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BRIEFING Connecting East And West: “Startup İstanbul” IN DEPTH Brand Country in Sport Organizations: Turkey BRANDS Pharmactive: Begun to Export to European Countries







The Turkish Perspective

Contents 30 COVER 05 FIRST 05 | World Bank Upgrades Turkey’s Growth Forecast 06 | Fairy Chimneys to Welcome Visitors 07 | Power Line Between Turkey-Cyprus 08 | Helping Hand to Women Worldwide 09 | Fastest-Growing G-20 Country With Q3 Growth





15 |Turkish Businesspeople To Invest In Serbia



Stars of Exports Award ceremony was held on 27 September 2017 under the leadership of TİM.



Design Week Turkey 2017 will take place November 8-12 at Lütfi Kırdar International Congress and Exhibit Complex.



50 | Brand Country in Sport Organizations: Turkey

Turkey, which became the center of sport organizations, continues to host important international organizations in many different branches from.

President Recep Tayyip Erdoğan was in the Serbia to pay an official visit.



Startup İstanbul started by the opening speeches of President of TİM Mehmet Büyükekşi and Prof. Erhan Erkut from MEF University at UNIQ Hall İstanbul.

22 | Build The Future With

Stronger Steps!

MÜSİAD VISIONARY is an activity that operates towards the benefits of the society to improve the expectations and abilities of our entrepreneurs for the future.

24 | Turkish Airlines Corporate

Club Conference

Turkish Airlines hosted the Turkish Airlines Corporate Club Conference in İstanbul, at the Hilton İstanbul Bomonti Hotel.

Pharmactive, with 100% domestic capital, has just begun to export to European countries after the Middle East, Balkans and Asian countries.




2 Online


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


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

Strategıc Partner Presıdent of Prıme Mınıstry Investment support and promotıon Agency

Arda Ermut

and business, is born. The Turkish Perspective Digital will share the latest

Manager In Charge H. BADER ARSlan PhD

news, interviews with decision makers, provide in-depth analyzes and will be the


foreigner’s guide in Turkey regarding regulations and legislations.



VICE President YAŞAR MAMATİ Project COORDINATOR Ahmet Damgacıoğlu

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

Edıtorıal Editors mustafa yİğİt

RAMAZAN GÜZYURDU european COORDINATOR İnanç atılgan contrıbutıng reporters İLHAN ALPAY OGAN ALPEREN ÇEVİKASLAN design





BRIEFING Strong Growth In National Defense Industry



IN DEPTH Top 500 Industrial

Enterprises BRANDS Ganjan New Town

JULY 2017 ISSUE 48


Explore the achievements of Turkey’s service sector explained by the skilledworkforce, cost effective service compared to international standards.




BRIEFING National Era In File Transfer: Filegoes



BRIEFING Art, Stories, Istanbul… Contemporary Istanbul

#c om et





etoturkey om #c

* The sun rises from the east.

BRIEFING Connecting East And West: “Startup İstanbul”

BRANDS Pharmactive: Begun to Export to European Countries


ey rk



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.

#co me tot u


IN DEPTH Brand Country in Sport Organizations: Turkey

IN DEPTH The Rise of the Heritage


key ur ot


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

BRANDS Innovative Brand In The Sector: Seramiksan


key tur eto om #c






IN DEPTH All For A Smile BRANDS The Largest Simulator Training Center of Europe and Middle East


IN DEPTH A New Era For Investors: Super Incentive System BRANDS Assan Foods: Grow In Industry Scale Continuously


a New Form of Revolution

BRIEFING Turkey the Champion of Diplomacy Traffic


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 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


Momentum of Growth is Ongoing

International organizations are continuing with their forecast revisions following the announcement of Turkey’s 2017 Q2 growth data.


ast month, three well-known

institutions -IMF, World Bank and Fitch Ratings- has revised their forecasts upwards in light of Turkey’s 5.1% growth. The revision of IMF for the year 2017 from 2.5% to 5.1% was especially important in this matter. In addition to this, 2018-2020 targets of Turkish Government were also revised with the new Medium Term Program at the end of September. Export target for 2017, which we declared as “Year of Breakthrough”, was raised to $156.5 billion. At the beginning of 2017, during our yearly evaluation meeting with the Minister of Economy, we declared, “We will surpass the target, $153.3 billion in 2017”. Considering the latest data, we can say that it is possible to even surpass the new target of $156.5 billion. Another positive update was regarding the growth targets for 2017-2019. All 3 years’ growth forecast was revised to 5.5% from 4.4%, 5% and 5.5% respectively with 2020 target set to 5.5% too. All these revisions are very important for demonstrating the strength of the Turkish economy. It is clear that we have come a long way in a short period. However, in order to sustain the environment of growth, we should continue structural reforms without crowing over. Especially, increasing the competitiveness of our companies is a necessity. Latest Global Competitiveness Report shows our global rank among 137 countries increased by two steps to 53rd, but we should surely rise further. At this point, our targets are shaped by the studies defined in Medium and

Long Term Program 2018-2020. One of our priorities is to increase the share of high value-added and high-tech products in our export composition. Strategies to increase the share of Turkish Lira in trade, to support production and export of our traditional products, to increase the awareness of e-commerce, to proceed through modernization of Customs Union and similar items are guiding lights for us. Turkish Exporters Assembly, top structure for representing our exporters, is always in search of new methods to increase our exports. We work hard for an export based, stable growth and development in our economy. Net exports have contributed 2.3 points and 1.7 points to growth in the first and second quarters respectively. This trend will continue throughout the year. Moreover, we will continue to organize events to support our targets.

Under these principles, we have organized “Export Week 2017” this year during 1-3 November, with a richer content compared to previous year. We announced the October export figures in the first day of the 3-day event, with the attendance of Prime Minister Binali Yıldırım and Minister of Economy Nihat Zeybekci. Export Week also hosted a large procurement delegation with 700 foreign companies from 70 different countries worldwide. Turkish companies found chance to meet with potential customers during the B2B meetings. On the other hand, we introduced three markets in detail to our exporters during our Export Compass session. Morocco, Indonesia and Singapore markets were discussed by foreign missions of the countries in Turkey, our former commercial attachés of the said countries and foreign trade companies sharing their success stories. Sessions where our Ministers participated were important platforms for exporters to mention their problems regarding the relative Ministries. Just after the busy schedule of Export Week 2017, we are going to meet again for Design Week Turkey during November 8-12, and Turkey Innovation and Entrepreneurship Week during December 6-9. In brief, we will continue to work towards Turkey’s 2023 targets in line with R&D, innovation, design and branding, for our 67 thousand exporters employing 3.1 million people, and we will undoubtedly achieve the targets of 2023 together.














The Turkish Perspective Content: World Bank Upgrades Turkey’s Growth Forecast P05 Turkey to Focus On Energy P06 Power Line Between Turkey-Cyprus P07 Helping Hand to Women Worldwide P08 The Lion’s Share to Education P09 Russia Backdate to Import P10 Astana Peace Process In Phone Call P11 Editor: Mustafa Yiğit


economy, tourısm, health, tech, educatıon, energy, defense, fınance, busıness...

The country performed a strengthening growth in the first half of 2017 that leads to higher expected growth.



Turkey showed remarkably strong GDP growth after the global financial crisis, largely because of effective fiscal stimulus,” the World Bank said. Economic growth in Turkey is projected to grow 4 percent in 2017, up from the bank’s previous estimate of 3.6 percent since April.


he World Bank

raised Turkey’s economic growth forecast for the year, according to a Migration and Mobility report published on Oct. 19. Economic growth in Turkey is projected to grow 4 percent in 2017, up from the bank’s previous estimate of 3.6

percent since April. “Turkey showed remarkably strong GDP growth after the global financial crisis, largely because of effective fiscal stimulus,” the World Bank said. “The country performed a strengthening growth in the first half of 2017 that

leads to higher expected growth than in other parts of the Europe and Central Asia region,” it added. The bank also revised Turkey’s growth forecast for 2018 to 3.5 percent, down from 3.9 percent. The upgrade came after the International Monetary Fund

upgraded its 2017 growth forecast for Turkey by 2.6 percentage points in a report released on Oct. 10. The IMF forecasted Turkey to grow by 5.1 percent, up 2.6 percentage points compared to a previous forecast of 2.5 percent.






water bırth facılıtıes to ıncrease


faıry chımneys to welcome vısıtors The Narman fairy chimneys, the eroded columns of eastern Turkey’s Erzurum province, are now open to visitors, expected to attract up to 6 million per year. The red columns, added to UNESCO’s temporary world heritage list in 2012, impress visitors with their unique geological features. Iron oxide sediment gives the rocks a distinctive red hue. Geographerresearcher Karahan claimed the site has the potential to attract 6 million tourists a year, highlighting the visual beauty of the volcanic landscape and adding that the most beautiful vistas can be seen in winter and spring. According to research, the area where the eroded columns are located was covered with water 300 million years ago. It was formed as a result of erosion, as rivers gradually transported sediment to a settlement basin around 2.5-3 million years ago. NOVEMBER 2017 ISSUE 52

turkey to focus on energy

Turkey wants to enhance energy trade and cooperation in the fight against global challenges among the Developing-8 states.


e can develop

energy trade among the D-8 states. We can altogether realize joint energy investments,” said Mevlüt Çavuşoğlu, speaking at the 17th session of the D-8 Council in Istanbul. “In fields, such as hydrocarbon exploration and production activities, we could produce projects together,” he said.

Turkey plans to focus on “sustainable development” during its coming D-8 presidency. “Energy is especially at the top of the fields upon which we can cooperate,” he said. Turkey will take over from Pakistan on Oct. 20, which will mark the 20th anniversary of the international organization.


Turkish and Syrian women produce goods

At a clothing workshop in southern Turkey, 400 Turkish and Syrian women produce goods that will be given free of charge to educational institutions in need, especially in Turkey and Syria.


he workshop, in the Akçakale district of southeastern province of Şanlıurfa, recently opened through a partnership between the Kuwait-based Al Salama Association and the Turkish Akçakale Hilful Fudul business association. Receiving in on-thejob training, women at the workshop learn a trade, provide for their

families and give back to others in need. The products produced at the workshop will be given to educational institutions in Turkey and other regions as well. With 12 new projects planned for the coming year, the organization hopes to employ up to 3,000 women in the future.

