Transcript What now?

Relocation In The
World Economy
TAGI in The Turkish Republic
and Beyond
İdris Can Koç
TAGI - Karınca Exclusive Cooperation
General Manager
Beirut, Lebanon – December 2009
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From 1997, Karınca Group have been the home
to two of the most influential and reputable local
Sworn Financial Advisory and Certified Public
Accountancy firms in The Turkish Republic.
Karınca YMM and Karınca SMMM have given
services to more than 300 local and international
clients.
It’s founder, Mr. Mustafa Koç, is an ex-accounting
expert of the Turkish Ministry of Finance, a
former Team Coordinator of The Turkish Tax
Council and a Sworn Certified Public Accountant
for 18 years.
To whom did TAGI give its
license?
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Other members of The Forum of FirmsTM are
already operating in The Turkish Republic by
giving their licenses to Turkish Accounting and
Auditing firms. Some are operating for decades.
Karınca Group however, didn’t choose to join
forces with Western Auditing Firms for the
reasons of:
◦ High Competition Among Western Firms in The Market,
◦ Lack of Original Methodology and Thoughts,
◦ Low level of connection with The Middle-East, Gulf Area,
Arabic Peninsula and North Africa and
◦ Lack of familiar business cultures and character.
Why did Karınca request
especially TAGI’s license?
TAGI belongs to one of the biggest groups
of corporate services, TAGORG.
 TAGORG houses very important
companies like TAG-Capital, AGIP, TAGLegal, TAGITI and signs under important
projects as an agent with AGPRO.
 TAGORG is a leader and an idol of trust in
The Arab World, with regards to all
aspects of business life within this region.
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Why did Karınca request
especially TAGI’s license?
The Turkish Republic has long been having
connections with The Western World, in almost all
business sectors.
 After years of business, The Western World
established strong bonds with the country and the
“blood flow” of Turkey’s arm which is open to this part
of the world, is healthy.
 However, Turkey’s other arm is not open to the Arab
World and is almost, “gangrene”.
 Although there are fortunate developments, The
current economic and corporate connections of The
Turkish Republic with the Arab World is still very weak
and the key reason to this weakness is the lack of
trust.
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Why did Karınca request
especially TAGI’s license?
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In spite of all the centuries lived together and
decades of modern business life, no
trustworthy professional relationship was
ever established between The Turkish Republic
and The Arab World.
Ready-to Wear Clothing, Construction and Food
sectors struggled and still struggle to hold on,
with the overwhelming efforts of individual
firms and people.
However, when compared to the Western World,
The Arab World is almost unknown to Turkey.
So is Turkey to The Arab World.
This had to be stopped.
Why did Karınca request
especially TAGI’s license?
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Karınca Group believed that only TAGORG could help
disperse these clouds of uncertainty and mistrust
between The Turkish Republic and The Arab World.
As its primary field of work and reason of reputation is
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Auditing,
Accounting,
Business consultancy,
Financial Consultancy and
Investment Consultancy,
Karınca Group wanted to have TAGI’s license and thus
bring TAGORG’s trustworthiness to The Turkish
Republic with one of its key firms.
Why did Karınca request
especially TAGI’s license?
 The
Turkish Trade Code will
change radically, in 2010.
 With its change, more than
150.000 companies will be
gradually obliged to be audited,
by law.
 Currently, this number is around
15.000.
Why now?
Technical Reasons
 Currently,
there are more than
3.500 Middle-East, North African,
Arabic and Gulf Area based firms
established in The Turkish Republic.
 Almost every one of them are either
inactive observers and/or getting
their auditing and accounting
services from Western auditing
firms.
Why now?
Technical Reasons
 Currently,
there is a foreign
trade of USD 37 Billion (realized
- 2008) between The Turkish
Republic and The Arab World.
 Not only this number is very low
when compared to the possible,
but also this trade volume is
audited and consulted by others.
Why now?
Technical Reasons
There is a developing participation
(islamic) banking sector in The Turkish
Republic which is also audited by
Western Auditing Firms.
 The biggest industrial companies in
The Turkish Republic are trying to do
business or more business with The
Arab World and they are asking their
Western auditing firms to be their
agents and presenters here.
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Why now?
