Turkish Investment Promotion Agency Presentation - Erkan Kaptan @ Next in Corporate Travel 2011

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Presentation of Erkan Kaptan at Next in Corporate Travel 2011 conference in Istanbul:
• TURKEY WITH SOME KEY FIGURES
• FDI IN TURKEY
• TOP REASONS TO INVEST IN TURKEY • THE AGENCY

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Turkish Investment Promotion Agency Presentation - Erkan Kaptan @ Next in Corporate Travel 2011

  1. 1. REPUBLIC OF TURKEY PRIME MINISTRYInvestment Support and Promotion Agency of Turkey ISPAT “Investment Climate in Turkey”
  2. 2. AGENDA• TURKEY WITH SOME KEY FIGURES• FDI IN TURKEY• TOP REASONS TO INVEST IN TURKEY• THE AGENCY
  3. 3. Turkey with somekey figures…
  4. 4. 17th largest economy in the world and 7th when compared to the EU Countries in 2010 (IMF)The largest youth population when compared to the EU countries
  5. 5. 35 million internet users (2010) 62 million GSM users (2010)46 million credit card users (2010)
  6. 6. -Out of world’s largest 225 construction companies 33 are Turkish (ENR, 2010)-Turkey is the 5th largest shipbuilder (units) as well as the 4th largest mega yachtproducer in the world (2009) Turkey is the 8th largest steel producer in the world and 2nd compared with the EU countries (worldsteel 2010) Turkey is the 17th largest automotive producer in the world, the largest Commercial Vehicle producer in Europe (OICA 2009)
  7. 7. - 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)
  8. 8. Turkey is the 7th most visited holiday destination in the world (2009) International Tourist Arrivals 2009 Country (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)
  9. 9. It’s not only a placeto work, but also afascinating place to live.
  10. 10. FDI in Turkey
  11. 11. Soaring FDI Inflows ‘000 Number of Companies with FDI Inflows Foreign Capital100 ($ billion) 94 30 90 25,5 25 23,7 80 21 70 20 18,7 60 15 15 50 11,7 40 8,8 10 30 6,7 5,6 20 15 5 10 0 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 1972-2002 (30 years) 2003-2010 (8 years) Source: Central Bank of Republic of Turkey & Treasury
  12. 12. Turkey is the 15th most attractive FDI destination for 2008-2010 according to the World Investment Prospects SurveySource: UNCTAD
  13. 13. Top reasonsto invest in Turkey
  14. 14. Top reasons to invest in Turkey Benchmarking Performance of the Turkish Economy 800 736 700 2010 GDP (Current Prices, $Billion) 600 500 469 466 456 377 370 400  Dynamic, Stable & 300 319 238 Attractive Economy 229 192 189 200 162  GDP 136 129 100  Key numbers 0  Population  International Hub Annual Average Real GDP Growth (%)  Structural Reforms 4,8 2002-2010 5 4,7 4,5 4,5 4,0 4,0 4,0 4 3,8 3,8 3,6 3,4 3 2,5 2,3 2,2 2 1,4 1Source: IMF World Economic Outlook, April 2011;
  15. 15. Top reasons to invest in Turkey Benchmarking Performance of the Turkish Economy 9 8,9 Annual Real GDP Growth (%) 2010 7,3  Dynamic, Stable & Attractive Economy  GDP 6  Key numbers 5,0 4,2  Population 3,8  International Hub 3 2,4 1,8  Structural Reforms 0 Turkey Emerging & World Central & Poland Czech Rep. EU 27 Developing Eastern Economies Europe Fastest growing economy in EuropeSource: IMF World Economic Outlook, April 2011;
  16. 16. Top reasons to invest in Turkey Let your business blossom in a thriving economy and promising future 7 6,7 6 Average Annual Real GDP Growth (%) Forecast in 5,0 4,9 OECD Countries 2011-2017 5 4,7 4,5 4,1 3,9 3,8 4 3,6 3,5 3,2 3,1 3,1 3,0 3,0 2,9 3 2,8 2,8 2,6 2,6 2,5 2,3 2,2 2,1 2,0 1,9 1,8 1,8 2 1,6 1,4 1,2 1 0 Turkey Australia Austria Italy US OECD Norway Ireland Canada France Luxembourg Belgium Korea UK Netherlands Hungary Switzerland Mexico Greece Finland Sweden Germany Spain Slovak Rep. Czech Rep. Iceland Poland New Zealand Denmark Japan Portugal The fastest growing economy among the OECD countriesSource: OECD Economic Outlook No.86
