Investment Support and Promotion Agency of Turkey

1. REPUBLIC OF TURKEY PRIME MINISTRY
Investment Support and Promotion Agency of Turkey
ISPAT
“Investment Climate in Turkey”

2. Beautiful
landscape…

3. Combination of
contemporary and
traditional…

4. Home of many
successful
people…

5. What about the
investment
opportunities…

6. AGENDA
• TURKEY WITH SOME KEY FIGURES
• FDI IN TURKEY
• TOP REASONS TO INVEST IN TURKEY
• THE AGENCY
• WHY TURKEY?

7. Turkey with some
key figures…

8. 17th largest economy in the world and 6th when compared to the EU Countries in 2012 (IMF)
The largest youth population when compared to the EU countries

9. 54 million credit card
users (2012)
68 million GSM users
(2012)
20 million broadband
internet subscribers (2012)

10. Turkey is the 8th largest steel producer in the world and 2nd compared with
the EU countries (worldsteel 2012)
Turkey is the 16th largest automotive producer in the world (OICA 2012)

11. - Turkish Airlines is one of the fastest growing airlines in Europe
-The best airline in Europe (Skytrax 2011, 2012, 2013)
- 131 million airline passengers in Turkey (2012)
- Istanbul Ataturk Airport is the best airport in Southern Europe (Skytrax 2013)

12. Turkey is the 6th most visited holiday destination in the world (2012)
International Tourist
Arrivals
Country
2012
(million)
1. France
83.0
2. USA
67.0
3. China
57.7
4. Spain
57.7
5. Italy
46.4
6. Turkey
35.7
7. Germany
30.4
8. UK
29.3
9. Russia
25.7
10. Malaysia
25.0
Source: UNWTO
Out of world’s top 100 best hotels 22 are from Turkey (TUI Holly, 2012)

13. It’s not only a place
to work, but also a fascinating place to live.

14. FDI in Turkey

15. Source: Central Bank of Republic of Turkey & Ministry of Economy
Soaring FDI Inflows
5,6
6,7
8,8
11,7
15
18,7
21
23,7
25,5
29,4
33,8
0
5
10
15
20
25
30
35
40
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
‘000
Number of Companies with Foreign Capital
15
123
0
25
50
75
100
125
1923-2002 (80 years)
2003-2012 (10 years)
FDI Inflows
($ billion)

16. FDI in Turkey
Increasing Confidence in the Turkish Economy
Source: A.T. Kearney
Foreign Direct Investment Confidence Index 2012

17. Transnational Corporations’ top prospective host economies for 2013-2015
Source: UNCTAD. Based on 159 company responses
(Percentage of respondents selecting economy as a top destination for investment)
FDI in Turkey

18. Top reasons
to invest in Turkey

19. Top reasons
to invest in Turkey
Source: OECD, Eurostat and National Sources
 Dynamic, Stable &
Attractive Economy
 GDP & Income
 Key numbers
 Population
 International Hub
 Structural Reforms
Benchmarking Performance of the
Turkish Economy
5,0
4,7
4,5
4,3
3,6
3,5
3,5
3,3
2,9
2,5
1,6
1,1
1,0
0,8
0
1
2
3
4
5
6
Average Annual Real GDP Growth (%) 2002-2012
786
772
490
478
384
304
268
196
169
126
92
51
0
100
200
300
400
500
600
700
800
2012 GDP (Current Prices, $Billion)

20. Source: TurkStat
Main Drivers of the Economic Growth
Top reasons
to invest in Turkey
 Dynamic, Stable &
Attractive Economy
 GDP & Income
 Key numbers
 Population
 International Hub
 Structural Reforms
66%
33%
33%
10%
4%
-6%
-39%
-40%
-20%
0%
20%
40%
60%
80%
Domestic
Consumption
Exports
Private
Investment
Public
Consumption
Public
Investment
Stocks
Imports
Percentage Contribution to Real GDP Growth 2002-2012
An economy driven by entrepreneurial spirit of private sector, robust domestic market and lucrative export opportunities