The Ministry of Health is getting ready to introduce new regulations to encourage moms-to-be to have a normal birth instead of a cesarean section. Explaining that a huge portion of births are taking place as C-sections in Turkey, Health Minister Ahmet Demircan said the number of water birth facilities in state hospitals will increase next year and hoping that it is continuing in the future as well. “We are currently working on installing water birth equipment in individual rooms so that new moms can give birth to their babies in water in the privacy of their rooms. The moms will rest in their own rooms and be carried to the water tank by the doctors when the time comes,” he said.

The Turkish Perspective


bılateral trade ın economy, securıty

Local currencies will be used in bilateral trade between Iran and Turkey. Turkish Prime Minister Binali Yıldırım and Iran’s first Vice President Eshaq Jahangiri in a joint press conference held on Oct. 19 in Ankara stated that bilateral relations in economy and security will be maintained. Yıldırım and Jahangiri in the meeting agreed to enhance oil and gas trade between the countries and use their local currencies in bilateral trade. Jahangiri is accompanied by Minister of Industry, Mines and Trade Mohammad Shariatmadari, Minister of Road and Urban Development Abbas Akhoundi, Chief of Iran’s Cultural Heritage Organization Ali Asqar Mounesan and Chief of Central Bank of Iran Valiollah Seif. After the meeting between the two leaders, Turkish and Iranian delegations addressed recent developments in economy and the security issues between Turkey and Iran. The Turkish premier noted that Turkey welcomes cooperation with Iran regarding security issues.



Turkey Attracts $13b Investments Annually Since 2002 Head of country’s investment agency says Turkey

has received $200 billion investments over 15 years.


urkey has been attracting on average $13 billion in investments annually since 2002 while the country received $200 billion investments over 15 years, head of the country’s investment agency said on Oct. 16. “This is a serious amount. But we never found it to be enough,” Arda Ermut, president of the Investment Support and Promotion Agency (TYDTA) of Turkey and the World Association of Investment Promotion Agency (WAIPA). Ermut said Turkey is starting to take investments from alternative regions such as East Asia and the Middle East. The country continues to attract investments from every sector, and a substantial part of the investments are still coming from Europe, he said. He said investments from Europe are often in the finance, machine, science and technology fields. Due to our strategic position, we can reach 1.6 billion people and $24 trillion of gross domestic product with a 4-hour flight distance, he added. Investment from 28 EU states reached $2.72 billion between January and June this year.

more investments with high-added value Thanks to our strategic position, Turkey is indispensable for investments.




gross domestıc product

200 $2.72



investments over 15 years sınce 2002


Investment from 28 EU states

power lıne between turkeycyprus

Turkish Cypriot Economy and Energy Minister Sunat Atun announced the route of the new interconnected power line between two countries. Atun told staterun that the power line would be laid between a new transformer station based in Akkuyu in the southern province of Mersin and the Teknecik transformer station located in Turkish Cyprus. He also confirmed that the final agreement on the project will be signed in a few months between Turkey and Turkish Cyprus. An energy protocol was signed to build the cable on Oct. 11, 2016 during the World Energy Congress in Istanbul.





$500M for


The European Bank for Reconstruction and Development’s Board of Directors has approved a $500 million loan for TANAP project. The bank’s financing will fund the completion of the pipeline which passes through Turkey. TANAP is a key part of the SGC which will strengthen Europe’s energy security, promote interconnectivity and open gas markets. It will also help provide a better energy supply mix for consumers in the Balkans and southeastern Europe. “The Southern Gas Corridor includes gas infrastructure investments into a 3,500-kilometer pipeline running through six countries with a total cost of $40 billion,” the EBRD statement said.




Helping Hand to Women Worldwide TİKA, a state-run development agency, helps females across the globe access education and health services through a series of projects.

invest $200M in Turkey


omen and girls

account for more than 75 percent of the refugees and displaced people at risk from war, famine, persecution and natural disasters according to the United Nations. As a result, the U.N. designated the theme for the 2017 International Day of the Girl as “EmPower Girls: Before, during and after crises.” One leading Turkish development agency continues to reach out to girls in the far corners of the world to empower them. Active in 158 countries, the Turkish Cooperation and Coordination Agency (TİKA) is one of the actors increasing Turkey’s clout in global humanitarian activities, often focusing on assisting young girls and women. With projects particularly focused on education and health, TİKA helps female victims of terrorism, poverty, conflict and famine, spanning from Afghanistan and Mexico to the Palestinian territories. Two years ago in the Palestinian town of Nablus, the

agency built a high school for girls that now hosts hundreds of female students. In Pakistan, TİKA fulfilled a promise by then Prime Minister Recep Tayyip Erdoğan in 2010 who said Turkey would build a school in the area affected by flash floods. A 32-classroom school was opened three years ago. The school serves 200 girls, all orphans who stay in an adjacent dormitory furnished by the Turkish agency. In Kenya’s Kamukunji, the agency supplied education material to a boarding school for girls from impoverished families. TİKA also extended a helping hand to a shelter for orphan girls between the ages of 9 and 18 in Mexico. With the sewing machines donated to the orphanage, the agency helps the girls to learn a vocation through sewing classes. Also in Mexico, TİKA set up computer classes for an educational center catering to the country’s indigenous people who have limited access to education in rural areas.

Chinese investment group Hong Kong China-Turkey Investment is reported to invest $200 million until the year of 2018. China-based Hong Kong China-Turkey Investment Group Turkey, Azerbaijan, Qatar Investment Director Oktay Kemal Özdemir announced that the group is planning to invest $200 million in the Turkish private sector until 2018. The group made its first investment in the Time Tower project in the northwestern city of Kocaeli. The project, in which the group invested around $200 million, consists of a residential complex and a hotel. The second investment project is planned for an electronics store chain, which is one of the leaders in the Turkish retail sector.

The Turkish Perspective



The Lion’s Share to Education The education sector will again get the lion’s share in Turkey’s 2018 budget, while defense expenditures will also get a big boost.

FastestGrowing G-20 country with Q3 Growth Turkey expects record third quarter growth to see it become the fastest-growing G-20 country, Prime Minister Binali Yıldırım said. Speaking at the Aegean Economic Forum in the western province of Izmir, he said: “Turkey may break a record in the third quarter. In the third quarter, Turkey will most probably be the fastest-growing country in the G-20.” The prime minister suggested the JulySeptember growth figures, which are due to be released in December, could reach double digits. Yıldırım said next year would “be better for Turkey than 2017” and added: “The inflation rate will remain single-digit and the growth target will be at least 5.5.

F Naci Ağbal said Turkey’s inance Minister

budget expenditures are expected to amount to 762.8 billion liras ($208 billion) in 2018, while revenue is expected to amount to 696.8 billion liras ($191 billion), including nearly 600 billion liras ($164.5 billion) in tax revenues. “The lion’s share of the 2018 budget will be for education expenditure, as usual,” he said at a press conference to announce details of the 2018 draft budget in Ankara. The draft budget was sent to the cabinet by the Finance Ministry early on Oct. 16. Ağbal said the government will increase education expenditure to 134 billion liras (over $37 billion), including investments worth 14.3 billion liras ($3.97 billion), amounting to around 18 percent of total public investment. “In other words, we will spend 22 liras of every 100 liras collected as tax on education,” he added.

Around 85 billion liras ($23.6 billion) will be devoted to public investments, of which nearly 30 percent will be used in the transport sector, 10 percent will be used in the health sector and 12 percent will be used in the agriculture sector, according to the draft budget. Total investment spending will be 141 billion liras ($38.6 billion) in 2018, Ağbal said. While some 51 billion liras ($14 billion) are planned to be allocated to social welfare and expenditures, the agricultural sector will get 30 billion liras ($8.2 billion) from the budget. Ağbal also stressed that the government would increase defense and security spending significantly in 2018. “Specifically, we will devote an additional 18 billion liras ($5 billion) for defense modernization in 2018,” he said. Turkey ran a budget deficit of 6.4 billion liras ($1.84 billion) in September 2017, marking a 62 percent fall year-on-year, Ağbal said.


new drones wıth hıgh-tech

Turkish defense company has started the mass production of a series of new drones with high-tech capabilities to be used in security operations. The new drone family, which was developed by STM Defense Technologies and Engineering Co. for the Turkish Armed Forces and the Undersecretary of Defense Industry, was first exhibited at the 13th International Defense Industry Fair in May in Istanbul. STM’s “kamikaze drones,” which have the capability to strike and hit, and autonomous drones, which are equipped with artificial intelligence algorithms for monitoring, will be used together in operations. One of the drones is “Alpagu,” which means a brave person who fights against an enemy.





plan for satellıte launch Turkey is moving ahead with work to establish a national space body after the country’s policy and lawmakers. Arslan told that the agency would further Turkey’s space ambitions and enable it to produce and launch its own satellites. It will also help carry out activities in the field of aerospace, follow and use latest technologies, and most importantly coordinate different projects. He said that even though the Science, Industry, and Technology Ministry and National Defense Ministry carry out different projects from time to time, it was important to coordinate them under one roof for a bigger presence in the sector in order to participate in the growing global competition while adding value to the country’s exports.




Automotive Exports to Germany Soar By 15 Percent Automotive exports to Germany, the largest market by country group, in September rose by 15 percent to $360 million.

russıa backdate to ımport


ccording to Uludağ Automotive Industry Exporters Association (OİB) data, exports in the sector, which amounted to 19 percent of total exports in September, increased by 22 percent to $20.8 billion in the January-September period. Exports to Germany, with which Turkey has had tumultuous political relations recently, threatened by economic sanctions, rose 15 percent to $360 million, a 27 percent increase in automobiles and 10 percent in sub-industry exports were influential in the overall increase in exports to Germany. Exports to France increased by 5 percent to $231 million and Italy by 13 percent to $228 million, as a 24 percent decline in automobile exports and 14 percent decline in motor vehicles for goods transport affected the overall decline in exports to Italy. Exports to the U.S. rose by 118 percent followed by Poland with 20 percent, the UK and Spain with 18 percent each, and Belgium with 15 percent, while exports to Romania dropped by 17 percent, followed by Austria with 13 percent and the Russian Federation with 10 percent. Exports to Germany, the leader in sub-industry exports, increased 10 percent, followed by Spain with 15 percent, Italy with 24 percent, Russia with 37 percent and Slovenia with 257 percent. Sub-industry exports to Romania fell 21 percent while exports to Italy - the largest market for automobiles - dropped 24 percent. Exports to Germany, on the other hand, increased 27 percent, following Poland with 31 percent, Belgium with 60 percent and Spain with 78 percent. Exports to the United States surged 61,149 percent.

