Committee. The forum where more than 80 representatives of Korean companies participated in, started at 10.00 am with the opening speech of Turkey’s Seoul Commercial Counselor

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Mr. Kim Hyun Myung,stressed that the trade relations of the two countries will be affected positively with this organization.

Muhammet Alper Atilla. Mr. Atilla talked about the 60th anniversary of the start of the bilateral relations between South Korea and Turkey, and the Free Trade Agreement, which entered into force between the two countries in 2013, added strength to our mutual economic relations. After Mr. Atilla, Mr. Kim Hyun Myung, Deputy Chairman of KOIMA (Korean Importers Association), emphasized that, with the participation of Turkey in the Korean War, the relationship between the two countries has a deep rooted past and that our relations are increasing strongly by both

culturally and economically. South Korea and Turkey are the countries that made the most powerful economic breakthroughs in their respective regions. Myung said that KOIMA, South Korea’s only importer association, has been operating for 46 years and has a total of more than 8,000 members operating in almost every sector. Finally, he stressed that the trade relations of the two countries will be affected positively with this organization. Finally, Bülent Aymen,TİM Trade Delegation Chairman, stated that Turkey and South Korea have very important historical and economic

ties, and that with the participation of Turkey in the Korean War, the two countries’ relations have strong bases. Mr. Aymen said that “Ayla”, a film about the emotional story between a Turkish soldier who participated in the war the Korean War and a Korean girl who stayed in the middle of the war, will make an important contribution to the relations between the two countries. “Having said that bilateral trade volume has fallen behind current potential in recent years in line with developments in global markets, our goal is to bring this figure back to record levels” he said. Following the speeches, bilateral business talks were held with 18 Turkish companies and over 80 South Korean companies. In the following sections of the delegation, TİM directors and Turkish company representatives made a courtesy visit to the Embassy of Seoul in Turkey, followed by important business negotiations and bilateral contacts at the Korea Trade and Investment Promotion Agency (KOTRA) and the Korean Textile Federation (KOFOTI).

Briefing

FOCUSES ON THE FINANCING PROBLEMS OF EXPORTERS

TANZANIA

TİM organized the first of the “Export Financing Seminars” with the contributions of Turkish EXIMBANK and Coface. urkish Exporters Assembly (TIM)

organized the first of the “Export Financing Seminars” with the contributions of Turkish EXIMBANK and Coface in order to ease the firms’ access to finance shortly after President Recep Tayyip Erdogan’s call on credit interests on the banks. The “Export Financing” Panel, organized by the Turkish Exporters’ Assembly with the intent of facilitating access to finance and reducing financial costs to a minimum level, was organized at the Foreign Trade Complex in collaboration with Turkish EXIMBANK and Coface. Moderator Ali Orhan Yalçınkaya, indicated that knowledge and experience about the diversification of the financial instruments used by the companies were shared, stated that cash flow has played a key role in the survival of the companies during the opening speech and added that the planned organization will come in due consideration of this reality.

“We aim for $ 40 billion financing support at the end of the year” Turkish EXIMBANK Director General Enis Gültekin stated that Turkish EXIMBANK provided 43.1 percent of export credits for 30 years, operates in 10 branches in Turkey, is ranked first at loan asset ratio and tenth at credit balance.” He added that “At the end of SEPTEMBER 2017 ISSUE 50

the year we are targeting $40 billion in financing support”. Gültekin emphasized that they support the production and sales processes and he shared information about the credits originated by the Central Bank of the Republic of Turkey (CBRT), credits for foreign exchange earning services as well as short and medium-long term credits.

“Coface products make big contributions to export” Emre Özer, Coface General Manager, stated that Coface is the first private venture in credit financing in Turkey, with a market share of 42 percent in the country and is issued a policy that paid 390 million TL of compensation mounting up to TL 238 million and risked 4.8 billion euros. Özer also stated that “Coface products make big contributions to the exporters because of the factors such as customer service support, early warning system, widespread information network and agility,” He also explained the advantages of trade credit insurance offered to customers against letter of credit and factoring services. After the presentations, Turkish Eximbank and Coface authorities made important evaluations and directions on the participants’ loan processes, international relations, banking relations, pre-financing, pre- and postshipment insurance and long term export issues.

GREAT ATTENTION TO TANZANIA DELEGATION

More than 250 representatives of the Tanzanian companies attended the forum which is organized as a part of the Businessman Mission.

urkey-Tanzania Business Forum and bilateral business meetings organized by the Turkish Exporters’ Assembly was held at the Presidential Mr. Ahmet Güleç member of the board, held on 25-28 July 2017 in the city of Dar es Salaam, Tanzania. More than 250 representatives of the Tanzanian companies attended the forum which is organized as a part of the Businessman Mission. The mentioned event has been started at 10:00 am and moderated by Mr. Onur Tekyıldız Commercial Counselor in Dar Es Salaam, Mr. Ahmet Güleç’s opening speech it has been underlined that Tanzania emphasized that Turkey is one of the most important trading partners in East Africa and that Tanzania constitutes 15% of our trade with the countries in the region.

“TİM DELEGATION IS ONE OF THE LARGEST BUSINESS PEOPLE DELEGATIONS TO TANZANIA ORGANIZED UNTIL TODAY” After Mr. Güleç, the director of the TPSF (Tanzania Private Sector Foundation) Mr. Louis ACCARO told that the bridge between Turkey and Tanzania should be expanded. ACCARO emphasized that the TIM Mission is one of the largest business people delegations to Tanzania so far. ACCARO underlined that there are great opportunities in the mining and construction sectors in Tanzania.

BILATERAL MEETINGS WITH MORE THAN 250 TANZANIAN FIRMS

After the speeches, 25 domestic Turkish companies from different sectors had bilateral business negotiations with over 250 Tanzanian companies’ representatives. Turkish company representatives, who were very pleased with Tanzanian companies’ interest passed within a big crowd, emphasized that the bilateral business negotiations were satisfying and productive.

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The Turkish Perspective

“Today, The Route is Ghana”

GHANA

THE EXPORT COMPASS DIRECTS THE ROUTE TO GHANA

Turkish Exporters’ Assembly (TİM) has addressed the Ghana market after South Korea with the 2nd leg of Export Compass event.

In his speech TIM Chairman Mehmet Büyükekşi said, “We informed exporters about South Korea. Today, our route is Ghana. Forty-five percent of Ghana’s GDP was composed of agriculture 8 years ago. Now more than half of the national income comes from the service sector. Ghana has a wide range of products, including rich underground resources such as gold and petroleum, and its world famous cocoa.”

“We must overcome obstacles of the trade”

Market entry strategies and transport, customs and insurance issues were also discussed in the meeting.

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urkish Exporters’

Assembly (TİM) has addressed the Ghana market after South Korea with the 2nd leg of Export Compass event. Along with the risks and opportunities for Turkish exporters in the Ghana market, market entry strategies and transport, customs and insurance issues were also discussed in the meeting. The meeting started with the opening speech of TİM Chairman Mehmet Büyükekşi. Republic of Ghana İstanbul Consul General Muhammed Nurudeen İsmaila, DEIK Turkey-Ghana Business Council Chairman Pelin Güneşoğlu, Secretary General of TIM Dr. H. Bader Arslan, Coface Commercial Group Deputy General Manager Ali Gençtürk, Ministry of Economy Former Accra Trade Counselor Ziya Çamur and Elvan Group Export Manager Adem Karaduman also participated in the event.

Büyükekşi added, “Our exports to Ghana in 2016 were $298 million. Our imports were $180 million. Our share in Ghana’s $13 billion worth of imports were only 2.6 percent. We need to untap Ghana’s potential together and improve our bilateral trade by overcoming the obstacles. The frequent change of customs duties in Ghana reduces the predictability of the market. This can be a deterrent for our companies. Ghana ports are used for export to noncoastal countries like Niger and Mali. However, there are time-consuming and costly applications for products coming to Ghana’s ports.” Republic of Ghana İstanbul Consul General Muhammed Nurudeen İsmaila told, “Turkey is a big market for us. We will strengthen the relations between the two countries together.” DEIK Turkey-Ghana Business Council Chairman Pelin Güneşoğlu mentioned “In 2016, Ghana attracted $3 billion in foreign investment. There are great opportunities in Ghana for investors.” Secretary General of TİM, Dr. H. Bader Arslan “Over 1000 Turkish companies export to Ghana. Ghana is the best country in Africa, in terms of ease of conducting trade.”

Briefing

AVIATION

‘Fly Good Feel Good’ with Dr. Oz on board Turkish Airlines

Always aiming to provide the best service to its passengers, Turkish Airlines has initiated the new “Fly Good Feel Good” project to ensure that its passengers have the best in flight experience. he “Fly Good Feel

project has been put into action to help passengers have the best flight experience, and it provides expert advice on various subjects ranging from nutrition to exercise and to hygiene. With short videos on cabin exercise, sleep patterns, yoga and meditation broadcast during the flight as well as on the official website of Turkish Airlines, the project Good”

aims to guide passengers to experience a relaxed flight. The project intends to bring a breath of fresh air to the concept of flight, based on customer satisfaction. Turkish Airlines put the project into effect by considering the needs of passengers who will be guided on different issues like pre-flight preparations, cabin exercise, yoga and meditation - all to provide a peaceful and quiet flight experience.

The project is led by famous surgeon Dr. Halit Yerebakan and with it, Turkish Airlines, known for its best-in-class catering and in-flight entertainment, aims to provide its passengers with the best suggestions for their health onboard. The videos for the “Fly Good Feel Good” project are put together under three categories: Before, During and After Flight.

Under these categories many tips are shared with passengers to make them comfortable during their flights. One of the videos under the category of “Before Flight”, for example, covers the topic of “Traveling with children”. Under this topic experts give some tips to parents for a problem-free flight experience. The topics cover a wide range from the “Choosing flying times” to “Things to carry with you”.

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The Turkish Perspective

Healthy Flight Recipe at 30,000 feet from Dr. Oz

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Turkish Airlines has collaborated with Dr. Mehmet Oz, the producer and host of world-renowned “The Dr. Oz Show”, on its “Fly Good Feel Good” project, created to provide an even more comfortable and healthy travel experience to its passengers. Dr. Oz will give advice to the passengers of Turkish Airlines, the airline flying to more countries than any other airline in the world, on healthy eating and exercise. The project features short videos with expert advices presented on the Turkish Airlines official website, social media accounts and in-flight entertainment systems, and printed papers as well. This collaboration between Turkish Airlines, the National Flag Carrier company and Dr. Oz on “Fly Good Feel Good” displays the customer oriented approach of the airline. With help from Turkish Airlines pilots, cabin crew and the Flying Chef of flight TK01 from Istanbul to New York, Dr. Oz surprised passengers before filming content for the “Fly Good Feel Good” project and his daytime show. As part of this special flight experience, Dr. Oz entertained some 300 passengers of this special flight with health-inspiring gifts and messages over the in-flight entertainment system.

“I believe that this project is a great example of the attention put on the passengers by bringing the brand experience of Turkish Airlines to a higher level.”

“Making our passengers’ flight experience more comfortable and enjoyable by continuously improving our brand experience is one of our top priorities.” Mr. M. İlker Aycı, Chairman of the Board and the Executive Committee of Turkish Airlines, said. Expressing Turkish Airlines’ plan to provide even better flight experience with its new “Fly Good Feel Good” project, the Chairman commented: “How a passenger feels is just as important as our awardwinning service quality. The project will create a special atmosphere onboard where our passengers will better feel the privilege of flying with Turkish Airlines.” Dr. Oz commented on the project by saying,

The “Fly Good Feel Good” project of Turkish Airlines addresses all the before, during and after flight processes in order to make its passengers have a good flight. “Turkish Airlines is worldrenowned and awarded for its high quality service and perfect catering. “Fly Good Feel Good” is, too,

an impressive project, mindful of the health and wellness dimension of airline travels. I believe that this project is a great example of the attention put on the passengers by bringing the brand experience of Turkish Airlines to a higher level.” The collaboration with Dr. Oz on the “Fly Good Feel Good” project will let Turkish Airlines better address all the possible problems during the flight in order to offer its passengers a more relaxed and even more comfortable flight. In the later phases of the project, Turkish Airlines will continue to take passenger satisfaction to even higher levels and continue to advice its passengers about healthy living.

