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Investment
Republic of Turkey
Prime Ministry Investment Support and Promotion Agency
Environment of Turkey
Esra DOĞAN TULGAN Senior Project Director
Agenda Key Figures on Turkey
Top Reasons to Invest in Turkey
The Agency
Key
Figures
Republic of Turkey “Türkiye”
Parliamentary Democracy Established in 1923
Currency
Time Zone
Official Language
Major Cities
Capital City Ankara
İstanbul (14.2 million), Ankara
(5.0 million), İzmir (4.1 million),
Bursa (2.7 million), Adana (2.2
million)
Turkish
GMT+2
Turkish Lira
Where is Turkey?
BULGARIA
GREECE
GEORGIA
ARMENIA
AZERBAIJAN
IRAN
IRAQ
SYRIA
Black Sea
Aegean
Sea
Mediterranean Sea
ASIA EUROPE
MIDDLE EAST AFRICA
Total Area: 783.562 km2
Germany Italy Austria Holland Turkey
Largest
Land in Europe
= + + +
Population: 76,7 million
2 Turkey Poland
2nd Largest
Population in
Europe
= x
International
Organizations
United Nations
Turkey is member of
since
1945
Council of Europe
since
1949
Turkey is member of
NATO
since
1952
Turkey is member of
OECD
since
1961
Turkey is member of
Organisation of
Islamic Cooperation
since
1969
Turkey is member of
World Trade Organisation
since
1995
Turkey is member of
G20 – Major Economies
since
1999
Turkey is member of
17th
Largest Economy
in the
World 6th when
compared to EU
Countries (IMF/2013)
Increasing
Population (+1.040.480 last year)
76.667.864
Expected to reach
86,8 Million in 2030 UNDP
Largest
youth population
when compared
to EU
countries
Automotive
16th largest
automotive
producer
in the World
17 Global Brands produce 1.1
millions vehicles per year
White Goods
& TV Sets
Largest TV and
white goods
manufacturer
in Europe
One out of three TV sets sold in Europe last
year was produced in Turkey
Iron & Steel
8th largest
steel producer
in the World
2nd largest steel producer
when compared to EU countries
Construction
Out of
top 250
International
Contractors,
42 are Turkish
31,3 billion worth of projects in 45
countries last year
Shipbuilding
3rd largest
mega yacht
producer
in the World
National Warship with indigenous anti-
submarine warfare and stealth system completed in 2011
Airline
Transportation
Turkish
Airlines flies to
107 countries
in the World
150 million airline passengers in Turkey in 2013 (up %320 since 2003)
Tourism
6th most
visited holiday
destination
in the World
39,2 million tourist arrivals
in 2013
Top Reasons
to Invest
in Turkey
822
516
366
271 242 229
198 190 132
96 74 53 16 11
0
300
600
900
2013 GDP (Current Prices, Billion $)
Source: IMF World Economic Outlook, April 2014
GDP - Gross Domestic Product
The biggest economy in the region
4,9
4,1 4,0 3,7
3,4 3,2
3,0
2,5
1,8
0,8 0,8 0,8
0
1
2
3
4
5
6 Average Annual GDP Growth (%)
2003-2013
Source: IMF, Eurostat
GDP Growth in the Last Decade
One of the fastest growing economies in the World
5,1 5,0
4,1
3,5 3,3 3,2 3,2
3,0 2,9 2,7 2,7 2,6
2,4 2,1 2,1 2,0 2,0 1,9
1,7 1,7 1,5 1,5 1,5 1,4 1,4 1,3 1,2 1,1 1,0
0,8 0,8 0,8
0,2 0,1 -0,5 0,0
1,0
2,0
3,0
4,0
5,0
6,0
Turk
ey
Chile
Ko
rea
Isra
el
Aust
ralia
Mexi
co
Slo
vak
Rep
.
Est
onia
Po
land
No
rway
Sw
ed
en
Luxe
mb
ourg
New
Zeala
nd
Cze
ch R
ep
.