21. Source: Indicators are based on the compilations of OECD, Rosstat, and Turkstat data
Quarterly Real GDP Growth (Index: Q1-2009=100)
Seasonally adjusted
Fastest growing economy in Europe and one of the fastest growing economies in the world
The fastest recovering economy since the onset of global financial crisis in 2009
95
100
105
110
115
120
125
130
135
Q1-2009
Q2-2009
Q3-2009
Q4-2009
Q1-2010
Q2-2010
Q3-2010
Q4-2010
Q1-2011
Q2-2011
Q3-2011
Q4-2011
Q1-2012
Q2-2012
Q3-2012
Q4-2012
Q1-2013
Q2-2013
Turkey
Russia
Brazil
Poland
Czech Rep.
Hungary
Top reasons
to invest in Turkey
 Dynamic, Stable &
Attractive Economy
 GDP & Income
 Key numbers
 Population
 International Hub
 Structural Reforms

22. Source: OECD Economic Outlook No.93, May 2013
Let your business blossom in a thriving economy and promising future
8,4
6,9
6,0
5,1
5,0
4,6
4,1
3,8
3,7
3,5
3,3
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
1,0
0,8
0,8
0,8
0,2
0,1
-0,5
-1
0
1
2
3
4
5
6
7
8
9
China
India
Indonesia
Turkey
Chile
South Africa
Korea
Argentina
Brazil
Israel
Australia
Russia
Slovakia
Mexico
Estonia
Poland
Norway
Sweden
Luxembourg
New Zealand
Czech Rep.
Switzerland
US
Canada
OECD
Austria
UK
France
Finland
Belgium
Netherlands
Ireland
Hungary
Germany
Slovenia
Euro area
Denmark
Japan
Iceland
Spain
Portugal
Italy
Greece
The fastest growing economy among the OECD countries
Average Annual Real GDP Growth (%) Forecast
2012-2017
Top reasons to invest in Turkey
 Dynamic, Stable &
Attractive Economy
 GDP & Income
 Key numbers
 Population
 International Hub
 Structural Reforms

23. Source: TURKSTAT
Potential of the Turkish Economy
 Dynamic, Stable &
Attractive Economy
 Population
 Age
 Labor Force
 GDP
 International Hub
 Structural Reforms
Top reasons to invest in Turkey
GDP Per Capita – Nominal (USD)
3.492
4.559
5.764
7.022
7.586
9.240
10.438
8.559
10.022
10.466
10.504
-
2.000
4.000
6.000
8.000
10.000
12.000
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012

24. Top reasons to invest in Turkey
Source: TURKSTAT, Hedef 2023
A Visionary Economy: Road to 2023
 Dynamic, Stable &
Attractive Economy
 Population
 Age
 Labor Force
 GDP
 International Hub
 Structural Reforms
230
786
2.000
-
500
1.000
1.500
2.000
2002
2012
2023 (Target)
GDP ($ Billion, Current Prices)
2,5 times
3.492
10.504
25.000
-
5.000
10.000
15.000
20.000
25.000
2002
2012
2023 (Target)
GDP per capita ($)
3 times
2,5 times
3,5 times

25. Top reasons
to invest in Turkey
Source: TURKSTAT
Enriching population eradicating poverty
 Dynamic, Stable &
Attractive Economy
 Population
 Age
 Labor Force
 GDP & Income
 International Hub
 Structural Reforms
30,3
23,8
20,9
16,4
13,3
8,4
6,8
4,4
3,7
2,8
0,0
5,0
10,0
15,0
20,0
25,0
30,0
35,0
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Percentage (%) of Poor People Living Less Than $4,3 Per Day

26. Source: TURKSTAT
Top reasons
to invest in Turkey
60,5
43,2
36,8
36,0
34,8
34,2
29,7
27,4
21,2
5,2
0
15
30
45
60
1
2
3
4
5
6
7
8
9
10
Percentage Increase in Decile (10%) Income Groups
Lowest income group
top income group
Real Increase (%) in Household Income 2002-2011
 Dynamic, Stable &
Attractive Economy
 Population
 Age
 Labor Force
 GDP & Income
 International Hub
 Structural Reforms