Briefing

INVESTMENT

Investors Ramp Up Investments,

continue to show confidence in Turkeyâ&#x20AC;&#x2122;s economy T

he Turkish economy posted growth rates of 3.5 percent in Q4 2016 and 5 percent in Q1 2017. In monetary terms, Turkey attracted USD 11 billion of FDI SEPTEMBER 2017 ISSUE 50

during the August 2016 to May 2017 period, with the first five months of 2017 seeing FDI inflow into Turkey surging 11 percent y-o-y to USD 4.7 billion.

Reforms that began to be implemented as early as 2002 quickly bore fruit as the investment environment in Turkey improved considerably. Several

multinationals invested in Turkey, and many of those have continued to expand their investments over the past 15 years. Some companies have gone as

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Turkey offers ample opportunities and continues to be an attractive investment destination.

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The Turkish Perspective

Turkish President Recep Tayyip Erdoğan praised the continued confidence that investors were showing in Turkey.

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far as to position Turkey as their regional management and manufacturing base. The latest example of this is Anadolu Group’s USD 110 million beverage factory investment in the Isparta province of Turkey. Anadolu Group owns 50.3 percent of Coca-Cola İçecek. Speaking at the opening ceremony of the new production facilities, Turkish President Recep Tayyip Erdoğan praised the continued confidence that investors were showing in Turkey. He pointed out that sustainable FDI inflow to Turkey is important, while underlining that sweeping reforms have been introduced over the past decade to provide foreign investors with an attractive and safe investment climate. Among the other recent large-scale investments that

had been made in Turkey, he singled out Siemens Gamesa, a member of the consortium who won the tender held for the construction of a 1-GW wind power plant as part of the second of Renewable Energy Resource Zones (YEKA) auction in Turkey, and the Istanbul İkitelli City Hospital Project, a joint USD 1.5 billion investment of Turkish and Japanese companies. Erdoğan went on to highlight that FDI inflow into Turkey reached USD 181 billion in the 2002-2016 period, which was significantly more than the USD 13.5 billion raised during the prior 1984-2001 period. Chairman of the Board of Directors of The Coca-Cola Company, Muhtar Kent, also delivered a speech during the opening ceremony. He strongly reiterated their belief in Turkey’s potential and acknowledged that Coca-Cola will continue investing in the country with their partners. The United States is an important investment and trade partner for Turkey due to a long standing economic and political partnership and the fact that the US is the world’s largest foreign investor. The US ranks number 5 in Turkey’s exports and number 4 in imports. As of the end of 2016, the trade volume between Turkey and the US was around USD 17.5 billion. Also during 2016, 7 percent of foreign direct investments into Turkey originated from the USA. According to the American Business Forum in Turkey (Amcham Turkey), their 135 members invested USD 54 billion in Turkey so far and have contributed to the creation of nearly 90,000 jobs.

Briefing

Turkey Aims To Boost Ties With Southeast Asia Through Singapore

Why Is Turkey An Attractive Destination For Call Center Industry? T

peaking to attendees at the SingaporeTurkey Business Forum held on August 21, 2017, in Singapore, Turkish Prime Minister Binali Yıldırım remarked that bilateral trade between Turkey and Singapore will further accelerate when the free trade agreement (FTA) between the two countries enters into force in October this year. The Forum, part of a South Asian roadshow, was attended by more than 200 Turkish and Singaporean business people. Prime Minister Yıldırım said that relations between Turkey and ASEAN, the Association of Southeast Asian Nations, will improve since Singapore will serve as the term chair next year. “Turkey and Singapore look forward to fruitful cooperation with the combination of Turkey’s experience, particularly

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“Turkey and Singapore look forward to fruitful cooperation with the combination of Turkey’s experience and Singapore’s financial resources.” in construction, and Singapore’s strong financial resources,” Yıldırım said. He further noted that Turkey’s stable investment environment following the April 2017 constitutional referendum, strong growth rates achieved over the last 14 years, and the ease of conducting business with regional countries, all provide lucrative opportunities for investors. Turkish Minister of Economy Nihat Zeybekçi also spoke at the forum.

He pointed out that the FTA between Singapore and Turkey is the most comprehensive and inclusive one in Turkish history. He added that the two countries aim to reach a trade volume of USD 2 billion by the end of 2018. The delegation led by Prime Minister Yıldırım attended a working lunch with Singaporean executives that was hosted by the Singaporean Minister of Trade & Industry and a dinner reception hosted by Singaporean PM Lee Hsien Loong. Other members of the Turkish delegation included Deputy Prime Ministers Mehmet Şimşek and Recep Akdağ, Minister of Science, Industry, and Technology Faruk Özlü, Minister of Customs and Trade Bülent Tüfenkci, and President of Investment Support and Promotion Agency of Turkey Arda Ermut.

urkey’s strategic location at the crossroads of Europe, the CIS, the Middle East, and North Africa, along with the country’s existing potential, the increase in per capita income, and a large, young and growing population, have positively impacted the development of the business services sector in the country. Turkey has significant experience in a wide range of business service lines, such as call centers, engineering and architectural consulting, technical testing, and various knowledge-based services. As the private sector increasingly focuses on customer services as a way to retain business, Turkey’s call center and business process outsourcing (BPO) sector has achieved considerable growth in recent years. Specifically, the call center sector in Turkey has gained momentum since the inception of the country’s first call centers in the 1990s. Being in close proximity to Europe, providing time zone

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The Turkish Perspective

advantages to companies that outsource some of their operations, and having a large multi-lingual labor pool, Turkey increasingly serves as an international hub for call centers. According to the Turkish Call Centers Association, the industry had a value of TRY 4.5 billion and employed 85,000 people in 1,229 call centers throughout the country in 2016. The expected CAGR of the call center sector will be 10.5 percent in the next 5 years. Telecommunications, financial services, retail, logistics, transportation, and e-commerce are some of the sectors that receive service from the call center sector in German, English, Dutch, Arabic, French, Russian as well as Turkish. In addition to global companies that have set up exclusive units for BPO operations in Turkey, such as Allianz, DHL, ING Bank, Lufthansa, TNT Express, and Vodafone, several global players in the BPO sector, including Arvato, Atos, Teleperformance, Comdata, and Webhelp, also have a presence in the Turkish market. The list of some of the major acquisitions by global companies in the Turkish call center industry includes the acquisition of Metis by France’s Teleperformance in 2012, the acquisition of Callus by Italy’s Comdata in 2013, the acquisition of Callpex by France’s Webhelp in 2015, and the acquisition of Win Bilgi by Italy’s Comdata in 2016. Global private equity firms have also made inroads into the BPO sector, with Japan’s Mitsui Global Investment investing in Tempo in 2013 and UKbased Mideuropa Partners investing in CMC Contact Management Center in 2015.

Turkey considered to be unique for global logistics as its strategic location.

Abraaj Group Invests in Turkish Netlog Logistics T

he Abraaj Group, a private equity firm operating in growing markets in Africa, Latin America, the Middle East, and Asia, has acquired shares in one of Turkey’s largest logistics companies, Netlog. Abraaj Group operates in 30 countries through 17 offices and manages USD 7.7 billion of funds in 190 companies. This makes Abraaj the largest private equity fund in growing markets. The Group made its 10th investment in Turkey with the share acquisition in Netlog. Investment Support and Promotion Agency of Turkey (ISPAT) President Arda Ermut emphasized at the press conference that Turkey attracted an FDI amount of USD 12.3 billion in 2016, and added, “We think that we will exceed this amount in 2017. Global and regional developments could have constrained FDI inflow to Turkey, yet the first five months of

2017 showed an 11 percent increase year-on-year.” He further underlined that, along with real estate, new investments would be seen in the logistics, healthcare, financial services, IT, petrochemicals, food, energy, and manufacturing sectors. Abraaj Group partner Omar Syed said in an interview that Abraaj has been present in Turkey since 2007 and that they believe in the strong domestic market, the steady economic growth, and the diversified private sector in the country. He said that these factors present lots of long-term investment opportunities, particularly with regard to private equity investments. “As long-term investors, our conviction to partner with high-growth companies operating in high-growth sectors remains unchanged. Our investment in Netlog validates our consumer thesis, and represents

the largest private equity investment made in a thirdparty logistics business (3PL) in Turkey. Similarly moving forward, we will continue to evaluate new investment opportunities in Turkey in consumer-driven sectors with strong growth potential,” said Syed. Turkey is considered to be unique for global logistics as its strategic location provides access within a four-hour flight radius to multiple markets with a combined population of 1.6 billion people, a combined GDP of USD 27 trillion, and more than USD 8 trillion of foreign trade, which corresponds to around half of total global trade. Logistics will continue to be a key sector in the long-term strategic development of Turkey as the government plans to further upgrade its highspeed rail, motorways, and container port infrastructure by 2023.

Cover /Rise Of A New Power

Riseof A New Power By MUSTAFA YİĞİT

Turkey is perhaps one of the most underappreciated countries in the field of geopolitics. Many people will look at Turkey and see just another NATO member with no significant foreign policy of it’s own. But the truth is Turkey has historically been at the centre of the Islamic world. The Ottoman Empire shaped the identity of Muslims, shaped their cultures, economies, and social structures for the good and bad. When the Ottoman Empire collapsed, the Turkish republic became an unprecedented example in the field of secularization and westernization of a Muslim society. Many Arab countries followed this example and shaped their governmental structures according to those of the Turks, think of Egypt, Syria, Libya, Iraq, etc. So when you look at the historical context you will see that Turkey either drags the Muslim world forwards or holds it back. Whether it’s the decline of secularism or the rise democratic institutions, Turkey directly and indirectly shapes the Islamic world. And as Turkey is now slowly awakening from its ninety years long sleep, the country is returning to it’s historical position.

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The Turkish Perspective

Cover /Rise Of A New Power

n the past, Turkey played an important role particularly during the Cold War for the sake of the West (naturally for USA), and today, even if it was still continuing to make immediately its role under the hot tensions of the Middle Eastern policies. However, Turkey eventually needs to free itself of its role of protecting the interests of the Great and Middle Powers of the International System by aiming or trying to apply its own economic and political expansions related to its actual real capacities. As a matter of fact, as a developing country, today’s Turkey has been accepted as G-20’s member since 1999, due to its economic and financial evolution in the world system. Being ranked in 2000 as the 22ndbiggest economy according to GDP out of the top 100 economies in the World , Turkey has been continuously increased its level from 22ndto 17thrank by aiming to be classified among the top 10economies of the World in near future. In fact, Turkey immediately proceeded to hold its strategic supremacy in Caucasian and Central Asia, including Russia and Middle East regions. Especially, it continuously attempted to set up further liaisons in order to strength its relations with Caucasian and Central Asian countries since the end of the Cold War. Turkey is presently and will be in the future obliged to face the Great and Middle Powers of the International System by taking part or playing an acting role in Caucasian and Central Asia since 1991 and in Middle East, especially since the last decades, although the competition difficulties handicap the development of its sincere intention SEPTEMBER 2017 ISSUE 50

PKK has tried to create a destabilization in Turkey and to make foreign investors and hot money leave. However, the top priority of Turkey’s national security is decided for not giving any concession at any price.