Russia has backdated the import of 50,000 tons of Turkish agricultural products, including tomatoes, one month ahead of schedule to Nov. 1. Economy Minister Nihat Zeybekci confirmed the move of the Russian-Turkish Intergovernmental Commission on Trade and Economic Cooperation in Kazan, the capital of the autonomous Republic of Tatarstan in Russia. “As of late October, tomatoes and other agricultural products from Turkey will start going to Russia,” Zeybekci said, adding that all the restrictions had been removed. “Turkey’s main principle is to ensure that there are no obstacles to trade and investment between the two countries,” he said.

The Turkish Perspective



Investment Fund for Africa

The government is reportedly carrying out works to establish an Africa fund encourage and pave the way for Turkish investors to invest in the African region.

ınterest ın real estate market The interest of investors from the European Union is increasing in the Turkish real estate market. EU citizens make up 44 percent of the total 140,832 foreigners who have invested in Turkey by purchasing houses and land in a total worth of 18 billion Turkish Liras. The total number of foreigners who acquired real estate properties reached 140,832 in the republic’s entire history, with 119,280 houses and offices, and 11,145 plots and lands sold to the foreigners. Almost two-thirds of these purchases came after 2012 as 92,938 foreigners had bought 85,410 houses and offices and 7,167 plots and lands in exchange for TL 16.5 billion. The demand of EU citizens for housing and business in Turkey are increasing day by day.

t its searchhasforaccelerated alternative urkey

markets due to political fluctuations in neighboring countries, and the country is set to provide assistance and encourage Turkish investors to invest in Africa, which is among the world’s most virgin markets. The Turkish government has set off on a quest to find a new formula for investors who confront difficulties in getting loans from the country’s Eximbank due to the Organization for Economic Cooperation and Development (OECD) regulations. It has therefore started to work on establishing the Africa fund after examining the Chinese and Indian models. In an exclusive interview with Daily Sabah and its sister newspaper Sabah, Turkey’s Ambassador to Ghana, Nesrin Beyazıt, said China and India have established a special fund in order to pave the way for their businessmen in Africa and they

support investments in the region through that fund. “We are also working on a similar project in Turkey. We are looking at these models and trying to develop new methods in order for our business people to invest in Africa,” she said. Indicating that the market was shrinking due to the political developments around Turkey, Beyazıt also said alternative markets should be established. Beyazıt said Turkey has become stronger and more visible in Africa over the past five years, but it is not enough. Ghana’s new government took office in January, and it attaches great importance to relations with Turkey, said Beyazıt. “On all occasions, this government expresses that it sees Turkey as an important development partner and expects investments. One of the government’s election promises was to set up factories in each region. In this context, they invite Turkish investors,” she said.


Astana peace process in phone call President Recep Tayyip Erdoğan and his Russian counterpart Vladimir Putin discussed the Astana peace process and the Syrian crisis in a phone call. According to the statement released on the official website of Kremlin, the two leaders exchanged views on Syria, and assessed as positive the joint work carried out within the framework of the Astana process. The two then discussed the outlook for the next multilateral talks on Syria in Astana, which are scheduled to be held at the of October, and addressed practical issues in coordinating the actions of all sides taken towards achieving peace in Syria. The statement also said both President Recep Tayyip Erdoğan and Vladimir Putin expressed satisfaction with the current situation of the relations between Russia and Turkey, added that the agreements reached in Ankara on September 28, 2017, especially on trade and economic cooperation, were being successfully implemented and it will continue unceasingly.



The Turkish Perspective


By Murat ARGUN

The “thing” called



inance professionals and, probably some very curious others have recently started to witness a revolutionary change in how information is managed and, shared all around the world. Following the mass introduction of Internet, the 1990s euphoria of simple and blunt information sharing is now evolving into today’s sophisticated information technologies. In recent years, increasing concerns on security, authenticity, speed, survivability and, privacy have been what have led us towards this evolution and, the result is a new digital network concept called Blockchain. Although neither one of above mentioned factors are new to information management domain, it is a quite fresh concept which people have come to realize for about 10 years that, there is a technology which achieves both at the same time. The Distributed Ledger Technology, as depicted in Wikipedia, is a consensus of replicated, shared, and synchronized digital data geographically spread across multiple sites, countries, or institutions. There is no central administrator or data storage. Moreover, a peer-to-peer network and authentication algorithms are required to ensure replication across peers or, counterparts is

undertaken successfully. One way of designing a distributed ledger can be through implementation of a public or private Blockchain system. A Blockchain is a type of data structure that is considered to be the first example of a distributed ledger. As a matter of fact, its first application had been the infamous cryptocurrency Bitcoin and, was documented in the 2008 Bitcoin white paper under the alias name of Satoshi Nakamoto. Blockchain is secure and, easy to authenticate as it uses a proof of work system based on hashes. A hash is a number generated from a string of text. The hash is substantially smaller than the text itself, and is generated by a formula in such a way that it is extremely unlikely that some other text will produce the same hash value. Hashes play a role in security systems where they’re used to ensure that transmitted messages have not been tampered with. The sender generates a hash of the message, encrypts it, and sends it with the message itself. The recipient then decrypts both the message and the hash, produces another hash from the received message, and compares the two hashes. If two hashes matched the transmission was secure, two sets of data were authenticated and, reconciled.


Economy Platform or, in layman’s words a giant version of Blockchain is fast and, survives almost always because it is Airbnb for anything one might want to share with other people not bound with servers for computing and storing data. Instead, in return for a financial gain. every participant in the chain has access to and, contributes to The initial failure of the DAO also brought a few more weak the information flow. Its decentralized structure also make it spots or, issues to be careful about onto the surface. Like every resilient against classical cyber-attacks (i.e. viruses etc.) newborn Blockchain technology and its applications like DAOs The technology is also quite versatile, it has so far found will have to be patient. In other words, standing up should its uses in crowd funding, identity management, donation follow crawling, toddling should follow standing up and, collection & management, contract database management proper walking should follow toddling. That applies to both for syndicated loans, payment systems, insurance claims management, Supply Chain management, online voting, data Smart Contracts which apparently require better security and, the infrastructure, i.e. Ethereum which needs to develop and, storage and, many others. enhance its self-watchdog tools. Of course, all those praising should not hinder some weak The new born analogy about Blockchain also points at spots that Blockchain has. First and most important of all, the something very encouraging for Bitcoin enthusiasts. Like every technology being still in the process of development is very new born, Blockchain grows fast and, as it grows more it attracts much open to manipulations because of its basic founding more attention. The technology receives relatively less support principles of simplicity and, decentralization. from big corporations. Yet, still it has some: One very important example of such Overall, the global familiarity about the a manipulation is The DAO event which technology is still quite low. Nevertheless, took place in early 2016. Here below, before more and more businesses especially giving details on the DAO event, let’s open a in Northern America are focusing on parenthesis and, look into the concept first. future uses of Blockchain in the areas of Basically DAO is an acronym which Payments Infrastructure, Fund Transfer refers to Decentralized Autonomous Infrastructure and, interestingly, Digital Organization which aims at codifying the Identity Management. rules and decision making infrastructure Banks such as UBS are opening new of an organization without the need for research labs dedicated to blockchain documents and people in governing. To technology in order to explore how achieve this, a group of people writes the blockchain can be used in financial services smart contracts (rules and/or processes) Blockchain is fast to increase efficiency and reduce costs. that will run the organization. Then an Each of the Big Four accounting firms is online funding period starts to raise capital. and, survives testing blockchain technologies in various Following the completion of funding almost always formats. Ernst and Young has provided the DAO begins to operate. After being because it is not digital wallets to all of its Swiss employees, operational, people can than start making has installed a bitcoin ATM in their office proposals to the DAO on how to invest the bound with servers in Switzerland, and accepts bitcoin as money and, the members of DAO who have for computing and payment for all its consulting services. bought participation tokens in support storing data. Marcel Stalder, CEO of Ernst and Young of the DAO can vote these proposals for Switzerland stated, “We don’t only want to approval or, rejection. The tokens bought talk about digitalization, but also actively are not shares of the DAO. Thus, a DAO can actually exist without no one really owning it. The network on drive this process together with our employees and our which a DAO operates is a Blockchain network. The very first clients. It is important to us that everybody gets on board and DAO that exists is Bitcoin itself. As a matter of fact, all other prepares themselves for the revolution set to take place in the DAOs have so far been launched on another network called business world through blockchains, (to) smart contracts and Ethereum which also has its own cryptocurrency called “ether”. digital currencies.” Likewise, PwC, Deloitte, and KPMG have taken a different path from Ernst & Young and, are all testing The DAO event was related to a startup company which private blockchains. was so popular that it raised over USD 150mn from more than In Turkey, BKM (Interbank Card Center) has taken the lead on 11,000 members and, became the largest crowd funding in blockchain. The institution has not only had a project on digital history. Just as the crowd sale was complete, discussions around identification but also sponsored publishing of a very valuable some software vulnerabilities (of the smart contracts) have reference book about blockchain namely, “Blockchain 101”. already started. Although the Ethereum blockchain network Today’s pioneers in this technology will have done a lot itself is sturdy and safe, (some of ) those debated open points in smart contracts were soon to be exploited by an anonym attacker to establish strong foundations for competence centers on blockchain. In the lack of enough knowledge base and, man who managed to drain more than 3,5 million ethers ( ~USD power, I believe those pioneers will be as valuable as a few 50mn) into his own child DAO which is basically a copy of the black female scientists who had made putting men on the original. Fortunately, the creators of the project were able to stop moon possible by their persistence and mathematical skills as the theft yet, that at the same time costed them the termination put into writing in the recent book titled “Hidden Figures” by of the DAO. They were, later in early 2017, able to raise a USD Margot Lee Shetterly. 2mn seed funding to start building the next-generation Sharing NOVEMBER 2017 ISSUE 52

photograph byLOREM IPSUM


The Turkish Perspective Content: Ukraine Is Key to Peace and Stability in our Region P16 Turkish Businesspeople To Invest In Serbia P17 Star Exporters Got Their Awards P18 Potential of Design” Will Be Spoken All Over Istanbul P20 Connecting East And West: “Startup İstanbul P21 Build The Future With Stronger Steps P22 Turkish Airlines Corporate Club Conference P24 ISPAT Holds Roadshow In Asia to Attract More FDI P26 Editor: Mustafa Yiğit


offıcıal vısıts, export, summıt, avıatıon, ınvest...

