REPUBLIC OF TURKEY PRIME MINISTRY Investment Support and Promotion Agency of Turkey
ISPAT
“Investment Climate in Turkey”
Beautiful landscape‌
Combination of contemporary and traditional‌
Home of many successful people‌
What about the investment opportunities‌
AGENDA • • • • •
TURKEY WITH SOME KEY FIGURES FDI IN TURKEY TOP REASONS TO INVEST IN TURKEY THE AGENCY WHY TURKEY
Turkey with some key figures‌
17th largest economy in the world and 7th when compared to the EU Countries in 2009 (IMF)
The largest youth population when compared to the EU countries
35 million internet users (2010)
62 million GSM users (2010)
46 million credit card users (2010)
VOLITAN - Green Dot Award 2008, Miami - International Design Award 2007, New York
Turkey is the 5th largest shipbuilding (units) country as well as the 4th largest mega yacht producer in the world (2009)
VOLITAN Designer Dr. Hakan GÜRSU & Designer Sözüm DOĞAN, TURKEY
Turkey is the 8th largest steel producer in the world and 2nd compared with the EU countries (worldsteel 2010) Turkey is the 16th largest automotive producer in the world (OICA 2010)
- Turkish Airlines is one of the fastest growing airlines in Europe - Fleet Plan for 2009-2023; purchase 105 aircrafts -The best airline in Southern Europe (Skytrax 2009) -29.1 million passengers flew by Turkish Airlines in 2010
- 102.7 million airline passengers in Turkey (2010) - Istanbul Ataturk Airport is the best airport in Southern Europe (Skytrax 2010)
The proportion of the Turkish female academic staff is higher than the European average
Turkey is the 7th most visited holiday destination in the world (2009)
International Tourist Arrivals Country
2009 (million)
1. France
74.2
2. USA
54.9
3. Spain
52.2
4. China
50.9
5. Italy
43.2
6. UK
28.0
7. Turkey*
27.3
8. Germany
24.2
9. Malaysia
23.6
10. Mexico
21.5
Source: UNWTO ;*Ministry of Culture and Tourism
Out of world’s top 100 best hotels 20 are from Turkey (TUI Holly, 2009)
It’s not only a place to work, but also a fascinating place to live.
FDI in Turkey
Soaring FDI Inflows
Number of Companies with Foreign Capital
‘000
FDI Inflows ($ billion)
100
94
90
30 23,7
25
80
21
70
18,7
20
60
15
15
50 40
11,7 8,8
10
30
5,6
6,7
5
15
10
Source: Central Bank of Republic of Turkey & Treasury
2010
2009
2008
2007
2006
2005
2003-2010 (8 years)
2004
1972-2002 (30 years)
2003
0
0
2002
20
25,5
Turkey is the 15th most attractive FDI destination for 2008-2010 according to the World Investment Prospects Survey
Source: UNCTAD
Top reasons to invest in Turkey
Top reasons to invest in Turkey Billion USD
Dynamic, Stable & Attractive Economy GDP Key numbers
Population
International Hub
Structural Reforms
Source: IMF World Economic Outlook, April 2010; *TurkStat
%
Benchmarking Performance of the Turkish Economy
Annual Average Real GDP Growth 2002-2009
Top reasons to invest in Turkey Let your business blossom in a thriving economy and promising future
The fastest growing economy among the OECD countries Source: OECD Economic Outlook No.86
Top reasons to invest in Turkey Stability and High Performance in the Economy
Dynamic, Stable & Attractive Economy GDP Key numbers
Population
International Hub
Structural Reforms
Source: Treasury
EU Defined General Government Gross Debt Stock (% of GDP)
Maastricht Criteria: 60 %
Top reasons to invest in Turkey Stability and High Performance in the Economy
Dynamic, Stable & Attractive Economy GDP Key numbers
EU Defined General Government Budget Balance (% of GDP) 2001
Population
0,0
International Hub
-3,0
2002
2003
Structural Reforms
2005 -0,6
2006 -0,8
2007
2008
-1,0 -2,2 -6,7
-9,0
-9,0 -10,2
-12,0 -15,0 -18,0 -21,0 -24,0 -27,0 Source: Treasury
2009
-4,5
-6,0
2004
-24,5
Maastricht Criteria: -3 %
Top reasons to invest in Turkey Stability and High Performance in the Economy
Dynamic, Stable & Attractive Economy GDP Key numbers
Population
International Hub
Structural Reforms
Exports and Tourism Revenues Billion USD
140
132
Exports
120
Tourism Revenues 107,3
102,2
100 85,5
80
73,5 63,2
60 40 20
47,3 36,1
8,5
13,2
15,9
18,2
18,5
22
21,2
16,9
0 2002
Source: TURKSTAT
2003
2004
2005
2006
2007
2008
2009
Top reasons to invest in Turkey Turkey has the 5th most liberal trade policies in the world (World Trade Indicators 2009) ď ś
Customs Union with the EU