Recent Situation in Turkey In the international scene, Turkey attempts diplomatically to overpass some important issues. Even some of them are said to create basic obstacles for its entrance into to EU such as the continental shelf problem between Greece and Turkey and questions concerning Cyprus. Expect these issues to be resolved in the future, the terrorist acts committed by PKK inside and near to the border areas aim to try to destabilize Turkey’s economic and socio-political ascension. Moreover, another short-term problem bothering Turkey is a strategy applied by Northern Iraqi Kurds to create an independent Kurdistan in the north of Iraq. According to the common Turkish

The Turkish Perspective

views, this idea is also supported by some lobbies or political personages of the countries that are believed to be allied to Turkey. PKK has tried to create a destabilization in Turkey and to make foreign investors and hot money leave. However, the top priority of Turkey’s national security is decided for not giving any concession at any price, which could be against the unitary state system and state security. In this framework, Turkey, being on one side a NATO loyal member and on the other side trying to enter loyally into E.U, tries to increase its economic and social and political performances in spite of the rough rules of the New World Order. Among these efforts, Turkey started also a new strategy and policy with Arab countries based firstly on non-visa facilities. However, there has taken place the Spring Revolution in the Arab’s World such as Tunisia, Egypt, Yemen, Libya and Syria, which may influence the pattern and the foundations of bilateral relations with Turkey despite all efforts put by Turkish diplomacy in order to improve the level of the relations. Now,

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

these revolutions need a time for well settled governments and regimes that might be interested to continue to improve their bilateral relations with Turkey. At the same time, on one side, while being supported by the USA for European Union full membership, Turkey that stayed stuck in the way of European Union by Germany and France actual leaders who block Turkey entrance’s tries to bypass their obstacles, on the other side, being a NATO member, and a good ally and friendly country of the USA and an ex-buffer country during the Cold War against the communist regimes of Russia and Bulgaria, it finds itself in a very sensitive position to balance its foreign policy in front of the international conflict of the USA and Iran as being a NATO member and also a country aiming to zero conflict with its neighbors. While giving a look on the economic map of Turkey, we see that bilateral and multilateral investments make Turkey a passage of energy lines. Especially, through the Blue Stream, natural-gas pipelines (even it is the Netherlands based joint venture of Russian Gazprom and Italian Eni); Turkey has been buying natural gas from Russia since 2002 Turkey t, this operation made Turkey first time in its history a dependent country and economic partner to Russia in terms of energy policy since the Russian-Turkish historical bilateral relations existed. At the same times, for Russia, Turkey became a country feeding and protecting the Russian interests by transferring in fact the Russian natural gas to Europe through Turkey. Even this dependence limits Turkey’s foreign policy versus Russia and obliges it completely more to restrain itself from criticizing Russian foreign policy, for instance, in the subjects of Georgia and Chechnya, etc. As a result Turkey, a key NATO member, has always held an important position in global affairs. Lately though, Turkey has become even more prominent on the world stage as both an economic force and a Muslim power. After more than a decade under the rule of Prime Minister Recep Tayyip Erdogan and his Justice and Development Party (AKP), Turkey’s trade patterns, diplomatic outreach, and cultural exports have transformed Turkey from an economically disadvantaged secular state into the first large Muslim nation with a middleclass majority. Erdogan has asserted Turkish influence in highstakes, high-profile foreign issues from Gaza, to Egypt, to Syria, often breaking ranks with his NATO allies. Today, from the cafes of the Arab world to the boardrooms of the G-20, Turkey suddenly matters.

Cover / Ex Oriente Lux

Ex Oriente Lux Foreign policies of states change due to different factors. Changes in the international system is one of the most important factors, which forces states to adopt their foreign policies accordingly. States also consider the changing policies of allies when implementing foreign policy changes. The postCold War international environment has impacted almost all statesâ&#x20AC;&#x2122; foreign policies. With the end of the Cold War, bipolarity ended and regional powers have had more say in their regional policies.

SEPTEMBER 2017 ISSUE 50

The Turkish Perspective

Turkey thinks of herself religious ties with the as an Asian country and region Despite the has emphasized on many long distance between occasions her historical, Turkey and Asia, Turkey cultural, linguistic, and has close ties with the region. The ancestors of Turkeyâ&#x20AC;&#x2122;s Turks emigrated 13 centuries ago from Central Asia and the region near todayâ&#x20AC;&#x2122;s China. Turkey remained unaware of her Asian connection during the Ottoman Empire era. Turkey established her first diplomatic relations with China, Japan, and South Korea during the Turkish Republic era. Historical events are the primary source of good relations between Turkey and the region.

Cover / Ex Oriente Lux

he main argument is that as a rising region in the world, the Asia-Pacific region is received attention from all over the world and many countries, including the US and other major powers, have given special importance to their foreign policies towards Asia-Pacific. Turkey’s special ties with the US were an important factor shaping Turkey’s Asia-Pacific policy, particularly during the Cold War era. Therefore it would be appropriate to evaluate Turkey’s policy towards the region in line with the US and NATO strategies during the Cold War era. Turkey’s policy at that time was mainly shaped by the Cold War and the bipolar structure of the international system. Turkish foreign policy makers were concerned about the Soviet threat and looking for security guarantees. In fact it was not surprising that Turkey wanted to be a member of North Atlantic Treaty Organization (NATO). Turkey’s application for NATO membership was not welcomed at first so Turkey was even rejected initially. Turkey was finally accepted as a NATO member in 1952, three years after NATO was established. Besides Turkey’s strategic importance, developments in the Asia-Pacific region played a role in the approval of Turkey’s membership. Turkey was very eager to play an active role in preventing the spread of communism and cooperate with the West, since Turkey and the West had common perceptions of the security threat.

SEPTEMBER 2017 ISSUE 50

THE tie BETWEEN TURKEY AND ASIA PACIFIC REGION began with the role of the Turkish Army in the Korean War. The historical and ethnic linkage of Turkey to the region forces Turkey to be proactive in East Asia.

It is now apparent that the defining theme of the 21st century will be the rise of Asia-Pacific region. The rise started primarily in the economic field but its political, military and cultural implications have gradually begun to manifest themselves. This region is in the midst of a rapid development process and consequently many countries in the region are increasingly seen as important actors. The Asian continent contains around 45 percent of the world population, as well as 30 percent of the world economy. As such, any political, military, economic development in the region as well as developments regarding environmental impacts of industrialization, Access to food, raw materials and energy resources have global affects.

Improving the Forgotten Ties Turkey has a special place in the region, as it is also an Asian country, among its many vocations. Turkey has historic,

The Turkish Perspective

The year 1991 produced great changes both in the international system and in the balance of power in Asia.

cultural, linguistic and religious ties with a wide range of countries along the ancient Silk Road. In line with its multidimensional foreign policy and in view of the growing economic and political significance of Asia-Pacific, Turkey has put into effect policies geared towards opening up to the region, which has gained considerable depth in recent years. Turkey has had historically good relations and is ethnically related to the area. The ancestors of Turkey’s Turks emigrated from Asia, from a region near today’s China. Turkey has good relations with these three countries, and has no strategic interest in the East Asia. Further, relations between Turkey and Japan date back to the era of the Ottoman Empire and have always been on positive terms. Turkey’s relationship with South Korea is not as old, but it is also positive. This tie began with the role of the Turkish Army role in the Korean War. The historical and ethnic linkage of Turkey to the region forces Turkey to be proactive in East Asia.

With the dissolution of the Soviet Union in 1991, independent Turkic republics emerged in the Caucasus and Central Asia.

One major event that also helped Turkey’s integration with the West and membership in NATO was the Korean War. Turkey sent troops to Korea to support the pro-Western Republic of Korea against the Democratic People’s Republic of Korea. Turkey’s policy in line with the West and Turkish troops’ help under the UN Command were very much appreciated. The Commander of the UN Coalition Forces, General Douglas Mac Arthur, said “the Turks are the hero of heroes. There is no impossibility for the Turkish Brigade.” The most important factors that determined Turkey’s Asian policy in the first period covering the years 1950-1970 were security concerns and the Cold War balance of power. Though the Cold War continued in the second period of 1971-1990, the normalisation of SinoAmerican relations led to changes in the balance of power in East Asia. Turkey began to shift its East Asian policy orientation from security to economics. The end of the Cold War and the collapse of the Soviet Union led Ankara to develop a broader vision of Asia during the 1990s. In the period between 2002-2012, long-planned partnerships with East Asian countries began to be established due to the increase in Turkey’s political and economic capacity. The year 1991 produced great changes both in the international system and in the balance of power in Asia. With the dissolution of the Soviet Union in 1991, independent Turkic republics emerged in the Caucasus and Central Asia. Ankara’s new political, economic and cultural relations with the Central Asian states facilitated Turkey’s expansion towards East Asia. In the 1990s, the improved economic capacities of East Asian countries increased Turkey’s desire to cooperate with the major economies, especially China, Japan, South Korea and Taiwan. Problematic discourses in Turkish-EU relations in the 1990s also forced Ankara to take balancing steps.

Cover / Asia Pacific Welcomes the Minor Asia

Asia Pacific

Welco the Mino

Asia

From ramping up humanitarian aid to opening a raft of new embassies, Turkey is focused on building relationships with the Asia-Pacific region. Turkey is a relative newcomer to the Asia-Pacific region.

Nonetheless, it has succeeded in rapidly expanding its regional footprint in a remarkably short period of time. The Asia-Pacific region has typically been a low priority for Turkish foreign policymakers and only gained wider attention with the coming to power of the Justice and Development Party (AKP) in November 2002. The ascent of the AKP marked a significant shift in Turkeyâ&#x20AC;&#x2122;s perspective of the world, allowing it to cast its foreign policy net into much wider waters to hitherto neglected regions such as Africa, Latin America and the Asia Pacific.

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comes nor

The Turkish Perspective

Cover / Asia Pacific Welcomes the Minor Asia

Turkey has close cooperation with ASIA-PACIFIC countries in such international bodies such as UN, G-20, IOC and MIKTA.

eaching out to the Asia-Pacific region, the fastest growing economic arena in the world, for trade and investment opportunities, has become an absolute necessity for Turkey’s economic future. Turkey’s once flying economy has started to falter noticeably in the past few years. Over-reliance on a weak EU economy and turmoil within Turkey’s neighbourhood left it highly susceptible to external shocks, making diversification of trade relations more urgent than ever before. Diversification into non-traditional markets provides Turkey with security and reliability as risk is spread across different regions and countries, thereby reducing possible market fluctuations. Turkey has elevated its relations to strategic partnership with six countries in the region: China, Japan, Indonesia, Korea, Malaysia and Singapore. Turkey has widened its diplomatic network in the region by opening new Embassies in Naypidaw, Phnom Penh, Bandar Seri Begawan. This brings the number of Turkey’s diplomatic representations in the region to 14. Turkey plans to open an Embassy in Laos and Fiji in the near future. Then, Turkey will have diplomatic representations in all ASEAN countries. Seven ASEAN countries have Embassies in Ankara. Turkey has close cooperation with these countries in such international bodies such as UN, G-20, IOC and MIKTA. Turkey’s accession to the Treaty of Amity and Cooperation of ASEAN in 2010 and membership of the Asia Cooperation Dialogue (ACD) in September 2013, as well as active participation in the Pacific Islands Forum (PIF) as Post-Forum Dialogue Partner and the Shanghai Cooperation Organization (SCO) as Dialogue Partner are all reflections of our desire to associate with as many different sub-regions of the Asia-Pacific as possible.

Turkey shifts focus to the East Turkey’s bilateral trade with the Asia Pacific region has increased dramatically in the last years. The trade volume with the region has increased in the last ten years from 15 billion Dollars to 50 billion Dollars in 2014. The investment from the countries in the region to Turkey has reached 3 billion Dollars and there are 1300 firms from the region presently in Turkey. SEPTEMBER 2017 ISSUE 50

Turkey pays special attention to developing its relations with ASEAN.