WARSAW - Poland

President Recep Tayyip Erdoğan:

“We Should Increase Bilateral Trade Volume Between Turkey And Poland” President Recep Tayyip Erdoğan is in the Polish capital city of Warsaw to pay an official visit at the invitation of President Andrzej Duda of Poland, with the scope of abroad visits.


resident Erdoğan and President Andrzej Duda of Poland held a joint press conference following their meeting in Warsaw. Erdoğan said that they discussed political, economic, commercial, military and cultural relations between Turkey and Poland. “Turkey and Poland enjoy a

friendship, which is based on peace and solidarity and dates back centuries,” President Erdoğan said. Pointing to Turkey and Poland’s total population of 118.5 million, President Erdoğan said: “We have the population to increase our bilateral trade volume. When we look at the trade volume

between Turkey and Poland, it is nearly $6 billion. However, it is very low for such strong countries. We should increase it to $10 billion in the next 5 countries.” Noting that they also discussed energy, President Erdoğan said: “Turkey is not an energy producer, but a significant transportation hub.”

“Poland Provides Unique Opportunities for Turkish Businesspeople” Addressing the TurkeyPoland Business Forum in Warsaw, President Erdoğan drew attention to the investment opportunities in Poland and said: “With its geographically strategic location at the intersection




point of east-west and north-south trade routes, EU membership, stable economy and qualified labor force, Poland provides unique opportunities for Turkish businesspeople. Poland, with growth rates that have recently been highly above the EU’s average, is a country whose attractiveness is on the rise. Therefore, I invite our businesspeople to invest more in Poland.”

Turkey-Poland Friendship To Grow Stronger The two countries, which enjoy a deep-rooted friendship spanning over 600 years, have a wide range of common and complementary features, President Erdoğan emphasized, and said: “Our bilateral relations cover all the crucial areas such as politics, defense, security, culture, arts, education and economy. I am confident that as the two powerful and economically successful nations, the sincere friendship we have forged will grow stronger.”

500 Billion Dollars Aimed In Exports

Noting that Turkey’s gross domestic product has risen from $230 billion in 2002 to $860 billion and that their desire is to further increase it to around $2 trillion by 2023, the centennial of the Republic of Turkey, President Erdoğan said they have raised the national income per capita from $3,500 to $11,000 and that they are working to make it $25,000. The President added that Turkey’s exports have reached $153 billion, increasing five times over the last 15 years, and that they aim to boost it to $500 billion. NOVEMBER 2017 ISSUE 52


“Ukraine Is Key to Peace and Stability in our Region” President Recep Tayyip Erdoğan went to the Ukrainian capital city of Kiev to attend the 6th Meeting of the Turkey-Ukraine High Level Strategic Council.


olding a joint press conference with President Poroshenko of Ukraine in Kiev, President Erdoğan said: “Turkey will continue to support Ukraine’s sovereignty, territorial integrity, including Crimea, and political unity. We have not and will not recognize the illegal annexation of Crimea.” Highlighting the deepening relations between Turkey and its strategic partner Ukraine, President Erdoğan said the relations between the two countries are based on friendship, solidarity and cooperation. “Ukraine is key to peace and stability in our region,” President Erdoğan underscored, pointing to Turkey’s strategic vision for

the bilateral relations. “In 2003, we declared Ukraine a priority partner. In 2011, we established the strategic council and elevated our relations to the highest level. Following the visa exemption agreement that came into effect in 2012, we enabled our citizens to travel with their IDs this year.”

“We Will Not Recognize The Illegal Annexation Of Crimea” “We thoroughly discussed regional and international matters, including the security of the Black Sea basin, that are of interest to Turkey and Ukraine. We agreed on acting in coordination and consultation on these matters.”

“I told Mr. Poroshenko once again that Turkey will continue to support Ukraine’s sovereignty, territorial integrity, including Crimea, and political unity. We have not and will not recognize the illegal annexation of Crimea,” President Erdoğan said, and added: “We are highly pleased by Ukraine’s support to the Crimean Tatars who have proven their loyalty to their country.” “We will continue to closely follow our kinsmen’s situation and keep it on the international community’s agenda,” President Erdoğan said, highlighting the importance of steps in diplomatic and legal areas in overcoming the illegal situation in Crimea.

The Turkish Perspective

Belgrad -SERBIA

Turkish Businesspeople To Invest In Serbia President Recep Tayyip Erdoğan was in the Serbian capital city of Belgrade to pay an official visit at the invitation of President Aleksandar Vucic of Serbia.

“Turkey, due to the characteristics of its geography and its internal dynamics, is a country that is often faced with serious challenges. We experienced one of the most striking examples of these challenges on the night of July 15, 2016. We managed to thwart the most sinister and bloody attack on our liberty and future in our history thanks to our people’s gallantry and sacrifices. Turkey has left behind the perils it was faced with because of the coup attempt and proven to the world that it economy is built upon solid foundations.” “The Turkish economy grew by 7.1% between 2011 and 2015. In the first half of 2017, it has achieved a 5.1% growth rate. The overall transformation in Turkish economy in the last 15 years is a true success story.”

“We Do Not Want Separation In The Balkans”


resident Erdoğan described his meeting with his Serbian counterpart Vucic and the meeting between delegations of the two countries as productive and, pointing to the TurkeySerbia Business Forum to be held, underlined: “We will pave the way for Turkish businesspeople, who have already proved themselves with their works both in Turkey and abroad, to invest in Serbia.” President Erdoğan said the current bilateral trade volume of $850 million is not enough and that the two countries have the capacity to increase it to $3-5 billion.

“Turkey Has Proven To The World That ItS Economy Is Built Upon Solid Foundations” “Serbia is key to peace and stability in the Balkans and we consider it a friend of Turkey,” President Erdoğan said.

“Turkey wants the Balkans to be known for integration, peace and a prosperous future based on shared interests as opposed to instabilities. We do not want separation, disintegration or division in the Balkans. I also would like to express that we are against some countries considering the Balkans their backyard. Some may envy Turkey and Serbia getting together. Let them. We will mind our own business and continue to work on a win-win basis. We will share our experiences and boost our solidarity. We believe we, Turkey and Servia, have a shared vision for our region’s future. I consider Serbia, led by Mr. Vucic, an important partner in our region and our shared vision a great opportunity for our region.”





Stars of Exports Award


Stars of Exports Award ceremony was held on 27 September 2017 under the leadership of Turkish Exporters Assembly (TİM) with the collaboration of DÜNYA Newspaper and DHL Turkey and Turkcell as the communication sponsor. BY RAMAZAN GÜZYURDU


18 Companies including 313 digital companies competed this year in the event, which was organized in order to encourage the development of exports and their contribution to the economy. The awards were distributed under 18 categories. Assan Aluminum was rewarded with the “Exporter of the Year” award. The Chairman of Kibar Holding, Ali Kibar received the award from the Minister of Economy, Nihat Zeybekci, the Chairman of TIM, Mehmet Büyükekşi


and Chairman of Dünya Süper Web Offset, Didem Demirkent. While ‘Original Product Champion’ was Sanmar Shipyards, ‘Champion without Borders’ award was given to MİTAŞ. TOFAŞ, one of the locomotive companies of Turkey’s exports, was awarded with the ‘Export Performance Award’. Minister of Economy Nihat Zeybekci, who made the opening speech of the ceremony, talked about how exports and the economy of Turkey came to the present day and set new targets.

Reminding that the foreign trade of the Turkish economy was at the level of 4.5 billion dollars in 1980-1981, Zeybekci also reported that the country’s foreign trade reached 350 billion dollars.

ASSAN ALÜMINYUM WILL CONTINUE TO EXPAND WITH EXPORT The foreign trade of the Turkish economy was at the level of 4.5 billion dollars in 1980-1981 but now it reached 350 billion dollars, Zeybekci said.

This year’s award-winning exporter Assan Aluminum will continue to grow with exports and be one of the top three producers in Europe. Assan Alüminyum, founded in 1988 as a subsidiary of Kibar Group, is the clear leader in the

The Turkish Perspective

flat rolled aluminum sector in Turkey with its annual installed capacity of 300,000 tons at the facilities of Istanbul Tuzla and Kocaeli Dilovası. With more than 1,300 employees, Assan Alüminyum serves a wide range of industries including coils, sheets, foils and painted coil products, distributors, construction, transportation, consumer durables and packaging. The company will soon be one of the top three producers in Europe with an annual production capacity of 100,000 tons of aluminum foil. Assan Alüminyum Turkey is the biggest player in the flat-rolled aluminum industry, with a main focus on exports. Today, the company is one of the most important players of Turkey with its exports. Assan does more than half of its exports in its own sector by itself. The company exports to more than 70 countries in four continents, mainly the European Union countries such as Germany, England, France, Netherlands, and also increases its activities in North America. As a matter of fact, Assan Alüminyum was rewarded with the prize of “Exporter of the Year” contest in the competition “Stars of Exports-Secret Champions of Turkey”, which was awarded by the Turkish Exporters Assembly. Assan Aluminum General Manager Göksal Güngör said, “As Assan Alüminyum, we will reach 100 thousand tons of aluminum foil production capacity in a near term. We will be one of the top three producers in Europe. We are a very important player with a total capacity of 300 thousand tons. Our company, exporting about 75% of its

Assan Aluminum General Manager Göksal Güngör: “Reliability, flexibility and innovation are the basic values of Assan Alüminyum.”

Assan Alüminyum Turkey is the biggest player in the flat-rolled aluminum industry.

sales, is awarded the title of supplier of the year by many customers every year. It is our flexible and customerfocused approach to working with us. Reliability, flexibility and innovation are the basic values of Assan Alüminyum. We have these values at the focus of all our goals. On the other hand, we were the first flat-rolled aluminum producer to join the Turquality program in 2016. Thus, we aim to increase our global brand power even further in the international arena.”