  17. 17. Top reasons to invest in Turkey Potential of the Turkish Economy GDP Per Capita – Nominal (USD) Dynamic, Stable & Attractive Economy 12.000 10.440 Population 9.234 10.079  Age 10.000  Labor Force 8.578  GDP 8.000 7.021 7.583 International Hub 5.764 6.000 4.559 Structural Reforms 3.492 4.000 2.000 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source: TURKSTAT
  18. 18. Top reasons to invest in Turkey Potential of the Turkish Economy GDP Per Capita – Current Prices (US$)  US in 14 years from $3.400 to $10.400 (1964-1978)  UK in 11 years from $3.516 to $10.091 (1974-1986)  Germany in 7 years from $3.490 to $10.710 (1972-1979)  Japan in 7 years from $3.460 to $10.490 (1973-1980)Source: IMF World Economic Outlook Database, World Development Indicators Database, National Sources
  19. 19. Why Turkey?According to the projection by Goldman Sachs,Turkey will be the 9th largest economy in the world and the 3rd largesteconomy 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.JapanSource: Goldman Sachs, 2009
  20. 20. Why Turkey? Increasing Confidence in the Turkish Economy Turkey’s Sovereign Credit Ratings S&P Moody’s Fitch JCR Janurary February December January December January January February Scale Scale Scale Scale 2010 2010 2009 2010 2009 2010 2010 2010 AAA+ A A2 A AAA AAA- A+ A- A3 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 B B- B3 B- B- CCC+ Caa1 CCC+ CCC CCC Caa2 CCC CC CCC- Caa3 CCC- C SD Ca DDD D DSource: Respective rating agencies
  21. 21. Top reasons to invest in Turkey Stability and High Performance in the Economy  Dynamic, Stable & Attractive Economy Exports and Tourism Revenues  GDP Billion USD  Key numbers 140 132  Population 120 Exports Tourism Revenues 114 107,3 102,2  International Hub 100 85,5 80 73,5  Structural Reforms 63,2 60 47,3 36,1 40 22 18,5 21,2 20,1 15,9 18,2 16,9 20 13,2 8,5 0 2002 2003 2004 2005 2006 2007 2008 2009 2010Source: TURKSTAT
  22. 22. Top reasons to 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. JordanSource: Undersecretariat of Foreign Trade, * In ratification process
  23. 23. Top reasons to invest in Turkey Stability and High Performance in the Economy 35,0  Dynamic, Stable & 30,7 Annual Inflation Attractive Economy 30,0  GDP  Key numbers 25,0  Population 20,0  International Hub 15,0 10,0  Structural Reforms 4,3* 5,0 0,0 J A J O J A J O J A J O J A J O J A J O J A J O J A J O J A J O J A 03 04 05 06 07 08 09 10 11 * As of April 2011Source: TURKSTAT
  24. 24. Top reasons to invest in Turkey Skilled Labor Force Availability of Skilled Labor Force 2010 0 2 4 6 8 10 Turkey 5,9 Poland 5,9 Romania 5,0 Hungary 4,6 China 4,6 Bulgaria 4,0 Availability of Qualified Engineers 2010 Availability of IT Skills 2010 0 2 4 6 8 10 0 2 4 6 8 10 Turkey 7,8 Turkey 7,5 Poland 6,6 Poland 7,2 Hungary 6,2 Bulgaria 7,2 China 5,7 Hungary 7,1 Bulgaria 5,7 China 6,6 Romania 5,1 Romania 5,4Source: IMD World Competitiveness Yearbook 2010, IMD WCY Executive Opinion Survey based on an index from 0 to 10
  25. 25. Top reasons to invest in Turkey Productive and Cost-effective Labor Force  Dynamic, Stable & Labor Cost Per Hour ($US) Attractive Economy 2010  Population 0 5 10 15 20 25 30 35 40  Age  Labor Force Turkey 3,37  GDP Malaysia 5  International Hub Brazil 6,4  Structural Reforms Hungary 9,2 Poland 11,2 Japan 25,3 US 26,9 Australia 37,9 Germany 39Source: EIU, February 2011; Average cost of labor per hour (pay and non-pay costs).