Turkey has signed three Free Trade Agreements in the region with South Korea, Malaysia and Singapore. The number of visitors from the region has reached 1 million in 2014. Turkey regards ASEAN as the key regional organization in the Southeast Asia and Pacific region. With its combined GDP amounting to the 8th biggest economy in the world, the 4th largest trading entity with a dynamic population of nearly 650 million, located in the middle of strategic sea routes, ASEAN is an important actor in the region. Turkey pays special attention to developing its relations with ASEAN. The decision to establish institutional ties with the organization dates back to 1999. Turkey acceded to the Treaty of Amity and Cooperation of ASEAN in 2010. Turkey closely follows the situation of Muslim communities in the region. In this regard, Turkey supports the dialogue process in Southern Thailand and contributes to the peace process in the Southern Philippines. The situation of Rohingya Muslims and Muslims in general in Myanmar is another issue that Turkey follows closely. Foreign Ministers of Turkey and the Pacific Islands convened in Istanbul in April 2008, marking the first major event that brought Turkey and the Pacific Island countries together. Turkey hosted Turkey - Pacific Small Island Developing States (PSIDS) Foreign Ministerial Meeting in 2014, held

The Turkish Perspective

Turkey’s interests in the AsiaPacific are primarily motivated by an understanding of the benefits of closer economic partnership with the region’s countries.

under the theme “From Bosporus to the Pacific: Continued Cooperation for Sustainable Development”. Turkey is committed to assisting and supporting developing countries in their efforts towards sustainable development and growth. Turkey has become one of the leading countries sharing its own development experiences and contributing to the efforts in international development cooperation for the Least Development Countries (LDCs). Turkish Cooperation and Coordination Agency (TİKA) has also been working to contribute to the social and economic development of the region. The total contribution of TIKA to ASEAN member countries since 2008 has reached 6.28 million US Dollars. Turkish President Recep Tayyip Erdoğan’s Asia-Pacific visit to China and Indonesia in July/August 2015 is the latest manifestation of the growing importance Turkey ascribes to the region in general and to China and Indonesia in particular. China and Indonesia, as the two biggest economies in the G-20 from the region, are undoubtedly the most promising partners for further Turkish economic expansion in the region. Turkey’s interests in the Asia-Pacific are primarily motivated by an understanding of the benefits of closer economic partnership with the region’s countries, a convergence of strategic objectives, and a desire for an enhanced global role for

Turkey. The focus and objectives of what can be labeled as Turkey’s evolving ‘Look East’ policy has been centered primarily on building strong commercial, institutional and defence ties with the region. Trade with Asia-Pacific has risen considerably in the last ten years from USD $15 billion to USD $50 billion – displaying still considerable upward potential. China is Turkey’s largest trading partner in Asia, its third-largest trading partner in the world after Germany and Russia, and is likely to overtake both very soon. Turkey in recent years has moreover Turkey has assumed important responsibilities in become one the field of humanitarian diplomacy of the leading and foreign aid as demonstrated by countries Turkey’s humanitarian assistance in Southeast Asia. In May this year, sharing Turkey dispatched a navy ship to its own development rescue Rohingya Muslims afloat at sea and donated $1 million to efforts experiences by the International Organisation and for Migration (IOM) and the United contributing Nations High Commissioner for to the Refugees (UNHCR) in this matter. efforts in Turkey’s aid to Southeast Asia following international the 2004 tsunami is another example development of its commitment as a humanitarian cooperation actor, gaining the Turks a strong reputation in the region. for LDCs.

Cover /Dawn of a New Era Between Ancient Friends People’s Republic of China is Turkey’s second trade partner globally after Germany, and first trade partner in the East Asia.

Dawn of a New Era

Between Ancient Friends

As part of Turkey’s new approach to foreign policy after the April 16 referendum and a series of official visits abroad, President Recep Tayyip Erdoğan visited the Chinese capital of Beijing to attend the One Belt, One Road (OBOR) forum, an initiative proposed by Chinese President Xi Jinping in 2013.

iplomatic relations between Turkey and People’s Republic of China (PRC) were established in 1971. Turkey follows “One China” policy and recognizes PRC as the sole legitimate representative of China. Turkey-PRC relations started gradually developing from 1980s with the opening-up of both countries. Bilateral relations, which were elevated to the level of “strategic cooperation” in 2010, have been rapidly improving in recent years thanks to reciprocal highlevel visits. President Recep Tayyip Erdoğan and the President of China Xi Jinping had four bilateral meetings within 2015-2017 period. President Recep Tayyip Erdoğan paid a visit to China on 29-30 July 2015. President Xi

Jinping visited Turkey on 14-16 November 2015 to attend G20 Antalya Summit and had a bilateral meeting with Recep Tayyip Erdoğan. President Recep Tayyip Erdoğan visited China on 4-5 September 2016 to attend G20 Hangzhou Summit and met with Xi Jinping. Lastly, President Recep Tayyip Erdoğan paid a visit to China on 13-15 May 2017 to attend the Belt and Road Forum and had a bilateral meeting with Xi Jinping. Over the years, many consultation mechanisms at different levels have been established with China to discuss bilateral as well as regional and global issues. Deputy prime ministerial and foreign ministerial mechanisms established in 2015 are the two recent examples. Wang Yang, Vice-premier of China and Wang Yi Minister of Foreign Affairs of China visited Turkey to attend the first meetings of these mechanisms which were held in Ankara in November 2016.

Giant Steps for Cooperation Turkey - People’s Republic Of China (Prc) Economic And Trade Relations 30

Billion USD

25 20

Export Import Volume

15 10 5 0

2011

2012

Source: TUIK

SEPTEMBER 2017 ISSUE 50

2013

2014

2015

2016

People’s Republic of China is Turkey’s second trade partner globally after Germany, and first trade partner in the East Asia. China is Turkey’s nineteenth export country, while China occupies the first place in the list of Turkey’s import partners. For increasing Turkey’s export volume to a satisfactory level with China, which has a 1.5 trillion USD import potential and is shifting gradually to a consumption driven economy, Turkey aims to establish a proper legal infrastructure, lift all trade barriers, develop an effective cooperation in the field of customs and standards, expand participation in trade fairs in China, as well as organize commercial delegation visits to every single province. The 16th meeting of the Joint Economic Commission (JEC) between Turkey and China was held on 27 September 2009 in Beijing. The 17th Meeting of the JEC is expected to be

The Turkish Perspective

China is Turkey’s nineteenth export country, while China occupies the first place in the list of Turkey’s import partners.

organized in the second half of 2017. Cochairmanship of JEC is carried out by the Minister of Energy and Natural Sources, Mr. Berat Albayrak in the Turkish side. The Turkish-Chinese Business Council, which was established in 1992, has organized approximately 15 activities annually since then. The last Business Council meeting was held on 29-30 July 2015 in Beijing, on the occasion of the visit of the Mr. Recep Tayyip Erdoğan, President of Republic of the Turkey to China with the participation of Mr. Xi Jinping, President of the PRC. The process for exporting Turkish agricultural and food products to China is on track. In this context, protocols about milk and dairy products, cherry and pistachio were signed during G20 Antalya and Hangzhou Summits. Chinese investments in Turkey surpassed 2 billion USD totally. Sectoral allocation of investments is as follows: energy, infrastructure, logistic, finance, diving, telecommunication and livestock. A swap agreement between Central Banks of Turkey and China was signed in 2012 and renewed in 2015 for 3 years. First withdrawal and usage of cash flow in the context of swap agreement was realized in 2016.

Turkey supports all efforts to carry into effect China’s “Belt and Road” Project, which consist of the “Silk Road Economic Belt” and “the 21st Century Maritime Silk Road”. Located at a key position in this initiative, Turkey aims to realize “Trans Hazar- Middle Corridor” Project, complementing the North Line from China to Europe and opening a new connecting corridor between China and Europe. In this regard, to align China’s “Belt and Road” Initiative with “Middle Corridor” Project of Turkey, a

MAIN COUNTRIES (IMPORT) BILLION $

MAIN COUNTRIES (EXPORT) BILLION $

159

SOUTH KOREA

Memorandum of Understanding was signed on 1st of July, 2016 before the G20 Hangzhou Summit. Turkey considers tourism as a potential area for further developing economic and cultural relations with the PRC. Chinese tourists, visiting Turkey in a steadily rising number since 2002, are strengthening ties between Turkish and Chinese people. 2018 will be celebrated as the Turkish Tourism Year in China. Turkish Airlines has seven flights from İstanbul to Pekin, Guanco and Shanghai and six flights to Hong Kong weekly. Increasing the frequency of flights to China and adding new destination to flight network will develop economic, trade and tourism relations with China, as well as deepen interaction among people. Turkey and China are also negotiating on the joint production of an air defense system. China’s biggest bank, the Industrial and Commercial Bank of China (ICBC) became the first Chinese lender to operate in Turkey following its acquisition of 75.5-percent stake in Turkish Tekstilbank in 2014. Turkey hosts a regional management center for the Chinese network solutions provider Huawei which also operates a research and development lab in Istanbul.

JAPAN

146

Hong Kong (CHINA)

TAIWAN

140

Japan

135

USA TURKEY

2,3

388

USA

SOUTH KOREA Turkey

292 129 94 25,4

Cover /Role Model to Each Other

Role Model to Each Other Turkey and Indonesia’s relationship is close and multifaceted, with a wide range of areas for further cooperation. Indonesia is the world’s third largest democracy, has the largest Muslimmajority population and occupies a strategic position along the Indian Ocean and the Pacific Ocean.

urkish-Indonesian relations can be traced back to the 12th century. Turkish Islamic scholars who visited Indonesia during that period played an important role in the spread of Islam. The Sultanate of Aceh’s call for help from the Ottoman Empire due to the pressure from the Portuguese marked the beginning of the official relations between the two countries. Turkey was one of the first countries to recognise Indonesia in 1949, following its independence from the Netherlands. Turkish Embassy in Jakarta opened on 10 April 1957. In recognition of the growing ties since 2004, both countries agreed to elevate the relationship to a strategic partnership in April. The visit to Indonesia by President Recep Tayyip Erdoğan in late August 2015 bore witness to the quality of bilateral relations. During the visit, Turkish-Indonesia Business Forum meeting was held and Turkish Foreign Economic

Turkey and Indonesia cooperate in a number of multilateral institutions and forums, including the UN, OIC, G20, D-8, and MIKTA.

National Economy

GDP (billion USA $) Real GDP Growth Rate (%) Population (million) Population increase (%) GDP per capita (USA $ SAGP)

868 6 253 1,4 5672

Source: Economist Intelligence Unit, World Bank, Ministry of Economy (2014)

SEPTEMBER 2017 ISSUE 50

Inflation Rate (%) Rate of Unemployment (%) Export (fob-billion USA $) Import (fob-billion USA$) Turkish firms in Indonesia

5,5 6 161 163 3

Relations Board (DEİK) and Indonesian Chamber of Commerce and Industry (KADIN) signed a memorandum of understanding to strengthen trade, investment and technology relations between the two countries. Turkey and Indonesia cooperate in a number of multilateral institutions and forums, including the UN, OIC, G20, D-8, and MIKTA. Indonesia is one of the founding members of the Association of Southeast Asian Nations (ASEAN). In 2010, Turkey acceded to ASEAN’s Treaty of Amity and Cooperation in Southeast Asia. Turkish Embassy in Jakarta has been accredited to ASEAN since then. Indonesia is the largest economy in Southeast Asia, projected to be in the world’s top ten economies by 2030. Given Indonesia’s long-term economic potential, growing middle-class, and dynamic 258 million population, the bilateral economic ties can be further expanded. In the aftermath of the 2004 Indian Ocean tsunami, then Prime Minister, Recep Tayyip Erdoğan visited the disaster-hit Banda Aceh on 6-7

The Turkish Perspective

Indonesia is the largest economy in Southeast Asia, projected to be in the world’s top ten economies by 2030.