27. Emergence of a new middle-class
Top reasons
to invest in Turkey
 Dynamic, Stable &
Attractive Economy
 Population
 Age
 Labor Force
 GDP & Income
 International Hub
 Structural Reforms
2002
2012
Number of shopping malls
60
327
Stock of Consumer Loans* ($ Billion)
4,2
142
Private Consumption per capita ($)
2.390
7.674
Motor Vehicle Sales (thousands)
174
818
Number of Cars in traffic (million)
4,6
8,6
Airline Passengers (million)
33
131
Source: OSD, TCSCR, Ministry of Transport, TURKSTAT, CBRT, Ministry of Development *including credit cards

28. Rise of the middle-class in Turkey
Top reasons to invest in Turkey
 Dynamic, Stable &
Attractive Economy
 Population
 Age
 Labor Force
 GDP & Income
 International Hub
 Structural Reforms
Source: EIU
0
2000
4000
6000
8000
10000
12000
2004
2012
5389
2737
4757
12251
163
2257
> $5K< $10K
>$10K<$50K
> $50K
Annual Income:
Number of Households by their Annual Income Level (‘000)

29. Source: Central Bank of the Republic of Turkey, European Central Bank , FRED
Household Liability % of GDP
Top reasons
to invest in Turkey
 Dynamic, Stable &
Attractive Economy
 Population
 Age
 Labor Force
 GDP & Income
 International Hub
 Structural Reforms
2166850102030405060708090100TurkeyEuro AreaUSA2012

30. Top reasons to invest in Turkey
Source: Treasury, Eurostat, IMF
EU Defined General Government Gross Debt Stock (% of GDP)
Stability and High Performance in the Economy
Maastricht Criteria: 60 %
 Dynamic, Stable &
Attractive Economy
 GDP & Income
 Key numbers
 Population
 International Hub
 Structural Reforms
74,0
36,1
60,9
85,3
35
40
45
50
55
60
65
70
75
80
85
90
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
TURKEY
EU

31. Stability and High Performance in the Economy
 Dynamic, Stable &
Attractive Economy
 GDP & Income
 Key numbers
 Population
 International Hub
 Structural Reforms
Top reasons
to invest in Turkey
Central Government Budget Balance (% of GDP)
Maastricht Criteria: -3 %
-10,2
-2,0
-2,5
-4,0
-12
-9
-6
-3
0
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
TURKEY
EU
Source: Ministry of Finance, Eurostat

32. Source: TURKSTAT
Stability and High Performance in the Economy
 Dynamic, Stable &
Attractive Economy
 GDP & Income
 Key numbers
 Population
 International Hub
 Structural Reforms
Top reasons
to invest in Turkey
Annual Inflation
* As of September 2013
30,7
7,9*
0,0
5,0
10,0
15,0
20,0
25,0
30,0
35,0
J 03
A
J
O
J 04
A
J
O
J 05
A
J
O
J 06
A
J
O
J 07
A
J
O
J 08
A
J
O
J 09
A
J
O
J 10
A
J
O
J 11
A
J
O
J12
A
J
O
J13
A
J

33. Source: TURKSTAT
Stability and High Performance in the Economy
 Dynamic, Stable &
Attractive Economy
 GDP & Income
 Key numbers
 Population
 International Hub
 Structural Reforms
Top reasons
to invest in Turkey
Exports
36
47
63
74
86
107
132
102
114
135
153
0
20
40
60
80
100
120
140
160
180
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Billion USD

34. Source: TURKSTAT, Products with 2-digit HS Codes, EU includes 27 countries (new members in 2004 were included in 2002 figures)
Product & Market Diversification of Exports
Top reasons
to invest in Turkey
2002
2012
Number of export products with over $1 billion
9
30
Number of export markets with over $1 billion
8
34
Share of top 5 countries in total exports (%)
47
33
Share of MENA in total exports (%)
13
28
Share of North America in total exports (%)
10
4
Share of EU in total exports (%)
57
39
 Dynamic, Stable &
Attractive Economy
 GDP & Income
 Key numbers
 Population
 International Hub
 Structural Reforms
Less dependent on the crisis-ridden markets