Technical Reasons
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It is most possible to make The Turkish
companies see and understand that:
◦ TAGI is the only auditing firm in the world
which can truly and professionally give them
the services they need with its international
permits and privileges together with its special
knowledge of the Arab World, and
◦ Introduce them to TAGORG, which will make
them fully benefit from and give benefit to;
while safely connecting to and from, this
region.
Why now?
Technical Reasons
The Connection of
TRUST
Why now?
Global Reasons
The Global Economic and Financial Crisis
is the biggest catastrophe ever
experienced by any sense.
 The Crisis started in 2007 and it did not
end.
 And the end is not near.
 To have the least damage from The Crisis,
one must not act alone; be it companies
or countries.
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Why now?
Global Reasons
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Facts about Turkey: as of 2008
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Population: 73.910.000 (Worldbank)
GDP: USD 794 Billion (Worldbank)
Currency: Turkish Lira – 1,5.-TL = 1.-USD (2009)
Borders to: Central Asia, Europe and Middle East
Religion: Islam – 98.9% of population
Capital: Ankara
Biggest City: Istanbul
 Population: 14.000.000 (State Statistical Inst.)
 GDP: USD 193 Billion (State Statistical Institute)
Why now?
Global Reasons
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News about Turkey: December 2009
◦ Merrill Lynch East Europe, Middle East and
Africa (EEMEA): Turkey’s Growth will be 4.3% in
2010 and will increase.
◦ OECD: Turkey will be the fastest growing country in
OECD between 2011-2017 with an average growth
of 6.7% in GDP.
◦ IMF: The Strong Growth in Turkey will start in
2010.
◦ Citigroup: Turkey will grow 4.2% in 2010, 5.5% in
2011, 5.8% in 2012 and 6% in 2013.
◦ Fitch Ratings: Credit Note of Turkey, raised from
BB- to BB+, Country Cap: BBB- GDP per capita
above BBB (investment threshold) level.
Why now?
Global Reasons
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News about Turkey: December 2009
◦ Sukuks: Although The Turkish Treasury says that there
are no preparations of Islamic Finance Bonds for 2010
“for now”, both Istanbul Stock Exchange and the Ministry
of Finance are making progress in the development of
Sukuks and Sukuk based “Income Sharing Bonds” or
“Gulf Bonds” market. The work about Sukuks have
started in 2003.
◦ Gold: After the latest rise in Gold Prices, the price of
5000 tons of gold, thought to be “under the mattress”
savings of Turkey has become USD 192 Billion. (Istanbul
Gold Exchange Data - 2009) The weak thoughts for Gold
prices to rise further can transfer this volume to Sukuks
or other alternative financial instruments.
Why now?
Global Reasons
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Turkish Government’s Thoughts for Middle East, Gulf
Area Countries, Arabic Peninsula and North Africa:
◦ Prime Minister Mr. Recep Tayyip Erdogan: “With its
young population, rich natural resources, mosaic of
cultures and vast experience, The Middle East has given
great benefits to The History of Mankind. The Middle East
should once again become a place of culture, science,
art, peace and prosperity. We will try to do our best
whenever a duty is given to us.”
◦ Middle East Consultant of President of The Turkish
Republic Mr. Abdullah Gul, Mr. Ersad Hurmuzlu:
“Turkey believes that no country or region must be
supported because of another country or region.
Turkey’s policy is not to emphasize its political views to
any country. Turkey wants the Middle East to be peaceful
and consistent.”
Why now?
Global Reasons
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News about Istanbul: 2009 Q3-Q4
◦ Istanbul housed, both the IMF Annual Meeting on
October 2009 and COMCEC Business Forum on
November 2009, in Istanbul Congress Center, 500
metres from our office.
◦ Istanbul is chosen as The European Capital of
Culture for the year 2010. A marketing budget of
USD 100 Million will be used for this specialty.
◦ One day after our licensing signature ceremony on
30th September, 2009, The Official Gazette of
Turkey published an Action Plan for making Istanbul
the Region’s, and then the World’s Finance Center,
until the year 2012.
Why now?
Global Reasons
The Chairman of The Standing Committee For Economic and Commercial
Cooperation Of The Organization of The Islamic Conference (COMCEC) is
permanently, The President Of The Turkish Republic, currently, Mr.
Abdullah Gul. COMCEC is celebrating its 25th anniversary, with its 57
member states.