February 2005 President Erdoğan payed an official visit to Indonesia on 30 July-1 August 2015. People-to-people links are a vital component of close and friendly bilateral relations with Indonesia. A total of 2.400 Indonesians are registered to be resident in Turkey and around 400 Turkish citizens reside in Indonesia. 573 Indonesians has studied under Turkiye Scholarships at various Turkish universities.

Indonesia, who is the member of G20, is the biggest economy of the Southeast Asia and 16. Of the world with its 868 million USA Dollar national income and 253 million population.

A New-Born Actor in the Region

Turkey’s export and ımport with ındonesıa (mıllıon $)

Indonesia, who is the member of G20, is the biggest economy of the Southeast Asia and 16. Of the world with its 868 million USA Dollar national income and 253 million population. The annual trade volume reached 2.27 billion USD increasing fifteen fold in 2014 from a modest figure of 262 million USD recorded in 2000. The seventh Joint Economic Commission (JEC) meeting was held on 17-18 September 2008 in Ankara. The fourth meeting of the Turkey-

Singapore Business Council was held in Ankara on 17 September 2008. Our Activities which promote cooperation between business communities have been proceeding. Turkey- Indonesia Business Forum was held in Indonesia on 1 August 2015. In the middle of 2015, 3 Indonesian companies operate in Turkey, while 11 Turkish companies operate in Indonesia.

2300 2000 1500

Export Import Volume

1000 500 0

2010

Source: TSI

2011

2012

2013

2014

2015

Cover / Turkey’s Strategic Innovation Push

Turkey’s Strategic Innovation Push The friendship between Turkey and Japan dates back to the late 20th century. The two countries located at the eastern and western ends of Asia completed their modernization process without compromising their national identity and culture.

he Ottoman Frigate “Ertuğrul” paid a goodwill visit to Japan in 1890, bringing the honors and gifts from Sultan Abdulhamit II to the Emperor Meiji. On her return trip, Ertuğrul encountered a typhoon and broke up on rocky coast of Kushimoto. Almost six hundred sailors and officers perished. Hospitality and assistance shown by the Japanese Government and the people for its survivors after this tragic accident is considered as the starting point of the friendship between the two countries. Furthermore, in the middle of Iran-Iraq War, upon Japanese authorities’ request for help, a large number of Japanese citizens were evacuated from Tehran by Turkish Airlines. This evacuation constituted another emotional turning point in bilateral relations.

Diplomatic relations between Turkey and Japan were established in 1924 and Turkey’s first mission in Japan was opened in 1925.

National Economy

GDP (billion USA $) Real GDP Growth Rate (%) Population (million) Population increase (%) GDP per capita (USA $ SAGP)

4602 0,1 127 -0,16 36205

Inflation Rate (%) Rate of Unemployment (%) Export (fob-billion USA $) Import (fob-billion USA$) Turkish firms in Indonesia

Source: Economist İntelligence Unit, World Bank, Ministry of Economy (2014)

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2,4 3,4 694 817 2

Diplomatic relations between Turkey and Japan were established in 1924 and Turkey’s first mission in Japan was opened in 1925. Turkey’s political relations were upgraded to the level of “Strategic Partnership” in 2013, and continue to develop rapidly, with the contribution of mutual high level visits in the recent period. The Japan-Turkey Society was established in 1926 and has since been promoting amicable relations between Japan and Turkey through seminars, the arts, language and cultural exchange and even culinary exchange activities. The Turkey-Japan Cultural Dialog Society was founded in 2006, but records cultural and other types of exchange activities between Japan and Turkey since 1873. According to the public survey in Turkey conducted by the Japanese Foreign Ministry in 2012, 83.2% of respondents answered that the relations between Japan and Turkey are “friendly” or “almost friendly” 2003 was celebrated as “Turkey Year

The Turkish Perspective

in Japan”, and 2010 as “Japan Year in Turkey”. Turkey and Japan are both members of the Organisation for Economic Co-operation and Development (OECD), and the World Trade Organization (WTO). Also Turkey is a member of the Council of Europe, and the Organization for Security and Co-operation in Europe (OSCE), and Japan is an observer. During 2015, the 125th anniversary of the sinking of “Ertugrul”, various commemorative events and visits were held in both countries.

Most Innovative Partner Japan is the third biggest economy after USA and China. Japan attaches a special importance to the automotive and sub-industry, manufacturing, food and infrastructure. At the beginning of 2015, 193 Japanese companies operate in Turkey, while 2 Turkish companies operate in Japan. The 23th Meeting of Turkish – Japan Business Council was held in Tokyo, with the organisation of Foreign Economic Relations Board (DEİK) and Japan Business Federation (KEIDANREN) in November 2015. For the period 2002-2015/January the Japanese FDI (foreign direct investment) in Turkey was a little more than 1.52 billion USD. With the loans provided by Japanese International Cooperation Agency, important projects such as Marmaray, the Bridge of Haliç, Hasan Uğurlu Barrage, Altınkaya Barrage, Second Bosporus Bridge had been financed.

Japan is the third biggest economy after USA and China. Japan attaches a special importance to the automotive and subindustry, manufacturing, food and infrastructure.

During Erdogan’s visit to Japan on 7-8 October 2015, Turkish- Japan Business Forum was organised. During the visit of Shinzo Abe, the Prime Minister of Japan, also joined the Turkish-Japan Business Forum on 16 November 2015 that was organized by DEİK and Japan Foreign Trade Organization (JETRO). In the more distant past, Japanese companies engaged in Turkey and advanced successfully in the following sectors: construction, automobile, machinery, and electrical goods. While continuing in these areas, Japanese business fields in Turkey are now expanding into the banking, insurance, media and food sectors. There are currently around 162 Japanese companies doing business in Turkey with Japanese capital. A recent example of Japanese investment in Turkey is the decision by Sumitomo Rubber Industries to invest approximately $500 million to build a tire-manufacturing factory in the Çankırı province near Ankara by 2015. Sumitomo aims to supply tires to markets in the Middle

Cover / Turkey’s Strategic Innovation Push

Turkey and Japan are both members of the Organisation for Economic Co-operation and Development (OECD), and the World Trade Organization (WTO).

East, Africa and Europe, with the corresponding reduction in lead-time and transportation costs. In the banking and finance sector, Mizuho Corporate Bank Ltd. signed a partnership agreement with Akbank TAS, Turkey’s second-biggest lender by market capitalization, in September 2012; under the agreement the two banks will jointly service Japanese companies investing in Turkey. Mizuho’s rival and the largest Japanese bank, the Bank of Tokyo-Mitsubishi UFJ, invested US$303 million in order to establish a local subsidiary and launch operations in Turkey in 2013. Before it received its banking license in December 2013, the Bank of Tokyo-Mitsubishi UFJ only had a representative office in Turkey, a presence which went back 26 years. Also, sales of Turkish lira-denominated bonds to Japanese investors – known in Japan as Uridashi bonds – increased to US$2.7 billion since the beginning of 2013, surpassing the record US$2 billion raised in 2011. As is well known, in March 2011 an earthquake (now known as the Great East Japan Earthquake) off the eastern coast of Honsh caused the melt-down of the Daiichi nuclear plant in the prefecture of Fukushima. The damage was severe and the cost of stabilizing and restoring the area is high; the array of environmental, economic and societal problems following the Fukushima Daiichi disaster is far from resolved. As a result, the prospects for Japanese companies to continue or undertake new nuclear energy projects SEPTEMBER 2017 ISSUE 50

at home or abroad were diminished. However, a Japanese company belied that appearance when it won the tender to build a new nuclear plant in Sinop, Turkey from other bidders, including South Korea, Canada and China. The Japanese company, Mitsubishi Heavy Industries Ltd., acting in consortium with the French Company Areva SA, is undertaking the project, which is worth US$20.54 billion. Turkey and Japan concluded the deal, known as the Sinop project, in May 2013. Promoted by the prime ministers of the two countries, Prime Minister Shinzo Abe hailing it as a victory for his government and a brick in the edifice of his plan to build up dynamism and growth in a long-stalled economy. In terms of both the economic and political strategy of Prime Minister Abe’s government, the Sinop project carries a symbolic value that is as great as its commercial value; it is a refusal to abandon nuclear technology and an assertion of the Japanese industry to overcome the aftermath of the Daiichi nuclear plant’s meltdown, which looms large in Japanese society.

Turkey’s export and ımport with JAPAN (mıllıon $) 4500 4000 3500 3000

Export Import Volume

2500 2000 1500 1000 500 0

2010

2011

2012

2013

2014

2015

The Turkish Perspective

Fresh Emerging Market

According to Malaysian data by September 2015, the FDI of Turkey in Malaysia is 127 million USD.

Turkey’s formal diplomatic relations with Malaysia date back to 1964. Turkey and Malaysia enjoy a broadbased partnership that is based on close bilateral relations.

n 10 January 2014, then Prime Minister. Recep Tayyip Erdoğan and Malaysian Prime Minister Dato’ Sri Najib Razak announced the elevation of Turkey-Malaysia relationship to a Strategic Partnership. The Strategic Partnership recognises the progress made since the establishment of diplomatic ties between the two countries, and the depth of political, economic, and cultural ties. Turkey and Malaysia share common perspective on a broad range of regional and global issues as members of the UN, Organisation for Islamic Cooperation and D-8. Malaysia assumed the Chairmanship of ASEAN during 2015 and non-permanent seat at the UN Security Council for the term 2015-2016. Malaysia is one of ASEAN’s five founding members. In 2015, Malaysia chaired ASEAN and East Asia Summit. Upon Malaysia’s invitation, Turkish Foreign Minister participated in the 48th ASEAN Foreign Ministers Meeting and Post Ministerial Conferences held in Kuala Lumpur on 4-6 August 2015. Under the 2015 Turkish G20 Presidency, Malaysia was invited, as ASEAN chair, to the G-20 Summit held in Antalya on 15-16 November 2015. Prime Minister of Malaysia, Dato Sri’ Najib Razak met with President Recep Tayyip Erdoğan in the margins of the Summit. Both countries have concluded a bilateral Free Trade Agreement in 2014, which came into force on 1 August 2015. It is the first FTA that Turkey implements with an ASEAN member. In 2016, the number of Malaysian citizens registered as residents in Turkey was around 300 while number of Turkish citizens residing in Manila is 500. Under Turkiye Scholarships, 139 Malaysian students enjoyed higher education at Turkish universities. The second meeting of Joint Economic Commission between Turkey and Malaysia was held in 2006 in İstanbul.

Turkey is a Role Model Turkey-Malaysia Business Council was constituted by the Union of Chambers and Commodity Exchanges of Turkey (TOBB) and National Chamber of Industry and Commerce of Malaysia in 1995. The last Business Council meeting was held on 12 October 2010 in Istanbul. According to the data of Ministry of Economy of Turkey, the foreign direct investment (FDI) of Malaysia in Turkey is 844 million USD, as of 2015/March. ( According to Malaysia relevant authorities, the FDI of Malaysia in Turkey is around 2,5 billion USD. The difference between two figures stems from the adding of the investment numbers of Malaysian firms, which are launched in third countries, to the total FDI of Malaysia in Turkey). The number/lists of Malaysian firms that operate in the third countries has not declared to the public by Malaysian authorities. According to Turkish Ministry of Economy’s reporting, 42 Malaysian firms operate in Turkey. According to Malaysian data by September 2015, the FDI of Turkey in Malaysia is 127 million USD. According to the data collected from Turkish firms by Turkish Embassy in Bangkok, FDI of Turkey in Malaysia has been predicted more than 200 million USD. Major Turkish firms that operate in Malaysia are FNSS A.Ş, YONCA-ONUK, EVYAP, NOVAPLAST, TEPE KİMYA, DORÇE, ASELSAN, ARÇELİK-BEKO, HAVELSAN. Turkey’s Official Development Assistance in Malaysia values 5,54 million USD between years of 2004 and 2013 in total.

