Transcript Document

Republic of Turkey
Prime Ministry
Investment Support and
Promotion Agency of
Turkey
ISPAT
Investment Climate
of Turkey
Ahmet İhsan Erdem
Vice President Head of Investor Services
Department
AGENDA
• The Agency
• Turkey With Some Key Figures
• Top Reasons to Invest in Turkey
• Investment Environment
• Turkey & Arab Countries Relations
The Agency
REPUBLIC OF TURKEY PRIME MINISTRY
INVESTMENT SUPPORT AND PROMOTION AGENCY
Established in 2006
Attached to the Prime Ministry and
Reports directly to the Prime Minister
Private sector approach
ONE STOP SHOP approach
Guidance on; Laws, Regulations, Site Selection,
Sectoral Reports, Local Market Players, Potential
Partners
Confidentiality, Free of Charge
ANKARA
ISTANBUL
2 offices (Ankara – Istanbul)
invest.gov.tr
REPUBLIC OF TURKEY PRIME MINISTRY
INVESTMENT SUPPORT AND PROMOTION AGENCY
Website & Mobile Apps

www.invest.gov.tr

Available in 12 languages including
Arabic

User-friendly «Invest in Turkey»
app for iOS and Android devices.

All aspects of doing business,
investment opportunities,
incentives, key facts and more
about Turkey.
invest.gov.tr
REPUBLIC OF TURKEY PRIME MINISTRY
INVESTMENT SUPPORT AND PROMOTION AGENCY
The International Network
invest.gov.tr
REPUBLIC OF TURKEY PRIME MINISTRY
INVESTMENT SUPPORT AND PROMOTION AGENCY
• ISPAT chairs the World
Association of Investment
Promotion Agencies
• WAIPA was established in 1995
• 244 national and sub-national
agencies from 162 different
countries
• HQ of WAIPA will be relocated
from Geneva to Istanbul
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Turkey With Some Key Figures
Turkey is the 17th largest economy in the World
(6th when compared to EU Countries – IMF/2013)
76,667,864
will continue to increase and reach 93,4 million in 2050
33 million broadband
internet subscribers (2013)
70 million GSM users
(2013)
57 million credit card
users (2013)
(OICA 2013)
Source: Worldsteel Association, 2013
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
Top reasons to
invest in Turkey
GDP
GROSS DOMESTIC PRODUCT
900
2013 GDP (Current Prices, $Billion)
820
600
516
One of the biggest
emerging economies
488
351
300
312
277
198
190
132
99
53
0
Average Annual Real GDP Growth (%)
2002-2013
5
4.9
4
3
5% annual average
growth in the last
11 years
2
4.6
4.3
4.1
4.0
3.7
3.5
3.4
3.4
2.6
2.5
1.8
1
1.1
1.1
0.9
0
Source: IMF
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GDP Growth
Future Projection by the OECD
6.0
5.0
4.0
3.0
5.1
Average Annual Real GDP Growth
(%) Forecast in the OECD
Countries 2012-2017
4.8
3.6 3.6 3.5
3.4 3.3 3.3
2.9 2.8 2.8 2.8
2.0
2.7 2.6 2.6
2.5 2.5 2.4
2.3 2.3 2.2 2.2
2.1 2.1 2.1 2.0
1.9 1.9 1.8 1.8
1.7 1.7 1.6
1.4
1.2
1.0
Turkey
Chile
Australia
Norway
Mexico
Korea
Slovak Rep.
Estonia
Iceland
Luxembourg
Poland
Israel
US
Ireland
Sweden
Czech Rep.
Austria
OECD
Spain
New Zealand
Hungary
Canada
Finland
Switzerland
Denmark
Netherlands
UK
Italy
Belgium
France
Greece
Slovenia
Germany
Portugal
Japan
0.0
Turkey will be the fastest growing economy among the OECD countries
Source: OECD Economic Outlook No.93
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4h
Multinational
Company
Number of Countries
Managed from Turkey
Coca Cola
GE Healthcare
Microsoft
Intel
Unilever
Verifone
90
80
76
67
36
30
Schneider Electric
Ericsson
Cargill
Pfizer
Volvo
BASF
PepsiCo
P&G
LG Electronics
Adobe
27
22
20
20
18
18
14
11
9
9
invest.gov.tr
Exports
Manufacturing industry constitutes 93% of Turkey’s total export
Billion USD
160
152
140
120
100
80
60
40
36
20
0
2002
Source: TURKSTAT
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
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Exports
Product & Market Diversification of Exports
2002
2013
Number of export products with over $1 billion*
9
35
Number of export markets with over $1 billion
8
34
Share of top 5 countries in total exports (%)
47
32
Share of MENA in total exports (%)
13
24
Share of EU in total exports (%)
57
41
Source: TURKSTAT, Products with 2-digit HS Codes, EU includes 27 countries (new members in 2004 were included in 2002 figures), *Data for 2012
invest.gov.tr
EU Customs Union and FTAs
Customs Union with the EU:
There is free circulation of goods
between Turkey and 28 European
Union member countries.
Free Trade Agreements with 25 countries:
1. Albania
7. Israel
13. Switzerland
19. Jordan
2. Bosnia & Herzegovina
8. Lichtenstein
14. Syria
