Page 1




BRIEFING Soda Ash: The Largest Producer in Europe IN DEPTH Turkey: Global Player in Defense BRANDS ลžรถlen: Re-Establishing the Chocolate Candy Rules





Turkey is ready for the year of records after the breakthrough year, 2017.


The Turkish Perspective

Contents 05 FIRST 05 | Uk Wants To Maintaın Strong Ties With Turkey 06 | Turkey’s Honey Exports Soared in 2017 07 | 5.5M Russian Tourists in 2018 09 | Natural Stone Exports up 13 pct 11 | Qatar to Invest in Turkey




In 2018, permanent growth in the world economy is expected to accelerate. It is predicted that the growth rate of 3.0 percent in 2017 will rise to 3.3 percent in 2018. Growth in developed and developing countries will increase together.


05 50

15 BRIEFING 15 |The Largest Producer in


59 BRANDS 59 | ŞÖLEN: Re-Establishing the Chocolate Candy Rules

18 | Branding, High Added Value, Sectoral Perspective…


50 | Turkey: Global Player in Defense Positive growth and increasing export revenues captured by Turkey’s critical defense technologies are bringing the sector a good point in the world.

New soda ash production facilities in Ankara, which has an investment cost of $1.5 billion, will contribute to the reduction of Turkey’s current account deficit by boosting the country’s exports.

Turkey is the one of the leading countries in the jewellery sector and this brought the success in 2017.



English Ninjas is an online platform that enables users to practice their English speaking skills with native speakers.

28 |Inspirational and Revolutionary

Global Entrepreneurship Congress gathers together thousands of entrepreneurs, investors, researchers,

policymakers and other startup champions from more than 170 countries.

30 |“Turkish Airlines Makes Us All Very Proud”

Turkish Airlines’ high-ranking managers received by President H.E. Recep Tayyip Erdoğan at Turkey’s Presidential Complex.

One of the brave and innovative companies of Turkey, Şölen takes sure steps towards the future with the strength it takes from its brands.




2 Online



Publisher on Behalf of Turkish Exporters Assembly/ CHAIRMAN of The Turkish Exporters Assembly

MEHMET BÜYÜKEKŞİ Strategıc Partner Presıdent of Prıme Mınıstry Investment support and promotıon Agency

Arda Ermut

The Turkish Perspective Digital

The Turkish Perspective website is to be launched soon. A new medium to learn, analyze and monitor everything about Turkish economy and business, is born. The Turkish Perspective Digital will share the latest news, interviews with decision makers, provide in-depth analyzes and will be the foreigner’s guide in Turkey regarding regulations and legislations.

Manager In Charge H. BADER ARSlan PhD



VICE President YAŞAR MAMATİ Project COORDINATOR Ahmet Damgacıoğlu

Edıtorıal Editors mustafa yİğİt


Business Culture t Investmen ce S and cien Innovation ay D e th Video of News keting d B r a n Ma r





BRIEFING Turkey the Champion of Diplomacy Traffic


IN dEPTh A New Era For Investors: Super Incentive System



BRIEFING National Era In File Transfer: Filegoes

auGuST 2017 ISSuE 49





IN dEPTh All For A Smile

BRaNdS Assan Foods: Grow In Industry Scale Continuously


IN DEPTH The Rise of the Heritage BRANDS Innovative Brand In The Sector: Seramiksan



key ur ot

#co me tot u


ey rk

Turkey is a vulnerable actor when it comes to energy supply.

#c om et







a key NATO member, has always held an important position in global affairs. Turkey has become a more prominent player on the world stage as both an economic force and a power in the last decade.

etoturkey om #c

key tur eto om #c

* The sun rises from the east.




BRIEFING Connecting East And

West: “Startup İstanbul”




BRIEFING Export Week 2017: Breakthrough Year of Exports










BRIEFING The Only Thing We Need: Innovation

BRaNdS Arzum: A 50-Year Brand In Household Electrical Appliances

BRANDS Beyoğlu Gazozu: Taste From The Past

BRANDS Pharmactive: Begun to Export to European Countries


IN dEPTh Invest in France

IN DEPTH The Country of Northern Lights: Finland

IN DEPTH Brand Country in Sport Organizations: Turkey


BRIEFING Art, Stories, Istanbul… Contemporary Istanbul

BRaNdS The Largest Simulator Training Center of Europe and Middle East



TURKISH EXPORTERS: We’re grateful for your confidence Turkey has a “breakthrough year” in 2017 and gained the confidence of all world.

More than a magazine, the Turkish Perspective will now be more interactive and responsive, as expected from Turkey’s main voice for international audience.

JR. GRAPHIC DESIGNER ÖZCAN AYHAN PRıntıng Promat Basım Yayın San. ve Tic. A.Ş. Orhangazi Mah. 1673 Sok. No.34 Esenyurt- İstanbul / TURKEY T. +90 212 622 63 63 F. +90 212 605 07 98

contact T. + 90 212 216 19 48 Neither text nor photographs from this publication may be reproduced in full or part without acknowledging the source and securing prior permission from the publisher.


The Turkish Perspective


Sustainability in Exports

In 2018, which we declared as the “Year of Records”, we are expecting new records in not only the export figures but also the number of exporters.


e completed 2017, which we declared as the “Breakthrough Year in Exports”, with an export figure of 157.1 billion dollars together with our 70 thousand exporters. Making 2017 the second highest year in terms of exports and the number one year in terms of exporters. Thanks to the liberalization initiatives of the 1980s and the Customs Union agreement in the 1990s, more and more companies started to engage in foreign trade. However, exports gained a leading place in the strategies of Turkish companies only by the 2000s. In the year 2000, we had 25 thousand exporters. However, we nearly doubled this figure by 2010 and reached 49 thousand exporters. We passed the thresholds of 50 thousand companies in 2011 and 60 thousand companies in 2014. We nearly reached 70 thousand companies in 2017 as an all times high. In 2018, which we declared as the “Year of Records”, we are expecting new records in not only the export figures but also the number of exporters. There are significant contributions from our Government, Turkish Exporters Assembly and Exporters Associations in reaching this level. We can clearly see effects of the export based growth model and the supports given to increase the diversity of our export profile. Moreover, as TİM and Exporter Associations, we are always trying to add new members to the exporters’ family, developing macro strategies in terms of our exports and attaching importance

to increasing the number of exporters by organizing trade delegations and conferences. However, both the number of exporters and continuity of exporters are important for us. We encourage exporters to diversify their customer portfolios and products to have a healthier structure. With this respect, we say that our exporters should compensate the fluctuations in one market with the other by not being bound to a single market. The main reason we encourage sustainability in exports is that, until 2000 there are 201 thousand companies who did export in at least 1 year. However, 4,500 of those companies, nearly %2, have exported in all 17 years. Moreover,

70 thousand companies have exported in only 1 of these 17 years. This data show that we need to achieve sustainability in company level in order to increase our export in a sustainable way. We are carrying out some projects for these companies not only to encourages export but also to increase awareness of sustainability. In these projects, we give priority to this issue and we shape our steps with these ideas. At the moment, the number of our exporters has reached 70 thousand and we are expecting to exceed 100 thousand firms by 2023. If the current exporters continue to export until 2023, we will definitely reach our target 500 billion dollars by the 100th year of our Republic.










The Turkish Perspective Content: Turkey’s Honey Exports Soared in 2017 P06 Connecting Angel Investors and Wealth Management to Fuel Innovation P07 Turkey Grows in Global Geothermal Power P08 Natural Stone Exports up 13 pct P09 Turkey’s 1st Drillship P10 Aselsan Seals Long-Range Defense System Deal P11 Editor: Ramazan Güzyurdu



Trade, investments, exports and imports between Turkey and the U.K. will definitely not be affected in a negative sense when Brexit is executed.


UK Wants to

maıntaın strong tıes wıth turkey

British Trade Minister Liam Fox emphasized that Turkey has been one of the U.K.’s most strategic partners, indicating that maintaining existing relations with Turkey during and after the Brexit process.


here has always been

a high and strong performance in the commercial relations of the two countries, Fox emphasized, saying that there has been an increase in exports on both sides. Fox said Turkey and the U.K. have strong relations, stressing that they wish

to increase relations in the field of investment. Fox said maintaining existing relations with Turkey during and after the Brexit period is of great importance for Britain, highlighting that it is necessary to use different relations for the interests of both countries.

Trade, investments, exports and imports between Turkey and the U.K. will definitely not be affected in a negative sense when Brexit is executed, Zeybekci underlined at a meeting with Fox. “Following Brexit, we decided to make all the necessary preparations to continue trade,

economic and investment relations and cooperation between Turkey and the U.K. on its normal course without causing any disruption,” Zeybekci said, adding that they will initiate the technical work for a comprehensive and deep free trade agreement.






Turkey’s Honey Exports Soared in 2017 In 2017, Turkey’s honey exports soared by 79 percent in quantity and 60 percent in value compared to the previous year.


$3.2 billion

Gazprom investment in 2018

Russian energy giant Gazprom plans to invest $3.2 billion this year in TurkStream natural gas pipeline project. Alexander Medvedev, deputy chairman of the management committee, said that tin 2018 the company will almost double its investments in TurkStream compared to last year. He also said that the company will spend another 114.5 billion rubles to Nord Stream II, which will carry 55 billion cubic meters of Russian gas to Germany per year. Medvedev reminded that the company spent around 92.8 billion rubles in TurkStream previous year. The first line of the TurkStream natural gas project will reach the Turkish shore in May of this year and will be in service at the end of 2019. FEBRUARY 2018 ISSUE 55


n 2017, Turkey’s honey exports soared by 79 percent in quantity

and 60 percent in value compared to the previous year, while the country generated around $23.9 million in revenue. According to the Eastern Black Sea Exporters Association (DKİB) data, Turkey exported 6,495 tons of honey to 45 countries last year. Germany stood out as the largest market of Turkish honey, importing approximately $9.3 million worth of honey last year. It was followed by the U.S. with around $8.2 million and Saudi Arabia with around $1.4 million. The volume of honey exports also rose 79 percent over 2016. The Eastern Black Sea region exported a total of 285 tons of honey to four countries for $1.2 million with a 96 percent rise in quantity and a 78 percent rise in value compared to the previous year. Germany again ranked first as the largest importer of honey from the region, importing $599,674 worth of honey. It was followed by Saudi Arabia with $432,065, the United Arab Emirates (UAE) with $90,662 and Qatar with $46,515.

move forward in a positive direction

Turkey’s honey exports are constantly increasing and we have completed 2017 with an increase of 60 percent in exports.

9.3 79% 6,5 45 $0.56


mıllıon worth of honey export ın 2017

ıncrease ın honney export ın quantıtıy

tons of honey export ın 2017

the number of countrıes turkey exports

honey export to germany, the largest ımporter, ın 2017

Turkey to launch ecolabel for textile, paper, ceramics

Seven firms to receive ecolabel certifying that their products are environment-friendly. Turkey will launch its ecolabel certification allowing consumers to identify environmentfriendly products. The official from the Turkish Ministry of Environment and Urbanization said the ministry has already completed a project aimed to integrate Turkey’s legislation into the EU’s ecolabel legislation. A closing ceremony of the Establishment of the National Environmental Labeling System will be held in the capital Ankara on Jan. 11. An ecolabel system covers every stage of production, starting from procurement of the raw material. The system encourages energy efficiency, waste minimization and sustainable production.

The Turkish Perspective



5.5M Russian

Connecting Angel Investors and Wealth Management to Fuel Innovation

tourists in


The recent travel agreement between Russia and Egypt has turned the public’s attention to the Turkish tourism sector. After Russia resumed its flights to Egypt, the question of whether Turkey, which saw close to 5 million Russian tourists coming to the country in 2017, will lose its tourism market to Egypt, has come to the agenda. Tourism professionals in Turkey said Russia resumed flights only to Cairo, adding, “What is important to us is the resumption of Sharm El Sheikh flights. If this line opens in June, especially our September-October period will be slightly affected. However, there will be a 10 percent increase in all cases, and we will hit 5.5 million in 2018.”

World Business Angels Investment Forum brings together key players of the equity market in Istanbul.


Turkish firm provides food trucks A Turkish company named Konya Isi manufactured 10 mobile food trucks with integrated kitchens for the Qatari army.



or the first time ever,

World Business Angels Investment Forum 2018 (WBAF), the world’s biggest annual gathering of early-stage equity and investment markets, will have 5 important summits running concurrently and will host more than 1000 delegates from around the world. WBAF 2018 will also salute the global successes of the year at the World Excellence Awards & VIP Gala Dinner at the Swissotel The Bosphorus Istanbul between 18-20 February 2018.

Building on the success of the 2017 World Business Angels Investment Forum (WBAF), this year’s forum will focus on the theme ‘Unlocking the Potential for Innovation: Angel Investors Partnering with Family Offices and Wealth Management Institutions’. The discussions will explore how family offices and wealth management institutions can foster open innovation and deliver more business value through partnerships with angel investors, startups, scale-ups, high-growth businesses and SMEs.

Export Spring Water to 110 Countries Turkey exports bottled spring water to 110 countries around the world.


orld Packaged Water

Manufacturers Association’s (SUDER) board member Hüseyin Karamehmetoğlu told that the annual volume of the bottled water market in Turkey exceeded 11 billion liters. Karamehmetoğlu, who is also the general manager of Pinar Su—one of the leading bottled natural spring

water companies in Turkey—said Turkey was a rich country in terms of its natural sources and Turkish water was preferred, especially in European and Gulf countries. “Now we are trying to enter the Chinese and Indian markets. These countries are very big in terms of population,” he added.

he company’s

general manager Mustafa Kalyon told Anadolu Agency on Wednesday that the company began exporting in 2004. “Firstly Qatari officials wanted a model from us and they ordered 10 food trucks to use within their army after they liked the model. We completed manufacturing of trucks in almost two months.”, Kalyon said. “All needed products for a kitchen are found in the truck. A room, cellar, cooker, blender, oven and dish washing area are in it. This truck can be used anywhere without any needs for 10 days,” Kalyon said.





Turkey grows in global geothermal power

With an installed capacity of 1,100 megawatts, Turkey has the fourth largest geothermal power capacity in the world. Turkey, an energy importing country, has been determinedly investing in domestic and renewable resources.


he steady growth of geothermal power in Turkey in recent years has placed the country in the top four among countries with the largest installed capacity in the world, as the country currently has a geothermal power capacity of 1,100 MW. Turkey, an energy importing country, has been determinedly investing in domestic and renewable resources over the years to decrease dependency on external resources for power generation. As much as the results have been very promising with mega-scale investments in wind and solar power, Turkey is also a global actor in utilizing its geothermal resources. Continuous efforts have led to Turkey ranking fourth in the world for the largest installed geothermal power capacity. Association of Geothermal Power Plant Investors (JESDER) Chair Ufuk Şentürk emphasized the continuous expansion of installed geothermal power in Turkey. “While installed capacity in 2016 was 460 megawatts [MW], an additional $1.4 billion investment raised the capacity to 1,100 MW,” said JESDER Chair Ufuk Şentürk. Total installed power capacity places Turkey in the fourth rank after the U.S., the Philippines and Indonesia.



geothermal power plants under constructıon


ıncrease ın plant ınvestmens ın 2017 compared to 2016

Continuous efforts have led to Turkey ranking fourth in the world for the largest installed geothermal power capacity.