The First Turkish Flat Aluminum Producer Exceeding a Quarter Million Ton The company is increasing its productivity and capacity utilization each year. Assan Alüminyum, which ended the year 2016 with a sales figure of 258 400 tons and 6.2 percent growth, completing 2016-year in parallel with its targets. Thus, it became the first Turkish flat-rolled aluminum manufacturer to exceed a quarter of a million tons. As of 2016, ISO ranked 41st on the list of Turkey’s top 500 industrial

establishments. In 2017, it increased its target further to 266,000 tons. The company continues to grow and invest in the aluminum field. With its power and technological know-how from its position as market leader, it is investing further to increase its aluminum casting and foil rolling capacity. As part of the first phase of the investments, two new casting lines have started producing in Dilovası in the middle of the year. The new foil rolling investment with high speed and advanced automation system will soon start production. On the other hand, stating that the potential of the aluminum market is also remarkable in Turkey, Göksal Güngör said, “Aluminum use is directly proportional to industrialization. For this reason, it is possible to say that aluminum is the metal of the industrialized world. The average aluminum use per capita in European Union countries is 23 kg. In developed countries like Germany this figure reaches 40 kg. According to data from the European Aluminum Association, aluminum use per capita in Turkey this year is 13.5 kg. This figure shows that we have more potential in the medium-term as a sector. This figure, which has risen from 4.5 kg in Turkey in 2004, has increased so quickly that it would be fair to say that our industry is growing rapidly and has great potential. In addition, as a result of developments in the industrial and technological fields, the use areas of aluminum are increasing. Therefore, we can say that aluminum has an important potential in Turkey and that the use of aluminum will increase even further.”







www, organized in cooperation with Ministry of Economics and TİM (Turkey Exporters Assembly), will take place November 8-12 at Lütfi Kırdar International Congress and Exhibit Complex. This year’s theme of the event is “Potential of Design”.


esign is an integral part of innovation. Within this context, it is the one of the principal pillars of growth and development. Vigorously containing a large span of sectors such as health to education, economics to service, design has the utmost potential to differentiate oneself to become competitive and successful. Organized with the cooperation of Ministry of Economics and Turkish Exporters Assembly, Design Week Turkey carries this potential, making it a focus of Turkey in November. On November 8th, Design Week


Turkey opening its doors with various workshops, exhibits and events, bringing Istanbul to the limelight of worldwide design inquisitives. Gathering independent designers with design offices, young talents with manufacturers, professionals with design followers in various fields such as furniture design, fashion, graphic design, and lighting, this year’s theme of the event is determines as “Potential of Design”. This year Design Week Turkey, within the context of “Potential of Design” hosts Finland. The participants will join presentations and

informative talks about topics of Design – Economics Relationship, Visual Communication and Fashion Design, Industrial Design. Design workshops will gather young designers from various universities of Turkey, design students invited from abroad and designers working in different fields in one platform. Exhibits within Design Week Turkey will accommodate Turkish and foreign artists and designers working on various realms. Design Week Turkey, taking place November 8-12, 2017, will be the highlight of the city for 5 days, emphasizing design

with its brand new, inspiring exhibits, workshops and projects from a wide variety of design fields. In Design Week Turkey, the products and projects of the finalists of design competitions, conducted by exporters’ associations under different titles, will be exhibited; and the event will be further enhanced with the local/international projects of design centers and offices winning awards in worldwide recognized design competitions and the exclusive content of “Finland Day” in which the guest country - Finland’s famous designers and brands




MÜSİAD VISIONARY’17 Sectors Summit

Build The Future With Stronger Steps!

MÜSİAD VISIONARY is an activity that operates towards the benefits of the society to improve the expectations and abilities of our entrepreneurs for the future. By mustafa yiğit


he first MÜSİAD VISIONARY’ 15 Sectors Summit, organized with the main theme of “Doing Business with the Future”, is a road map for Turkey, one of the fastest developing countries in the world. The concept of ‘transformation’, which emerges as the most important element of existence in the future, is the main theme of the MÜSİAD VISIONARY’17 Sectors Summit, which was held for the second time between 11-12th of October 2017.


Use the power of transformation!

From the invention of the wheel to space travel, entrepreneurs gathered much speed and progressed a lot.

The world experiences an endless transformation that continues in an increasing way since the ancient times. From the invention of the wheel to space travel, entrepreneurs gathered much speed and progressed a lot. It took the limits of transformation further with each step. In this universe of transformation, which processes each word we say as “data”, it becomes obligatory to conduct in-depth analyses to be

able to use the power of transformation. These analyses that come across sometimes as a key, and sometimes as a weapon, in order to make progress in the universe of transformation possible, determine the social and economic future of individuals, institutions and countries. MÜSİAD organizes MÜSİAD VISIONARY ‘17, with the vision that Turkey and businesses will “use the power of transformation” and lead the future in this universe of transformation. Under the main theme of ‘New Turkey in the Transforming World’; it was shaped transformation’s road and information map along with representatives from various sectors and experts in the MÜSİAD VISIONARY’ 17 Sectors Summit, which was organized with the sessions titled ‘Why Transformation?’, What Kind of Transformation?’, ‘Transformation into What?’ and ‘Turkey’s Transformation’

The Turkish Perspective

WHY TRANSFORMATION? The transformation of the world, which has been continuing since the early ages, has gained a lot of speed in the recent times. The limits of transformation, accelerating with the speed of development of technology, convert people’s needs day by day, by changing their expectations from life. The future shaped by the opportunities provided by technology turns dreams into visions, and today’s dreams become the world of the future. In our world built by thousands of dreams of the past, the management and execution of thousands of different formations are kept alive through various algorithms. It is as possible to stop transformation, as it is possible to stop dreams. In a world where dreams are getting closer to reality, transformation is building our future without slowing down.

WHAT KIND OF TRANSFORMATION? The basis of the world’s transformation consists of the accumulation of knowledge and technology. The pool of knowledge and technology, which has been accumulating from the first ages, continues to shape the future. It is easy to obtain the financing which will be required to build the world of the future in this pool, which transforms dreams that dominate change into feasible ideas. Investors that move with the idea of “Possessing the future”; get much more in return for their investments in shorter periods of time compared with conventional methods. It is vital to take precautions and to maintain control to be able to prevent accidents. If the

speed of transformation cannot be controlled, it can cause societal and sociological accidents. We will inevitably suffer from loss of information/ money/reputation as a result of these accidents. The trick is not to be carried away with the power of the transformation; it is to “use the power of transformation.”

emotions that remain indecisive due to the volume of messages we are exposed to, into movements as a consequence of the information analyses we make. With this type of communication where emotions are being used as temptations and knowledge as a decision-maker, we become idea, ideology and brand ambassadors.

Yıldırım also had a converesation during MÜSİAD Visionary’17 Sectors Summit.

and the domination of the global power over it. Nowadays, when the actors of transformation use the tools of informatics and communication to produce culture, our country is still trying to exist within the transformation. Aiming at a new and unique target that contains all of the world’s accumulation is a prerequisite for Turkey in having a voice in the transformation ecosystem.

CLOSING SPEECH: Not getting lost in transformation



The speed of transformation can be measured with the volume of messages we are exposed to day after day. Every technology that came into our lives became a new factor that dominates our nature. In a universe with abundant alternatives due to our growing expectations and needs, the source codes of our perceptions continue to go under a transformation as well. We are in a transformation from the communication of emotions to the communication of information in this universe, in which we can reach all the data we want about people or institutions, take as much as we want, and interpret it however we would like to. We transform the

In the past, the asymmetric and tense relationship between “universal” and “national” has been replaced by the relationship of “globalization” and “localization” within transformation. The only thing that did not change within this transformation is transformation itself

Where will this all lead to? Who will process data, transform it and how will they do it? Data is travelling in space. The ones, who are fast enough, regardless whether they are good or evil, will get it first. The trend that once iconized humans iconizes machines now and reduces humans to mere data. Following this trend means being lost in the transformation ecosystem. Yet, it is always possible to make data, humans and the future better. It is crucial to be fast when trying to understand and evaluate transformation as well as remaining human. So, what does the future hold for us? Transforming ‘humans’ into ‘machines’ or continuing to exist by staying ‘human’?




Business Travel Leaders Meet in İstanbul at the

Turkish Airlines Corporate Club Conference Offering a corporate travel program full of benefits and advantages, Turkey’s flag carrier airline gathered the sector leaders under the theme of “Traveler Centricity”.


urkish Airlines , the

airline flying to more countries than any other, hosted the Turkish Airlines Corporate Club Conference in İstanbul, at the Hilton İstanbul Bomonti Hotel. The event welcomed over 500 international guests to network and enjoy true Turkish hospitality while learning about the latest offerings and key benefits of the Turkish Airlines Corporate Club. The conference, themed “Traveler Centricity”, was hosted by Turkish Airlines in


The event featured global service guru, Ron Kaufman.

The event welcomed over 500 international guests to network and enjoy true Turkish hospitality.

partnership with the Global Business Travel Association (GBTA) and presented global trends in the business travel segment, highlighting the latest developments in the aviation industry. Hundreds of decisionmakers and key players from the global business travel community traveled to Istanbul to listen an impressive line-up of distinguished speakers as well as to learn how Turkish Airlines Corporate Club can add more value to their business.

photograph byLOREM IPSUM


The Turkish Perspective

photograph byLOREM IPSUM

Chairman of the Board and the Executive Committee of Turkish Airlines, Mr. M. İlker Aycı and award-winning consultant & Keynote Speaker Mr. Ron Kaufman who kicked off the oneday event, welcomed the attendees. Panel speakers included Mr. Arda Ermut, President of the Investment Support and Promotion Agency of Turkey, Ms. Serra Akçaoğlu, CEO and Board Member of Citibank Turkey and Mr. Tankut Turnaoğlu, Vice President & General Manager of P&G Turkey & Caucasus. Speaking of Turkish Airlines’ recent accomplishments, Chairman of the Board and Executive Committee of Turkish Airlines, Mr. M. İlker Aycı said, We have revamped our corporate travel program, the Turkish Airlines Corporate Club, to better meet the needs of today’s increasingly demanding business traveler. We are thrilled to welcome hundreds of high-ranking professionals and business travel leaders from all over the world to Istanbul for this unique event. Turkish Airlines Corporate Club Conference provides a great opportunity to learn the numerous

Most recently, Turkish Airlines has been named a “Five-Star Global Airline” by the Airline Passenger Experience Association (APEX).