ď ś
Free Trade Agreements with 20 countries:
1. Albania
11. Norway
2. Bosnia & Herzegovina
12. Palestine
3. Croatia
13. Switzerland
4. Egypt
14. Syria
5. Georgia
15. Tunisia
6. Iceland
16. Montenegro
7. Israel
17. Serbia
8. Lichtenstein
18. Chile
9. Macedonia
19. Lebonan*
10. Morocco
20. Jordan
Source: Undersecretariat of Foreign Trade, * In ratification process
Top reasons to invest in Turkey Stability and High Performance in the Economy
Dynamic, Stable & Attractive Economy GDP Key numbers
Population
International Hub
Structural Reforms
Annual Inflation
* As of February 2011 Source: TURKSTAT
Top reasons to invest in Turkey Potential of the Turkish Economy - Young Population Population Pyramid
Dynamic, Stable & Attractive Economy Population Age Labor Force GDP International Hub Structural Reforms
Age Group 90+
90+
85-89
85-89
80-84
80-84
75-79
75-79
70-74
70-74
65-69
65-69
60-64
60-64
55-59
55-59
50-54
50-54
45-49
45-49
40-44
40-44
35-39
35-39
30-34
30-34
25-29
25-29
20-24
20-24
15-19
15-19
10-14
10-14
5-9
5-9
0-4
0-4
%
5
4
3
2
Female
Source: UN and TURKSTAT, 2010
Age Group
TURKEY
1
0
1
2
Male
3
4
5
% 5
EUROPE
4
3
2
1
0
Female
Half of population in Turkey is under age 29
1
2
Male
3
4
5
Top reasons to invest in Turkey
Dynamic, Stable & Attractive Economy
Population Age Labor Force GDP
International Hub
Structural Reforms
Availability of the Skilled Labor Force
Source: IMD World Competitiveness Yearbook 2009, IMD WCY Executive Opinion Survey based on an index from 0 to 10
Top reasons to invest in Turkey Productive and Cost-effective Labor Force
Dynamic, Stable & Attractive Economy
Population Age Labor Force GDP
International Hub
Structural Reforms
Productivity and Unit Wages Index in Industry (Per Worker; 2005=100)
Unit Wage Index
Source: TURKSTAT
Top reasons to invest in Turkey Productive and Cost-effective Labor Force
Dynamic, Stable & Attractive Economy
Population Age Labor Force GDP
International Hub
Structural Reforms
Labour Productivity Growth (%) Annual Average (2002 – 2009)
Source: Economist Intelligence Unit (EIU), February 2010; Efficiency of labor measured in terms of output per worker (real GDP per person employed).
Top reasons to invest in Turkey Productive and Cost-effective Labor Force
Dynamic, Stable & Attractive Economy
Population Age Labor Force GDP
International Hub
Structural Reforms
Source: EIU, February 2010; Average cost of labor per hour (pay and non-pay costs).
Labor Cost Per Hour ($US) 2009
Top reasons to invest in Turkey Productive and Cost-effective Labor Force Days
Annual average number of sick days per employee in Europe (2008) *
Dynamic, Stable & Attractive Economy
Population Age Labor Force GDP
International Hub
Hours
Structural Reforms
Source: *MERCER - Pan-European Employer Health Benefits Issues Survey 2008 **EUROSTAT 2009
Hours worked per week of full-time employment Annual average (2009)**
Top reasons to invest in Turkey
Potential of the Turkish Economy
GDP Per Capita – Nominal (USD)
Dynamic, Stable & Attractive Economy 12.000
Population Age Labor Force GDP International Hub
10.440 9.234
10.000 8.590 7.583
8.000
7.021 5.764
6.000 4.559
Structural Reforms 4.000
3.492
2.000
0 2002 Source: TURKSTAT
2003
2004
2005
2006
2007
2008
2009
Top reasons to invest in Turkey
Access to Multiple Markets
Total 1,5 Billion People $ 22 Trillion GDP EUROPE
RUSSIAN FEDERATION
GDP – $ 18.3 Trillion Population – 660 million
GDP – $ 1,2 Trillion Population - 142 million
Dynamic,
Stable & Attractive Economy
Population
International Hub
Access to Multiple Markets
Energy
Corridor
Structural
Reforms
Source: IMF World Economic Outlook April 2010
MIDDLE EAST AND NORTH AFRICA
CENTRAL ASIA & CAUCASUS
GDP – $ 2,4 Trillion Population – 602 million
GDP – $ 230 billion Population – 80 million
Top reasons to invest in Turkey
Turkey As An Energy Corridor And Terminal
Dynamic, Stable & Attractive Economy
Population
International Hub Access to Multiple Markets Energy corridor
Structural Reforms
Existing Natural Gas Pipelines Existing Oil Pipelines
Natural Gas Pipelines under Construction Natural Gas Pipelines Underway Proposed Natural Gas Pipelines Oil Pipelines under Construction
Top reasons to invest in Turkey Key Elements of Structural Reform Agenda
Dynamic, Stable & Attractive Economy