 The Elected General Secretary of The Organization of The Islamic
Conference (OIC) is Mr. Prof. Ekmeleddin Ihsanoglu, from Turkey. OIC is
celebrating its 40th year with its 57 member states in 4 continents.
 The Vice President of Eurochambers is also The President of The
Union of Chambers and Commodity Exchanges in Turkey, Mr. Rifat
Hisarciklioglu, from October 2009.
 Chairman of The World Chambers Federation is Mr. Rona Yircali, from
Turkey, who is re-elected on December 2009. World Chambers Federation
works under ICC (International Chamber of Commerce) As Mr. Talal
Abu-Ghazaleh is an executive board member of ICC, Mr. Rona is also an
ex-officio executive board member of ICC.
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Why now?
Global Reasons
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What will The Turkish Government Need to
maintain and develop these positive forecasts
and global standing?
◦ JCR (Japan Credit Ratings): Turkey needs external
financing.
◦ Citigroup: Global Demand for Turkey has to increase,
and planned privatizations have to be realized.
◦ Merrill Lynch: Low Current Account Deficit, Low
Interest Rates and Low Inflation have to be maintained,
unemployment has to be decreased.
◦ Fitch: Turkey needs a Gross External Financial
Requirement of USD 66bn in 2010.
◦ OECD: The ongoing investor trust improvements have to
be maintained.
Why now?
Global Reasons
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Therefore, economically,
◦ Turkey needs and plans to attract Foreign
Direct Investments (FDIs), especially from
our region to plan, organize and realize
important projects, which would help not
only Turkey, but all.
◦ Also, Turkey needs to implement Sukuks
and other alternative financial instruments
rapidly to deserve the place of at least a
regional finance center, gain adequate
external finance and “under the mattress”
savings.
Why now?
Global Reasons
 This
can only happen when The
Connection of Trust is
established between countries,
companies and business people;
between Europe, Central Asia
and Our Region.
Why now?
Global Reasons
 As
seen from all above, Turkey
can act as a bridge and a gate
with double doors opening
both to Europe and Central
Asia, and Middle East.
 Never before has our region
gathered this much Realizable
Economic Possibility (REP).
Why now?
Global Reasons
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Trust in Economy and Commerce in Our
Region can only be gained by a
Corporate Services Group with:
◦ Strong Professionalism,
◦ Strong Corporate Relations,
◦ Strong Knowledge of The Region’s
Business Culture
◦ Strong Reputation and
◦ Strong Experience, which is:
Why now?
Global Reasons
TAGORG
Why now?
Global Reasons
Act One
Boosting TAGI with TAGORG, in Turkey
What now?
FACTS
 The TAGI-Karinca Cooperation can give
any kind of auditing, accounting and
consulting services to any and every
company and project in Turkey.
 However, auditing and accounting has
systems with almost similar
documentation and methodology.
 Therefore the competition in the market,
is high.
What now?
FACTS
 The difference,
 Being chosen from within the competition,
 Comes from,
CONSULTANCY
What now?
FACTS
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The TAGI-Karinca Cooperation will be using the
combination of:
 TAGI’s origins from and experience in The Middle-East,
 It’s 35-year corporate history and placement in The
Forum of Firms and
 Karınca Team’s experience, prestige and knowledge in
Turkey
to gain local and international clients.
What now?
FACTS
 But
also, no auditing and
accountancy firm in Turkey, other
than TAGI-Karinca Cooperation is
under a corporate services group,
let alone such like TAGORG.
What now?
FACTS
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If TAGORG’s services, reputation,
connections and activities are seen
and understood by (cleverly
promoted to) the Turkish
Government, companies,
associations, institutions and
authorities,
What now?
FACTS
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And if TAGI-Karinca Cooperation can canalize its
clients to TAGORG when they need
 investment consultancy,
 investors for their projects or assets,
 entrepreneurial aid,
 legal aid,
 professional training,
 intellectual property services,
 IT services or web design services,
What now?
FACTS
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Then TAGI-Karinca Cooperation, both with,
 its origins and
 its possibilities to get them in close connection
with The Arab World via TAGORG,
Will have a special and almost competition-free
place in the Turkish auditing, accounting and
consultancy market.
What now?
FACTS
With this system, both TAGI will be
boosted in Turkey with TAGORG’s
existence and TAGORG will gain
additional income and business to
its other companies.
What now?