Sw
itze
rland
US
Canad
a
OEC
D
Aust
ria
UK
Finla
nd
Belg
ium
Fra
nce
Irela
nd
Neth
erland
s
Hung
ary
Germ
any
Slo
venia
Denm
ark
Icela
nd
Sp
ain
Jap
an
Po
rtug
al
Italy
Gre
ece
Potential Average Annual Real GDP
Growth for 2012-2017
GDP Growth
Future Projection by the OECD
Source: OECD Economic Outlook No.93, May 2013
Source: Republic of Turkey Ministry of Development.
Macroeconomic Indicators 2014* 2015 2016 2017
GDP ($ Billion, Current Prices) 810 850 907 971
Real GDP Growth (%) 3,3 4,0 5,0 5,0
GDP per Capita 10.537 10.936 11.541 12.229
Unemployment (%) 9,6 9,5 9,2 9,1
Export/Import (%) 65,8 67,1 67,7 68,4
Current Acc.Balance ($ Billion) -46,0 -46,0 -49,2 -50,7
Current Acc.Balance (% of GDP) -5,7 -5,4 -5,4 -5,2
Inflation (CPI, end year) (%) 9,4 6,3 5,0 5,0
Privatization Revenues (Billion TL) 10,6 11,8 9,9 5,5
Govt.Budget Balance (% of GDP) -1,4 -1,1 -0,7 -0,3
Govt.Debt Stock (% of GDP) 33,1 31,8 30,0 28,5
Medium-Term Program 2015-2017
* Estimated
Population Pyramid
Half of the
population
in Turkey is
under the
age of 30.4 5 4 3 2 1 0 1 2 3 4 5
0-4
10-14
20-24
30-34
40-44
50-54
60-64
70-74
80-84
90+
Female Male
%
Age Group
5 4 3 2 1 0 1 2 3 4 5
0-4
10-14
20-24
30-34
40-44
50-54
60-64
70-74
80-84
90+
Female Male
%
Age Group
Turkey Europe
Source: UN and TURKSTAT, 2010
GDP per Capita
Purchasing
Power in
Turkey has
been
tripled in
the last
decade
3.492
4.559
5.764
7.022 7.586
9.240
10.438
8.559
10.022 10.466 10.504 10.782
-
2.000
4.000
6.000
8.000
10.000
12.000
14.000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Source: TURKSTAT
Turkey is located in the center of the
most promising markets of the World
You can access to multiple markets from Turkey (Total 56 Nations, 1,5 Billion People $ 25 Trillion GDP in 4h Flight Time from Istanbul)
Turkey is located in the center of the
most promising markets of the World
ASIA
You can access to multiple markets from Turkey (Total 56 Nations, 1,5 Billion People $ 25 Trillion GDP in 4h Flight Time from Istanbul)
ASIA
MIDDLE
EAST
Turkey is located in the center of the
most promising markets of the World
You can access to multiple markets from Turkey (Total 56 Nations, 1,5 Billion People $ 25 Trillion GDP in 4h Flight Time from Istanbul)
ASIA
AFRICA MIDDLE
EAST
Turkey is located in the center of the
most promising markets of the World
You can access to multiple markets from Turkey (Total 56 Nations, 1,5 Billion People $ 25 Trillion GDP in 4h Flight Time from Istanbul)
EU ASIA
AFRICA MIDDLE
EAST
Turkey is located in the center of the
most promising markets of the World
You can access to multiple markets from Turkey (Total 56 Nations, 1,5 Billion People $ 25 Trillion GDP in 4h Flight Time from Istanbul)
Turkey is located in the center of the
most promising markets of the World
You can access to multiple markets from Turkey (Total 56 Nations, 1,5 Billion People $ 25 Trillion GDP in 4h Flight Time from Istanbul)
4h
Multinational
Company
Countries
Managed from
Turkey
Coca Cola 94
GE Healthcare 80
Microsoft 80
Intel 67
Unilever 36
Verifone 30
Schneider El. 27
Ericsson 22
Cargill 20
Pfizer 20
Volvo 18
BASF 18
PepsiCo 14
P&G 11
LG Electronics 9
Adobe 9
Turkey as
Regional Hub
Free circulation of goods between
Turkey and 28 European Union
member countries
Source: Ministry of Economy * In ratification process
EU Customs Union
and Free Trade
Agreements
1. Albania 7. Israel 13. Switzerland 19. Jordan
2. Bosnia & Herzegovina 8. Lichtenstein 14. Syria 20. Mauritus
3. South Korea 9. Macedonia 15. Tunisia 21. Lebanon *
4. Egypt 10. Morocco 16. Montenegro 22. Malaysia *
5. Georgia 11. Norway 17. Serbia 23. Kosovo *
6. Iceland 12. Palestine 18. Chile
Free Trade Agreements with 23 countries:
36 47
63 73
86
107
132
102 114
135
152 152
0
40
80
120
160
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Billion USD
Main Export Markets:
2002: %55 EU, %15 Middle East and Africa 2012: %40 EU, %35 Middle East and Africa
Exports The share
of the
industrial
goods in
total
exports is
%93,4 (2012)
Source: TURKSTAT
BULGARIA
GREECE
AZERBAIJAN
IRAN
IRAQ
EGYPT
RUSSIA
Oil and Gas Pipelines
OIL
GAS
Black Sea
Mediterranean
Sea
BULGARIA
GREECE
AZERBAIJAN
Trans Anatolia Natural Gas
Pipeline (TANAP) Project
The pipeline will start to deliver natural gas from
Azerbaijan to Turkey & EU by 2018 with an initial
capacity of 16 billion cubic meters per year.
