Post on 17-Mar-2016
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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
46 million credit card
users (2010)
62 million GSM users
(2010)
35 million internet
users (2010)
Turkey is the 5th
largest shipbuilding
(units) country
as well as the
4th largest mega
yacht producer in
the world (2009)
VOLITAN
- Green Dot Award
2008, Miami
- International
Design Award
2007, New York
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 TouristArrivals
Country2009
(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
Source: Central Bank of Republic of Turkey & Treasury
Soaring FDI Inflows
5,66,7
8,8
11,7
15
18,7
21
23,725,5
0
5
10
15
20
25
30
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
‘000 Number of Companies with Foreign Capital
15
94
0
10
20
30
40
50
60
70
80
90
100
1972-2002 (30 years) 2003-2010 (8 years)
FDI Inflows($ billion)
Source: UNCTAD
Turkey is the 15th most attractive FDI destination for 2008-2010
according to the World Investment Prospects Survey
Top reasons
to invest in Turkey
Top reasonsto invest in Turkey
Source: IMF World Economic Outlook, April 2010; *TurkStat
Dynamic, Stable &Attractive Economy GDP Key numbers
Population
International Hub
Structural Reforms
Benchmarking Performance of theTurkish Economy
Billion USD
%
Annual Average RealGDP Growth 2002-2009
Source: OECD Economic Outlook No.86
Let your business blossom in a thriving economy and promising future
Top reasonsto invest in Turkey
The fastest growing economy among the OECD countries
Top reasonsto invest in Turkey
Source: Treasury
EU Defined General Government
Gross Debt Stock (% of GDP)
Stability and High Performancein the Economy
Maastricht Criteria: 60 %
Dynamic, Stable &Attractive Economy GDP Key numbers
Population
International Hub
Structural Reforms
Source: Treasury
Stability and High Performancein the Economy
Dynamic, Stable &Attractive Economy GDP Key numbers
Population
International Hub
Structural Reforms
Top reasonsto invest in Turkey
-24,5
-10,2-9,0
-4,5
-0,6 -0,8 -1,0
-2,2
-6,7
-27,0
-24,0
-21,0
-18,0
-15,0
-12,0
-9,0
-6,0
-3,0
0,0
2001 2002 2003 2004 2005 2006 2007 2008 2009
EU Defined General Government
Budget Balance (% of GDP)
Maastricht Criteria: -3 %
Source: TURKSTAT
Stability and High Performancein the Economy
Dynamic, Stable &Attractive Economy GDP Key numbers
Population
International Hub
Structural Reforms
Top reasonsto invest in Turkey
Exports and Tourism Revenues
36,1
47,3
63,2
73,5
85,5
107,3
132
102,2
8,513,2
15,9 18,2 16,918,5
2221,2
0
20
40
60
80
100
120
140
2002 2003 2004 2005 2006 2007 2008 2009
Exports Tourism Revenues
Billion USD
Top reasonsto invest in Turkey
Turkey has the 5th most liberal trade policies in the world (World Trade Indicators 2009)
Customs Union with the EU
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
Source: TURKSTAT
Stability and High Performancein the Economy
Dynamic, Stable &Attractive Economy GDP Key numbers
Population
International Hub
Structural Reforms
Top reasonsto invest in Turkey
Annual Inflation
* As of February 2011
Source: UN and TURKSTAT, 2010
Potential of the Turkish Economy- Young Population -
Top reasonsto invest in Turkey
Population Pyramid
Half of population in Turkey is under age 29
5 4 3 2 1 0 1 2 3 4 5
0-4
5-9
10-14
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65-69
70-74
75-79
80-84
85-89
90+
Female Male
%
Age Group TURKEY
5 4 3 2 1 0 1 2 3 4 5
0-4
5-9
10-14
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65-69
70-74
75-79
80-84
85-89
90+
Female Male
%
Age Group EUROPE
Dynamic, Stable &Attractive Economy
Population Age Labor Force GDP
International Hub
Structural Reforms
Source: IMD World Competitiveness Yearbook 2009, IMD WCY Executive Opinion Survey based on an index from 0 to 10
Top reasonsto invest in Turkey
Dynamic, Stable &Attractive Economy
Population Age Labor Force GDP
International Hub
Structural Reforms
Availability of the Skilled Labor Force
Source: TURKSTAT
Productive and Cost-effective Labor Force
Top reasonsto invest in Turkey
Productivity and Unit Wages Index in Industry
(Per Worker; 2005=100)
Unit Wage Index
Dynamic, Stable &Attractive Economy
Population Age Labor Force GDP
International Hub
Structural Reforms
Top reasonsto invest in Turkey
Source: Economist Intelligence Unit (EIU), February 2010; Efficiency of labor measured in terms of output per worker (real GDP per person employed).