Turkish Airlines Corporate Club provides its members with a wide variety of cost-effective advantages tailored to meet the needs of business travel.

advantages of our renewed corporate travel program that offers to its members the latest trends in the business travel industry.” Attendees of the conference were also able to enjoy the unique setting of Istanbul, the city that bridges continents and cultures, also the home and hub of Turkish Airlines. Turkish Airlines continues to consolidate its position as the airline that flies to more

countries and international destinations than any other, adding new destinations, investing in new aircraft, training, and new modern facilities while winning global awards and attaining impressive growth figures. The airline’s most recent awards include “Best Business Class Onboard Catering”, “World’s Best Business Class Lounge”, and “Best Business Class Lounge Dining” at this year’s Skytrax World Airline Awards. Turkish Airlines has been also named a “FiveStar Global Airline” by the Airline Passenger Experience Association (APEX) Official Airline Ratings.





Annual investment tour to South Korea and China reveals keen interest in Turkey from Asian investors.

he Investment Support and Promotion Agency of Turkey (ISPAT) held a roadshow in Asia on October 16-20 in order to meet with investors in South Korea and China and to attract more FDI from the region. Commenting on the roadshow, ISPAT President Arda Ermut said that in accordance with the international relations vision of President Recep Tayyip Erdoğan and of the Turkish government, Turkey needs to attract more investments from Far Eastern countries to diversify its partnerships and resources in the region as a hedge against global shocks. NOVEMBER 2017 ISSUE 52

ISPAT-KCCI Investment Seminar in Seoul

The itinerary kicked off with roundtable and one-on-one meetings with investors and journalists in the South Korean capital of Seoul on October 16th. ISPAT President Arda Ermut also attended the ISPAT and the Korea Chamber of Commerce & Industry’s (KCCI) exclusive business seminar entitled “Turkey as a Strategic Investment Hub” that same day. During his address to the South Korean investment community, ISPAT President Ermut said, “Turkey’s infrastructure investment need is a total of USD 700

billion between 2015–2023, and almost 30 percent of these investments are expected to be made through PPP model mega projects. We hope all these projects will further increase the FDI stock of South Korean

companies in Turkey, which is already at the USD 2.2 billion level as of the first half of 2017. South Korea is a target country for Turkey; we aim to add new investors to the current 326 South Korean companies operating in Turkey.”

18th World Knowledge Forum

Turkey is a dynamic country with a young population and a growing workforce, on the threshold of a a huge transformation.

Ermut was also a speaker together with Kibar Group CEO Tamer Saka on a panel entitled “Cashing in on a Strategic Investment Hub: Turkey’s Path” at the 18th World Knowledge Forum on October 17 in Seoul. During the session, Ermut particularly focused on

photograph byLOREM IPSUM


photograph byLOREM IPSUM


The Turkish Perspective

Turkey’s remarkable progress in recent years and on multinational corporations’ main motives for selecting Turkey as an FDI destination. “Turkey is a young country with indigenous sources of technology and a growing workforce, on the threshold of an opportunity to achieve a huge transformation that will change its role in the global economy,” explained Ermut.

US Investor A.Schulman Commissions

Production Facility In Turkey

photograph byLOREM IPSUM

photograph byLOREM IPSUM

Turkey Investment Forum in Shanghai

The final leg of the roadshow saw ISPAT holding the “Turkey Investment Forum” in Shanghai, China, in cooperation with the Shanghai Overseas Investment Development Board (Invest Shanghai). The purpose of the forum was to showcase to the Chinese investment community the numerous investment opportunities available in Turkey. Ermut’s welcome remarks at the forum touched on the bilateral investment and trade ties between the two countries. Among the keynote speakers at the forum were Invest Shanghai President Sun Xinhua, Consul General of the Republic of Turkey in Shanghai Sabri Tunç Angılı, Mazars Denge Partner Ferrah Sefer Kurdoğlu and Mazars Denge China Desk (Turkey) Coordinator Halil İbrahim Topal, as well as ICBC Turkey Chairman Xu Keen and ZTE Group Vice President Li Ming, both of whom presented on their first-hand investment experience in Turkey. The roadshow in China also featured an MoU signed with Invest Shanghai, multiple interviews with the members of the press, and site visits to ZTE’s and Huawei’s R&D Center in Shanghai.


Schulman, a leading international supplier of high-performance plastic compounds and resins, has completed the investment project and established a significant masterbatch production facility in the greater Istanbul area in Turkey. The new manufacturing facility has now started production and is serving the plastics industry in Turkey, the Middle East and North Africa. It is producing premium quality white, additive and natural masterbatches for plastics industry and the total annual capacity is 17.500 tons. During his address at the opening ceremony, ISPAT President Arda Ermut said, “I would like to extend my deepest gratitude to A. Schulman for picking Çerkezköy OIZ as the preferred location for its new mill. Turkey is currently the second largest plastics producer in Europe, while at the same time ranking as the second largest plastics importer. This both indicates dynamism in Turkey’s domestic market as well as the presence of import

dependency in certain sectors. A. Schulman’s investment is set to serve a wide range of sectors including automotive, personal care, and construction, and will also ship to the Middle East and North Africa in addition to Turkey. As such, we attach strategic importance to sectors that reduce Turkey’s import dependency while at the same time boosting exports. Heinrich Lingnau, Vice President and General Manager EMEA at A. Schulman: This facility is a new platform from which we are servicing our customers in the region in a more efficient manner. Also, as Turkey is becoming a premier gateway for commerce in the region, being more strongly present will allow us to increase our share in this fast-growing market. Ekin Kurt, General Manager of A. Schulman Turkey, adds that ‘’after rapid and profitable growth in sales we have now another achievement of strategic investment in Turkey and we are proud of that fact. A. Schulman masterbatches are cost-effective, high

performing customized solutions which meet our customers’ requirements.” Headquartered in Ohio, USA, A. Schulman, Inc. has been providing innovative solutions since 1928. A. Schulman employs approximately 4,900 people and has 53 manufacturing facilities globally. The Company’s customers span a wide range of markets such as packaging, agriculture, mobility, building & construction, electronics & electrical, personal care & hygiene, sports, leisure & home, custom services and others. A. Schulman serves the market with white, black and additive masterbatches, customized color masterbatches, standard color masterbatches, thermoplastic compounds and resins for injection molding and durable goods, thermoplastic powders for roto-molding, specialty powders and size reduction services, highly filled thermoset compounds, with glass and/or carbon fibers, distribution of producer grade polymers and specialties.



German Trailer Manufacturer Schmitz Cargobull Invests In Turkey G

ermany’s leading trailer manufacturer, Schmitz Cargobull, has officially commissioned its new facility for the production of reefer semi-trailers and curtain sider semi-trailers in Turkey’s northwestern province of Adapazarı. The commissioning of the state-of-the-art facility, with a production capacity of over 3,000 trailers per annum, coincides with the company’s 125th year of global operations. During his address at the ceremony, ISPAT President Arda Ermut said the German company’s unabated commitment to its investment in Turkey after the events of July 15, 2016, speaks volumes about the vitality of Turkey as a market for European investors.

Schmitz Cargobull CEO Andreas Schmitz: We produced around 58,000 units last year globally. With 5,700 employees and EUR 2 billion

turnover, we are the number one trailer manufacturer in Europe. We adopt a global vision. That’s why we have facilities in Spain, Lithuania,

Russia, and China, in addition to Germany. Today I take the utmost pride to announce that Turkey has been added to this list.


he Turkish Airlines Corporate Club Conference on September 26 welcomed over 500 international guests in Istanbul – primarily travel experts, top executives from agency chains, and current and potential club members – to network and indulge in authentic Turkish hospitality while learning more about the business travel segment and the latest developments in the aviation industry. NOVEMBER 2017 ISSUE 52

Following the opening remarks delivered by Turkish Airlines Chairman of the Board and the Executive Committee Mr. M. İlker Aycı, participants heard from a CEO panel moderated by ISPAT President Arda Ermut. The panel featured Citibank Turkey CEO Serra Akçaoğlu and P&G Turkey & Caucasus Vice President and General Manager Tankut Turnaoğlu as speakers.

photograph byLOREM IPSUM

Turkish Airlines Corporate Club Conference

photograph byLOREM IPSUM


The Turkish Perspective

WAIPA Knowledge Forum on FDI in Konya T

photograph byLOREM IPSUM

photograph byLOREM IPSUM

he World Association of Investment Promotion Agencies (WAIPA) and their colleagues from MEVKA/Invest in Konya jointly held a Knowledge Forum on FDI under the theme “Effective Investment Attraction and Facilitation” on October 10-11 in Konya. At the forum’s official opening, ISPAT and WAIPA President Arda Ermut greeted nearly one hundred participants from nine countries with welcome remarks that focused on WAIPA’s mission and Turkey’s current economic outlook. During the two-day event, attendees were able to listen to presentations on topics such as Providing True Value to Investors, Fundamental Investment Promotion Principles, and FDI Trends and Innovation in Investment Promotion. Participants were also able to take part in a workshop exercise on organizing trade shows and roadshows and conducting strategic meetings with investors. The list of presenters included FDI experts such as FDI Advisor Andreas Dressler, WAVTEQ CEO Dr. Henry Loewendahl, and fDi Intelligence Global Commercial Director Chris Knight. Ernst & Young also provided insight, while Director of Invest in Sharjah Mohamed Juma Al Musharrkh spoke on best practices. Business input came from the Austrian company Hamburger Containerboard Turkey, which recently invested in a greenfield paper mill in Turkey’s Kütahya province. These sessions were followed by a visit to the Konya Organized Industrial Zone and to MEVKA’s InnoPark Technology Development Zone.

8th UK-Turkey Business Forum T

he Turkish-British Chamber of Commerce and Industry (TBCCI), in collaboration with ISPAT and the Foreign Economic Relations Board of Turkey (DEİK), on September 29 held the the 8th UK-Turkey Business Forum in Istanbul. At the top of the agenda was the strong economic ties between the two countries and what impact the post-Brexit period might have on them. In her opening speech, TBCCI Chairman Emma Edhem highlighted the significant trade and investment opportunities in the UK and Turkey, while Deputy Minister of Economy Fatih Metin stated that the deep ties between the two countries were growing stronger every day. Meanwhile, Ambassador of the Republic of Turkey to the UK Abdurrahman Bilgiç shed light on the solid foundations of the political and economic relations between Turkey and the UK. Speaking at the “PostBrexit UK-Turkey Economic Relations” panel, ISPAT Chief Project Director and

TBCCI Board Member Necmettin Kaymaz surmised that the postBrexit era would bring with it a significant boost in the interactions between the two nations. Other panels focused on defenseaerospace, technology, and food-agriculture. Moderating the food-agriculture panel, ISPAT Vice President Ahmet Burak Dağlıoğlu discussed with other panelists how the sector would be affected post-Brexit.