68 GW
Total
Installed
Capacity is
(Sep, 2014)
Turkish Electricity Market Overview
Installed capacity will be doubled by 2023 with %6 CAGR.
The investment requirement until 2023 is 130 billion USD.
Turkish energy market is regulated by EMRA - Energy Market Regulatory Authority
Natural Gas
& LNG
%34
%31
Hydraulic
(Dam + River) Coal
%21
%9 Other
Thermal
%5 Wind
by source
Government
Govt.
Contracted
Private Sector
%44
%40
%16
by producer
2023 Targets for Renewables
Installed Hydro Capacity
Installed Wind Capacity
Installed Solar Capacity
Installed Geothermal Capacity
Current
19.609 MW
2.261 MW
-
159 MW
2023
36.000 MW
20.000 MW
3.000 MW
600 MW
Feed-in Tariffs for
Renewables (USD
Cent per kWh): for
Hydro:7.3, for Wind:7.3, for
Geothermal:10.5, for
Biomass:13.3, for Solar:13.3
National Treatment
=
Guarantee
of Transfers
Access to
Real Estate
International
Arbitration Employment of
Expatriates
Freedom
to Invest
Protection
Against
Expropriation
The New
Commercial
Code
Corporate
Income Tax
Structural Reforms
%20
• V.A.T. Exemption (for the imported and domestically provided Machinery and Equipment)
• Customs Duty Exemption (for the imported Machinery and Equipment)
• Reduced Corporate Income Tax (C.I.T. between %2 - %10)
• Social Security Premium Support (Both Employer’s and Employee’s Share, for 2 – 12 years)
Source: Ministry of Economy
The Investment
Incentive Scheme
The
Agency
Republic of Turkey Prime Ministry
Investment Support and Promotion Agency
Attached to the Prime Ministry and
Reports directly to the Prime Minister
2 offices (Ankara – Istanbul)
Established in 2007
A Governmental body with private sector
approach
Multi-lingual, professional and dedicated
project directors, International
representatives network worldwide
Confidential, Free of Charge
Our Strategy &
Assistance • Attracting and supporting
investments that will contribute to Turkey’s economic development as such investments which will;
• Transfer technology to Turkey
• Create added-value and integrate Turkey into Global Value Chain
• Create employment in Turkey
• Increase exports and decrease import
• Guidance on Laws & Regulations
• Site Selection
• Market Information and Analyses
• Matchmaking Potential Partners
• Facilitating Legal Procedures (Such as Establishing business operations, Incentive applications and Work & Residence permits)
FDI inflows to Turkey
17
135
0
40
80
120
160
1973-2003 (30 years) 2004-2013 (10 years)
FDI Inflows ($ billion)
Number of Companies
with Foreign Capital (Thousand)
5,6 6,7 8,8
11,7
15
18,7 21
23,7 25,5
29,4 33,8
37,3
0
10
20
30
40
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Source: : The Central Bank of Turkey & Ministry of Economy
Why Turkey?
Strong Domestic Market
Geostrategic Location
Investor Friendly Environment
Enjoy your potential
in Turkey
ON