20. South Korea
3. Croatia
9. Macedonia
15. Tunisia
21. Mauritus *
4. Egypt
10. Morocco
16. Montenegro
22. Lebanon*
5. Georgia
11. Norway
17. Serbia
23. Ghana*
6. Iceland
12. Palestine
18. Chile
24. Malaysia*
Source: Undersecretariat of Foreign Trade, * In ratification process
25. Moldavia*
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Investment
Environment
Structural Reforms
National Treatment
=
Protection
Against
Expropriation
Guarantee
of
Transfers
Freedom
to Invest
International
Arbitration
The New
Commercial
Code
Access to
Real
Estate
Employment
of
Expatriates
Corporate
Income Tax
invest.gov.tr
Structural Reforms
Improving Doing Business:
Turkey in 2003
25
Romania
Russia
30
Number of days to set up a company
35
40
27
29
Bangladesh
30
Bulgaria
30
Poland
Morocco
Cameroon
Turkey
Guatemala
31
36
37
38
Turkey in 2013
39
35
30
25
20
15
10
5
6.0
12.0
14.5
15.0
18.0
19.5
22.0
23.0
27.0
30.0
33.0
Source: World Bank Doing Business Reports
0
Turkey
UK
Germany
Russia
Switzerland
Czech Republic
Japan
Spain
India
Poland
China
Incentive System
NEW INCENTIVE SYSTEM
1. General Incentives
2. Regional
Incentives
3. Incentives for
large-scale Investments
4. Incentives for
Strategic Investments
 VAT Exemption
 VAT Exemption
 VAT Exemption
 VAT Exemption
 Custom Duty Exemption
 Custom Duty Exemption
 Custom Duty Exemption
 Custom Duty Exemption
 Tax Deduction
 Tax Deduction
 Tax Deduction
 Employer’s share for
 Employer’s share for
 Employer’s share for
insurance premium
insurance premium
payment
payment
insurance premium
payment
 Land provision
 Interest Support (except
1st and 2nd regions)
 Land provision
 Land provision
 Interest Support
 VAT Refund
FDI inflows to Turkey
More than 4.000 of
them are from Arab
countries
Number of Companies with
Foreign Capital
‘000
FDI Inflows
($ billion)
137
135
40.0
37.0
33.8
35.0
120
105
29.5
30.0
90
75
60
20.0
45
15.0
19.1
16.1
15.0
11.7
8.8
10.0
15
5.6
6.7
Source: The Central Bank of Turkey & Ministry of Economy
invest.gov.tr
2013
2012
2011
2010
2009
2008
2007
2006
2003-2013 (11 years)
2005
1923-2002 (80 years)
2004
5.0
0
2003
15
21.9
2002
30
25.2
25.0
Increasing Confidence in
the Turkish Economy
Investment
Grade by Moody’s
in May 2013
Investment
Grade by Fitch in
Nov 2012
Investment
Grade by JCR in
May 2013
Turkey’s Sovereign Credit Ratings
S&P
Scale
Jan 2010
Moody’s
Feb
Mar 2013
2010
Scale
Dec
2009
Jan
2010
Fitch
May
2013
Scale
Dec 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
BB- Turkey
B+
B
B-
Turkey
Turkey
Turkey
Turkey
Turkey
Turkey
JCR
Jan
2010
Nov
2012
Turkey
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
Source: The Central Bank of Turkey & Ministry of Economy
Jan
2010
Feb
2010
May
2013
Turkey
Turkey
Turkey
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Turkey & Arab Countries
Bilateral Economic Relations
FDI inflows to Turkey
Arab investors are among the top investors in Turkey, over the past decade, they have
invested over $10 billion in Turkey
FDI Flows from Arab Countries into Turkey
($ Million, equity)
Cumulative 2004-2013
United Arab Emirates
3.931
Saudi Arabia
2.114
Kuwait
1.379
Lebanon
1.099
Qatar
743
Bahrain
522
Jordan
180
Libya
98
Other countries
12
TOTAL
Source: CBRT
10.078
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Major M&As in Turkey
M&As deals with over $100 million
Year
Acquirer
Origin
Target
Sector
Stake
2005 Saudi Oger
Saudi Arabia
Türk Telekom
Telecommunication
55%
2007 National Commercial Bank
Saudi Arabia
Türkiye Finans Katılım Bankası
Financial Services
60%
2008 Abraaj Capital
UAE
Acıbadem Sağlık Hizmetleri
Healthcare
54%
2013 Commercial Bank of Qatar
Qatar
AlternatifBank
Financial Services
71%
2007 St, Martin's Property
Kuwait
Cevahir Shopping Center
Real Estate
50%
2012 Burgan Bank
Kuwait
Eurobank Tekfen
Financial Services
99%
France-Kuwait
İzoGlass Sanayi ve Ticaret A.Ş.
Insulation
61%
2007 Abraaj Capital Limited
UAE
Acıbadem Sağlık Hizmetleri
Healthcare
22%
2007 National Bank of Kuwait
Kuwait
Turkish Bank
Financial Services
40%
2007 Global Investment House
Kuwait
FFK Fon Leasing
Financial Services
60%
Cemre İnşaat
Construction
37%
2006
Saint Gobain Isover ve
Alghanim Industries
2013 Jadwa Investment Company Saudi Arabia
Source: Deloitte, E&Y
Deal Value
(US$ million)
6.550,0
1.080,0
586,7
448,0
393,0
359,0
171,3
162,5
160,0
120,0
100,0
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ON
Thank you very much
for your attention..