Cover / From Front Lines to Strong Friednship

From Front Lines to Strong Friednship

In recent years, high-level exchanges between leaders and ministers, as well as other regular contacts have contributed positively to the development of the bilateral ties and cooperation.

Friendly and positive political relations between Turkey and New Zealand are based on shared fundamental values and the common historical encounter in Çanakkale in 1915.

ommemorations of Çanakkale Land Battles on 24-25 April contribute to friendly ties between the two countries, by providing people to people contacts as well. The centenary of Çanakkale Land Battles were commemorated in April 2015 in Istanbul and Çanakkale with the participation of a large number of countries and international organizations. On this occasion, Turkey hosted then Prime Minister of New Zealand, John Key. Then Governor General Sir Jerry Mateparae also visited Turkey in August 2015 on the occasion of the centenary commemorations. In recent years, high-level exchanges between leaders and ministers, as well as other regular contacts have contributed positively to the development of the bilateral ties and cooperation. Mevlüt Çavuşoğlu, Minister of Foreign Affairs of the Republic of Turkey paid and official visit to New Zealand on 12-14 November 2014. This was the first visit of a Turkish Foreign Minister to New Zealand after an interval of 20 years.

Joint Declarations Turkey-New Zealand Joint Declaration signed on 22 April 2010 by Recep Tayyip Erdoğan, and John Key, Prime Minister of

National Economy

GDP (billion USA $) Real GDP Growth Rate (%)

201 3,5

Population (million)

4,54

Population increase (%) GDP per capita (USA $ SAGP)

1,25 44299

Inflation Rate (%) Rate of Unemployment (%) Export (fob-billion USA $) Import (fob-billion USA$) Turkish firms in Indonesia

Source: Economist Intelligence Unit, World Bank, Ministry of Economy (2014)

SEPTEMBER 2017 ISSUE 50

1,57 5,6 51,17 50,59 >50

New Zealand. This Joint Declaration is considered a road map on bilateral relations and reflects the political will to enhance cooperation on various areas. - A renewed Turkey-New Zealand Joint Declaration on our bilateral relations was announced on 23 April 2015. This Joint Declaration reiterates once again the existing mutual political will between our countries to strengthen every aspect of our relations. New Zealand was represented in ministerial level in the 101st and 102nd anniversaries of the Çanakkale Land Battles. New Zealand constructed three schools for Syrians under temporary protection in Adıyaman, Kahramanmaraş and Midyat. There are nearly 1500 Turkish citizens living in New Zealand. Government of New Zealand established a scholarship dedicated to Didem Yaman, the first Turkish PhD student to study international relations in New Zealand, who passed away tragically in the 2011 earthquake. The annual trade volume reached 150 million USD increasing seven fold in 2015, from a modest figure of 28 million USD recorded in 2001. The ninth Joint Economic Commission (JEC) meeting was held on 28-29 May 2012 in Ankara under the co-presidency of former Minister of National Education. As a result of the efforts made by the Foreign Economic Relations Board (DEİK), the Turkey-New Zealand Business Council was established in 2012. According to the data of the Central Bank, there is no direct investment from New Zealand to Turkey for the period of 2002- 2015. Number of the tourists coming from New Zealand has been regularly increasing. Great number of New Zealanders visit Turkey every year to take part in the Anzac commemoration ceremonies. At the end of 2015, the number of the tourists visited Turkey has reached approximately 37.000.

The Turkish Perspective

Singapore and Turkey

Rediscovering Each Other Turkey established diplomatic relations with Singapore on 12 February 1969 and opened her Embassy on 1 November 1985.

he Singaporean Embassy in Ankara was opened in 2012. However, the first resident Singaporean Ambassador arrived in Ankara on 27 July 2015. The relations that are enhancing and deepening between Turkey and Singapore have been reiterated by the high level visits in recent years. President Erdoğan, then in his capacity as Prime Minister, visited Singapore on 8-9 January 2014. It was the first Prime Minister level visit from Turkey to Singapore after an 18 year interval. Prime Minister Lee visited Turkey on 12-15 October 2014. It was the first ever official visit from Singapore to Turkey at the level of Prime Minister after a 24 year interval. The joint declaration of Strategic Partnership was signed during Lee’s visit to Turkey. The Free Trade Agreement (FTA) between Turkey and Singapore was signed in November 2015 during Prime Minister Lee’s visit to Turkey on the occasion of the G-20 Leaders Summit. This is the most comprehensive FTA that Turkey has ever signed, as it includes public procurements and services sectors alongside trade and investment. Turkey and Singapore have also agreements for “Prevention of Double Taxation and Prevention of Fiscal Evasion with Respect to Taxes on Income” and “Reciprocal Promotion and Protection of Investments”. Although there is not a Joint Economic Commission (JEC)

National Economy

GDP (billion USA $) Real GDP Growth Rate (%)

294 2,8

Population (million)

5,47

Population increase (%) GDP per capita (USA $ SAGP)

1,6 54,5

Inflation Rate (%) Rate of Unemployment (%) Export (fob-billion USA $) Import (fob-billion USA$) Turkish firms in Indonesia

Source: Economist Intelligence Unit, World Bank, Ministry of Economy (2014)

1,2 2 409,5 365,9 59

mechanism between Turkey and Singapore, the Turkey-Singapore Business Council, which was established in 2009, is convened regularly. During the 20152016 academic year, one Singaporean undergraduate student studied under Türkiye Scholarships in Turkey. Every year 15 Turkish students study in Singapore under TEV Scholarships since 2011, in accordance with the agreement between Singapore Agency for Science, Technology and Research (A*Star) and Boğaziçi University, Koç University and Turkish Education Foundation (TEV). The agreement aims to enhance cooperation in certain areas including research and doctorate education, exchange of academic instructors and providing scholarships. Turkish Airlines and Singapore Airlines have seven and five flights per week respectively between Turkey and Singapore route. Approximately 700 Turkish citizens reside in Singapore, while 75 Singaporean citizens are registered to be resident in Turkey as of 2016.

A Significant Momentum Turkey’s bilateral economic relations with Singapore, who is one of the most dynamic country in South East Asia, has gained a significant momentum in recent years. The annual trade volume reached 700 million USD increasing approximately four fold in 2015, from a modest figure of 200 million USD recorded ten years ago. A Joint Economic Commission Mechanism is not existed yet between Turkey and Singapore. At the beginning of 2015, 81 Japanese companies operate in Turkey, while 59 Turkish companies operate in Singapore. The last meeting of the Turkey- Singapore Business Council was held in Istanbul on 13 October 2015. According to the data of Central Bank, for the period 20022014 the Singapore FDI (foreign direct investment) in Turkey was a little more than 350 million USD. Number of the tourists coming from Singapore has been regularly increasing.

Cover / Blood Brothers Of The World

BLOOD BROTHERS OF THE WORLD

South Korean people are thankful to Turkish people because of Turkey’s help in Korean War.

Political relations between Turkey and the Republic of Korea (South Korea) were established on August 11, 1949, with Turkey’s recognition of the Republic of Korea as an independent state.

ccording to South Korean sources, Turkey is ranked third (966) in terms of the number of martyrs among 16 countries that participated in the Korean War .The UN Memorial Cemetery in Busan/Korea honors Turkey’s 462 soldiers that were killed during the war. South Korean people describe Turkish people as “blood brothers”. Korean sources confirm that the Turkish Brigade which participated in the Korean War is the only military unit that built a school for Korean orphans. Turkey’s relations, which were upgraded to Strategic Partnership level in 2012, continue to develop. In addition to, regular, mutual high level visits, Turkey and South Korea enjoy close cooperation in international organizations, especially in the UN and the G20. Foreign Ministers frequently meet in the framework of the MIKTA platform that was created in 2013. Parliamentary Friendship Groups have been established in both countries’ National Assemblies. The eighth meeting of Joint Economic Commission between Turkey and South Korea was held on 15 January 2015 in Seoul by Mr. Hüsnü Dilemre, Deputy Undersecretary of the Ministry of Economy of the Republic of Turkey and Mr. Ahn Ho-Young, Deputy Undersecretary of the Ministry of Foreign Affairs of the Republic of Korea.

Turkey-South Korea Business Council was constituted by Foreign Economic Relations Board of Turkey (DEİK) and Chamber of Commerce and Industry of Korea in 1989. The last Business Council meeting was held on 15 June 2010 in Seoul on the occasion of the visit of Mr. Recep Tayyip Edoğan, President of the Republic of Turkey, to South Korea. The foreign direct investment (FDI) of South Korea in Turkey between years of 2002 and 2015/April was 564 million USD. (According to South Korea relevant authorities, the FDI of Korea in Turkey is around 1,5 billion USD. The difference between two figures stems from the adding of the investment numbers of South Korean firms, which are launched in third countries, to the total FDI of South Korea in Turkey). By June 2015, 268 South Korean firms operate in Turkey. The FDI of Turkey in South Korea has reached 73 million USD at the same period. According to the data of Ministry of Trade, Industry and Energy of South Kore, 84 Turkey originated investments are launched in South Korea. The number of visitors from South Korea to Turkey is increasing regularly on yearly basis. The number of visitors has reached 248.910 in 2014.

Economy of South Korea

Bilateral Economic and Commercial Relations

GDP (billion USA $) Real GDP Growth Rate (%)

1,41 3,3

Population (million)

50,42

Population increase (%) GDP per capita (USA $ SAGP)

0,4 28,180

Inflation Rate (%) Rate of Unemployment (%) Export (fob-billion USA $) Import (fob-billion USA$) Turkish firms in Indonesia

Source: Economist Intelligence Unit, World Bank, Ministry of Economy, EIU, World Bank

SEPTEMBER 2017 ISSUE 50

1,3 3,4 621,5 528,7 17

8 7 6 5 4 3 2 1 0

billion USA $

Export Import Volume

2011

Source: TUIK

2012

2013

2014

2015

TURKEY EXPORTS GLASS TO 165 COUNTRIES

TURKEY EXPORTS TV TO 115 COUNTRIES

In Depth / All For A Smile

All For A Smile 1992

2017

94 1993 19 199 1996 1995

2013 2014 2015 2016

7 199 8 199 9 2000

SEPTEMBER 2017 ISSUE 50

9 2001 2002 2003 2004 2005 2006 2007 2008 200

2012 1 1 0 2010 2

The The Turkish Turkish Perspective Perspective

On 25 December 1991, the Union of Soviet Socialist Republics (USSR) dissolved, which resulted in many countries in Central Asia and Caucasia gaining their independence. Having a common language and a shared social memory

and culture with these countries, which are comprised of Kazakhstan, Tajikistan, Uzbekistan, Azerbaijan and Kyrgyzstan, paved the way for the resurgence of dual and regional relations with them. Turkey and the countries in Central Asia consider themselves as one nation containing different countries, and Turkeyâ&#x20AC;&#x2122;s foreign politics displayed a multilateral and proactive understanding in the region. Turkeyâ&#x20AC;&#x2122;s relations with the Turkish speaking countries has become a permanent focus for Turkey and this focus gained in importance in the most recent 20 years of global politics.