35. Source: TURKSTAT
Increasing export of technology-intensive products
 Dynamic, Stable &
Attractive Economy
 GDP & Income
 Key numbers
 Population
 International Hub
 Structural Reforms
Top reasons
to invest in Turkey
46,3
48,5
53,9
54,5
58,8
61
65,2
60,7
59,6
60,9
53,7
51,5
46,1
45,5
41,2
39
34,8
39,3
40,4
39,1
0
20
40
60
80
100
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Tecnology-intensive
Labor-intensive
Compositipon of Exports (%)

36. Top reasons
to invest in Turkey
Turkey has the 5th most liberal trade policies in the world
(World Trade Indicators 2010)
 Customs Union with the EU
 Free Trade Agreements with 21 countries:
Source: Ministry of Economy, * In ratification process
 Dynamic, Stable &
Attractive Economy
 GDP & Income
 Key numbers
 Population
 International Hub
 Structural Reforms
1. Albania
12. Switzerland
2. Bosnia & Herzegovina
13. Syria
3. Egypt
14. Tunisia
4. Georgia
15. Montenegro
5. Iceland
16. Serbia
6. Israel
17. Chile
7. Lichtenstein
18. Jordan
8. Macedonia
19. Lebonan*
9. Morocco
20. Mauritius
10. Norway
21. South Korea
11. Palestine

37. Top reasons
to invest in Turkey
Source: IMF World Economic Outlook and WTO; GDP, Imports and population figures as of 2012
1,5 billion people; $25 trillion GDP; $8 trillion trade
EUROPE GDP: $19 trillion Import: $6,5 trillion Population: 670 million
RUSSIA
GDP – $2 trillion
Import: $335 billion
Population: 142 million
MENA
GDP: $3,8 trillion
Import: $995 billion
Population: 675million
CENTRAL ASIA & CAUCASUS
GDP: $390 billion
Import: $97 billion
Population: 82 million
Dynamic, Stable &
Attractive Economy
Population
 International Hub
 Access to Multiple Markets
Energy Corridor
Structural Reforms
Access to Multiple Markets

38. 196 international destinations & 29 more planned
International Connectivity
Top reasons to invest in Turkey
Source: Turkish Airlines

39. Top reasons
to invest in Turkey
Source: Respective Companies
Business Capital for Regional HQs
Multinational Companies (MNCs)
MNCs
Number of Countries Managed from Turkey
Coca Cola
94
GE Healthcare
80
Microsoft
80
Intel
67
Unilever
36
Verifone
30
GlaxoSmithKline
30
BSH
30
Schneider Electric
27
Alstom
26
Ericsson
22
Cargill
20
Pfizer
20
Volvo
18
BASF
18
PepsiCo
14
Dynamic, Stable &
Attractive Economy
Population
 International Hub
 Access to Multiple Markets
Energy Corridor
Structural Reforms

40. Turkey As An Energy Corridor And Terminal
Top reasons
to 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

41. Source: UN and TURKSTAT, 2012
Potential of the Turkish Economy
- Young Population -
Top reasons
to invest in Turkey
Population Pyramid
Half of population in Turkey is under age 30
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 & Income
 International Hub
 Structural Reforms

42. Top reasons to invest in Turkey
Source: UN *Number of people between ages of 15 and 64 **[Age 0-14 + Age 65+ ]/ Age 15-64
 Dynamic, Stable &
Attractive Economy
 Population
 Age
 Labor Force
 GDP
 International Hub
 Structural Reforms
Favorable Demographic Trend
80
85
90
95
100
105
110
115
120
125
2011
2014
2017
2020
2023
2026
2029
2032
2035
2038
2041
2044
2047
2050
Working Age Population*, 2011=100
Europe
Turkey
40
50
60
70
80
90
100
2011
2014
2017
2020
2023
2026
2029
2032
2035
2038
2041
2044
2047
2050
Total Dependency Ratio (%)**
Europe
Turkey