1,100 installed capacity of turkey ın geothermal

JESDER Chair Şentürk indicated that plant investments in 2017 increased 45 percent compared to the previous year. With the addition of four geothermal power plants that started operating last year, the number of power plants increased to 41 in the country. The JESDER chair added that 23 geothermal power plants with a capacity of 614 MW are under construction. “To sustain this growth trend in geothermal power, state incentives for the sector must continue,” he added, expressing his belief that the fast growth of geothermal power will continue in 2018 and insisting on the necessity to continue the Renewable Energy Resources Support Mechanism (YEKDEM) to become a global leader in geothermal power. Şentürk underscored that foreign investors are particularly interested in Turkey’s geothermal power capacity. “Arabian firms have secured 14 licenses in central Anatolia. Global installed capacity is currently 14,000 MW,” he said. The U.S., in the lead, has an installed geothermal power capacity of 3,591 MW, while the Philippines, which comes second, has 1,868 MW capacity in geothermal and Indonesia has 1,809 MW.

The Turkish Perspective


SolarWorld panels in Turkey InoSolar Led Aydınlatma and Sonar Enerji Sistemleri is getting ready for a factory investment to produce the German SolarWorld’s solar panels. InoSolar Chairman İsmet Ersoy and SolarWorld CEO Frank Asbeck signed a confidentiality agreement for to maintain and deepen the cooperation between the two companies in the long term in Freiberg, Germany. “The agreement also includes panel production in Turkey with SolarWorld technology. We intend to establish a 100-megawatt (MW) panel facility in Turkey. We determined an organized industrial zone in central Anatolia as the factory location,” Inosolar Chairman Ersoy said.


Natural Stone Exports up 13 pct Turkey’s natural stone exports increased by almost 13 percent as it reached $2 billion from $1.8 billion in 2016, according to the Aegean Exporters’ Association.


he ıncrease was mainly

attributed to China lifting tax and quota restrictions on natural stone imports in the last quarter of 2016, after almost three years. In 2016, natural stone worth $729 million was exported to China, making up almost half of Turkey’s natural stone sales. That figure soared by almost 30 percent to nearly $945 million in 2017. China was followed by India with $295 million and Saudi Arabia with $105 million. Mevlüt Kaya, chairman of the Aegean Mineral Exporters’ Association, told Anadolu Agency (AA) that the export of natural stones has been around the $2-billion threshold since 2014. He said that this limit was surpassed in 2017 as a result of the developments in the Chinese market. “Because of the earlier restriction in the Chinese market, we could not cross the $2 billion limit for three years prior to 2017.

The Chinese government lifting the restrictions on natural stone imports in the last quarter of 2016 was a great relief for the sector. The country has since resumed large imports,” Kaya said. He added that natural stone exports to India skyrocketed by 54 percent last year, after the Indian government, like China, also removed taxes and quota on natural stone imports. “Exports to the Indian market grew substantially in the past six months. We expect them to double in 2018,” Kaya noted. He stressed that they were looking to exceed the $1 billion limit in the Chinese market and help the Ministry of Economy’s pledge to break the export records this year. “We are doing our best in our sector. 2018 will be a year of records in natural stone and other mining businesses. We believe that we can easily surpass $2.5 billion in natural stone exports, a record in the sector,” he said.


get highest incentives Certain areas are eligible to receive tax reduction, financial contributions, social security premium support as well as interest support for land allocation. With the decision by the Council of Ministers, which amended the decree on state aid in investments, air transport was added to the provision to include maritime freight/ passenger transport investments within the scope of fifth region incentives. The provision of attraction centers and “strategic and big” investments in Kilis to benefit from the sixth region incentive was amended to benefit all investments. Legislation on the conversion of the incentive scope of the 23 provinces and Kilis, which were previously declared as centers of attraction by the government, to the sixth region has also been completed. Investments previously located in these regions, which were either primary or large-scale, could benefit from the sixth region incentive. With this arrangement, all investments can benefit from the sixth region incentive.





Turkey’s 1st drillship The YEKA tenders for renewables will intensively continue in 2018, Turkish energy minister says. Turkey’s first drilling ship will be sent to the Mediterranean Sea for offshore oil and gas exploration and drilling in the region as soon as possible, Turkey’s Minister of Energy and Natural Resources said. Speaking at the opening ceremony of the Kazan Soda Electricity Production facility in Ankara, Albayrak hailed 2017 as a successful year for oil and natural gas exploration, and said the country’s first active drillship is destined to open a new page in exploration for Turkey. Albayrak noted that last year was also important in terms of the launch of Turkey’s YEKA tenders, which were significant in efforts aimed at reducing foreign energy source dependency.



A Cooperation Fund Account Turkey’s Treasury and the European Bank for Reconstruction and Development (EBRD) have established a cooperation fund account in the amount of 25 million euros.


s a donor, turkey,

through the Undersecretariat of Treasury, will co-finance socially important EBRD-led projects which help boost economic growth and improve people’s lives, according to a follow-up release from both sides. The protocol was signed by EBRD President Suma Chakrabarti and Turkish Deputy Prime Minister Mehmet Şimşek at a ceremony in Ankara on Jan. 19 in the presence of President Recep Tayyip Erdoğan. In his opening speech, Erdoğan said Turkey is a founding shareholder of EBRD, which has invested 10 billion euros in the Turkish economy so far, with almost all investments being in the private sector. “With a deal which will be signed today, we are moving our cooperation with EBRD on to a new stage… By creating a fund with the bank, we will also be diversifying our development aid policies,” Erdoğan said. “Some credit rating agencies have adopted ideological ap-

proaches that they claim Turkey is not stable or was not giving any confidence,” Erdoğan said, stressing that the approach must change. Şimşek praised the robust cooperation between Turkey and the bank, adding that the deal was a first in Turkey’s history. “Some 18 percent of the EBRD’s total funds are being used by Turkey on an annual basis. This is a considerable amount. Almost one-fifth of the EBRD funds are utilized by Turkey,” Şimşek said, adding that both sides would work together to make a contribution to development policies in other countries. In Turkey, the EBRD focuses on investment in sustainable energy, improving infrastructure, strengthening the competitiveness of the private sector, including of small firms, deepening local capital and local currency markets, while promoting greater job and training opportunities for women, youth and people in remote areas.


Turkey to grow 4.5 percent in 2018 Turkey’s leading business association TUSIAD releases its economic forecast report. Turkey will grow 4.5 percent and the country’s inflation rate will be 9.8 percent in 2018, Turkish Industry and Business Association’s (TUSIAD) predicted in a report. The country’s unemployment rate will be 10.5 percent in the current year, said the economic forecast report released during TUSIAD’s 48th general assembly in Istanbul. “It is expected that public spending will take place as predicted in the medium-term program. In this case, the contribution to growth from here will be limited,” the report added. The report showed that Turkey’s budget deficit to GDP ratio would be 1.9 percent negative. The country’s exports will increase to $166 billion, while its exports will rise to $252 billion in 2018, the report said. It also estimated that Turkey’s current account deficit to GDP ratio would be 5.4 percent negative. The country’s exports were $157.1 billion and its imports were $234.2 billion in 2017.

The Turkish Perspective



long-range defense system deal

Qatar to Invest in Turkey

Turkish defense giant ASELSAN seals long-range defense system deal, along with Roketsan.

Qatar will make huge investments via Turkish BMC in Turkey’s automobile industry to develop the country’s first domestically produced automobile.

Turkish defense giant ASELSAN said Tuesday it had signed, along with Roketsan, TÜBİTAK SAGE business partnership, an accord for a national long-range defense system project for defense industries undersecretariat. It said in a statement to the Turkey’s stock exchange Borsa Istanbul (BIST) that ASELSAN’s share under the agreement was 869 million Turkish liras ($227 million) and 279.3 million euros ($342 million) and that the deliveries will be completed in 2021. In November, ASELSAN became Turkey’s most valuable company as its market capitalization reached 44.8 billion Turkish liras ($11.56 billion).


atar Chamber Chairman Sheikh Khalifa bin Jassim Al Thani said that Qatar is investing in Turkey’s automobile industry through a Turkish company in which Qatar holds a stake and will carry out the ambitious domestic automobile project jointly with other Turkish investors. Commercial Counselor at the Embassy of the Republic of Turkey to Doha Burak Güreşçi also commented on the project, indicating that Turkey is trying to build its own car brand and automobile manufacturing facility. Güreşçi indicated that a consortium of five companies was formed to make Turkey’s first domestically produced car, including BMC in which the Qatari government (Qatari Armed Forces) owns a significant stake. He said Qatar’s investment in the project is through BMC, adding that they do not have many details about the project. He suggested that each of the companies is expected to develop separate parts of the car, such as the engine, chassis and other

major components. Speaking to The Peninsula, Güreşçi added that the automobile project was a very big project and that was the reason why five companies were chosen to jointly carry it out, adding that within the scope of the project, all parts of the car are to be produced in Turkey, including the engine. Turkey already has many car manufacturing facilities, which are either joint ventures with foreign brands or owned by international auto giants, but the upcoming car will be a fully Turkish brand, Güreşçi said. In early November, President Recep Tayyip Erdoğan announced that a consortium of Anadolu Group, BMC, Kıraça Holding, Turkcell and Zorlu Holding would make Turkey’s first domestically produced car. The initiative came after repeated calls from Erdoğan for a joint venture car project by Union of Chambers and Commodity Exchanges (TOBB) and the Science, Industry and Technology Ministry.


world’s number 1 flour exporter Turkey’s 2017 flour exports totaled 3.6 million tons worth over $1 billion, says industry group.

Turkey was the world’s top flour seller over the last five years, making one-third of all flour exports, and its 2017 exports reached 3.6 million tons worth $1.1 billion. “Turkey’s flour exports have been growing rapidly over the last 13-14 years, and especially the last five years,” Eren Gunhan Ulusoy, chairman of the Turkish Flour Industrialists’ Federation (TUSAF), said. He stressed that Turkey makes around 70 percent of its flour exports to Iraq, Sudan, and Syria, as well as Angola, Benin, and Somalia. Over the last decade the country exported flour to 160 countries included the U.S., China, Japan and Russia, he added. He said: “Turkey’s 2018 targets are to deepen its market, to raise production capacity, and to export 4 million tons of flour worth $1.25 billion.” Turkey’s exports in 2017 were the secondhighest in the republic’s history, worth $157.1 billion.


The Turkish Perspective

Panorama By MEDÄ°NE ATAY Deputy secretary general of TÄ°M

From 2017 to 2018

A panorama of 2017 and expectations from 2018. How did Turkish exporters perform and what are they waiting from the new year.





017 was a year of recovery for the global

According to World Trade Organization (WTO) data, global trade, which has been falling from October 2014 to August 2016, has been steadily rising for the past 13 months. Benefiting from this strong recovery in global trade and with the support of our government, we closed the last year with a double-digit increase in exports. We proudly exceeded Medium Term Programme (MTP) targets twice in 2017. According to the preliminary data, Turkey’s exports increased by 10.2% in 2017 and reached 157.1 billion USD, which is the 2nd highest yearly export figure in Turkey’s history after the 2014’s 157.6 billion USD. The strong and stable performance of our exports in 2017 was reflected in our growth data as well. In 2017, Turkey’s GDP has risen by 5.3% in Q1, 5.4% in Q2 and 11.1% in Q3. Overall, net exports contributed by 1.45 points to the 7.4% growth in the first nine months of 2017. In other words, 20% of Turkey’s growth was thanks to net exports. We expect to see a positive contribution from net exports not only this year, but also in 2018, and we believe that we will be at the top of the fastest growing countries with a growth rate around 7% in 2017, and we will see a growth rate of 5.5% in 2018. Turkey’s share in global trade was 0.43% in 2000, this number reached 0.89% in 2016 with the government’s export based growth strategy. According to the latest WTO data, this share is 0.90% for the first 11 months. However, due to our export performance in the last quarter we expect Turkey’s share in global trade to reach 0.91% when the annual data is announced by the WTO in April. Moreover, Turkey’s share in European Union’s imports increased by 25% and Turkey’s share in USA’s imports increased by 44% in the last 10 years. WTO estimates the global trade to increase by 3.2% in 2018. However, we aim to increase our exports by at least twice the world average, in other words around 7-8%. Our initial estimates show that we can leave the MTP target of 169 billion USD behind. Indeed, our export forecast for 2018 is over 170 billion USD with record breaking monthly exports in 11 months. In addition to yearly export record, we expect to break the monthly export record as well with 15 billion USD in December, sureconomy.

passing the 14.7 billion USD record of March 2014. According to these estimates and forecasts, Turkey’s share in global trade will reach 0.95% in 2018, which will be a new record. To bring these estimates to life, as Turkish Exporters’ assembly we are working to improve our export performance through expanding Turkish exporters’ customer portfolio by introducing new potential markets for them. Trade delegations and target market seminars, namely “Export Compass” meetings. In 2017, we introduced 9 potential markets to our exporters. This year we are planning to introduce at least 10 new countries in parallel with TİM’s trade delegation schedule. First of our seminars, “Route: Ivory Coast” was held on January 24th, just before the trade delegation. We are planning to continue with Brazil on February 21st and Australia on March 27th. We believe that these events will carry our trade potential to new heights with these countries. In addition to the positive trend in merchandise trade, services are on the rise as well. Gaining momentum from the 28% increase in tourism, Turkey’s service exports increased by 16% in the first 10 months of 2017. The resolution of the crisis with Russia, which caused a 500% increase in incoming Russian tourists, played a major part in the recovery of tourism sector. As a result, tourism revenues, the locomotive of Turkish service industry with its 53% share in service revenues, reached 19.9 billion USD with an increase of 19.3%. We have already surpassed 2016 in terms of visitors in September, and expecting to end the year with 32.3 million visitors. Following the 2017 trend, we believe we will see a much more positive picture in 2018, which will even surpass our record of 36.8 million visitors in 2014. Logistics is another important service item for our exports. Turkey’s total logistics revenue increased by 13.7% during the first 10 months of 2017, reaching as high as 12.6 billion USD. We expect to exceed 15 billion for the whole 2017, and reach 20 billion USD for 2018. Considering these developments and forecasts, we can say that 2018 will be a year of success for all aspects of Turkish economy with new records in both services and merchandise trade. And we believe that we will see them contribute to GDP growth of Turkey greatly.

2018 will be a year of success for all aspects of Turkish economy with new records in both services and merchandise trade.


The Turkish Perspective Content: Branding, High Added Value, Sectoral Perspective… P16 English Ninjas: The Best Way To Improve English P19 Turkey’s Service Exports Champions Were Awarded P24 “Turkish Airlines Makes Us All Very Proud” P28 President Erdoğan Addresses Key French Investors at Executive Meeting in Paris P30 Editor: Mustafa Yiğit


energy, JEWELLERY, STARTUP, EXPORTERS DIARY, avıatıon, ınvestment...