In Depth / All For A Smile

n the ’90s, Turkey’s first priority regarding the issue of Central Asia became the recognition of the young Turkic countries by the international community. This was followed by Turkey carrying out projects for TİKA cognates living in the newly founded countries of Central Asia in various fields, such as the social, economic and cultural ones. The aid that was given in the beginning, by time turned into longterm projects and cooperation based on development. The need of an organization that can practice and coordinate the operations to be carried out in this area and for foreign policy priorities arose, and resulted in the establishment of the Turkish Cooperation and Coordination Agency (TİKA) in 1992. With the establishment of the concept of active politics in Turkey’s foreign policies, TİKA became an implementing intermediary of Turkish foreign policy, particularly in the countries with whom TİKA have shared values, as well as in many other areas and countries. It can be briefly summarized TİKA’s aims in those years as: the procreation of the own social structure of the Turkic Republics, their construction of an identity in a sustainable way, and the remedy of deficiencies of their technical infrastructures. Many projects and activities in the fields of education, health, restoration, agricultural development, finance, tourism, and industry were realized by TİKA. In addition, the first of the TİKA Programme Coordination Offices was inaugurated in Turkmenistan; later on, the number of the offices located in the Eurasian area increased to 6. Turkey’s friendly, fraternal and cooperative hand has also reached out to and is adopted by the countries where TİKA worked with enthusiasm. TİKA Projects Extend from Technical Infrastructure to Corporate Capacity Increase The character of TİKA’s work in Turkey flourishing and improving ancestral lands changed by time. TİKA carried out economic, social and SEPTEMBER 2017 ISSUE 50

cultural activities in its sister countries until 1995, after which it began to concentrate on cooperation in the field of education and culture. TİKA know that having a qualified, well-educated population comes first. If a nation has a good education system and follows developments in science and the technology, one can speak of sustainable development. Therefore, TİKA accelerated its education activities in the ancestral lands after 1995 - schools, libraries and laboratories were built and provided universities with technical equipment. In a process that started in the 2000’s, the world became globalized and the

influence of the globalization was perceived in many areas, from the East to the West. In parallel to the acceleration achieved on the subject of development in the countries with whom Turkey share the same language, the projects that TİKA carried out in these regions have turned into projects that increase the institutional capacities. The projects that Turkey and TİKA realize for the ancestral lands with the proper pride of being the inheritors of a common history still continue. It was in these days that an important part of the Turkish geography had become rich, gained power and by today has reached a position where it helps

The Turkish Perspective

While the development aid of Turkey comprised about 85 Millions of USD in 2002, this amount reached 3.9 billion USD in 2015. TİKA is ranked amongst the Turkish organizations that carry out most technical co-operations with Turkic speaking countries. Focusing on development cooperation, TİKA works in more than 170 countries, including the ones where their offices are located. Turkey shares her knowledge and experience through TİKA, with many countries from the Balkans to Africa, from the Middle East to Latin America.

TİKA has increased its activity and visibility with the momentum of new foreign policy expansions of the Turkish Government and Turkey’s improving level of development.

instead of asks for help. TİKA, continue to develop projects and carry on the reciprocal sharing of experience. As a prolongation of Turkey’s efforts to become an important player in the area and in the world, since the 2000’s Turkye’s conception of foreign policy underwent important changes. In accordance with this change, TİKA enlarged its activity area - it increased the number of Programme Coordination Offices from 12 in the year 2002 to 25 in 2011, and to 33 in 2012. Today, the Turkish Cooperation and Coordination Agency is engaged in various development cooperation activities in 170 countries through its 58 Programme Coordination Offices located in 56

countries across 5 continents. Related to the active and principled foreign policy that is seen in Turkey, the number of countries wherein TİKA carry out projects also increases every passing day. At the basis of its projects, Turkey tries to establish a peaceful environment directed at its close neighbors and achieves this through TİKA. TİKA carries out the task of being a cooperating mechanism for the state institutions and organizations, universities, non-profit organizations and the private sector. In addition it functions as a platform for these actors to come together and it records the development aid carried out by Turkey.

History of TİKA TİKA was first established in accordance to the Statutory Decree Law no. 480 that was put into force with the publication of the Council of Ministers decision dated January 24, 1992 in the Official Gazette edition no.21124 dated January 27, 1992, as a technical aid organization under the Ministry of Foreign Affairs to respond to the restructuring, adaptation and development needs of the Turkic (Turkish-speaking) Republics after the disintegration of the Soviet Union. On May 28, 1999, TİKA became an organization working under the Prime Ministry of the Republic of Turkey with the adoption of “The Law on the Organization and Tasks of the Turkish Cooperation and Development Administration Directorate” No. 4668 which was put into force on publication in the Official Gazette edition no. 24400 dated May 12, 2001. Especially since 2002, TİKA has increased its activity and visibility through the development assistance operations carried out abroad along with the momentum of new foreign policy expansions of the Turkish Government and Turkey’s improving level of development. TİKA is an organization that reports to the Deputy Prime Ministry and is a legal entity of its own.

In Depth / All For A Smile

go beyond expectatıons

$3.2 BILLION

Second Largest Donor of Humanitarian Assistance in the World in 2015

3000 personnel

The number of health care provıded

16,760

projects and actıvıtıes

The World’s Most Generous” Country: Turkey Turkey was the Second Largest Donor of Humanitarian Assistance in the World in 2015 with a Total Assistance of $3.2 Billion, and the Largest Donor of Humanitarian Assistance in Terms of the Ratio of Assistance to National Income with a Ratio of 0.37. The number of TİKA overseas country offices, which was 12 in 2002, rose to 56 by 2016. The number of projects and activities carried out between 1992 and 2002: 2,240 The number of projects and activities carried out between 2002 and 2015: 16,760 in 140 countries The average number of TİKA projects in the last two years is above 1,700. According to the Global Humanitarian Assistance Report 2016, Turkey was the most generous country in the world that provided the largest humanitarian assistance in terms of its ratio to national income. In 2015, Turkey was the second largest donor of humanitarian assistance in 2015 with an aid of $3.2 billion following the U.S. Turkey has broken a record increasing its official development assistance (foreign assistance provided by all governmental agencies) 50 times in the last 12 years. Turkey increased its official development assistance from $76 million in 2003 to $3.91 billion in 2015. SEPTEMBER 2017 ISSUE 50

Turkey has broken a record increasing its official development assistance (foreign assistance provided by all governmental agencies) 50 times in the last 12 years. TİKA, implements projects in a very broad area from education, health and agriculture to economic development, promotion of cultural heritage projects and training programs. By reflecting the knowledge and experience of all public institutions and agencies, universities, local administrations and non-governmental organizations to the world, TİKA lays the foundations of a new humane diplomacy. Briefly, TİKA is engaged in activities concerning human life from birth to death. The number of hospitals / health centers constructed, renovated and equipped in the last 5 years is 300. The number of health care personnel provided with training is above 3,000.

carried out between 2002 and 2015

Approximately 750 million people in the world do not have access to clean drinking water. TİKA drilled more than 1,100 water wells between 2003 and 2014. More than 37,000 specialists from various occupational groups, including security, judicial, health care, education and diplomacy, were provided with training in the capacity building programs of TİKA between 2003 and 2014. Additionally, more than 9,000 expert trainers from various public institutions and universities of Turkey were assigned for the on-site training programs. TİKA delivers vocational courses for the disadvantaged people of the society, including women, the handicapped and low-in - come people, with a sustainable and versatile point of view towards development. Specialized training courses and implementation projects are developed with a view to ensuring that countries become self-sufficient in agricultural production and modern agricultural techniques are applied by skilled labor. In the last 9 years, more than 3,000 experts benefited from the training programs implemented in the agricultural, forestry and fishing sectors with the cooperation of the Ministry of Food, Agriculture and Livestock and TİKA.

#discoverthepotential

56 Brands / Lorem

The Turkish Perspective

Content: The Largest Simulator Training Center of Europe and Middle East P56 Offering Its Services In A Seamless Way P58 Assan Hanil Aims To Be A Global Company P60 Editor: Ramazan Güzyurdu

Architects, automotive, Logistics.. When it is completed, the facility will be the largest flight training center in Europe and Middle East.

Architects

The Largest Simulator Training Center of Europe and Middle East

The complex will also be an important educational tourism center in the area in the sense that it includes a great variety of flight training departments. By ilhan alpay ogan

light Training Center, designed

by TAGO Architects for Turkish Airlines, features 18 simulation devices in an indoor area of approximately 30,000 m2. When it is completed, the facility will be the largest flight training center in Europe and Middle East, and one of the largest flight training centers standing on a single structure in the world. SEPTEMBER 2017 ISSUE 50

Operating under the leadership of Architect Gökhan Aktan Altuğ and producing projects for Europe, Central Asia and Far East in Tokyo, Bucharest, Kiev and Dubai offices along with the İstanbul central office, Tago Architects has designed the new simulation center for Turkish Airlines, a center which will be featuring 18 simulation devices. The complex will also be

an important educational tourism center in the area in the sense that it includes a great variety of flight training departments such as air hostess, cabin and flight training centers. Blending techniques with aesthetics and creating a structural design for Turkish Airlines Flight Training Center that can be enlarged in the course of time depending on the needs, TAGO

Architects has hidden the hangar sections and support units with a more technical function at the rear front of the building while locating the training areas and lounge at the frontage. The design has achieved its most prominent feature, namely its evocation of flight, by means of dynamic forms used in the facade, perforated materials resembling the wings of an aircraft and the amorphous

Turkish Airlines Flight Training Center building will also contribute to the economic development of the area by forming an inter section to the residential district.

structure enfolding the entire form in a bottom-up design. Whilst reflecting the Turkish Airlines’ corporate identity with the facade material and colors in the transparent training units it designed, TAGO Architects has also allowed the building to be perceived as a dynamic structure in motion rather than a fixed one and to reflect the concept of speed, by means of the horizontal effect it has achieved in the design. Therefore, it has successfully designed a training center reflecting the characteristics of the corporation. The construction with its carrier system of concrete-steel carcass has been furnished with the latest technology in the electromechanical sense, besides having a functional and impressive design in

the visual and architectural sense. Solutions have been provided for needs such as fixed air-conditioning that are required by the special simulator devices featured by the construction, by the integration of the same into the project. In the building which it has designed in such a way not blocking the view of the

The construction with its carrier system of concretesteel carcass has been furnished with the latest technology in the electromechanical sense.

residential zone in which it is located, TAGO Architects has achieved a height which will meet all technical needs. In this sense, it has turned the seemingly disadvantageous conditions of the land into an advantage by creating an ergonomic design. It is predicted that Turkish Airlines Flight Training Center building will also contribute to the economic development of the area by forming an inter section to the residential district, due to its location neighboring an old residential district in Yeşilköy as well as to the airport. It is aimed that the training center the construction of which has begun across the Turkish Airlines old simulation building in Florya district in İstanbul, will generate significant income by serving both the foreigners who come to buy this service and Turkish Airlines pilots and pilot candidates for many years.

Brands / Mars Logistics

Logistics

Offering Its Services In A Seamless Way

Offering its services in a seamless way since 1989, Mars Logistics is one of the strongest companies in the industry. By Alperen çevikaslan

t the point it has reached today, it consists of Mars Logistics Uluslararası Taşımacılık Depolama Dağıtım, Mars Hava ve Deniz Kargo, Mars Sigorta and Mars Logistics S.A.R.L companies. Mars Logistics works on land, sea and railway transportation, fair and event logistics, project transportation, custom clearance, insurance, storage and all other logistic services. As a corporate logistics company that has brought many innovations to the industry, it is structured as an organized institution that leads a full-service policy with the companies that it consists of, its over 1300 professional employees, fully equipped infrastructure and seamless communication network. The company has its headquarters in Istanbul Yenibosna and its branch offices in Ambarlı, Tuzla, Bursa, Izmir, Adana, Ankara, Mersin, Denizli, Ataturk Airport, Adnan Menderes Airport, Sakirpasa Airport and Esenboga Airport. With the fleet consisting of 1860 vehicles, Mars Logistics have one of the largest and youngest fleets of Turkey. They provide storage services

SEPTEMBER 2017 ISSUE 50

with or without custom clearance in the open and covered warehouses of a total space of 100 thousand square meters in our logistic centers in Avcılar, Tuzla, Esenyurt, Adana, Izmir, Bursa, Ambarlı and Yenibosna. Following world trends and maintaining the mission of being an environment friendly leading logistics company in our fleet choices, Mars Logistics make sure that all our vehicles are environmentfriendly vehicles with Euro 5 and Euro 6 engines with low exhaust emission. They fulfill our customers’ needs by using the newest vehicles, software and technologies.