Labour Productivity Growth (%)
Annual Average (2002 – 2009)
Productive and Cost-effective Labor Force
Dynamic, Stable &Attractive Economy
Population Age Labor Force GDP
International Hub
Structural Reforms
Top reasonsto invest in Turkey
Labor Cost Per Hour ($US)
2009
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).
Top reasonsto invest in Turkey
Source: *MERCER - Pan-European Employer Health Benefits Issues Survey 2008**EUROSTAT 2009
Days
Annual average number of sick days per
employee in Europe (2008) *
Hours
Dynamic, Stable &Attractive Economy
Population Age Labor Force GDP
International Hub
Structural Reforms
Productive and Cost-effective Labor Force
Hours worked per week of full-time employment
Annual average (2009)**
Source: TURKSTAT
Potential of the Turkish Economy
Dynamic, Stable &Attractive Economy
Population Age Labor Force GDP
International Hub
Structural Reforms
Top reasonsto invest in Turkey
GDP Per Capita – Nominal (USD)
3.492
4.559
5.764
7.0217.583
9.234
10.440
8.590
0
2.000
4.000
6.000
8.000
10.000
12.000
2002 2003 2004 2005 2006 2007 2008 2009
Top reasonsto invest in Turkey
Source: IMF World Economic Outlook April 2010
Dynamic, Stable &Attractive Economy
Population
International Hub Access to Multiple Markets
Energy Corridor
Structural Reforms
Access to Multiple MarketsTotal 1,5 Billion People $ 22 Trillion GDP
EUROPE
GDP – $ 18.3 TrillionPopulation – 660 million
RUSSIAN FEDERATION
GDP – $ 1,2 TrillionPopulation - 142 million
MIDDLE EAST AND NORTH AFRICA
GDP – $ 2,4 Trillion Population – 602 million
CENTRAL ASIA & CAUCASUS
GDP – $ 230 billion Population – 80 million
Turkey As An Energy Corridor And Terminal
Top reasonsto invest in Turkey
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
Dynamic, Stable &Attractive Economy
Population
International Hub
Structural Reforms
Top reasonsto invest in Turkey
Public Sector Reform
Financial Sector Reform
Social Security Reform
Tax Reform
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
Key Elements of StructuralReform Agenda
Structural Reforms
NewFDI Law &
Other Legislation
Employment
of Expatriates
International
Arbitration
Protection
Against
Expropriation
Corporate
Income
Tax %20
National
Treatment
Freedom
to invest
Guarantee
of Transfers
Access
to Real Estate
Dynamic, Stable &Attractive Economy
Population
International Hub
Structural Reforms
Top reasonsto invest in Turkey
Top reasonsto 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 reasonsto 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
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 Agency
International representatives network worldwide and strategic partners in Turkey (Embassies, Consulates, Commercial Attaches, NGO’s etc)
The International Network
15 representatives 21 countries
WORLD BANK’s GLOBAL INVESTMENT PROMOTION BENCHMARKING REPORT2009
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 Agency
The Agency
for all potential investors!
nTURKEY
Some International Investorsin ICT & Electronics
Some International Investorsin FMCG & Retail
Some International Investorsin Different Sectors
Why Turkey?
Enjoy your potential in 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.China2.U.S.A.3.India4.Brasil5.Russia6.Indonesia7.Mexico8.U.K.9.Turkey10.Japan
Source: Goldman Sachs, 2009
Why Turkey?
Why Turkey?
Increasing Confidence in the Turkish Economy
Source: Respective rating agencies
Turkey’s Sovereign Credit RatingsS&P Moody’s Fitch JCR
ScaleJanurary
2010February
2010Scale
December 2009
January 2010
ScaleDecember
2009January
2010Scale
January 2010
February 2010
A A2 A
AAA+
AAA
AAA-
A- A3 A-
A+
A
A-
BBB+ Baa1 BBB+ BBB+
BBB Baa2 BBB BBB
BBB- Baa3 BBB- BBB-
BB+ Ba1 BB+ Turkey BB+
BB Turkey Ba2 Turkey BB BB Turkey
BB- Turkey Ba3 Turkey BB- Turkey BB- Turkey
B+ B1 B+ B+
B B2 B BB- B3 B- B-
CCC+ Caa1 CCC+ CCC
CCC Caa2 CCC CC
CCC- Caa3 CCC- C
SD Ca DDD D
D
Source: TEDAŞ, OSD, GAP Authority, Ministry of Transportation, BDDK, Interpro Media
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 220 % within the last decade and
reaches to $28,1 billion turnover.
Why Turkey?
ON
THANK YOU FOR YOUR ATTENTION