Soda Ash:

The Largest Producer in Europe

New soda ash production facilities in Ankara, which has an investment cost of $1.5 billion, will contribute to the reduction of Turkey’s current account deficit by boosting the country’s exports. By MUSTAFA YİĞİT


ne of the world’s largest soda ash production facilities, Kazan Soda Elektrik Üretim A.Ş., which will be the world’s largest mining solution and Turkey’s biggest cogeneration plant with 380 megawatts (MW) and 400 tons of steam production, opened with a ceremony attended by President Recep Tayyip Erdoğan and Minister of Energy and Natural

Resources Berat Albayrak (L). A subsidiary of one of Turkey’s largest groups Ciner Group, Kazan Soda Elektrik Üretim A.Ş. will be the biggest heavy soda ash and sodium bicarbonate producer in Europe and will export its entire production. Speaking at the opening ceremony, President Erdoğan said the facility encompasses mining, chemicals, and power

generation operations and the $1.5 billion investment will provide jobs for 2,200 people. “Turkey meets 10 percent of the world’s soda ash need and Europe receives 50 percent of its soda ash need from Turkey,” the president noted. Emphasizing the strategic importance of soda production, Erdoğan said the product is used in a wide array of sectors including



glass manufacturing, detergents, and livestock forage. Also known as sodium carbonate, soda ash is the 10th most commonly used chemical in the world. It is generally used as a raw material in the production of glass, detergents, and cleaning products and as an additive in food, pharmaceuticals, chemicals, and metallurgical applications. Soda ash is used as the second most strategic input raw material after sand in the glass industry and it is used as the main raw material in the detergent and soap production industry. In addition, the product is widely used in the food and pharmacology sectors and the paper industry, along with flue gas treatment systems, water conditioning and treatment systems, and the general chemical industry. FEBRUARY 2018 ISSUE 55

“2018 started with this important investment” During his speech at the inauguration ceremony, Minister of Energy Albayrak expressed his satisfaction that 2018 started with this important investment being put into action and pointed out that crucial infrastructural actions are underway in the framework of the National Energy and Mining Strategy announced in April 2017.Emphasizing that, as a country that imports $55 billion of energy and mining annually, they have set very important targets in terms of decreasing dependency, Albayrak said that in 2017, they commissioned a production facility in electricity production with a record capacity of 8,222 MW with a value of more than TL 35 billion ($9.2 billion), most of which belongs to the private sector.



bıllıon total cost of the investment


people the number of the jobs opportunity

Also known as sodium carbonate, soda ash is the 10th most commonly used chemical in the world.

“When we look at the investment point of TL 7 billion we have invested in the electricity transmission and distribution infrastructure, we closed the year 2017 with a total investment of TL 42 billion, which can be regarded as the record of the Republic’s history,” he said. Albayrak also said in addition to two floating liquefied natural gas (LNG) storage and regasification units in the natural gas field, they also carried out a capacity increase of the LNG terminals, indicating that Turkey has secured an infrastructure with which it could meet the record requests without interruption. He also recalled that they carried out an investment in accordance with the growing demand by bringing the record level of 260 million cubic meters of daily natural gas demand to 288 million cubic meters with a capacity increase.

photograph byLOREM IPSUM

Cupica eti, sederox medo, que is nonducid pecrimuracio inc videmedit. Bem te tem, sis; inihillaric tum

photograph byLOREM IPSUM


The Turkish Perspective

Kazan Soda Elektrik Üretim A.Ş. consists of three different units such as mining, processing, and a cogeneration power plant.

Albayrak hailed 2017 as a successful year for oil and natural gas exploration and said the Turkey’s first drilling ship will be sent to the Mediterranean Sea for offshore oil and gas exploration in the region as soon as possible, Albayrak said. The country has already undertaken oil and gas exploration using two seismic ships, but the vessel will be the country’s first active drillship. The South Korean vessel was produced in 2011. It is 229-meters long and is capable of drilling to a maximum depth of 12,190 meters.

photograph byLOREM IPSUM

photograph byLOREM IPSUM

Make Turkey A Center Of Wind And Solar Power Technologies Minister of Energy Albayrak also emphasized that 2017 was a crucial year in terms of renewable energy, which benefitted from the Renewable Energy Resource

Area (YEKA) strategy included in the national energy and mining policy. Turkey contracted one solar and one wind power plant, each with a capacity of 1,000 MW, under the YEKA model. “We will uninterruptedly continue YEKA operations in order to make Turkey a center of wind and solar power technologies,” Albayrak said.

Kazan Soda Elektrik Üretim A.Ş., which is located in northwest Ankara, consists of three different units such as mining, processing, and a cogeneration power plant. Some 2.7 million tons of heavy soda ash (sodium carbonate) and 200,000 tons of sodium bicarbonate will be produced each year at the Kazan Soda Elektrik power plant. Kazan

Soda Elektrik has a natural gas cogeneration power plant with an installed power of 380 MW. It also has a steam generation capacity of 400 tons. The production facility, which will meet 14 percent of the world’s total natural soda ash needs, will contribute greatly to the closure of Turkey’s current account deficit with its domestic and national production. Included in the range of “products exported to the largest number of countries from Turkey,” soda ash is being exported to Australia, Japan, South Korea, China, Pakistan, India, Spain, Belgium, the Netherlands, the U.K., Italy, Germany, Norway, Finland, Sweden, Denmark, Greece, Yemen, the United Arab Emirates (UAE), Israel, Egypt, Saudi Arabia, Morocco, Tunisia, Nigeria, South Africa, Algeria, Brazil, Canada, the U.S., Thailand, Malaysia, Indonesia, and the Philippines, among many other countries. Kazan Soda Elektrik’s mining unit will provide a trona solution, which is the raw material of the process. The trona ore, which is laid at an average depth of 600 meters in the mining plant, will be dissolved with a hot water injection to be made from opened production wells, and the trona solution will be obtained. It is the most widespread of the soda minerals that are naturally available. It is the underlying raw material used in the production of soda ash. Trona, which is found in the Kazan and Sincan district borders of Ankara, is extracted in the form of a solution with solution mining that is a safe and environmentally friendly mining technique. Turkey has around 900 million tons of exploitable trona reserves, and is in second place in the world in this respect.




Jewellery Exporters Association set new goals:

Branding, High Added Value, Sectoral Perspective… Turkey is the one of the leading countries in the jewellery sector and this brought the success in 2017.


hairman of the Jewellery Exporters Association (JTR) Ayhan Güner said: “Nevertheless, we cannot settle with this. We have new goals. We are brand as country, we are strong in the sector but we must create many brands in our inner structure. We must produce higher added FEBRUARY 2018 ISSUE 55

value and particularly gain perspective in our sector by processing gem.” Policy of improving active export performed by Jewellery Exporters Association (JTR) gave its results and Turkey increased its Jewellery export to 3.3 billion dollar. Stating that the 3 billion dollar exports is

the breaking point for them, chairman of the Jewellery Exporters Association (JTR) Ayhan Güner said, “we exceeded the 3 billion dollar margin again. Our first next goal is 5 billion dollar but if we achieve what we required to do, we can reach various different numbers”. Güner, who stated that

export is continuously increased by the seasonal fluctuations during JanuaryDecember 2017, said that narrowing in the markets that the highest export made, such as UAE and Iraq in the last quarter of the year affected that acceleration, but with the new markets, sector took rapid action.

photograph byLOREM IPSUM

By ramazan güzyurdu

photograph byLOREM IPSUM


The Turkish Perspective

New goals in the Jewellery Export

photograph byLOREM IPSUM

photograph byLOREM IPSUM

Asserting that the point reached in the Jewellery export is successful, Chairman of JTR, Ayhan Güner stated that the they had performed the highest export in export/kg value of Turkey and their goals is to enhance this added value even more with this these words: “Mean kg value of the total export we performed in 2017 is 721 USD. That means that it is hundred times more of the Turkey’s mean export/ kg value…Our new goal is to enhance this value even more. For this purpose, our to do list is obvious. We have the strongest monture industry in the World. Still, our gold refinery capacity is worldwide strong and reputable. we are effective nearly in all fields. Since our main inputs are gold, silver and brilliant, we export a profitability consisted of design, work ship and brand. Our diamond market is active and now it’s to process the precious and semiprecious stones. We need to strengthen our sectoral perspective more by gaining new talents. We are brand as Turkey, but we also need to create brands in terms of company. Our greatest obstacle in here was design; we took important steps and

Months January February March April May June July August September October November December Total:

2016 Million $

2017 Million $

Change %

170.446 155.192 194.889 247.925 172.111 156.367 90.786 232.012 195.293 226.982 254.798 344.034 2.440.841

198.534 251.935 341.064 346.436 302.856 252.789 265.584 324.496 233.707 226.573 268.916 282.886 3.295.784

16.48 62.34 75.00 39.73 75.97 61.66 192.54 39.86 19.67 0.18 5.54 17.77 35.03 Data: JTR

we are improving ourselves. Now our designers can sell their designs worldwide. We are giving the greatest field with the Designer Market.” Stating that they accomplished the world’s greatest procurement committee programs, Güner said that by bringing the representatives of the

Chairman of JTR, Ayhan Güner stated that the they had performed the highest export in export/kg value of Turkey.

Güner, who stated that they have significantly improved the jewellery export geography in 2017, by defining the 6 of the most exported countries are from Middle East

companies that purchase over a defined volume to Turkey with the supports provided by Ministry of Economy, they found a chance to show the power of the sector. Güner, who stated that they have significantly improved the jewellery export geography in 2017, by defining the 6 of the most exported countries are from Middle East, and 4 of them are USA, Hong Kong, Germany and Italy, said these words: “Progress in these countries naturally affects our total export. Particularly, mobility in the markets such as UAE, Iran, Iraq is important for us. Due to the tax problems in the Dubai in 2017, hundreds of companies decided to maintain their operations in Turkey or India. By pointing out that the most of the countries besides from Greece and Iraq are the farthermost places of the world, Güner, who also gave information about the countries that the export increased most said that: “At this point I want to congratulate our members, who went to every corner of the World without limitation; every one of them worked as a missionaries who had a vision.”



Güner, who outlined the importance of the Turkey’s jewellery export as well as direct sales to the tourists, emphasized also the importance of the tourists’ gold and jewellery shopping counted as export. By defining that those who live in many African countries are bringing gold to some hubs, mainly Dubai in order to do the shopping, he also stated: “We see that not everyone is using money bill, check or credit card. In many African countries, banking system is too weak or probably not exist all; due to this, gold is like Money bill for them…. They came to neighboring countries such as Dubai with their saved gold and do shopping. They came with 100-200 gram or 1 kg gold, they do their shopping in some kind of barter economy by converting it to cash. Though, we cannot even imagine that same person’s


2016 Million $

2017 Million $

Change %









































Data: JTR

coming to Turkey. I am not implying tons of gold but we shouldn’t be conservative more.” By touching the gold import and export, Güner, who noted that there are news in form of gold import boomed, said these words: “Every time tried to explain that our economy is well, our sector is strong, that’s why we’re able to import gold.

We are mentioning about cash, which is saved as gold or diamond, rather than dollar or euro. We regard it as our county’s wealth.

Majority of the gold imported to our country is scrap gold that is somehow obtained from neighboring countries.


And what happens to these golds? There is a benefit in re-explaining the table here. Majority of the gold imported to our country is scrap gold that is somehow obtained from neighboring countries and this gold is coming from Dubai. In the exchange of the coming scrap gold, gold bars in equal value are sent. At this point, while scrap gold is seen in statistics as import, same gold which sent as gold bars does not seen in export tables since it doesn’t export via JTR. Therefore, ıt’s beneficial to be cautious when making news about that topic. Moreover, even though it isn’t exported, remaining gold is wealth of our country. We are mentioning about cash, which is saved as gold or diamond, rather than dollar or euro. We regard it as our county’s wealth. Güner, who told that golden jewels are conventionally constitutes nearly all of the export from exported product class, stated that nearly 50% increase in the diamond gold and silver and product, in which the actual high added value is generated is also looking promising in 2018.

photograph byLOREM IPSUM

Gold import and sales to tourists

photograph byLOREM IPSUM


The Turkish Perspective


English Ninjas:


English Ninjas is an online platform that enables users to practice their English speaking skills with native speakers.

photograph byLOREM IPSUM

photograph byLOREM IPSUM


ot being able to speak

English fluently is one of the major problems of our workforce and education system is not efficient enough to solve this problem. Although most people study about 1300 hours of English as a part of their education, they still struggle in oral communication. This is because grammar always comes first in the curriculum and effective speaking classes are not being offered. Lacking the courage to speak and fear of making mistakes while speaking are also major obstacles preventing fluency. By providing oneon-one lessons with native speakers, English Ninjas aims to fix these problems. We believe that regular practice is compulsory for improvement.

Lacking the courage to speak and fear of making mistakes while speaking are also major obstacles preventing fluency.

Ali Servet Eyuboglu

Founder & CEO at English Ninjas

- When you speak English, what is the significance of speaking both right and fluent? Thanks to the Internet, we live in a global village and speaking multiple languages is becoming more and more important. English, Chinese and Spanish are the most commonly spoken languages in the World today. Once you overcome the language barrier, you can start doing business globally without any boundaries. Particularly, our tutors offer their services to a large number of clients wishing to increase their export volumes. For them, English is the primary language of communication. The better they become in English, the higher their trade volume will get. The significance of speaking English can be summed up as above. Furthermore, speaking English more fluently and accurately moves exporters to the next level. It is like the quality of your products. If your product is of high quality, your audience expands and for better quality you can rightfully charge more. This means an increase in profitability. Large corporations like Zorlu, Turkcell, İşbankası and Koç prefer English Ninjas’ services for their employees. - What are you planning to do in the future to improve the project? English Ninjas is aiming to be a global company. We took

a few steps towards this goal; we have our headquarters in San Francisco and İstanbul, we are building ties with universities in the US and Canada, and we have lots of subscribers from South Korea, South East Asia, Saudi Arabia and the Greater Middle East. Globally we have more than a hundred thousand subscribers and thousands of native Englishspeaking tutors from the USA, UK, Canada, Australia and South Africa. The next step is increasing our number of subscribers worldwide and launching new offices in different countries. - Could you give information about your campaign, which will apply to Turkish Exporter Assembly’s exporters? We know that speaking English is extremely important for our exporters so we have prepared a campaign specifically for TİM; we have an exclusive landing page dedicated to TİM and those who sign up using this link ( will get a 50% discount on a 3-month subscription without a time limit and earn 20 additional minutes ready to be used on our platform. By helping our exporters improve their fluency in English, we hope to make an impact on their revenue growth. - What are the recommendations you can give to young entrepreneurs? Building or creating something is not easy. They should not be afraid of making mistakes. The key is not to aim for a flawless operation, but to learn from previous mistakes and not to repeat them. There is something to gain from each failure.