ISPAT Chief Project Director and TBCCI Board Member Necmettin Kaymaz surmised that the post-Brexit era would bring with it a significant boost in the interactions between the two nations.



Cover /Legal Framework of Investments in Africa: Recent Changes


INVESTMENTS IN Since 2005, Turkey has been looking to expand trade in Africa. To this end, the Turkish government is providing humanitarian aid, executing bilateral agreements and opening Turkish embassies throughout the African continent.

Despite all these developments, trade with Africa still amounts to only a small percentage of Turkish imports and exports and there are therefore great possibilities in terms of development.

In order to build up a sustainable relationsh Turkish investors looking to finalize investment opportunities and partnerships in Africa should also be aware of the many cultural and legal differences on the continent.


The Turkish Perspective

a rkish great pment.

relationship, investment




Cover /Legal Framework of Investments in Africa: Recent Changes

African Legal System

A frican

countries generally follow either a civil law or a common law system, replicated and inherited from the colonial period, or a combination of the two. In addition, customary laws exert a great deal of influence in numerous countries, in particular with respect to land ownership. Also, various economic communities have an increasing normative impact on the countries’ legal and institutional systems, with varying scopes of action and degrees of supranational competence. To a certain extent, legal unification has even been achieved through the Organization for the Harmonization of Business Law in Africa (“OHADA”), which regroups 17 western and central-African States, and through which several Uniform Acts have been adopted in fields such as corporate law, security interests and arbitration, in order to improve legal certainty. Uniform Acts generally draw substantial inspiration from civil law, as the latter is the predominant legal system among OHADA countries, and mostly borrows from French business law principles. As such, understanding African laws requires dealing with a hybrid legal system that is characterized by a high degree of legal stratification. Investors should pay close attention to how these various layers of regulations may affect the implementation of any project, notably in relation to investment protections, customs tariffs and corporate matters. NOVEMBER 2017 ISSUE 52

INVESTING IN NORTH AFRICA Cultural similarities and geographic proximity of North African countries, particularly Algeria, Morocco and Tunisia, have long provided a healthy investment environment for Turkish investors. Bilateral trade between Turkey and North African countries still exceeds the amount trade with the rest of Africa.

Investors should pay close attention to how these various layers of regulations may affect the implementation of any project.

The Turkish Perspective

INVESTMENT LEGISLATION IN ALGERIA Main Measures Following the adoption in June 2016 by the People’s National Assembly (“Assemblée Nationale Populaire”) and in July 2016 by the Council of the Nation (“Conseil de la Nation”) of the bill relating to investment promotion, law No. 16-09 on the promotion of investment (“Law 16-09”) was published in the Official Gazette of 3 August 2016. The main measures adopted by the Investment Law are as follows:

30% the foreign shareholding’s share in the total cost when the investment amount is lower than or equal to DZD €100 million

concerning Foreign Investments

Law 16-09 clarifies and/or amends certain provisions of the former legislation, namely:

modification of the invested capital and investment proceeds transfer guarantee: eligibility is now subject to a capital contribution in cash equal to or in excess of minimum thresholds defined according to the project’s global cost. Terms and conditions will be set out by regulations. The reinvestment in capital of transferable profits and dividends are considered as external contributions that benefit from the transfer guarantee and contributions in kind are eligible to the transfer guarantee under certain conditions; maintaining the Algerian State preemption right: Article 30 of Law 16-09 restates the principle that any sale of shares by or to foreign investors is subject to the State preemption right. Law 16-09 refers to regulations on implementing provisions. Since former Article 4 quinquies of Ordinance No. 01-03, which set out a minima the implementing provisions of this right, was repealed, it seems difficult to apply the State preemption right as is unless reference is made to past practice; clarification concerning the Algerian State’s “right to repurchase”: any sale of 10% or more of shares of a foreign company owning an interest in an Algerian company that enjoyed advantages or benefits at the time of establishment, triggers prior information of the State Holding Council (“Conseil des Participations de l’Etat”, CPE). Non-compliance with this obligation or the reasoned objection of the CPE, within one month of receipt of information, confers on the State a right to repurchase at most the interests in the Algerian company held by the sold foreign company. In the absence of specifications regarding its implementation conditions, the Algerian State’s right to repurchase should not be applicable as is unless reference is made to past practice; competence of the Algerian jurisdictions in the event of disputes between foreign investors and the Algerian State, except where bilateral or multilateral conventions or an agreement including an arbitration clause are in place (Ordinance No. 01-03 related to “competent jurisdictions”).



Cover /Legal Framework of Investments in Africa: Recent Changes

Recasting the Investment Incentive Regime

After slightly amending the definition of investment, Law 16-09 provides for a single and prior registration with the ANDI of investments in order to benefit from the advantages provided for by this law: eligibility to the advantages: investments registered with the ANDI and that are not included on the lists of activities excluded from all advantages (“negative lists”), automatically benefit from the advantages provided for by Law 16-09, except (i) investments whose amount is equal to or higher than five billion Algerian dinars (approximately EUR 45,000,000) and which are subject to prior CNI approval; (ii) investments with a specific interest in the national economy and that are subject to the derogation regime of the investment agreement; and (iii) activities with their own regime of advantages (such as the hydrocarbons sector); three levels of advantages: Law 16-09 makes a distinction between (i) the advantages that are common to all eligible investments; (ii) the additional advantages for privileged activities and/ or employment-generating activities; and (iii) the exceptional advantages for projects presenting a special interest for the national economy; nature of the advantages: Law 16-09 grants advantages whose nature and duration vary according to the qualification of the investment and the implementation stages of the project (completion and operational stages).

Implementing Texts regarding Algerian Investment Law

the transfer guarantee is the right for any foreign investor to transfer in foreign currency the dividends and other revenues resulting from its investment.



when the investment amount is in excess of DZD €1 billion, it is the shareholding’s share (%10)

In a move to improve the Algerian business climate, the texts implementing Law No. 16-09 on the promotion of investment (the “Investment Law”) published in August 2016 were adopted on 5 March 2017. You will find below a summary of the implementing texts regarding Investment Law: Decree 17-101 lays down the list of activities, goods and services excluded from the advantages provided by the Investment Law (for example, import activities or cement plants: grey cement, etc.). Eligibility thresholds for the transfer guarantee As a reminder, the transfer guarantee is the right for any foreign investor to transfer in foreign currency the dividends and other revenues resulting

The Turkish Perspective

from its investment (subject to certain conditions being met). Article 25 of the Investment Law made the benefit of this transfer guarantee conditional upon the satisfaction of certain thresholds which had to be fixed by regulation. Article 16 of Decree 17-101 defines the minimum thresholds provided for in Article 25 of the Investment Law for the benefit of the transfer guarantee calculated in instalments on the basis of the foreign shareholding’s share in the total cost of the investment, as follows:

30% when the investment amount is lower than or equal to DZD 100 million (approx. EUR 850,000); 15% when the investment amount is in excess of DZD 100 million (approx. EUR 850,000) and is lower than or equal to DZD 1 billion (approx. EUR 8.5 million); 10% when the investment amount is in excess of DZD 1 billion (approx. EUR 8.5 million). Additionally, foreign shareholders’ share of financing in the total investment cost is proportional to the share they hold in the company’s capital.




Cover /Legal Framework of Investments in Africa: Recent Changes

Investment incentive regimes and secondary legislation Decree 17-101 specifies the arrangements for implementing the investment incentive regimes, namely:

the advantages applicable to the extension and rehabilitation investments; the exceptional advantages; the other advantages granted depending on the investment’s location; the advantages for any investment exceeding DZD 5 billion (approx. EUR 42 million); and the advantages for projects of particular interest to the national economy. Decree 17-100 modernizes the powers, organization and operation of the National Agency of Investment Development (“ANDI”). It specifies in particular the concept of “decentralized one-stop shop”. It is broken down into four centers, each enjoying specific powers: the advantages management center; the formalities completion center; the new businesses support center; the territorial promotion center. Decree 17-102 establishing the registration procedures for investments and the form and effects of the related certificate provides that the registration of an investment is made on the basis of a form furnished by the ANDI equivalent to the registration certificate. With the exception of the investments which amount is equal or higher than five billion Algerian dinars (approx. 42 million euros) and of investments of a particular interest for the national economy, the effect of registration is to automatically provide an investment with the advantages under the project’s implementation phase without any further formalities (which covers the ordinary advantages and the additional advantages benefiting the privileged and/or job-creating activities). Decree 17-103 establishes the amount and conditions with regards to the collection of the fee for processing


With the exception of the investments which amount is equal or higher than five billion Algerian dinars (approx. 42 million euros).

the investment files; those fees vary depending on the type of investment without exceeding DZD 200,000 (approx. EUR 1,700). Decree 17-104 sets the conditions for monitoring investments and the applicable sanctions in case of noncompliance with the obligations and commitments accepted by the investor in return for the advantages granted. In terms of monitoring, the investor shall draw up a progress report of its investment that shall be sent to the ANDI on a yearly basis. In case of non-compliance with this annual progress report, the ANDI is entitled to suspend the advantages granted to the investor. The ANDI then summons the investor so that it may submit the supporting documents for this failure to comply. The investor must rectify its situation within one month. Otherwise, it incurs cancelation of its registration certificate and loss of its rights, with a reimbursement of all the advantages received and payment of penalties set by law. Decree 17-105 establishes the terms and conditions for granting the operational advantages to investments creating more than one hundred (100) jobs located outside the South areas, the High Lands and other areas, whose development requires a specific contribution from the State.

The Turkish Perspective


Public-Private Partnerships The new Moroccan law n° 86-12 relating to public-private partnerships promulgated by Dahir no. 1-14-192 dated 24 December 2014 (“Law 8612”) intends to (i) complement the current legal framework used to develop partnerships between the public and the private sectors (mainly the law on the delegated management of public services or infrastructure by municipalities or public enterprises) whose scope is too restrictive and which does not provide legal basis for the regulation of projects other than concessions, and (ii) reconcile the increasing demand for efficient and reliable public services with the limited budget resources available while sharing out the risks between the public and private entities entering into such agreements.