43. Source: IMD World Competitiveness Yearbook 2012, IMD WCY Executive Opinion Survey based on an index from 0 to 10
Top reasons to invest in Turkey
Skilled Labor Force 2012
6,2
6,1
5,6
5,3
4,4
4,0
0
1
2
3
4
5
6
7
Turkey
Poland
Hungary
Romania
China
Bulgaria
Availability of Skilled Labor Force
6,1
5,1
4,9
4,7
4,6
3,5
0
1
2
3
4
5
6
7
Turkey
Poland
Hungary
China
Romania
Bulgaria
Availability of Competent Senior Managers
7,6
6,3
6,1
6,0
5,7
5,4
0
2
4
6
8
Turkey
Poland
Hungary
Romania
China
Bulgaria
Availability of Qualified Engineers
 Dynamic, Stable &
Attractive Economy
 Population
 Age
 Labor Force
 GDP & Income
 International Hub
 Structural Reforms

44. Source: OSYM
Skilled Labor Force
Top reasons
to invest in Turkey
 Dynamic, Stable &
Attractive Economy
 Population
 Age
 Labor Force
 GDP & Income
 International Hub
 Structural Reforms
Number of Graduating Students in the Selected Engineering Fields
Field
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Mechanical Eng.
3415
3232
3436
3411
3550
3875
4323
4678
4485
4558
5324
Electric-Electronics Eng.
2640
2704
3013
3361
3208
3346
3637
3510
3621
3987
4403
Computer Eng.
1281
1402
1727
1970
1910
2174
2446
2950
3028
2906
3184
Civil Eng.
2840
2811
2735
2717
2850
2972
3235
3498
3595
4231
4368

45. Source: TURKSTAT, Ministry of Development
Productive and Cost-effective Labor Force
Top reasons
to invest in Turkey
Productivity and Unit Wages Index in Industry (Per Worker; 2005=100)
 Dynamic, Stable &
Attractive Economy
 Population
 Age
 Labor Force
 GDP & Income
 International Hub
 Structural Reforms
115,9
108,7
80
85
90
95
100
105
110
115
120
125
130
2005 Q1
2005 Q2
2005 Q3
2005 Q4
2006 Q1
2006 Q2
2006 Q3
2006 Q4
2007 Q1
2007 Q2
2007 Q3
2007 Q4
2008 Q1
2008 Q2
2008 Q3
2008 Q4
2009 Q1
2009 Q2
2009 Q3
2009 Q4
2010 Q1
2010 Q2
2010 Q3
2010 Q4
2011 Q1
2011 Q2
2011Q3
2011 Q4
2012 Q1
2012Q2
2012Q3
Productivity Index
Real Unit Wage Index

46. Source: OECD
Labor Productivity in Total Economy
Top reasons to invest in Turkey
95
110
125
140
155
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Turkey
Poland
Czech Republic
Hungary
Mexico
Real GDP per hour worked
(Index: 2001=100)
 Dynamic, Stable &
Attractive Economy
 Population
 Age
 Labor Force
 GDP & Income
 International Hub
 Structural Reforms

47. Top reasons to invest in Turkey
Source: *MERCER - Pan-European Employer Health Benefits Issues Survey 2008, **EUROSTAT 2012: The average number of hours corresponds to the number of hours the person normally works. This covers all hours including extra hours, either paid or unpaid, which the person normally works
4,6
5,5
5,7
6,6
6,7
7,8
8,3
8,3
8,3
9,7
10,8
11,9
22
0
5
10
15
20
25
Days
Annual average number of sick days per employee in Europe*
 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**
Hours
52,4
43,8
43,5
42,8
42,6
42,3
42,1
41,9
41,9
41,7
41,6
41,6
41,1
41,1
40,8
40,6
40,3
39,8
30
35
40
45
50
55