Harnessing Technology To Turn Event Platforms Into Marketing Channel Visionteractive is a bunch of brilliant minds, harnessing technology to turn the event platform onto a telling new marketing channel.


nur Candan, Co-Founder

of Visionteractive, told the story of Visionteractive with all details and enlightened the curious mind who they don’t know what it is and what they are... In April 2013, Visionteractive was founded to introduce the target groups with the brands by developing software and interactive devices for fun based on social media. We increase our brands’ awareness; we provide brands to reach the exact measurable marketing data by bringing online & offline together. In this entrepreneurship age,


Visionteractive provide brands to reach the exact measurable marketing data by bringing online&offline together.

our differences are our online & offline integration. While online addiction of people increasing, they couldn’t give up on offline and we created a product to be a bridge between them. Visionteractive’s first machine Presstagram, provides to print out your photos on Instagram. Its attractive part for brands is that it has benefits because users share their photos with brand’s logo and there’s branding on printed photos. Presstagram has delivered a higher performance than we thought and we entered fast to the market. But we kept on

working for other needs and we produced our other products. Our second product was SocialMat that is a smart automat. SocialMat is working with social media integration. It provides brands to give gifts to their customers and have an emotional bond. At the same time, it provided to increase brand awareness and interaction on social media. As augmented reality technology begins to integrate as much as everyday life in the period, we started to work on a new product and we created Snapper. Snapper is a smart kiosk that can add filters on

photograph byLOREM IPSUM

By ramazan güzyurdu

photograph byLOREM IPSUM


The Turkish Perspective

users faces and body with augmented reality technology, so they can share it on their social media accounts.

photograph byLOREM IPSUM

photograph byLOREM IPSUM

Producing A Business Solution Our experiences from those online & offline integrated products directed us to produce a business solution. Screen performance on offline medium isn’t measureable. It makes media agencies’ analytical calculation more difficult and prevents their budget to optimize. So, we created Mediateractive that makes smart indoor & outdoor media measurement by using facial recognition technology and provides smart ad impression. Now it’s our fifth year and we’re a young company. We’re in 5 countries and we provide service more than 300 brands, we learned something from almost all of them. We carry on business abroad with Visionteractive UK, Visionteractive GULF, and Visionteractive Brazil. This year, we’ll begin to carry on a business in Melbourne with Visionteractive Australia. From the end of 2016, we made 1 million TRY export to England, Kazakhstan, Brazil and the United Arab Emirates and %70 percent of that was to England. From 2017 we gave priority to England and we are above a certain level of recognition. All of our efforts won awards in 5 years. In 2016, we were chosen as “The youngest and the most successful exporter in Turkey” by TİM. We were chosen as one of Europe’s most successful startups by Wired at the same year. These awards were enthusing factors for us. We saw those awards as our responsibilities. We give priority to M2M, augmented reality and facial recognition technology on our products, business solutions

and innovative ideas. And now we started to improve our work about artificial intelligence with Mediateractive. We create measureable, different, technologic new generation ad space. We locate our products at crowded places like universities, cinemas, shopping centers, airports and supermarkets. And then we offer an ad platform to our brands that they can integrate their own digital setup. After usage, brands and agencies get the exact data and reports. And they have an important

augmented reality and artificial intelligence technologies for our research and increase our investments.

“We want to contribute Turkey’s potential to be technology R&D Hub” Team is very important for us. We’re creating our strategy and creative departments. On the other hand, the best talent transfers are important for us. We want to contribute Turkey’s potential to be technology R&D Hub with a good team, good goals and a good team power. Visionteractive were chosen as “The youngest and the most successful exporter in Turkey” by TİM in 2016.

position in front of their customers. We got 1.2 million TRY investment with our efforts, precious contribution of our partners and our customers until now. Visionteractive’s exact value is $10M. We aim more than this. Our first aim is to increase our awareness abroad and to export $2M in 2018. We’re a young team and our energy is high. Our goal is to use this energy with a discipline & combine our experience and know-how and to be the biggest media companies that develop technologies in Europe and Middle East in 3 years. We’ll keep on search and develop facial recognition,

Visionteractive want to contribute Turkey’s potential to be technology R&D Hub with a good team, good goals and a good team power.

Examples of Visionteractive software/hardware ingenuity include Instagram Souvenirs, which is exactly that, tech allowing users to print images shared with an Instagram hashtag, FlyinAd is a drone promotion tool, WalkinAd its land-based equivalent. Socialbreak starts with a visitor tweeting a select #hashtag for a hot drink from a vending machine. That concept is expanded with Socialmat, which has made a telling mark with brands as big and international as Coca Cola. Again, the concept works with a bespoke #hashtag. Posted on the entrance to a store, or a mall, with the e.g. Coca Cola logo, people share the hashtag via Twitter for a free a can of Coke from an affiliated vending machine. The system is scalable. It creates a report and cost per activation and changes the promotion model out of sight, singling out the target market and fostering peer-to-peer marketing. And the Visionteractive goal, to be the biggest company developing integrated Social Media equipment, looks like it’s achieved already and set to continue. “Our physical and digital products are fun, interactive and keep the brand in mind,” Co-Founder Onur Candan says. “They bridge the gap between the virtual and the real world. “There’s a natural appeal with the younger generation but social media channels like Facebook and Instagram reach middle age and beyond too. “International exposure is very important for the company,” Candan continues. “We’re working with brands like Guinness in the UK, with a global strategy, and we’re connected with agencies across the world, from the United States to Brazil.”



Turkish Ambassador in Ottowa pointed that Turkey will attract foreign direct investment with economic breakthrough.



Business Forum and B2B business meetings has taken place in Toronto, Canada between the dates of 4-7 December 2018 with the coordination of Ministry of Economy and organization of Turkish Exporters Assembly and Uludağ Exporters Association. TİM Deputy Chairman Süleyman Kocasert preside at the delegation. 27 business people from 24 Turkish companies and 80 Canadian business people has attended to the Business Forum, which was organized within the scope of Trade Delegation. Turkish Ambassador in Ottawa Selçuk Ünal has made the opening speech. Mr. Ünal pointed that this delegation was the 4th and the most crowded delegation coming to Canada this year and that he hopes for more


delegations in the long view. Mr. Ünal stated that USA holds a big pie in Canada’s foreign trade however, many of the products produced in USA also are being produced in Turkey and we can sell those products with more reasonable prices. Declaring that Turkey is one of the fastest-growing countries among OECD countries, Ünal signified the serious economic breakthrough of Turkey with its mega projects and Turkey’s attracting of foreign direct investments with its stability.

After the Ambassador, Toronto Vice Mayor Denzil Minnan-Wong has took place in the stage and highlighted the greatness of Turkey, that they are aware of importance of İstanbul and it is known by the sectors of textile, confection, food and construction with its strong growth rate. He also stated that he believes such an important country will cooperate with Toronto on important businesses. Ontario Federation’s Minister of Research, Innovation

and Science Reza Moridi stated that he traveled to Turkey many times, Turkey is really important in its region and he carried out many R&D projects with universities from Turkey. Moridi also added to his words that as Ontario and Canada they want to cooperate with Turkey, which has shown strong economic performance. Lastly, TİM Deputy Chairman Süleyman Kocasert made a speech during the opening ceremony. He declared that Turkey and Canada are two important G20 member allied countries which has strong economic ties. Stating that Canada is one of the biggest economies of America continent after the USA and despite the fact that trade volume between the two countries is decreasing in the previous years, it reached its peaks in 2016 and 2017, Süleyman Kocasert believes that Free Trade Agreement between Turkey and Canada should be signed immediately to prevent CETA, the FTA between Canada and EU, to affect the trade between Turkey and Canada negatively. After the family photo and giving presents the forum has ended and Turkish and Canadian business people started B2B meetings. 24 Turkish firms and more than 80 Canadian business people conducted more than 200 business meetings. At the 2nd day of the delegation, TİM Delegation visited chambers of commerce at Mississauga and Brampton, which are really important industrial cities and very close to Toronto, and met with business people of these regions.

photograph byLOREM IPSUM


photograph byLOREM IPSUM


The Turkish Perspective

Export Compass:


Tahsin Öztiryaki stated that India is the 7th biggest economy with growing about %7 at last 20 years, has purchase power parity, has ranked the 3rd country in the world.


urkish Exporters Assembly organized 9th

photograph byLOREM IPSUM

photograph byLOREM IPSUM

event of “Export Compass” activity with India. The risk and opportunities of Indian market and success stories shared with exporters. The acting chairman of Turkish Exporters Assembly, Tahsin Öztiryaki made an opening speech and Istanbul Consulate General of India Azar A. H. Khan participated to Export Compass Route India event. Tahsin Öztiryaki mentioned that India is second of the most crowded country in the world with 1,3 billion population and 7th biggest economy with growing about %7 at last 20 years. According to purchase power parity, India has ranked the 3rd country of the world. Tahsin Öztiryaki also said that India is an important trade center in their region. There are lots of opportunities with its regional position and

dynamic young population. There are no any obstacles to increase our trade. We, as exporters have to know our exporting markets. Istanbul Consulate General of India said that there is fair competitive environment in India. The cooperation of Indian firms not only contribute sustainable growth of your trade but also you can get benefits from Indian dynamic young population and trade with India.

Turkish Companies Could Enter

African Market Via IVORY COAST

Turkish Exporters’ Assembly organized “Export Compass” event which is “Route: Ivory Coast” in order to introduce the target markets and tell advantages and risks for our exporters.


vory Coast is one of

India is second of the most crowded country in the world with 1,3 billion population and 7th biggest economy with growing about %7 at last 20 years.

the important African countries when exporters would like to enter this region. Also some subsides and supports explained for our exporters. Event started with an opening speech of TIM Secretary General H. Bader Arslan. Ivory Coast Commercial Counselor Mr. Florent Menzan said, “Ivory Coast has 700 kilometer coast border with 25 million Atlantic Ocean population and significant market for exporters who prefer to enter African Market” Ivory Coast embraces the liberal economy and follows the open politics. Menzan said, “Last years, we created projects on especially development of agriculture because agriculture sector is one of the important source of income. According to 2012 figures, we produced

1.4 million tons cocoa every year as a significant producer of the world. We also produce cashew, palm oil and tuna fishes with high number capacity. Our target is to export our products to the world after processing them. Therefore we would like to get investment from Turkish Companies.” Menzan added that we lack of construction, engineering, technology and service sectors. “We would like to learn experiences of Turkish Companies in these specific sectors. In order to do that, Turkish Companies need to visit Ivory Coast to analyze our dynamics.” Representative of Ministry of Economy, Tarhan Sezgin gave critical information about the market while Coface representative Seltem İyigün explained Coface’s role for insurance in the market.



President of Turkish Exporters Assembly stated that they planed to reach the goal of export to 150 billion dollars in 2023.


urkish Exporters Assembly announced

“Turkey’s Top 500 Services Exporters” for the second time. Turkey’s flag carrier Turkish Airlines (THY) was the first in the ranking of this year too. THY has realized $ 7 billion of service exports of Turkey’s total $ 37.3 billion service exports in 2016. In the research “Turkey’s Top 500 Service Exporters”, while the first place was taken by Turkish Airlines’ Joint Stock Company, it was followed by Polimeks, Pegasus Air Transportation, Yapı Merkezi Construction and Industry Inc., SunExpress, Netlog Logistics Group, TAV Airports, Rönesans Holding, Atlas Global, Gap İnşaat Yatırım ve Ticaret A.Ş.


Top 10 services sector firms in Turkey and sectoral top 3 firms in 17 different sectors were awarded by Minister of Economy Nihat Zeybekci, Minister of Finance Naci Ağbal and Minister of Customs and Trade Bülent Tüfenkci.

We want to reach $ 150 billion service exports in


Speaking at the opening ceremony of the award ceremony, Mehmet Büyükekşi, President of Turkish Exporters Assembly, stated that they aimed to reach the target of export of $ 150 billion in 2023 and said, “Our 500 companies in the research have exported a total of 18.5 billion USD in 2016. This figure corresponds nearly half of percent of our

country’s service exports. 495 thousand employments and $ 7.5 billion worth of investment gave life to our economy. ” President of TIM, Mehmet Büyükekşi said that service exports reached 37.5 billion dollars in the first 10 months of this year with an increase of 16 percent, exceeding 37.3 billion dollars in 2016.

Our 500 companies in the research have exported a total of 18.5 billion USD in 2016.

We will explain a very important project for Turkish food Minister of Economy Nihat Zeybekci said, “In 2018, we will be one of the top 10 service exporter and we will pass 50 billion dollars. We do everything for it”. Zeybekci stated that the service exporters were given significant supports, and the customs union, which is expected to be updated, will include the service sector. Zeybekci also noted that they will present a very important project about Turkish food for a few weeks.

Service export strategy documents will be announced Fatih Kemal Ebiçlioğlu, President of the Association of Electrical and Electronics and Service Exporters (TET), said: “We organized a wide range of workshops in the sectors of Cultural Services, Educational Services, Software-Information and Telecommunication Services, Freight, Goods Transport and Logistics Services, Passenger Transport Services, Health Services, Construction Contracting and Technical Consultancy Services and Tourism Services within the scope of the 2023 Service Exemption Strategy Project initiated by the Ministry of Economy under the TİM framework and in our union organization.” We are aiming to share the “Service Export Strategy Documents” with the Ministry of Economy together with the public in the coming periods.

photograph byLOREM IPSUM


Büyükekşi also pointed out that service exports exceed 25 percent of our exports of goods, and said “We demand the establishment of a separate union for our service exporters”.

photograph byLOREM IPSUM


The Turkish Perspective

“We have common projects with EXIM US and UK Export Finance”

THE THIRD OF THE EXPORT FINANCING SEMINARS WAS ORGANIZED BY TİM TİM organized the third of the “Export Financing” Seminars with the contributions of Turkish EXIMBANK and Coface in order to ease the firms’ access to finance on 18 December 2017 at Ömer Halisdemir Conference Hall in İstanbul.

photograph byLOREM IPSUM

photograph byLOREM IPSUM


r . Gültekİn

mentioned that Eximbank could provide loan for exports to risky countries even if there is no information that they abided by Central Bank of the Republic of Turkey in terms of maturities. The “Export Financing” Seminar was organized by the Turkish Exporters’ Assembly with the intent of facilitating firms’ access to finance and reducing their financial costs to a minimum level at Ömer Halisdemir Conference Hall in collaboration with Turkish Eximbank and Coface. Dr. H. Bader Arslan, Secretary General of Turkish Exporters’ Assembly, made the opening speech of

the event which is about diversification of financial instruments. In the first part of the seminar moderated by Ali Orhan Yalçınkaya, Economist of the Eximbank, panellists, who were Enis Gültekin, Deputy Director General of the Eximbank and Emre Özer, Director General of the COFACE Turkey, presented activities of Eximbank and Coface respectively. In the second part of the event, panellists answered the questions of audiences about credit limit allocation methods, insurance programs processes in risky countries, the importance of financial turnover in terms of credit facility and cooperation with foreign institutions.

Mr. Gültekin mentioned that Eximbank, as per the mission, could provide loan for exports to risky countries even if there is no information, that the limits had reached almost $ 10 billion and that they abided by Central Bank of the Republic of Turkey in terms of maturities. He added that low financial turnovers were also covered and he continued “Mainly applications for domestic credit insurances of producers who export are approved. If buyer is under the guarantee of central government, we can insure the investments in the risky markets such as Africa. We have agreements with EXIM US and UK Export Finance to support common projects of investors from two countries. Thus, we can utilise their credibility.” Mr. Gültekin state that current export figures was more crucial than former financial problems of a firm in terms of credit applications. He continued by saying that if there is lack of data, purchasing data from international information institutions might prolong the process and that for demands for compensation they made the payment within 4 months.

“We Meet the Demands For Limits Within 3-4 Day”

We have agreements with EXIM US and UK Export Finance to support common projects of investors from two countries. Thus, we can utilise their credibility.”

Mr. Özer stated that by the help of intelligence reports firms received their scores for limit allocations, that possibility of the repayment of a credit in due date was checked and that low volume bills were not suitable for Coface. Return to demands for limit depends on the countries; while the returns were faster in Europe compered to in Asia and in Africa, average duration is two days. He added that since database in Turkey was developing, returns took 3-4 days.