FACTS
Karınca is currently doing the
marketing of TAGI and indirectly
TAGORG, in this sense.
By this way, not only the brandrecognition of TAGI but also that of
TAGORG will increase rapidly and
simultaneously, in Turkey.
What now?
FACTS
Until now, The TAGI-Karınca
Cooperation has been published in
12 national newspapers including
Hürriyet (The biggest selling
newspaper of Turkey) and Dünya
(The biggest financial newspaper in
Turkey)
What now?
FACTS
Including BusinessWeek Turkey, our
cooperation has been featured in 3
financial magazines.
There has been a one-hour TV
program on one of the national TV
channels (Kanal 24) featuring Mr.
Mustafa Koç and myself only, as the
cooperators of TAGI. The program
created a big success.
What now?
FACTS
Almost all of the Turkish Economy
Media wants to do interviews with
Mr. Talal Abu-Ghazaleh and wants
to know more of TAG-Org and
TAGI.
What now?
FACTS
And this is just the beginning…
Act Two
TAGI-Karınca and TAGORG
as creators and agents of
region-wide investments
What now?
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On Turkey’s side, there are many
investments, with which all the region can
benefit from.
The sectors are:
◦ Energy, (Hydro-Electric Power Plants, Dams,
Natural Gas Distribution) USD 10 Billion
◦ Infrastructure, (3rd Bosphorus Bridge, Highways,
Railroads, Airports etc.) USD 5 Billion
◦ Education Cities for Student Exchange, (Erasmus
of Middle-East) USD 2 Billion
◦ Health Tourism, (Thermal, Spa Cities) USD 3
Billion
What now?
◦ Family Entertainment, (Disney Antalya) USD 4.5
Billion
◦ Port - Shipyard Management and Construction,
(The Filyos Port) USD 4 Billion
◦ Agricultural Technologies, (The South-East
Anatolia Project – SEAP (GAP)) USD 20 Billion
◦ Information Technologies, (e-commerce, nationwide networks) USD 1 Billion
◦ Fair and Exhibition Cities Management and
Construction (Istanbul and Antalya) USD 8 Billion
What now?
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The total cost of investments in those sectors is close to
USD 60 Billion.
All these investments are either planned with their
locations ready or waiting to be developed.
Many of those investments do not only require business
plans, capital and necessary permits, but also cooperation
of associations, chambers and institutions.
If The TAGI-Karınca Cooperation and TAGORG act as an
agent to get countries, companies, associations and
institutions together by recreating trust in all aspects with
its professionality, reputation, connections and experience,
then, investors to those investments can be found and
joint-ventures of (even) countries can be formed by us.
What now?
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Being the capital providing agents of these
projects would almost automatically give
their auditing and consultancy business.
If The TAGI-Karinca Cooperation and
TAGORG act as the financial consultants,
auditors and capital providing agents of these
projects respectively, TAGI and TAGORG
would surely and greatly improve their
international standing in a few years’ time.
What now?
The Global Economic Crisis will end after a
serious period of time.
 The Realizable Economic Potential in our
region has never been this much.
 The Turkish Republic, politically and
economically has never been this close to
our region before.
 The World Economy is looking towards our
region for one of the few “exits” out of
The Crisis

Conclusion: Relocation In The
Future Of World Economy
At the same time, The Arab World is
looking for a safe and secure way to
connect to Central Asia and Europe.
 There is no better way to use Turkey as a
gate with double doors from Europe and
Central Asia to The Arab World and vice
versa then to implement The
Karınca/TAGI - TAG-Org system in the
connection.
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Conclusion: Relocation In The
Future Of World Economy
It is the only way to establish a
“Connection of Trust” between countries
and regions.
 Accounting, Auditing and Consultancy are
the idols of trust and professionality to
form the foundations of this connection.
 The Karınca-TAGI Cooperation would
create the trust mechanism and do the
marketing of the system to safely send
the projects and customers to TAG-Org.
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Conclusion: Relocation In The
Future Of World Economy
And the services of TAG-Org would seal
the deals.
 This way, TAG-Org would be the group to
promote our region to relocate itself in a
better place, in the future of World
Economy.
 The Karınca Group would do anything in
means of professional connections,
corporate trust and ethics to accomplish
this important mission.
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Conclusion: Relocation In The
Future Of World Economy
May Allah be with us all…
Thank you