  26. 26. Top reasons to invest in Turkey Productive and Cost-effective Labor Force Days 25 Annual average number of sick days per 22 employee in Europe (2008) * 20  Dynamic, Stable & 15 Attractive Economy 10,8 11,9 9,7 10 7,8 8,3 8,3 8,3 6,6 6,7  Population 4,6 5,5 5,7 5  Age  Labor Force 0  GDP Hours  International Hub 55 53,2 Hours worked per week of full-time employment  Structural Reforms 50 Annual average (2009)** 45 42,8 42,6 42,4 41,8 41,7 41,7 41,6 41,4 41,4 41,1 40,9 40,7 40,7 40 35 30Source: *MERCER - Pan-European Employer Health Benefits Issues Survey 2008 **EUROSTAT 2009
  27. 27. Top reasons to invest in Turkey Access to Multiple Markets Total 1,5 Billion People $ 23 Trillion GDP EUROPE RUSSIAN FEDERATION GDP – $ 18.4 Trillion GDP – $ 1,5 Trillion Population – 666 million Population - 142 million Dynamic, Stable & Attractive Economy Population  International Hub  Access to Multiple Markets Energy Corridor Structural Reforms MIDDLE EAST AND CENTRAL ASIA & NORTH AFRICA CAUCASUS GDP – $ 2,8 Trillion GDP – $ 290 billion Population – 636 million Population – 80 millionSource: IMF World Economic Outlook April 2011
  28. 28. Top reasons to invest in Turkey Business Capital of Regional HQs of Multinational Companies (MNCs) Number Of Countries Managed MNCs From the HQs in Turkey Coca Cola 94 GE Healthcare 80 Microsoft 80 Intel 67 Schneider Electric 27 Ericsson 22 DHL 20 Volvo 18 BASF 18 PepsiCo 14 KUEHNE + NAGEL 14 Unilever 11 P&G 11 BSH 11Source: Respective Companies
  29. 29. Top reasonsto invest in Turkey Turkey As An Energy Corridor And Terminal  Dynamic, Stable & Attractive Economy  Population Existing Natural Gas Pipelines Existing Oil Pipelines  International Hub  Access to Multiple Natural Gas Pipelines under Construction Markets Natural Gas Pipelines Underway  Energy corridor Proposed Natural Gas Pipelines  Structural Reforms Oil Pipelines under Construction
  30. 30. Top reasonsto invest in Turkey Structural Reforms Dynamic, Stable & Attractive Economy Corporate Protection Income Against Population Tax %20 Expropriation International Hub National Guarantee Treatment of Transfers Structural Reforms NewFDI Law & Other Legislation Freedom Access to invest to Real Estate Employment International of Expatriates Arbitration
  31. 31. 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
  32. 32. Top reasons to invest in TurkeyThe Incentives Granted According To The Region, Sector and Zone 1The Scale of The Investment: Zone 2 Zone 3• Reduced Corporate Tax: between 2-10% Zone 4• Social Security Premium Contribution for Employers up to 7 years• Interest Support• Land allocation for investments
  33. 33. The Agency
  34. 34. 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
  35. 35. The Agency The International Network 15 representatives 21 countriesInternational representatives network worldwide and strategic partners in Turkey (Embassies, Consulates, Commercial Attaches, NGO’s etc)
  36. 36. The AgencyWORLD 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
  37. 37. The n TUR KEY Agencyfor all potential investors!
  38. 38. 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 inTurkey until 2023 is $ 130 billion Real Estate ; Istanbul is the first-ranked development market in 2009 (EmergingTrends in Real Estate Europe 2009 Report - PWC & ULI) Agriculture ; Concerning Southeastern Anatolia Project, $ 26.7 billion investmentis required until 2012 Transportation; Highway capacity planned to be trippled up until 2023 with 12different 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 was8.5% in 2009 despite the global financial crisis. ICT & IT ; IT Market growth rate exceeds 220 % within the last decade andreaches to $28,1 billion turnover.Source: TEDAŞ, OSD, GAP Authority, Ministry of Transportation, BDDK, Interpro Media
  39. 39. ON
  40. 40. THANK YOU FOR YOUR ATTENTION

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