Global Entrepreneurship Congress:

Inspirational and Revolutionary

Every year, the Global Entrepreneurship Congress gathers together thousands of entrepreneurs, investors, researchers, policymakers and other startup champions from more than 170 countries. By SERAP KAYA


We made an interview with H.Didem Altop, the Founding Managing Director of Endeavor Turkey, and talked about Endeavor Turkey, Global Entrepreneurship Congress, entrepreneurship and more...


t the weeklong GEC, delegates make

connections, gain insights, learn about new research, and leave ready to renew their programs, policy ideas or firm founder skills. GEC 2018 takes place in Istanbul, Turkey — a thriving startup hub that is both an economic and cultural cornerstone of Europe and Asia. Endeavor Turkey, one of the co-hosts of the Global Entrepreneurship Congress, has an important role of organizing the Congress. They made a great effort to be able to have the Congress in Istanbul. Endeavor is an global network established in 1997


“Turkey’s entrepreneurial ecosystem has come to a certain point quite rapidly over the last 10 years.”

by Peter Kellner and Linda Rottenberg in central New York, supporting active entrepreneurs who unite founders and business people from diverse cultures and sub-structures for a common goal. The Turkish office was opened at the end of 2006 and so far, 56 startups have emerged from the network. Endeavor offers financial and moral support through a network of mentors, consultants and investors, consisting of local and international opinion leaders to accelerate active entrepreneurs selected for sustainable economic development.

First of all, could we recognize to Endeavor? Endeavor has been operating for 10 years in Turkey. In fact, Endeavor is part of an international entrepreneurial support network. As of today, it operates at 45 locations in 25 countries and all of the developing economies. Our aim is that generalizes and promotes active entrepreneurship. This means is not the start-up phase, but the next step is to support companies that have developed innovative business models, especially in the innovative world. What we do best is to introduce intelligent people to intelligent people, we open the fronts, accelerate fifty percent of our work is done by individual entrepreneurs at the same time while we are working with entrepreneurs, we understand their crisis more detailed. At this time, we are working on improving the ecosystem. It introduces entrepreneurship as a career option and actually exploits entrepreneurial thinking skills.

The Turkish Perspective

What are you doing to make Istanbul a global entrepreneurship center? Turkey’s entrepreneurial eco-system has come to a certain point quite rapidly over the last 10 years. We are maybe 5 steps back from Europe but we are 10 steps ahead of the Middle East and Asia. We have an entrepreneurial election process that we regularly have done every year throughout 10 years. We have programs that selected entrepreneurs. How many entrepreneurs did you support in the process? We meet about 300 entrepreneurs every year. There are four stages of election process with different stages and programs. After the first meeting, we have at least 6 experts mentor that we call the second round meeting. After that, if they are ready they join the country jury and spend all day with another 6 people in the country jury. Then, we prepare election panel as a candidate for our country so; we determine our candidate from Turkey and we are moving in the international arena. Does the government have any kind of assistance about entrepreneurs like legal regulation, support plan? I think, Turkey has a steady and visionary policy of supporting entrepreneurs. We have different programs, strong tax exemptions and promotional programs that are ahead of many countries especially about development and research issues. There are encouraging to promote foreign countries. First, the entrepreneur is paying, then state gives back them. Maybe, this issue can be regulated in a good way.


Founding Managing Director of Endeavor Turkey

Endeavor and Turkish Exporters Assembly have partnership. What is the contribution of TİM to you in this process? We respect each other as our stakeholder. TİM support our mission and we also do the same. There are 39 entrepreneurs actively supported by Endeavor. 60% of them have sales offices in 21 countries and export to 91 countries. This is what TİM also wants to do. We are grateful to TİM doing this kind of things and we hope that they continue to do that. Do you have projects for potential students in universities? University students are our future. Global entrepreneurship

week that was the worldwide campaign was actually an awareness campaign in November, especially an awareness campaign for university students. It introduces entrepreneurship as a career option and exploits entrepreneurial thinking skills. Our first university studies were with

Endeavor offers financial and moral support through a network of mentors, consultants and investors, consisting of local and international opinion leaders.

the Global Entrepreneurship Week. We have a program called “Case Campus” past 3 years as Endeavor Turkey. A case-based practical training program was launched and has 325 graduates so far in the sponsorship of Akbank. Formerly, 80% of the students at the university were Faculty of Management. Now, there are also Engineering, Medicine and Design students. We have a practical learning program that we are very proud of it. This program brings together most curious students, most experienced teachers, and the current content. The Congress is a place where brings together 170 institutions such as Endeavor, TİM. We expect about 3000 thousand participants from 170 countries. There are also sharing platforms on the stage and on parallel-based speech. There will also be social events. There is content on four different platforms. We are excited to see everyone there.




Turkey’s Flag Carrier Receives Strong Support From The President

“Turkish Airlines Makes Us All Very Proud” T

urkey’s President H.E

Recep Tayyip Erdoğan hosted the flag carrier airline’s executives and managers at the Presidential Complex in Beştepe, Ankara. Minister of Transportation, Maritime Affairs and Communications Ahmet Arslan and Chairman of the Board and the Executive Committee of Turkish Airlines FEBRUARY 2018 ISSUE 55

M. İlker Aycı were also present at the meeting at Beştepe People’s Convention and Culture Center. Turkish Airlines managers later flew to Antalya to take part in the company’s annual Management Summit which convened with the theme “When We’re Together” this year.

“AVIATION INDUSTRY FASCINATED BY TURKISH AIRLINES’ ACHIEVEMENTS” Stating that Turkish Airlines, starting its operations in 1933 with only 5 planes, now serves with 331 planes, and has achieved great success fascinating the aviation industry, President Erdoğan said: “Today, Turkish Airlines

flies to 300 airports in 120 different countries, and has become the airline flying to the most countries in the world.” “Turkish Airlines aims to carry 74 million passengers, and 1.3 million tons of cargo in 2018, earning $11.8 billion,” President Erdoğan said, and added: “Turkish Airlines’ growth in 2017 was

photograph byLOREM IPSUM

Turkish Airlines’ high-ranking managers received by President H.E. Recep Tayyip Erdoğan at Turkey’s Presidential Complex.

photograph byLOREM IPSUM


The Turkish Perspective

“Turkish Airlines’ growth in 2017 was a record and I believe it will be much better in the upcoming months.” President H.E. Recep Tayyip Erdoğan said in his speech. a record and I believe it will be much better in the upcoming months.”

“Istanbul New Airport WILL BOOST TURKISH AIRLINES’ COMPETITIVE POWER” “Today, Turkish Airlines competes with the biggest airline companies in the world. Some of its rivals even had to withdraw from competition because they were left behind. Istanbul New Airport will boost the competitive power of Turkish Airlines, therefore enhancing its business model, operational understanding and service quality,” President Erdoğan said. “I believe Turkish Airlines will achieve its goals for 2023,” President Erdoğan said and advised the company executives to get to work toward Turkey’s 2053 vision.

photograph byLOREM IPSUM

photograph byLOREM IPSUM

Turkish Airlines’ managers formed the famous wild goose logo of the brand for a photo shoot at the Management Summit in Antalya.

“Because if we do not act now, we will not be able to make the best of 2053. We shall plan our future and take action now.” President Erdoğan commented and added: “With the new airport, our first aim is to make Turkish Airlines, flying to more countries than any other, the airline company with the largest fleet in the world. Wherever the farthest destination is, we shall go there.”


Speaking at the program, M. İlker Aycı, Chairman of the Board and the Executive Committee of Turkish Airlines, stated that they will work with all their might to make the best of Istanbul New Airport: “We will complete the adaptation period as soon as possible and be ready to serve our passengers in the largest airport in the world, equipped with the state-of-the-art technology.” Aycı emphasized that Turkish Airlines is one of the most valuable airline brands in the world today and said: “In the last 7 years, we have taken the title of the “Best Airline in Europe” six times and we deserved it. Our aim is to be the best in the world. The vision of being the best airline company fits to the world’s one of the best and biggest airports.”



“Turkey and France should strive to reach a volume of at least EUR 20 billion,” President Erdoğan said.


President Erdoğan



uring his address at the meeting, President Erdoğan offered members of MEDEF insights into Turkey’s investment environment and invited them to boost their investments in Turkey and benefit from the lucrative investment incentives that were available. Erdoğan pointed out that Turkey is the 13th largest economy globally and the 5th largest in Europe according to GDP at PPP, while France is the 5th largest economic power in the world


and 2nd in Europe. Based on these metrics, President Erdoğan said, the current trade volume of USD 13.5 billion is below where it should be, adding that Turkey and France should strive to reach a volume of at least EUR 20 billion. “The Turkish economy grew at a larger-than expected 11.1 percent in Q3 2017 and 7.4 percent overall in the first nine months of the year. We will likely to see an annual growth rate of

over 7 percent for 2017, and this will once again make Turkey the fastest-growing economy among the G20 and OECD countries,” said Erdoğan. The FDI amount of French companies in Turkey over the past 15 years has reached USD 7 billion. As of June-2017, around 1,500 companies with French capital operated in Turkey. In line with Turkey’s 2023 targets, French companies attended 13 tenders in

various sectors, such as transportation, energy, and environmental technologies. Recent examples of cooperation between the countries’ companies include agreements signed between Airbus-Türksat, ASELSAN-ROKETSANEUROSAM, and the export credit agencies of Turkey and France. President Erdoğan’s visit to France also saw a declaration of will signed between Turkish Airlines and Airbus.

photograph byLOREM IPSUM

On January 5th, President Recep Tayyip Erdoğan and a Turkish ministerial delegation came together with representatives of the French business community at a meeting in Paris held by MEDEF International and supported by ISPAT.

photograph byLOREM IPSUM


The Turkish Perspective



atar and Turkey took part in a series of highlevel meetings in January, including an economic forum and a three-day expo aimed at further enhancing the bilateral and economic relations of both countries. On the ISPAT side, a delegation led ISPAT President

Arda Ermut held meetings with Qatar Businessmen Association Chairman Sheikh Faisal bin Qassim Al Thani and Qatar Chamber Chairman Sheikh Khalifa bin Jassim bin Mohamed Al Thani. The delegation also met with institutions such as the Qatar Financial Centre and the Qatar

Investment Authority, as well as with private companies and policymakers to promote investment opportunities in Turkey. Commenting on the activities, Ermut said, “In all these meetings we were able to discuss investment opportunities. There are many

individuals and institutions in Turkey that are trying to increase relations with Qatar, starting with President Recep Tayyip Erdoğan, the office of the Prime Minister, the Ministry of Economy, the Ministry of Customs and Trade, and the Ministry of National Defense, all of whom are opening the way for us.” According to Ermut, the relationship between Qatar and Turkey is unique, and further strengthening of this relationship would not only be beneficial for both countries, but also for the entire region in terms of stability and economic prosperity. He stated, “While the majority of Turkey’s FDI is from Europe, ISPAT is seeking to diversify and enrich its FDI sources with the GCC region – a region that has witnessed a steady increase (in FDI inflows to Turkey) in previous years. In 2010, the share of Turkey’s FDI from Europe was around 75 percent; it is now down to around 65 percent. At the same time, the share of Asian countries in overall volume is around 5 percent now, up from around 2 percent.”


photograph byLOREM IPSUM

photograph byLOREM IPSUM


s part of its global efforts to showcase Turkey’s business climate and to reinforce global investor perceptions, ISPAT built upon its Germany-specific initiative launched in 2016 by recently hosting various members of the German media in Turkey. ISPAT wanted the delegation to see first-hand the dynamism of the Turkish economy in different parts of the country, particularly in

Turkey’s Izmir and Antalya provinces following the previous two events that had been held in Istanbul and Kocaeli-Gaziantep. Among the German delegation were media representatives from Der Spiegel, Die Zeit, Der Freitag, Handelsblatt, Süddeutsche Zeitung, German Press Agency-DPA, Tagesspiegel, Allgemeiner Deutscher Rundfunk-ARD,

WirtschaftsWoche, ZDF, ARD-Hörfunk, and TAZ-Die Tageszeitung. High-ranking Turkish government officials, German-capital companies, and industry associations in Turkey briefed the delegation on the country’s current economic outlook, reform process, and investment environment. The series of meetings in Izmir took place with the Izmir Development Agency, German

wind turbine manufacturer Nordex and German textile company Digel in the Aegean Free Zone, German trailer maker Krone, and with Prof. Dr. Emre Alkin – a Turkish academic and author in economics. Izmir itself accounts for USD 2 billion in bilateral foreign trade volume, and the province boasts around 2,500 foreign capital companies, of which nearly a quarter are German.



The delegation was briefed about the business climate in Turkey by foreign companies doing business in Turkey. Hot topics included the advantages of running a production facility in Free Zones and Organized Industrial Zones in Turkey, the Turkish labor force, cost competitiveness, and the political and macroeconomic stability. During dialogues with the German media, company executives stated that they were pleased to operate in İzmir and that the logistical advantages, qualified labor, and cost advantages that İzmir offers strengthen their presence in the international market. With an eye to further growth in the future, they pointed out that 95 percent of their employees are Turkish and that the young and dynamic population in the city is indicative of huge potential. The group then headed to Antalya, where they came together with the Western Mediterranean Development Agency (BAKA), German engineering company Bihl+Wiedemann, German life sciences company Novamed, premium yacht builder Alia, and lastly Sun FEBRUARY 2018 ISSUE 55

Express – a JV between Germany’s Lufthansa and Turkish Airlines. The delegation also attended separate scheduled meetings with Turkish Minister of Foreign Affairs Mevlüt Çavuşoğlu, Minister of Culture and Tourism Numan Kurtulmuş, Mayor of Antalya Metropolitan Municipality Menderes Türel, and Turkish Airlines Chairman of the Board and the Executive Committee İlker Aycı. The rebound in the tourism industry was also emphasized during the delegation’s visit to Antalya,

the heart of Turkey’s tourism industry. The number of companies with foreign capital in Antalya is 3,100, with 14.5 percent of them being German companies. Minister Kurtulmuş stated that after two years of political setbacks, Turkey is now expecting a return to the record high number of tourists seen only a few years ago. In fact, the increase in the number of reservations for the coming spring and summer is indicative of Turkey’s return to prominence as a prime tourism destination.

The bookings herald an improvement in relations between Turkey and the two major tourism exporters of Germany and Russia. According to Kurtulmuş, the tourism targets in Turkey’s Vision 2023, which includes attracting 50 million tourists with a total revenue of USD 50 billion, are well on the way to being achieved provided that the trend continues. Additionally, the swift recovery in Turkish businesses and the economy after the July 15, 2016 events in particular provided one of the highlights in the visits.

photograph byLOREM IPSUM

The number of companies with foreign capital in Antalya is 3,100, with 14.5 percent of them being German companies.

photograph byLOREM IPSUM


The Turkish Perspective

Adana Hosts Venture Capital Anatolia Meeting T

he fourth in a series of Venture Capital Anatolia Meetings convened in Adana on December 25, 2017, with the attendance of ISPAT President Arda Ermut. The goal of the meeting series is to increase awareness of venture capital and private equity funds in Turkey and to bring successful Turkish companies together with fund managers. During his speech at the meeting, ISPAT President Ermut said that SMEs are the backbone of the Turkish economy. Turkey achieved record GDP growth of 11.1 percent in the third quarter of 2017, mainly stemming from a boost in the economic activity of SMEs following the introduction of Credit Guarantee Fund backed loans.