Population
Public Sector Reform
Financial Sector Reform
Social Security Reform
International Hub
Tax Reform
Structural Reforms
Enhancing Private Sector’s Role in the Economy
Opening the Key Markets to Competition, and Regulation by Independent Agencies
Improving the Investment Environment
Accelerated Privatization
New R&D and Innovation Support Law
Top reasons to invest in Turkey Structural Reforms
Dynamic, Stable & Attractive Economy
Population
International Hub
Structural Reforms
Corporate Income Tax %20
Protection Against Expropriation Guarantee of Transfers
National Treatment
NewFDI Law & Other Legislation Freedom to invest
Access to Real Estate
Employment of Expatriates
International Arbitration
Top reasons to invest in Turkey
INVESTMENT INCENTIVES IN TURKEY
1. General Incentive System 2. Large Scale Investments 3. Region and Sector-Based Incentive System 4. Employment Scheme 5. Research and Development Supports 6. State Incentives for Export
Top reasons to invest in Turkey
The Incentives Granted According To The Region, Sector and The Scale of The Investment:
• Reduced Corporate Tax: between 2-10% • Social Security Premium Contribution for Employers up to 7 years • Interest Support • Land allocation for investments
Zone 1 Zone 2 Zone 3 Zone 4
The Agency
The Agency
The Agency
Attached to the Prime Ministry and reports directly to the Prime Minister
Private sector approach
Multi-lingual, professional and dedicated project directors
ONE STOP SHOP
2 offices (Ankara – Istanbul)
Result oriented
The EU Negotiation Progress Report shows that the establishment of the Agency is a proof for improvement of the investment climate in Turkey
The Agency The International Network 15 representatives 21 countries
International representatives network worldwide and strategic partners in Turkey (Embassies, Consulates, Commercial Attaches, NGO’s etc)
The Agency
WORLD BANK’s GLOBAL INVESTMENT PROMOTION BENCHMARKING REPORT 2009
Among 181 National Investment Promotion Agencies, INVESTMENT SUPPORT and PROMOTION AGENCY of TURKEY ranked as; 15th in the World in terms of General Performance Assessment 5th in the World and 2nd in Europe in terms of Inquiry Handling
The
n TUR KEY Agency
for all potential investors!
Some International Investors in ICT & Electronics
Some International Investors in FMCG & Retail
Some International Investors in Different Sectors
Why Turkey?
Enjoy your potential in Turkey
Why Turkey?
According to the projection by Goldman Sachs, Turkey will be the 9th largest economy in the world and the 3rd largest economy in Europe by 2050. 1.China 2.U.S.A. 3.India 4.Brasil 5.Russia 6.Indonesia 7.Mexico 8.U.K. 9.Turkey 10.Japan Source: Goldman Sachs, 2009
Why Turkey? Increasing Confidence in the Turkish Economy Turkey’s Sovereign Credit Ratings S&P Scale
Janurary 2010
Moody’s February 2010
Scale
December 2009
Fitch January 2010
Scale
December 2009
A
A2
A
A-
A3
A-
BBB+ BBB BBBBB+ BB BBB+ B B-
Baa1 Baa2 Baa3 Ba1 Ba2 Ba3 B1 B2 B3
BBB+ BBB BBBBB+ BB BBTurkey B+ B B-
Turkey Turkey
Turkey Turkey
JCR January 2010
Turkey
Scale
AAA+ AAA AAAA+ A ABBB+ BBB BBBBB+ BB BBB+ B B-
CCC+
Caa1
CCC+
CCC
CCC
Caa2
CCC
CC
CCC-
Caa3
CCC-
C
SD
Ca
DDD D
D
Source: Respective rating agencies
January February 2010 2010
Turkey Turkey
Why Turkey? The Most Promising Sectors
Automotive ; Target to produce over 2 mio vehicles within 5 years
Energy ; The total amount of investment needed to meet the energy demand in
Turkey until 2023 is $ 130 billion
Real Estate ; Istanbul is the first-ranked development market in 2009 (Emerging
Trends in Real Estate Europe 2009 Report - PWC & ULI)
Agriculture ; Concerning Southeastern Anatolia Project, $ 26.7 billion investment
is required until 2012
Transportation; Highway capacity planned to be trippled up until 2023 with 12
different project
Finance ; In 2009, the net profit of the banking sector has increased by 50%
comparing with 2008. The real growth rate of the financial sector of Turkey was 8.5% in 2009 despite the global financial crisis.
ICT & IT ; IT Market growth rate exceeds
reaches to $28,1 billion turnover. Source: TEDAŞ, OSD, GAP Authority, Ministry of Transportation, BDDK, Interpro Media
220 % within the last decade and
ON
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