48. Top reasons to invest in Turkey
Labor Cost Per Hour ($US) 2010
Productive and Cost-effective Labor Force
 Dynamic, Stable &
Attractive Economy
 Population
 Age
 Labor Force
 GDP
 International Hub
 Structural Reforms
Source: EIU, February 2011; Average cost of labor per hour (pay and non-pay costs).
3,37
5
6,4
9,2
11,2
25,3
26,9
37,9
39
0
5
10
15
20
25
30
35
40
Turkey
Malaysia
Brazil
Hungary
Poland
Japan
US
Australia
Germany

49. Top reasons
to invest in Turkey
Source: OECD *Harmonized Unemployment Rate, seasonally adjusted
Employment Generating Economy
-2.000
-1.500
-1.000
-500
-
500
1.000
1.500
2.000
2.500
3.000
3.500
Turkey
US
Germany
Korea
Chile
Canada
Australia
Sweden
Switzerland
Austria
Belgium
Norway
France
Slovakia
Czech Rep.
Slovenia
Ireland
Denmark
Italy
Poland
Portugal
Greece
Japan
Spain
Increase in Employment (‘000)
2009-2012
Turkey generated c. 3,5 million new jobs since the onset of the global financial crisis in 2009
7,0
8,0
9,0
10,0
11,0
12,0
13,0
14,0
Jan-2009
Mar-2009
May-2009
Jul-2009
Sep-2009
Nov-2009
Jan-2010
Mar-2010
May-2010
Jul-2010
Sep-2010
Nov-2010
Jan-2011
Mar-2011
May-2011
Jul-2011
Sep-2011
Nov-2011
Jan-2012
Mar-2012
May-2012
Jul-2012
Sep-2012
Nov-2012
Unemployment* (%)
Turkey
EU
OECD
 Dynamic, Stable &
Attractive Economy
 Population
 Age
 Labor Force
 GDP
 International Hub
 Structural Reforms

50. Top reasons to invest in Turkey
Turkey: A Manufacturing Hub
Source: Deloitte
TURKEY TURKEY TURKEY
T U R K E Y
Turkey will be the 16th manufacturing hub in the world and 2nd in Europe over the next 5 years.

51.  Dynamic, Stable &
Attractive Economy
 Population
 International Hub
 Structural Reforms
Top reasons to 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 Structural
Reform Agenda

52. 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 reasons to invest in Turkey

53. Top reasons to invest in Turkey
New Turkish Commercial Code effective as of July 2012
Transparency
Accountability
Institutionalization
Improvement in investment & business environment
Adoption of institutional management principles
Opportunity to perform legal procedures electronically
 Dynamic, Stable &
Attractive Economy
 Population
 Age
 Labor Force
 GDP
 International Hub
 Structural Reforms

54. Source: World Bank Doing Business Reports
Top reasons to invest in Turkey
27
29
30
30
31
36
37
38
39
25
30
35
40
Romania
Russia
Bangladesh
Bulgaria
Poland
Morocco
Cameroon
Turkey
Guatemala
Turkey in 2003
6
13
15
18
18
20
23
27
28
32
33
0
5
10
15
20
25
30
35
Turkey
UK
Germany
Russia
Switzerland
Czech Republic
Japan
India
Spain
Poland
China
Turkey in 2012
Improving Doing Business: Number of days to set up a company
 Dynamic, Stable &
Attractive Economy
 Population
 International Hub
 Structural Reforms

55.  Dynamic, Stable &
Attractive Economy
 Population
 International Hub
 Structural Reforms
Top reasons
to invest in Turkey
Structural Reforms: Yielding Results & Increasing Competitiveness
Global Competitiveness Index
Year
Number of Countries
Turkey’s Rank
Turkey’s Rank (Percentile)
2004
104
66
63,5
2005
117
66
56,4
2006
125
59
47,2
2007
131
54
41,2
2008
134
63
47,0
2009
133
61
45,9
2010
139
61
43,9
2011
142
59
41,5
2012
144
43
29,8
2013
148
44
29,7
Source: WEF