“In today’s Turkey, with a growing economy and exports, where tourism revenues are revisiting past highs, and where industrial production

and capacity utilization rate hover at historic levels, we hope to see more mergers and acquisitions take place,” Ermut said.

Within the scope of his visit to Adana, IPSAT President Ermut also held meetings with Adana Organized Industrial Zone management and with various companies operating in the OIZ. Organized with the cooperation of the Turkish Presidency Economy Monitoring and Coordination Department and the Union of Chambers and Commodity Exchanges of Turkey (TOBB), the Venture Capital Anatolia Meetings are taking place throughout 2017 and 2018 across nine different provinces in Turkey - Bursa, Denizli, Kayseri, Manisa, Samsun, Gaziantep, Konya, İzmir, and Adana.

Yemeni Investors Visit Turkey For Business Forum

photograph byLOREM IPSUM

photograph byLOREM IPSUM


he Turkish-Arab Countries Economy Summit and the TurkishYemeni Business Forum was held on 10-13 January in Adana and Mersin, under the auspices of Turkish Minister of Development Lütfi Elvan. Along with the Turkish Minister of Development, Yemeni Industry and Trade Minister Mohammed Abdul Wahid al-Maitimi, Turkish Ambassador to Yemen Levent Eler, Turkish Consul General to Jeddah (Saudi Arabia) Akif Menevşe, and more than 150 Yemeni business people attended the forum.

ISPAT Country Advisor to Saudi Arabia Mustafa Göksu said that the forum is a first for Turkish and Yemeni business people. It is hoped

that it will boast bilateral investments in various sectors and will increase cooperation among private sector companies of the two

countries. “ISPAT provides all kinds of support during the investment process of Yemeni companies in Turkey. With the help of this forum, we believe that private sector companies of both countries, particularly the SMEs, will make joint-investments,” Göksu said. According to the statistics of the Ministry of Economy, Turkey exported USD 536.7 million worth of goods to Yemen in 2016. Turkey mainly exports steel and iron, motor vehicles and parts, and wheat and dairy products to the country.



Cover / Year of Records


The Turkish Perspective





In 2018, permanent growth in the world economy is expected to accelerate. It is predicted that the growth rate of 3.0 percent in 2017 will rise to 3.3 percent in 2018. Growth in developed and developing countries will increase together. Developed countries are expected to grow by 2.2 percent in 2017 and 2.3 percent in 2018. Growths in the US and EU will last by 2.3 percent. It is expected to grow between 4-5 per cent in some EU countries. It is predicted that the growth will also accelerate in developing countries.



Cover / Year of Records

According to the World Trade Organization, world trade which was in decrease from October 2014 to August 2016 has been steadily rising for the past 11 months. The contribution of the strong recovery in global trade and government supports Turkey’s exports in 2017 realized double-digit increase. Turkey’s exports saw its second-highest export volume in the republic’s history with $157.1 billion in 2017, according to data released by TİM. Speaking at a news conference in capital Ankara, Zeybekci said exports surged 10.2 percent during this period. The minister said: “Our export target for 2018 is $169 billion but we want to climb over $170 billion.” In December, the country’s exports also rose 10.1 percent to reach $13.6 billion, according to Turkish Exporters Assembly. Turkey’s total exports in November were $14.2 billion, according to Turkish Statistical Institute. Incentive certificates that were drafted by the Economy Ministry increaed 81 percent.” he said. Zebekci also said Turkey’s exports increased 9 percent in quantity and 1.5 percent in unit-value, adding: “The unit value of our exports had increased for the first time since 2013.” He said Turkey would exceed $157.6 billion export volume, which is historical high, in a few weeks.

“Top of world economies”

The country’s exports increased in double-digit numbers the last time in 2012, he added. He said the exports of the U.S., EU and China were up by 6.2 percent, 7.4 percent and 7.5 percent, year-on-year, in 2017, respectively. “In other words, we are at the top of world economies with an annual increase of export volume by 10.2 percent in 2017,” he added. Turkey’s enlarged foreign trade, which included all merchandise and services exports and imports, was expected to reach $468 billion, he said. Zeybekci said: “Turkey’s enlarged exports were $211.6 billion and enlarged imports were $256.3 billion in 2017.” FEBRUARY 2018 ISSUE 55

Stressing that Turkey’s share in the global trade was 0.55 percent in 2002 while it rose to 0.97 percent in 2017, Zeybekci said: “Our goal is to raise this share to 1.5 percent level.” Automotive sector contributed 15.3 percent of the country’s total exports in 2017, up from 9.2 percent in 2002, he said. 77.4 percent in industry group performs annual 12.8 percent of Turkey’s total exports last year, an increase of 121 billion 392 million 773 thousand dollars of exports was realized. He added that Turkey’s agricultural products exports also rose to $16.9 billion in the year from $3.75 billion in 2002. “Our constant goal is to add technology-intensive, design-intensive and brand-intensive sectors to our exports,” he said.

“We will exceed $170 billion”

TIM President Mehmet Büyükekşi said: “The year 2017 was anounced as breakthrough year in exports by us. Thank goodness, we kept our promise as exporters. We will exceed the export figure

2017 Medium Term Program targets and exports Turkey has reached 157.1 billion dollars export volume in 2017 158

$ Billion 157.1








152 2017-2019 MTP Export Forecast

2018-2020 MTP Export Forecast

Source: Ministry of Development, TÜİK, Gtb

2017 Export

The Turkish Perspective

The state has provided new support Prgrams for R&D, innovation and design areas ın 2017.

desks, and sought answers to the questions of our exporters. This year, like every year, we are going to focus on the importance of high value added exports. Our events such as ‘Innovation and Entrepreneurship Week’ and ‘Design Week’ will continue to serve this purpose.”

A New Emerging Sector

to 170 billion dollars this year and will also break the annual export record in 2014. 2018 will be the record year of exports. We will overturn all records on annual, monthly basis, number of exporters and export markets. On the subjects of growth, employment, we will contribute to our economy at the top level, “he said. Commenting on 2017 data, Mehmet Büyükekşi stated that, “The growth in global trade has made a tremendous contribution to Turkey’s exports. We expect global trade to reach $ 16.5 trillion this year. Secondly, the support of our government gave us strength; support for R&D and Design Centers, support for membership to e-commerce portals, special passports and the increase in Eximbank’s capital has helped exporters. As TİM, we set our priorities correctly and created our strategies accordingly. We increased our market diversity. We participated in the fairs, organized trade delegations, and purchase delegations. We have introduced target markets with the Export Compass meetings. We established the country and sector

EXPORT NUMBERS ın DECEMBER 2017 Sectoral change rates of top three sectors in December 2017 compared to December 2016 $ Billion Automotive

Change Rate +%6,2 2.35


Change Rate +%7,7


Change Rate +%6,1


The export revenue from the Turkish series, which are shown in more than 140 countries from the Balkans to the Middle East and Far East to Latin America and followed by millions of people, surpassed $ 350 million annually. Middle East and North African countries are among the top buyers of the Turkish series, which settled in the second place after the US in the series export figures. Professional Association of Radio and Television Broadcasters (RATEM) President Yusuf Gursoy, “Turkish television series and television productions, creating a sympathy for Turkey, offers a contribution to the country’s public diplomacy and tourism. Our target for 2023 is exceeding 1 billion dollars and exports of television and television production, “he said.

Super Incentives are on the way 1.34




1.44 1.29





The Turkish government is set to announce a number of projects totaling almost TL 80 billion ($21.2 billion) this month, Economy Minister Nihat Zeybekci said Wednesday. He confirmed that the projects, which are part of the government’s Project-Based Support System or “super incentives” would be made public at a ceremony later this



Cover / Year of Records

month. Minister Zeybekci announced that the ministry prepared the decisions of the Council of Ministers under the program of Centers of Attraction and that some of the investment incentives in 23 provinces will be evaluated within this scope of the sixth region incentives. In his keynote speech at a Turkish Exporters’ Assembly meeting where export data for 2017 was announced, Minister Zeybekci said investment approvals under the Project-Based Support System have been completed. “We tried to finish it by the end of 2017, but we could not. We will announce it in a meeting in January 2018. The investment amount will be close to TL 80 billion,” he said. Major investments in petrochemicals, petroleum refinery and energy were expected to be announced as part of the super incentives. The incentive system is for large-scale investments in the domestic production of raw materials and intermediate goods in which Turkey is a net importer. In the meantime, progress was also made in the Centers of Attraction program for special incentive applications in 23 provinces in eastern and southeastern regions. The program was taken from the Ministry of Development by a decree to be coordinated by the Ministry of Economy. Zeybekci said that besides the sixth region incentive system, the ministry will apply a couple of new incentives in this program and that they have submitted a draft decision to the Council of Ministers.

Automotive sector contributed 15.3% of the country’s total exports

The minister of economy said he was optimistic about private sector investments in 2018 and highlighted that the super incentive of TL 80 billion will not only accelerate the attraction centers program but also the investment amounts of incentive certificates received in 2017, which exceeded TL 80 billion. “With these investments, 2018 has shown signs of a year that will see strong private sector investments,” he said.

Confidence rate is on the top level

Confidence in Turkey’s services, retail trade and construction sectors improved in January compared to the previous month, the Turkish Statistical Institute (TurkStat) announced.


$ Billion

14 12






13.2 13.3





9.7 8.6

8 6.5

6 4




4.6 3.2

2 0 2002



Source: TİM













The construction sector confidence index rose by 6.7 percent to 87 points in January from 81.6 in December. The surge “stemmed from the increased numbers of managers evaluating ‘current overall order books’ as above normal for the season and expecting an increase in ‘total employment’ over the next three months,” TurkStat said. The service sector index increased 6 percent to 102 in the month from 96.2 in December, according to TurkStat, as more managers saw business situation and demand (turnover) increase over the past three months along with an expected improvement in demand (turnover) compared to previous months. The retail trade confidence index was also up 6 percent month-on-month to reach 106.2 points in January. “This upswing in the retail trade confidence index resulted from the increased number of managers evaluating improved ‘business activitysales’ over the past three months, ‘current volume of stock’ as below normal for the season and an expected improvement in ‘business activity sales’ over the next three months,” it said. Meanwhile, consumer confidence in the Turkish economy also soared in January, TurkStat reported. The consumer confidence index jumped 11.1 percent in January, to 72.3, from 65.1 in December, according to the report. Official data showed that the downward trend in consumer confidence that started in August 2017 ceased in January 2018.




Cover / Year of Records



Turkey has left behind a challenging year in foreign policy in 2017. Despite all the negative developments that have taken place, the problems have been solved by successful political moves and support given to the business world.

Describing the behind-the-scenes record of these record-breaking developments,the authorities pointed to strong government support in many areas, including the green passport given to 7,309 exporters last year. In the third quarter of 2017, the Turkish economy, which reached the second largest export figure of the Republican history, started to give record signals in 2018 as well.

The Turkish Perspective





Cover / Year of Records


Turkey’s economy grew by 11.1 percent, exceeded expectations in the third quarter of 2017, realized the highest quarterly growth rate in the last six years. Growth figures were realized both by the employment incentives initiated by President Recep Tayyip Erdogan and by the systematic work of many institutions, especially the government. Last year, although the economic world was in a difficult situation after the political problems of Northern Iraq and the EU, the export figures reached to 157.1 billion dollars as the second highest figure of the Republican history with 34 trips led by President under the leadership of the President. Describing the behind-the-scenes record of these record-breaking developments, the authorities pointed to strong government support in many areas, particularly the green passport given to 7,309 exporters last year. Independent Industrialists’ and Businessmen’s Association (MUSIAD), “Exports will be provided with additional opportunities, in the coming period of 157.1 billion dollars in exports, we believe that the current level can easily be overcome”. According to the Turkey Exporters’ Assembly data, exports have increased every month without exception in 2017. This increase in 8 months was double digits. It is stated that the level of 15% is exceeded in 5 months. TIM Chairman Mehmet Büyükekşi said, “We have also signed sector records in the same year we passed in. In the year of 2017, six sectors, automotive, machinery, jewelry, defense and aviation, fruit and vegetable products, and ornamental plants all broke export records, 5 billion dollars reached the FEBRUARY 2018 ISSUE 55

highest level of all the time again in 2017 185 countries and regions of our exports increased, “he said. Stating that positive developments in world trade are also contributing to exports, Büyükekşi stated that the increase in global demand throughout the year, together with the upward trend in oil and commodity prices, increased global exports by 12.1 percent in the first 10 months of 2017. Referring to the export unit prices, TİM President Büyükekşi stated that unit price of export is 1.36 dollars in 2017 according to provisional data, saying “This figure is definitely not enough.” We say on every platform that if we do not permanently increase the unit price of our exports, we can not catch the continuity .”

2018 will be year of records Explaining that the exports to 185 countries and regions increased in 2017, Büyükekşi said, “In 2017, we have strengthened our presence in many countries far away. Our exports to

INCREASE IN EXPORT BY COUNTRIES The first three countries Turkey exported most in 2017 Million Dollar

December 2016 Change

December 2017


1.100 1.300



737 815



695 757


EXPORT SORTED BY COUNTRIES Countries increased their import most from Turkey in 2017 Tunisia

72 118



115 177



102 154



220 326



110 152


The Turkish Perspective

TURKEY SEES A BRIGHT FUTURE IN TERMS OF ITS EXPORTS NUMBERS IN THE NEW YEAR. Iceland increased by over 6 times. Our exports to Haiti are increased 4 times compared to last year. Our exports to Jamaica, Malta and Panama increased more than 100 percent. Our exports to Liberia, Singapore, the Dominican Republic almost doubled. Despite the crisis that we have experienced with Russia we have reached a rate of 51.2 percent increase in exports to Russia this year”. Büyükekşi stated that the first 20 countries that they exported most didn’t change in 2017. Büyükekşi stated that since the second half of the year 2016, the government

has been very effective in terms of trust and facilities that are supported by the support and incentives provided in the fields of production, exports, employment and investment. As a result of this positive year for our export, we expect it to go much better. We believe that in 2018, TIM will exceed $ 170 billion in exports. We have also expressed these expectations in the annual evaluation meeting on January 3rd. Remember, we declared the year 2017 as the Leap Year in Exports. Now we are saying that the 2018 Exports will be Recorded in Yildiz. We have many records both on an annual basis and on a

Country Groups Turkey has increased its export to 2 groups of countries. Export to Middle East has decreased. December 2016 December 2017 Change


5,6 6,5 Billion Dollar


Middle East

2,6 2,4 Africa

1,0 1,2 Billion Dollar



9,4 10,0 Million Tons

7,4 %

Billion Dollar


monthly basis. We will set sub-records in terms of provinces, export markets and sectors. We will continue to contribute both to growth and employment, that is to say, our economy, in the broadest sense.”

Access to Funding Problem is Solved

Büyükekşi stated that big steps are being taken in terms of access to financing and financing, which is one of the most fundamental problems faced by exporters. “The support of the Credit Guarantee Fund for the financing provided by our firms became a necessity for both our economy and our exportation life, and the amount of support given to exporters in 2017 was raised to TL 3 billion In the same way Eximbank’s capital has been increased. “ Mehmet Büyükekşi explained the conveniences and common practices that the government applied to the exporters as follows: “The state has provided new support for R&D, innovation and design areas. We started to provide free consultancy services to exporters who want to open R & D and design center. In the scope of the service we started to open 500 R & D 500 design centers, up to now 183 R & D and design centers have been opened. Again, important arrangements have been made with regard to tax exemption and staff support to work in these areas. The project, carried out by the Ministry of Economy and



Cover / Year of Records

TIM, facilitated the membership operations of our exporting firms to the internationally reliable and highimage e-commerce portals. Only in 2017 we made 10,161 of our members a member of these sites, and we increased our outlook in the global arena. The number of companies we aim to be a member of e-commerce sites in 2018 is 25 thousand.”