With the fleet, consisting of 1860 vehicles, Mars Logistics have one of the largest and youngest fleets of Turkey.

In Mars Logistics, the brand is committed to customer-oriented service and to being an innovative and leading logistic company. To ensure this and to increase our power, Mars Logistics propose alternative transportation modes to the customers. Intermodal transportation that they realized for this

The Turkish Perspective

Mars Logistics works on land, sea and railway transportation, fair and event logistics, project transportation, custom clearance, insurance, storage and all other logistic services.

purpose is very popular among the business partners for its contribution to the environment and for serving within fixed transit periods. They provide this service since 2012. The most important for the company is that this model minimizes the carbon dioxide emission in land route transportation. It is believed that it can be given a new direction to both the companies and to the logistics industry for performing ecologic transportation and for sustainable environment friendliness. It is believed that in logistics industry, the company to provide services has to fulfill the conditions of reliability, customer satisfaction, wide service network and strong infrastructure. In Mars Logistics, they are worked towards the goal of constantly increasing our service quality. Therefore, Mars

€30 million

ınvestıng money for the new logıstıcs center

70m2 thousand

the area of the new logıstıcs center wıll be completed ın hadımkoy.

%12

the growth of the company last year.

Logistics closely follow all innovative developments in the industry and realize some implementations that we find suitable. Besides, they also try to be a part of all activities that support our vision of a livable world. Logistics is one of the locomotive industries of Turkey and has a very important potential. It is an important partner that is closely linked to almost all sectors. It can be said that the country has become better known in the global field in the last ten years. And it keeps on increasing quality standards every single day. The company’s professional, which was only referred to as “transportation” in the past, has now become more valuable with exclusive innovative developments. Projects developed on logistics industry that goes beyond transportation and

collaborations with other industries have made the industry more important. Mars Logistics maintain their activities with the mission of raising the bar higher every year. It has been left behind the first half of 2017. It can say that Mars Logistics spent this period in line with their expectations in the beginning of the year for our industry. Advancement of exportation directly influences our industry. In Mars, they also consistently maintain the exportation-importation levels in balance. They had completed last year with 12 per cent growth and 250 million euros of turnover. Remaining cautious, the companies are aiming to reach nearly 275 million euros of turnover with 12 per cent growth by the end of the year. Developments in the foreign trade and national economy influence the way Mars Logistics determine their goals. As Turkey grows, trade flow easily continues, logistics industry is also positively influenced. They have also invested 30 million euros in the new Logistics Center of 70 thousand square meters that we are planning to complete in the fourth third in Hadımköy. The company will also invest 20 million euros in our fleet during the year. On the other hand, the company keeps on launching new branch offices to strengthen the existing network and commercial points. In Denizli, where the company provided services through our Aegean Regional Directorate in Izmir, the companys has launched our new branch office to provide quick and advantageous services to our customers. Mars Logistics will also think to launch another branch office in Iskenderun very soon.

Brands / Mars Logistics

It conducts studies on innovative projects for weight reduction, cost optimization and increased quality in its R&D center established under its own structure in 2011 with the support from the Ministry of Trade and Industry. The company is currently the owner of 12 registered utility models, 9 industrial designs and 8 patents; and there are 29 Intellectual Property Rights pending under the evaluation process” said Atacan Güner, Assan Hanil General Manager.

automotive

Assan Hanil

AIMS TO BE A GLOBAL COMPANY

Kibar Group’s company Assan Hanil aims to be a global company and have a strong position in export markets. By ramazan güzyurdu

s one of the automotive investments of Kibar Group, Assan Hanil was founded in 1997 with the partnership of South Korean Seoyon E-Hwa and started their activity as original equipment supplier (OES) in automotive sub-industry sector. While the company was supplying spare parts only for Hyundai Assan during the first years of their establishment, as of 2005 it was included among the significant suppliers of Ford-Otosan. Further undertaking manufacture of important parts of m2 class minibus, which is the joint project of Karsan and Hyundai Motor Company, Assan Hanil also added Isuzu and Honda in its customer portfolio. With over one thousand professional employees working in their plants with a total area of 80 thousand m2 in four different locations including three plants in Kocaeli and one plant in Bursa, the company carries out automation-based production activities with high technology. The parts including, particularly, driver (passenger) seats, door panels, front and rear bumpers, instrumental panel, blow moulding parts, glove box and front end module etc. are considered among its mostly demanded products. SEPTEMBER 2017 ISSUE 50

Assan Hanil carries out automationbased production activities with high technology.

To Be A Global Company You Need To Focus on Quality Assan Hanil aims to be a global company. For that goal they focus on the quality as priority. “Assan Hanil has certified the quality of its production with ISO 9001-2008, ISO/ TS 16949, ISO 14001, ISO 27001, OHSAS 18001, Ford Q1 and Hyundai 4 Star Quality System Certificates.

The Seats Produced For Boeing And Airbus Are Used In The Aircrafts Company also founded TSI Uçak Koltuk Üretimi Sanayi ve Ticaret A.Ş. (Aviation Seats Production Industry and Trade Co. Inc.) jointly with Turkish Airlines and THY Teknik A.Ş. in order to produce aviation seats in Turkey. Having completed its first designs by obtaining ADOA (Alternative Procedures for Design Organisation Approval), POA (Production Organisation Approval) and ETSOA (European Technical Standard Order Authorisations) certifications, TSI began mass production in 2014. The seats produced for Boeing and Airbus are used in the aircrafts. Following the capacity increase and recent projects of its customers with the investments completed within 2014, Assan Hanil produced the first functional prototype seat for the project on air suspension driver seats for commercial vehicles. These seats were developed in its R&D center established under its own structure with a unique design and high export potential, which will enable the company to grow and expand further.

TURKEY EXPORTS AIRCRAFT AND HELICOPTER PARTS TO 80 COUNTRIES

TURKEY EXPORTS OLIVE OIL TO 97 COUNTRIES

Agenda

FAIRS, EXHIBITIONS, SUMMITS AND MEETINGS IN THE NEXT MONTH

AGROTEC 2017

September OCTOBER

28-01

FAV TURKEY Fruit and Vegetable Expo and Summit

14-17 September

21. International Agriculture and Agricultural Technologies Fair Anfa Altınpark Expo Center - Ankara

AGROTEC Agricultural Fair aims to combine all manufacturers, institutions, and corporations active in agriculture industry with farmers, while providing an opportunity for manufacturers to display their machinery and products that they produced with current technology and system to the visitors and other manufacturers. It also offers the opportunity of export and import to Turkish producers and consumers through its international exhibitors and other facilities.

Istanbul Expo Center The summit, which will be organized at Istanbul Expo Center on September 28 – October 01, 2017, will be the gathering point for fresh fruit and vegetable trade in the region. FAV Turkey is planned to be one of the most important exhibitions, not only in Turkey but also in the entire region. FAV Turkey will bring small and medium sized producers as well as the national and global players under a roof, and will help grow trade between the industry stakeholders.

September OCTOBER ISAF Summit Istanbul Expo Center 14-16 September

WorldFood Istanbul Tüyap Fair Convention and Congress Center 07-10 September

28-01

Flora Garden 2017 2. Landscaping And Home Garden Furniture Fair Anfa Altınpark Expo Center - Ankara

The ISAF Summit, which brings together the pioneers of security, safety, fire protection and smart homes industries and where critical issues related to the sector will be discussed and proposals for solutions will be offered, will be held in Istanbul Expo Center concurrently with ISAF Fairs on 14-16 September. All industry leaders, professionals and academics will evaluate sectoral developments and every stage of innovation for 3 days. SEPTEMBER 2017 ISSUE 50

25th International Food Products & Processing Technologies

WorldFood Istanbul is the largest food and drink exhibition in Turkey. The event annually attracts over 360 domestic and international food producers, who converge in Istanbul to network, negotiate and conclude business with Turkey’s food industry buyers. For visitors, the show offers a wining mixture of; exposure to new innovations and products hitting the market, access to international and domestic companies and opportunities to forge relationships with suppliers and manufacturers.

The fair, will be held on the dates between 28 September and 1 October 2017 in Ankara Anfa Altınpark Expo Center with the exhibit of ornamental plants and landscaping industries’ leader companies. Flora Garden 2016 aims to be a meeting point for the related industries’ representatives. Flora Garden 2016 will be a trade platform to the related industries’ representatives about establishing national and international business contacts, strengthen existing contacts and getting into new markets. Our fair aims to unite the serving and the persons who are in need of service under a single roof.

Figures

41,1 %

Increase rate in automotive sector compared to the same month of last year.

advancıng wıth collaboratıon

The export figures of General Secratariats of Exporters’ Associations are rising compared to the same month of last year.

1-31 JULY 2017 ( 1000 $) General secretariats of exporters' associations"

2016

İMMİB (Istanbul Mineral and Metals Exporters' Association) UİB (Uludag Exporters' Association) İTKİB (Istanbul Textile And Apparel Exporter Union General Secretariat) OAİB (Central Anatolian Exporters' Association) AKİB (Mediterranean Exporter Associations) EİB (Aegean Exporters' Association)

2017

Change Rate ('17/'16) Share (17) (%)

2.201.614 3.088.519 1.786.870 2.510.669 1.333.957 1.564.295 717.672 915.629 662.128 776.664 763.735 928.536

40,3 40,5 17,3 27,6 17,3 21,6

26,9 21,9 13,6 8,0 6,8 8,1 Data: TİM

ONGOING PERFORMANCE The most successful sectors in Turkey’s export are continuing their growth compared SHARE to the last year. 1 - 31 JULY (2016)

Data: TİM

1 - 31 JULY (2017)

Automotive

Apparel

Chemicals and Chemical Products

Electrical Electronics and Services

Steel

41,1% 1,72 2,43

19,0% 1,24 1,48

23,9% 0,96 1,19

29,0% 0,62 0,80

32,4% 0,60 0,79

turkey: the rıght address to buy a resıdence 1 million 365 thousand residences were sold throughout Turkey in the period of June 2016-2017. UNIT İstanbul Ankara İzmİr Antalya Bursa Kocaelİ Mersİn Aydın Tekİrdağ Konya

229,542 150.307 82.373 58.947 54.019 37.399 35.134 33.907 33.542 32.494

50.000

100.000

150.000

200.000

Data: Forbes Türkiye

64 Figures

GERMANY

9,99

BELGIUM

share of tOP 20 COuNTRIES ın total export (bıllıon $)

2,07

NETHERLANDS

2,48

FRANCE

Turkish exports shares to most prominent 20 markets in July 2017.

4,48

6,37 USA

5,50

SPAIN

4,27

poland

2,11

ROMANIA

2,07

RUSsıa

1,59

ITALY

5,83 BULGARIA

1,84

china

1,87

IRAN

ıraq

5,78 Algerıa

1,24

Data: TİM

SEPTEMBER 2017 ISSUE 50

saudı arabıa

2,00

ISRAEL

2,26

2,14

EGYPT

1,49

UAE

2,52