56. Increasing Confidence in the Turkish Economy
Source: Respective rating agencies
Turkey’s Sovereign Credit Ratings
S&P
Moody’s
Fitch
JCR
Scale
Jan 2010
Feb 2010
Mar 2013
Scale
Dec 2009
Jan
2010
May 2013
Scale
Dec 2009
Jan
2010
Nov 2012
Scale
Jan 2010
Feb 2010
May 2013
A
A2
A
AAA+
AAA
AAA-
A-
A3
A-
A+
A
A-
BBB+
Baa1
BBB+
BBB+
BBB
Baa2
BBB
BBB
BBB-
Baa3
Turkey
BBB-
Turkey
BBB-
Turkey
BB+
Turkey
Ba1
Turkey
BB+
Turkey
BB+
BB
Turkey
Ba2
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
D
Investment Grade by Fitch in Nov 2012
Top reasons
to invest in Turkey
Investment Grade by Moody’s in May 2013
Investment Grade by JCR in May 2013

57. Source: Bloomberg
Increasing Confidence in the Turkish Economy
0
5.000
10.000
15.000
20.000
25.000
30.000
35.000
40.000
0
200
400
600
800
1.000
1.200
1.400
1.600
Nov-09
Dec-09
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Oct-11
Nov-11
Dec-11
Jan-12
Feb-12
Mar-12
Apr-12
May-12
Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
Portugal
Ireland
Spain
Turkey
Italy
Greece (right axis)
5-Year CDS Spreads (basis point)
Top reasons
to invest in Turkey

58. Top reasons
to invest in Turkey
INVESTMENT INCENTIVES IN TURKEY
1. General Incentive System
2. Incentives for Large Scale Investments
3. Regional Incentive System
4. Incentives for Strategic Investments
5. Employment Scheme
6. Research and Development Supports
7. State Incentives for Export

59. Top reasons
to invest in Turkey
NEW INCENTIVE SYSTEM
1. General Incentives
2. Regional Incentives
3. Incentives for large-scale Investments
4. Incentives for Strategic Investments
VAT Exemption
Custom Duty Exemption
VAT Exemption
Custom Duty Exemption
Tax Deduction
Employer’s share for insurance premium payment
Land provision
VAT Exemption
Custom Duty Exemption
Tax Deduction
Employer’s share for insurance premium payment
Land provision
Interest Support (except 1st and 2nd regions)
VAT Exemption
Custom Duty Exemption
Tax Deduction
Employer’s share for insurance premium payment
Land provision
Interest Support
VAT Refund
In the 6th Region; income withholding tax and employee’s share for insurance premium payment

60. Top reasons
to invest in Turkey
Regional Incentive Map

61. The Agency

62. 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

63. The Agency
International representatives network worldwide and strategic partners in Turkey (Embassies, Consulates, Commercial Attaches, NGO’s etc)
The International Network

64. 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 Agency

65. The Agency
for all potential investors!
n
TUR
KEY

66. Why Turkey?

67. Enjoy your potential in Turkey

68. 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, 2008
Why Turkey?

69. The Most Promising Sectors
 Automotive ; Target to produce over 2 mio vehicles within 5 years
 Transportation; Highway capacity planned to be trippled up until 2023 with 12 different project
 Real Estate; Third most attractive real estate investment destination in 2012 (AFIRE); Istanbul is the most attractive real estate investment market in 2012 (PwC, ULI); more than $27 billion FDI over past decade.
 Finance; Resillent to the global financial crisis with strong regulatory and supervisory framework, the most attractive sector with $39 billion FDI in the past decade; more opportunties with Istanbul Finance Center
 Energy; Strategic location for energy terminal and corridor; rapidly growing demand: over $100 billion investment is needed to meet the demand till 2023; privatization and diversification opportunities.
 ICT; Fastest growing IT companies in the region are from Turkey, 27 of the 500 fastest growing tech companies in EMEA are Turkish. 2011 winner: Logic Bilişim (5-year revenue growth of 28,617% with 412% CAGR).
Why Turkey?

70. ON

71. THANK YOU FOR YOUR ATTENTION