Countries Turkey Export to (Over 1 Billion) 2016



Cities Export Over 1 Billion 2016

Green Passports to 7369 Exporters

Green passport application for exporters started the year we passed. In 2017, 7 thousand 309 exporters received their passports. Thus, a large part of the exporters have ceased to be one of the most important and fundamental obstacles in their access to world markets, especially the European Union countries. Association of Independent Businessmen’s Association (MUSIAD), “parallel to the leap in growth rates, year across the 157.1 billion dollars Taking the record to reach a level that can be called total exports, Turkey was another welcome development for the economy.” he said. Independent Businessmen’s Association (MUSIAD) said “In line with the expansion in growth rates, total exports totaled 157.1 billion dollars a year. This is a welcome development for Turkey’s economy.” The tone of strained relations with the European Union in recent years showed decline for the new year, rapid recovery of economic activity in the Eurozone, the largest export market, the acceleration observed in global trade also gave support to Turkey’s export performance was noted.





Number of Exporter Companies 2016

66,951 2017

69,516 MUSIAD said “In addition to expectations that happen to be 4 percent increase in 2018. The revival continued in the Eurozone economy in the near future also expects positive reflection of Turkey’s export performance and we anticipate also that exceeds the total of our exports 157.1 billion in 2018.” In order to maintain strong growth performance in the medium and long term, it is necessary for the export to be taken to higher levels and to contribute to the growth of net foreign demand permanently.


Change Rate

Port of Antalya




1.173 Billion Dollar



1.044 Billion Dollar



1.029 Billion Dollar



1.005 Billion Dollar




Change Rate



1.196 Billion Dollar

“We should expand our export market”

“Turkey today to many countries from Europe to America, exports of food products with a wide product scale. But with that, we certainly should not grow up, we need to develop our export market in order to increase our exports in agriculture and food products.” said MÜSİAD, emphasizing the importance of high-tech products. “Among agricultural products and food products, high-tech products are very important. In this context, we consider agricultural and food products to be extremely important in terms of the spread of our exports to wider regions. The share of high-tech products in total exports is unfortunately low. In order to increase this share, investment in hightech industries and production should be supported more extensively with exports.

Erdogan’s Contribution to Export

President Recep Tayyip Erdogan traveled around the world 4 times in his travels in 2017. President Erdogan, who made the first visit of the year to African countries, finalized his overseas visits with African

The Turkish Perspective


market variety solving financing problem

Change Rate

37.6% 1.338 Billion Dollar

information studies our work on value added exports


EXPORT SUPPORTS Export Support Budget Research-development and design centers E-commerce green passport Eximbank credit guarantee fund employment support

tour, which is also composed of Sudan, Chad and Tunisia. President Recep Tayyip Erdogan traveled 144 thousand kilometers on his travels in 2017, making his way around the world about 4 times. President Erdogan went to a number of countries this year with delegations, some of them in the form of official visits and some of

them in various summits and general assemblies. Erdoğan, who also visited Turkey within the scope of his domestic contacts, met with the muhtars from all over the country at certain intervals in the Presidency Complex. President Erdogan made 35 visits to 26 countries in 2017, making a total of 144 thousand kilometers within the scope of these

Global Trade


Trillion Dollars 20 18.3

18 16










visits and circulating around the world about 4 times. Erdogan made a series of visits to Bahrain, Saudi Arabia and Qatar to be in contact with Arab countries in returning to Africa. President Erdoğan, who held an official meeting with US President Donald Trump, was welcomed by Trump




Change Rate

Export (2017)



28.5 Billion Dollar



6.1 Billion Dollar



3.3 Billion Dollar



1.7 Billion Dollar



1.4 Billion Dollar



84.8 Million Dollar

12 10 8 6 4 2 0 2007 Source: TİM













Cover / Year of Records

Erdogan welcomed 10 heads of state, as well as his overseas visits in 2017, to the Presidential Residence. The first official visit of the year to Turkey was made by the Ethiopian President Mulatu Teshome Wirt. Following him were Somali President Muhammad Abdullahhi Mohammed Farmajo, Sierra Leone President Ernest Bai Koroma, Indonesian President Joko Widodo, Palestinian President Mahmoud Abbas, President of the Russian Federation Vladimir Putin, President of the Venezuelan Bolivarian Republic Nicolas Maduro, Nigerian President Muhammad Buhari, President of Uzbekistan Shavkat Mirziyoyev and Jordan King of the Hashemite II. Abdullah was also the guest of President Erdogan in the Kulliye. President Erdoğan, who met with 32 heads of state in 2017, also accepted 10 foreign government heads.

Erdoğan addressed in 42 events in the White House on 15 May with an official ceremony. Erdogan made his second visit to the United States to attend the 72nd General Assembly of the United Nations (UN) on September 17th and has held a series of official contacts. Economic Cooperation Organization (ECO) to participate in the Summit and to hold several talks Erdogan went to Pakistan He met with Russian Federation President Vladimir Putin. Erdogan has been in various contacts with India, Russia, Kuwait, China, USA, Belgium, Germany, Saudi Arabia, Kuwait, Qatar, Jordan, Kazakhstan, Iran, Ukraine, Serbia, Poland, Azerbaijan and Greece respectively. Erdogan has recently completed his overseas visits with an African tour of Sudan, Chad and Tunisia. On the other hand, Erdogan has visited several countries more than once in his overseas visits. Accordingly, President Erdogan visited the US and Saudi Arabia twice, Qatar and Kuwait three times, and visited Russia four times for various reasons. Erdogan, Greece 65 years after the first “Republic of Turkey” as visited. FEBRUARY 2018 ISSUE 55

Erdoğan, attending organizations throughout the year, addressed participants in 42 different ORGANIZATIONS.

President Erdoğan, attending national and international organizations throughout the year, addressed participants in 42 different programs. Many international meetings were held in Turkey. Islamic Cooperation Organization summit was held in Istanbul in December by Turkey. The main reason of this meeting was; US President Donald Trump’s movement to recognize Jerusalem as “the capital of Israel” and to move the US Embassy from Tel Aviv to Jerusalem.

2018 CONDITIONS Growth of World Economy

Very Positive

Growth of Global Trade

Very Positive

Growth of EU Market

Very Positive

Growth of Neighbor Markets


Private Sector Investments


Price of Industrial Products


Level of energy and commodity prices


Euro/Dollar Parity


Global Financial Conditions


Politic, trade and geopolitic Risks





In Depth / Turkey: Global Player in Defense

Positive growth and increasing export revenues captured by Turkey’s critical defense technologies are bringing the sector a good point in the world. By ramazan gßzyurdu


ed ies od rld.

The Turkish Perspective



In Depth / Turkey: Global Player in Defense


ignificant headway has been attained in the defense sector in the post2006 period. The defense and aerospace sector, worth $1.3 billion in 2002 reached $6 billion, defense and aerospace exports reached $2 billion from $247 million and R&D expenditures went from $49 million to $1,25 billion. In addition, three Turkish companies are among the top 100 defense industry companies in the area of global defense and security. The 10th Development Plan (20142018) calls for a competitive structure of the defense industry, defense system and logistics needs to be met in an integrated and sustainable way by the country’s industry based on indigenous design, civilian use of appropriate technologies, increase in the domestic ratio and the share allocated for R&D as well as supporting networks and clustering structures in specific areas of the defense industry. In keeping with the Development Plan, the 2017-2021 Strategic Plan has identified the aim and targets of the SSM to, “manage


by providing an integral approach to ensure the sustainability of the defense industry by developing the capabilities of our country to increase its power in defense and security areas through programs that will enable the sustainability of the defense industry” in order to make “Turkey a global player in the defense and security field with indigenous design and advanced technology capabilities.”

The Development of the Country’s Domestic Defense Industry

The main objective of decision-makers in Ankara is to bring Turkey to the position of not only manufacturing

system components but also developing indigenous technology at the same time. While achieving this objective, it is important to create a competitive supply chain, where a significant proportion of military needs are met by national industry. Positive growth and increasing export revenues captured by Turkey’s critical defense technologies are bringing the sector closer to this goal. 2016 were a period of significant developments in the Turkish defense industry. Deliveries to the security forces of domestically produced mineprotected vehicles; land-based remote electronic support/EW systems, T-129 ATAK attack helicopters, armored tactical vehicles and coast guard boats were all made during 2016. Many other important activities took place, including the launch of the Göktürk-1 satellite, the acceptance of Hürkuş basic training aircraft and the acquisition of international type certificates, and developments in subsystem projects. At the beginning of 2017, design phase contracts were completed within the scope of the National Combat Aircraft Development (TF-X) project. Within the framework of the agreement signed between Turkey and the UK, the

The Turkish Perspective

The development of the domestic defense and aerospace industry over the last 15 years has increased demand for the systems and capabilities of Turkish firms in foreign markets.

project will proceed under the principle of win-win. The development of the domestic defense and aerospace industry over the last 15 years has increased demand for the systems and capabilities of Turkish firms in foreign markets. Turkish firms are not only focused on exports, but also take into account relationship-based methods such as co-production, technology transfer and joint investment. In 2017, Turkey’s top export market was the US, with $692 million worth of business, almost a third of all Turkish exports. Other top markets were Germany ($209 million), India ($107 million), France ($59 million), Poland ($58 million), the UK ($48 million), Saudi Arabia ($45 million), Italy ($43 million) and Malaysia ($41 million).

Diplomatic Opening to the Middle East

In recent years, industry has observed a diplomatic opening to the Middle East and elsewhere. Because of cultural and traditional ties with the Middle East, central Asia, Pakistan and Malaysia, these regions have become important markets for Turkey. Indeed, India and Malaysia are now important markets for Turkishmade naval systems. When it comes to the Middle East market, one important agreement was in February 2017 between Turkish military vehicle manufacturer Otokar and UAE firm Tawazun. In a $661 million agreement, the pair formed a joint venture, Al Jasoor, to make 8x8-wheeled amphibious armored vehicles. Aselsan and the Saudi Arabian public company TAQNIA DST also united forces

under the roof of Saudi Arabia Defense Electronics Corporation to design and produce radar, EW and EO-IR equipment. The AgustaWestland AW139 helicopter-training center was delivered to the Qatar Air Force Command in April, under a contract signed between Qatar and Havelsan. In addition, Havelsan is planning to open an office in Qatar in the near future. Turkey’s top armored vehicles manufacturers, including Otokar, BMC, FNSS and the newly launched RBSS – the Turkey-based joint venture between BMC, Germany’s Rheinmetall and Malaysia’s Etika – are aggressively seeking deals in Gulf and Asian markets. The combat management system (CMS) on the Turkish Navy’s Barbarosclass frigates is to be replaced with a domestically developed system from companies Aselsan and HAVELSAN. TAI, meanwhile, is negotiating to sell the T129 ATAK helicopter to the Middle East while Aselsan and TAI are currently modernizing Bahrain’s Cobra helicopters. Other potential export items include electronic and electro-mechanical systems, software, management systems, cyber security solutions, and flight simulators. Top Turkish exporters in these fields are Aselsan, Havelsan and STM. Many of these allied nations will need financial support if they are to opt for Turkish defense industry products and services originally developed for the Turkish armed forces.

Defense Has a Multiplier Effect on Other Sectors

It is also necessary to think of the defense industry not only as weapons, ammunition and military vehicle production, but as an organism that covers a wider range of fields such as commercial activities, R&D, building construction activities, food, clothing. The increase in exports of high-tech and high-value-added defense industry products is a big step towards quality export. The defense industry has a multiplier effect on other sectors. The industry has also made important contributions to many industries such as machinery, chemical, textile, automotive, information technology, construction, shipbuilding industry, both through production requirements and technological feedbacks.



In Depth / Turkey: Global Player in Defense

Groundbreaking Developments in Defense T 129 ATAK

In order to develop a modern defense industry and to enable the modernization of the Turkish Armed Forces, many corporations take responsibilities and continue their R&D and innovation studies. Some of the products of Turkish Defense Industry shine bright like a diamond and more of them will be available in the coming years to go further with certain steps. Observation and Targeting Sight Unit

The “T129 ATAK" Multirole Combat Helicopter has been optimized for specific hot&high performance requirements of the Turkish Armed Forces. A tandem seat, twin-engine, NATO-interoperable attack helicopter optimized for attack, armed reconnaissance, precision strike and deep strike missions, at day and night all environments and regardless of weather conditions. The T129 ATAK incorporates asymmetric weapon loading capability and enables the use of all weapons effectively according to mission requirements. For close combat support missions, a 20mm turreted gun with a capacity of 500 rounds and 70mm Classic Rockets with a capacity of 76 rockets have been integrated; whereas for multipurpose missions, 16 x CIRIT® 70mm Laser Guided Air-to-Ground Missiles, 8 x UMTAS® Long Range Anti-Tank Missiles and 8 x STINGER® Air-to-Air Missiles are integrated, as well as the state of the art EW systems and EO systems.

STINGER® Air-to-Air Missiles

70mm Classic Rockets 20 mm Turreted Gun

TF-X NATIONAL COMBAT AIRCRAFT With the TF-X Project, the aim is for the Air Force Command to meet its combat aircraft requirements after the 2030s with an original domestic design model. The objective, therefore, is to complete the original design activities using the domestic industry at a maximum level. The first flight is planned to be carried out in 2023 and it is aimed to complete the prototype of the aircraft in the meantime. A contract has been signed with our national aviation company TUSAŞ (TAI) for the “Preliminary Design” activities of Phase I of Term I of the Project and the necessary activities are under way in line with the project schedule.


The Turkish Perspective


Turkish Aircraft Industries Corporation (TAI) was established on June 28, 1973 under the auspices of the Ministry of Industry and Technology in order to reduce the foreign dependency in defense industry in Turkey. With the decision of meeting the combat aircraft requirement of Turkish Air Force (TurAF) with F-16s, TAI Aerospace Industries, Inc. (TAI) was established by Turkish and US partners in 1984 for a period of 25 years with the aim to realize the manufacture, systems integration and flight tests of F-16 that would be delivered to TurAF. TAI was restructured in the year 2005, just before the 25 years of period came to an end, with the acquisition of foreign shares by Turkish shareholders. Along with this restructuring, Turkish Aircraft Industries and TAI have merged under the roof of Turkish Aerospace Industries, Inc. (TAI) and have broadened its activities. Today, known as Turkish Aerospace Industries, Inc. (TAI) has become Turkey’s center of technology in design, development, modernization, manufacturing, integration and life cycle support of integrated aerospace systems, from fixed and rotary wing air platforms to UAVs and satellites.

ANKA ANKA, advanced Medium Altitude Long Endurance (MALE) class Unmanned Aerial System, performs day and night, all-weather reconnaissance, target detection / identification and intelligence missions with its EO/IR and SAR payloads, featuring autonomous flight capability including Automatic Take-off and Landing. ANKA incorporates a heavy-fuel engine and electro-expulsive Ice Protection System with an Advanced Ground Control Station and dual data link allowing operational security and ease. The system is expandable with a Transportable Image Exploitation Station, Radio Relay, Remote Video Terminal and SATCOM.

HÜRKUŞ The TAI Hürkuş Development Program started with an agreement signed between Turkish Undersecretariat for Defense Industries (SSM) and TAI in March 2006. Under the agreement the company will design, manufacture and complete the civil certification the aircraft to European Aviation Safety Agency CS 23 standards. The Hürkuş will be equipped for day and night flying as well as basic pilot training, instrument flying, navigation training, weapons and formation training. The aircraft will have good visibility from both cockpits with a 50 degree down-view angle from the rear cockpit, cabin pressurization (nominal 4.16 psid), Martin-Baker Mk T-16 N 0/0 ejection seats, an onboard oxygen generation system (OBOGS), an Environmental Control System (Vapor Cycle Cooling), an anti-G system, high shock absorbing landing gear for training missions, and Hands On Throttle and Stick (HOTAS).[5][8] Microtecnica of Turin, Italy has been selected to provide the aircraft’s environmental control system. The Hürkuş has been designed for a 35-year service life.



In Depth / Turkey: Global Player in Defense


​ ne of the companies of Koç Group, Otokar has been providing solutions O special to the needs of the customers with its own technology, design and applications since 1963. It is operating with over 2000 employees at the factory built on a land of 552,000 m2 in Sakarya. Otokar has been manufacturing buses for public transportation, semi-trailers for transportation and logistics industry and tracked armoured vehicles and tactical armoured vehicles for the defense industry. Being a hundred percent Turkish capital company, Otokar is today present in the automotive and defense industries with products of which intellectual property rights are owned by it. Being a leader in the bus industry and the land vehicles in the defense industry in Turkey, Otokar is the main contractor in the Design and Prototype Development Project of ALTAY, the national battle tank of Turkey. Otokar preserves the local and national characteristics of its products by developing its technology in-house, and aims at the continued satisfaction of its customers, employees, and shareholders by embracing a total excellence philosophy. The key mission of Otokar is to design, manufacture, and market commercial vehicles and various defence industry products developed in line with customer expectations that have global competitive power.

ALTAY The tank is projected to have a 120 millimeters (4.7 in) smoothbore gun and will include CBRN defense elements, to protect it from chemical, biological, radiological and nuclear weapons. The planned maximum speed is set at 70 kilometers per hour (43 mph), provided by an 1,800 hp (1,300 kW) engine (the first two batches will have 1,500 hp (1,100 kW) engines), and the MBTs will be able to function under 4.1 meters (13 ft) of water.

Remote Controlled Weapon Station 12,7mm 7,62mm MG 40mm AGL

Battlefield Target Identification System

While moving at high speeds, to evade ATGM attacks, sudden breakings and maneuvering at severe angles are the capabilities that were taken into consideration from the early stages of development. Isolated ammunition compartment is designed to save tank crew from explosions alongside fire and explosion suppression systems that will activate in case of hit or accident. The tank is equipped with sensors for the detection of air contamination sourced from chemical and biological weapons.

360° Situational

Awareness System Co- Axial Machine Gun, 7,62 MM

120 mm Smoothbore Main Gun L 55 Barrel Length


Smoke Grenade Launchers

The Turkish Perspective

COBRA II Cobra II that is developed over existing Cobra Vehicle is a modular platform with superior technical and tactical characteristics. Besides outstanding mobility capability and 9-crew carrying capacity, the vehicle provides protection, firepower and mission equipment for users at different types of missions. The vehicle provides an outmatched performance in a wide range of challenging terrains and climatic conditions.

TULPAR TULPAR is designed as a multi-purpose vehicle platform with its outmatch ballistic and mine protection to support new generation main battle tanks in battlefield and to provide fire support for infantry. TULPAR offers a superior mobility in a wide range of challenging terrains and climatic conditions and also serves diverse operations including urban and peacekeeping missions. TULPAR offering all mission equipment required in battlefield as standard is the future of armored combat vehicle with its technical and tactical characteristics including transportability with A400M, modular protectio​n structure, electronic infrastructure and low silhouette. Thanks to its large internal volume, high payload and flexible architecture, TULPAR has sufficient growth potential to meet the future protection needs and mission equipment.


Brands / Lorem

The Turkish Perspective

Content: Şölen: Re-Establishing the Chocolate Candy Rules P59 Both Delicious And Memorable P61 Editor: Ramazan Güzyurdu

food... Şölen has reached important successes in the international markets with its brands.


ŞÖLEN: Re-Establishing the Chocolate Candy Rules

One of the brave and innovative companies of Turkey, Şölen takes sure steps towards the future with the strength it takes from its brands. By ilhan alpay ogan


ealing with its every

business throughout its 28 years of history full of firsts with the target of being a global player in the region and the world in its mind, Şölen has reached important successes in the international markets with its brands such as Biscolata, Milango, Ozmo, Luppo, Lokkum, and Nutymax. Placing always the human being in the focus of business,

Şölen offers its over 200 products in the categories of snacks, children’s products, souvenirs and treats to consumers of all ages on the racks of over 100 countries. Making a difference in every business it does passionately and never compromising on its values while doing this, Şölen makes production with almost 2 thousand employees in its facilities in Gaziantep and

Istanbul. Having its name written at the top levels of all lists of its sector in both Turkey and the world, Şölen ranks 53th in the Candy Industry TOP 100, which is one of the most important confectionery lists of the world. Şölen, which has offices in America, Dubai, Algeria, Azerbaijan, Saudi Arabia and regional managements in the Levant Region, Canada and



Brands / Şölen

İsmaİl Çoban Chairman of the Board

Latin America, has lastly established Şölen USA. Completing the life with its different products in special days, holidays, any moment of day, Şölen works might and main to leave a significant mark on the consumers’ lives. Şölen is committed to their work to make visible, recognizable, exceptional achievements. They are connected to the work with their brains and hearts, take the pleasure of the journey and focus on the result. Şölen live with the prosperity of successful results they have created with all their stakeholders. Şölen takes moderate risks with courage; do not hesitate to make mistakes. It makes a difference in every work they do; collecting, adding to their consumers, their business partners and their employees. Şölen presents their superior quality products to the world and reward their consumers. Şölen is open, sincere, honest and fair to everyone, their business partners and their consumers. Şölen respects their values from the past. They value each individual in their chain and Şölen takes decisions with a sense of responsibility that they carry against them. FEBRUARY 2018 ISSUE 55


products ın dıfferent categorıes



rank ın Candy Industry TOP 100

Şölen is open, sincere, honest and fair to everyone, their business partners and their consumers.

Founded in 1989 by our parents, and us raised by them, Şölen has become an important player building global brands in the chocolate sector today. While starting off as a small business 28 years ago, our biggest capital was our mutual love, trust and responsibility to each other as a family. The seeds spread that day with the labor and values of our elementary family have grown into a structure today, which delivers distinguished flavors to millions of consumers in more than one hundred countries through the efforts of our highly qualified and self-committed employees. I am so glad that the values based on love, respect and trust and strictly adhered by our elementary family keep guiding our big family composed of thousands of employees who sweat for the success of Şölen today. Şölen is accepted as one of the fastest players of its own sector in Turkey and the world today, not only for its production power but also for its brand-building skill. At the moment, we are one of the bravest players, who offers the most innovative and delicious products of Turkey with our over 200 assortments in the snacks category, mainly Biscolata, Ozmo, Milango, Luppo, Lokkum and Nutymax. We are Turkey’s top chocolate and chocolate products exporter. We have been launching overseas offices to exist powerfully in the target markets. Through the agency of our regional managements in different geographies of the world ranging from Dubai to Azerbaijan, from Saudi Arabia to Canada, from Latin America to North America, we have been managing the moves to reinforce our claim in the market all together. In every business we make, our target is to become a global player of the region and the world. What lies beneath our passion for building assertive brands both regionally and globally is our belief in and commitment to our work and our country. We know that if we win, our country also wins. While focusing on being always in the forefront in our sector by following the global developments, we never forget our values that have brought us to these days and the set of values that made us who we are today. We protect the holidays and attach importance to face-to-face communication. Through the open door policy, we listen to and embrace everybody who sweats for the success of Şölen, and feel the excitement of succeeding together. We strive really hard to offer always the best and the newest to our consumers who have preferred our products and made us an assertive player in the market. I would like to thank sincerely to everybody who has made contributions to Şölen’s 28-year voyage. Our company will continue to chase high targets and make contributions to the country economy in the future as well as today.

Brands / Eti

The Turkish Perspective



Always being the leader of innovations in its sector and working to offer better products for its consumers, Eti has produced products that are both delicious and memorable on its journey of taste. By alperen çevikaslan


tİ has always been the leader of innovations in its sector, and produced chain of products that are both tasty and memorable. Turkey’s first high-fiber biscuit; the first ready-made toasted bread; first industrial type sliced cake; the first packaged tart; the first brand of gluten-free products the first packaged brownie have been delivered to Turkish people with their unique tastes, and become indispensable in a short time. Besides, “Children, I have a riddle” jingle created by the composer and songwriter Mr. Oktay Tem not only won the hearts of children, but also the hearts of the adults with its lyrics and music. Eti have been granted many awards over the years with its innovative approach dominating the sector. It gave inspiration to many enterprises and improved the palatal delight of Turkish people. A new period began for Eti in 2003. TPM (Total Productivity Management) which Eti’s Founder and Honorary President Firuz Kanatlı called “a war of civilization” was adopted as factory management approach in Eti and new achievements were obtained. Thanks to its well-organized, meticulous and dedicated staff that implements this management approach, Eti

Eti have been granted many awards over the years with its innovative approach dominating the sector.

won “TPM Awards” given by Japan Institute of Plant Maintenance 8 times. Eti’s achievements are not limited to TPM. Being first in “Capital Most Favorite Companies” list in biscuit and chocolate sectors in 2013 and 2014 successively, Eti employs more than 7.000 employees in 72 different cities of Turkey today. Competing in the world markets as one of biggest 100 industrial enterprises of Turkey with its innovative perspective and capability of developing its own production technology, Eti continues to add pleasure and happiness to life with its experience, high-quality, innovative and unique tastes.

Creativity and innovativeness have been our source of inspiration during this devoted and laborintensive process. ETİ has always endeavored to be the brand of “firsts”. During this process from the first baby biscuits to first high-fiber biscuits, first industrially packaged cake and first flavored crackers of Turkey; we have been guided by the expectations of our consumers. We regularly follow the changing consumer trends and the dynamics of the sector and increase R&D investments every year; the most important reason is that we are a brand that guides the consumer behaviors instead of meeting the expectations. Today, the consumers not only expect us to produce tasty products, they also look for healthy products they can eat in all parts of the life. With 45 brands and nearly 300 products, we endeavor to add taste to the life. Ever since our company was founded, our goal is to maintain our values and to become a world brand in our sector. In order to achieve this goal, we work on many topics from branding to production as the whole ETİ family. Excellence in production awards such as TPM (Total Productivity Management) given to our production facilities not only fills us with pride, but also motivates us to do even better. We are aware that success cannot only be measured quantitatively. The recent consumer surveys on our brand have revealed the perception that “ETİ is a respected and leading brand of Turkey”; which is the excellent indicator proving that success is indeed achieved by becoming a favorite brand for the consumer.







27 February - 3 March

Gaming Istanbul 2018 Istanbul Congress Center

The GIST is not a computer games exhibit. It is a “game” exhibit. Professionals or amateurs, interested in any type of games, will convene under the roof of the GIST.Players could be playing FPS or football games or nostalgic 8-bit games or desktop FRPs. If they wish, you may animate game characters with your cosplay skills. Come to join GIST because your seat is already booked up for you. Gaming Istanbul is an exhibit by players for players.


CNR Expo Istanbul

27 February - 3 March

Motobike Istanbul 2018


22-25 February

CNR Eurasia Boat Show 2018 CNR Expo Yeşilköy / Istanbul CNR Eurasia Boat Show organized with the aim of bringing our citizens to a well-deserved status in maritime, spreading use of boats and yachts and contributing to Turkish economy has gained an international status and become one of the best worldwide. This is an outcome of common efforts by CNR and DENTUR (Turkish Marine Industry Association). The 13th of CNR Eurasia Boat Show will take place at CNR EXPO and hosts more than 1,000 brands. Small, medium and mega class boats, yachts, motor boats and sailboats will be meeting its fans.

Motobike Istanbul hosted great figures FEBRUARY closely followed by the motorcycle and bicycle worlds. Visitors, who will come to the fair were fascinated by the spectacular shows of the famous names ISG Eurasia 2018 that are known well by motorcycle and TUYAP Istanbul bicycle fans. In addition to innovations The 4th edition of ISG Eurasia in the industry and visual events, Occupational Health and Safety the fair visitors have found a chance Fair will be held concurrently to participate freely in the Motobike with REW Istanbul 2018 from Academy seminars and presentations 15-17 February. The latest through the Fashion Talk, Travel Talk innovations for improving health and Tech Talk programs for the first and safety at work will be on time this year. display at ISG Eurasia! As an event that is a ‘must visit’ by all companies and organizations operating in medium to high-risk sectors, ISG Eurasia 2018 focuses on ways to create lower-risk working environments.


UNICERA is the second largest international fair in the industry, which is preparing for its new edition to be held from February 27 to March 3, 2018, at CNR Expo in Istanbul, Turkey. UNICERA brings together the leading players in the ceramic, bathroom and kitchen industries, and it is a great opportunity for expanding business relations and networking for buyers and sellers in Europe, Asia, MENA Region Countries, Russia, Balkans and Turkic Republics. FEBRUARY 2018 ISSUE 55




The export figures of General Secratariats of Exporters’ Associations are rising compared to the same month of last year.

1-31 DECEMBER 2017 ( 1000 $) 2016


3.424.320 2.393.657 1.464.205 922.461 1.045.856 1.023.918

3.917.388 2.584.503 1.603.294 1.080.978 1.148.689 1.079.102

General secretariats of exporters' associations" İMMİB (Istanbul Mineral and Metals Exporters' Association) UİB (Uludag Exporters' Association) İTKİB (Istanbul Textile And Apparel Exporter Union General Secretariat) EİB (Aegean Exporters' Association) OAİB (Central Anatolian Exporters' Association AKİB (Mediterranean Exporter Associations)

Change Rate ('17/'16) Share (17) (%)

14,4 8,0 9,5 17,2 9,8 5,4

28,9 19,0 11,8 8,0 8,5 8,0 Data: TİM


2017 1 - 30 December

Sector (Thousand $)

Turkey’s export is growing with a great performance and these sectors are advancing their volume continuously. Data: TİM

2.490.844 1.440.335 1.367.631 1.165.012 1.096.260 693.861 625.953 605.011 562.648 448.022

Automotive Apparel Chemical and Chemical Products Steel Electrical Electronics and Services Textiles and Raw Materials Ferrous and Non-Ferrous Metals Machinery and Machinery Accessories Cereals, Pulses, Oil Seeds and Products Furniture, Paper and Forestry Products

ADVANCING WITH CERTAIN STEPS Turkey’s olive oil sector is continuing to rise in the following countries in 2017 compared to the previous year. UNIT






15,859 7,990


69,595 15,481





( million $) Data: EİB

64 Figures










0,81 USA


share of tOP 20 COuNTRIES ın total export (bıllıon $) Turkish exports shares to most prominent 20 markets in December 2017.
















0,70 Algerıa


Data: TİM


saudı arabıa