Law 86-12 defines the public private partnership agreement as “a fixed-term contract whereby a public authority entrusts a private partner with the responsibility to carry out an overall mission of conception, financing, construction or rehabilitation, maintenance and/ or operation of works or infrastructure or provision of services necessary for the provision of a public service”.

The new Moroccan law intends to complement the current legal framework used to develop partnerships between the public and the private sectors.

Content of The Ppp Agreement Under Law 86-12, PPP agreements shall contain some provisions regarding the term of the partnership, the modalities to amend the PPP agreement, performance targets, modalities for subcontracting, etc. It further provides that the PPP contract shall allocate the risks between the contracting parties in the light of their respective risk-management capacity. Besides, Law 86-12 provides that on the agreed term of the PPP agreement, all goods necessary to operate the concerned public service will be transferred to the public authority.



Cover /Legal Framework of Investments in Africa: Recent Changes

Conditions To Enter Into A Public Private Partnership (“Ppp�) Law 86-12 provides that a prior assessment must be completed before any award procedure. This assessment aims at determining whether entering into a PPP is more advantageous than any other possible schemes for the contemplated project. Then, if the prior assessment reveals that the PPP is the most suitable scheme for the project, one of the hereinafter procedures must be followed: the competitive dialogue procedure, which consists in inviting competitive bids while simultaneously initiating discussions with the competitors in order to identify solutions; the open call for tenders, which consists in publicly inviting competitive bids without restriction; the shortlisted call for tender, when only candidates which have been allowed to tender following a preselection process may tender; and

legal framework applicable to anticompetitive practices and merger control. The Competition Council has also been granted broader powers under this new legal framework.

Anti-competitive practices

the negotiated procedure which is a procedure whereby the public authority negotiates directly with one or several candidates without a competitive dialogue. In all cases, the project must be awarded to the candidate who submits the most economically advantageous offer.

Competition / Antitrust / Merger Control Law no. 104-12 relating to freedom of prices and competition adopted on June 30, 2014 and law no. 20-13 relating to the Competition Council published on 24 July 24 2014, together with their implementing decrees, introduced significant changes in the Moroccan NOVEMBER 2017 ISSUE 52

90 the number of days that he Competition Council may also conduct a further review in case of a persistent risk of competition distortion.

The main changes are the following: prohibition of agreements aiming at allocating contracts between a number of economic operators; introduction of a de minimis exemption concerning the agreements of minor importance which do not significantly restrict competition; and prohibition of sale prices that are deemed predatory compared to production, transformation and selling costs whenever such prices result in preventing a company or a product from accessing a market, or in eliminating altogether a company or a product from a market.

Merger control

Any contemplated merger - the latter now being defined according to EU standards - must be notified to the Competition Council (whereas the relevant authority under the previous legal framework was the Prime Minister) prior to its completion if one of the three following thresholds is met:

The Turkish Perspective

The Competition Council has been granted increased consultative powers as well as investigation and decisionmaking powers both for anti-competitive practices and merger controls. the combined worldwide turnover of all the parties amounts to or exceeds MAD 750 million; the turnover generated in Morocco by at least two of the parties amounts to or exceeds MAD 250 million (provided that each of the two parties reaches this threshold); and the parties (and/or their affiliates) owned an aggregate market share of more than 40% of any given market of goods or services in Morocco (or a substantial part of such market) during the preceding year. Please note that the above thresholds should be read in combination with Article 1 of the Moroccan competition law which specifies that the law only applies to operations likely to have an effect on the Moroccan market. The Competition Council must decide within 60 days to either allow the merger, or prohibit it, or allow its completion subject to certain commitments to be made by the parties. The Competition Council may also conduct a further review for an additional 90 days in case of a persistent risk of competition distortion.

Competition Council The Competition Council has been granted increased consultative powers as well as investigation and decision-making powers both for anti-competitive practices and merger controls. Regarding anti-competitive practices, the Competition Council may now: investigate suspected cartels or abuses of dominant positions (particularly resorting to dawn raids, seizure of documents and requests for information), impose administrative financial penalties, and grant full immunity or partial fine reduction to the parties who help establishing the existence of an infringement and identifying the responsible parties. Regarding merger control, the Competition Council has the power to impose a financial penalty on the parties in case of failure to notify, failure to wait for the decision of the Competition Council, failure to comply with commitments previously made, or in case of incomplete or inaccurate information provided in the notice sent to Competition Council.



Cover /Legal Framework of Investments in Africa: Recent Changes


The adoption of Law No. 2016-71 dated 13 September 2016 relating to investment (hereinafter the “Investment Law”) is part of an approach to promote the investment in Tunisia. This law, together with its implementation texts, establishes the new legal framework applicable to investments in Tunisia.


The Investment Law entered into force on 1 April 2017. Three related implementation texts were published: Decree no. 2017-390 dated 9 March 2017 related to the project of amendment of the economic activities’ authorizations; Decree no. 2017-388 dated 9 March 2017 establishing the composition and organization of the Tunisian Investment Authority (Instance Tunisienne de l’Investissement) and the Tunisian Investment Fund (Fonds Tunisien de l’Investissement) Decree no. 2017-289 dated 9 March 2017 related to the financial incentives in favor of the investments made under the Investment Law.

The Turkish Perspective

The Investment Law repealed the former Investment Incentives Code and sets new measures in connection with the foreign investments, namely: providing for a freedom of investment principle: the former 49 authorizations provided for by the Investment Incentive Code are therefore waived. Certain economic activities remain subject to prior authorizations. These activities shall be defined by decree which has not been adopted yet; reduction and simplification of administrative procedures required for projects’ approvals: the Investment Law states an implied consent rule, a mandatory reasoned refusal rule and sets the time limit within which each reply must be given; recognition of foreign investors’ right to own, rent and exploit Tunisian nonagricultural lands; enlargement of the possibility to hire foreign management staff: the repealed Investment Incentives Code set out two restrictions with respect to this matter (i) only a qualified wholly exporting company within the meaning of the aforementioned code is allowed to recruit (ii) up to 4 foreign employees,

The Investment Law repealed the former Investment Incentives Code and sets new measures in connection with the foreign investments.

30% a right to hire foreign employees of the total number of employees according to the Investment Law (up to %30)

without the prior authorization of the ministry of Employment. The Investment Law removed the distinction between wholly exporting companies / partially exporting companies, and stated a right to hire foreign employees up to 30% of the total number of employees, with a right to recruit up to 4 foreign employees in all cases; removal of the Higher Investment’s Commission prior authorization for foreigners with respect to number of nonwholly exporting activities, a decree is under drafting; recognition of a free transfer of profits and assets rule for the foreign investors, and in case the transfer abroad requires a prior authorization from the Central Bank of Tunisia (hereinafter the “CBT”) the Investment Law simplified the procedure; granting of guarantees to the investors: the right to a fair and equitable treatment, protection against non-commercial risks, protection of the industrial and intellectual property; recognition of the arbitration as the primary dispute resolution method between the Tunisian State and the foreign investors; It should be noted that the Investment Law’s transitional provisions provide that certain financial incentive measures under the Investment Incentive Code shall continue to apply for investors which have already obtained the Commission’s authorization before 1 January 2017. The Investment Law also provides for financial and tax incentives, which can be summarized as follows: investment allowances targeting regional development projects, priority sectors and economic sectors, as well as infrastructure expenditure under regional development schemes; economic performance grants for material investments in mastering new technologies and improving productivity, intangible investments, research and development expenditures, employee training expenditures leading to certification of skills; allowance for the development of employment creation capacity sustainable development grant of 50% of the approved investment cost capped to three hundred (300) thousand dinars.



Cover /Legal Framework of Investments in Africa: Recent Changes

Enacting the Decrees Implementing The PublicPrivate Partnership Regulations In June 2016, the decrees implementing the law no. 2015-49 dated 27 November 2015 regarding public-private partnership (PPP), which contribute with existing regulation regarding public procurement contracts and concessions to offer an efficient legal framework dedicated public procurement, were adopted. The PPP regulation focuses on PPP contracts, provides for the general framework governing PPP contracts, the mechanism related to the awarding, the enforcement as well as the monitoring of PPP contracts. PPP contracts are subject to good governance and transparency, in this respect the economic, social and environmental impacts of the projects shall be audited, and the awarding decision shall be published.

Merger Control Key Issues

The newly enacted law No. 2015-36 dated 15 September 2015 relating to the reorganization of competition and prices (“Law 2015”) set out new merger control notification criteria. Article 7 of Law 2015 shall be considered as an economic concentration act under whatsoever form if (i) it results in a transfer of ownership or use of part or all assets, rights and obligations of an entity and if (ii) the effect of such transfer is to allow an entity or a group of entities to exercise directly or indirectly over the activity of another or several other entities a decisive influence”. The fact that a transaction qualifies as a concentration is not sufficient to trigger the obligation of submitting it to the Ministry of Trade’s approval. The transaction


The Turkish Perspective

Publıc-private Partnershıp contracts are subject to good governance and transparency, in this respect the economic, social and environmental impacts of the projects shall be audited. must be likely to create or strengthen a dominant position in the local market. In this respect, a dominant position triggering control notification is deemed to arise if one of the following conditions are met: concentration parties turnover achieved in the local market exceeds TND 100 million, i.e. approximately €35 million (the former regulation was provided for TND 20 million, i.e. approximately €7 million), it being specified that for the purpose of turnover calculation, all the sales made on the Tunisian market, direct sales as well as indirect sales, should be taken into account, the turnover of all entities involved in the transaction shall be taken into account including affiliates, subsidiaries and also distributors and that the turnover achieved in the local market by all parties is understood as the difference between the total turnover free of tax of each company and the accounted value of their direct or indirect exportations; or average of the market shares of all entities involved in the transaction during the three last financial year exceeds 30% of the amount of sales and purchases made within the local market or a substantial part thereof as far as substitutable goods, products or services are concerned.



Cover /Legal Framework of Investments in Africa: Recent Changes

INVESTING IN SUB-SAHARAN AFRICA Most open to business in the world, sub-Saharan Africa is still a stranger to Turkish investors in comparison with its European and Asian rivals. As sub-Saharan Africa expects foreign investors mostly for construction, infrastructure, energy and technology projects, multinational banks aim to support growth through offering certain financing incentives.

Renewable Energy in Sub-Saharan Africa The African Renewable Energy Initiative (“AREI”) launched on 7 December 2015 at the COP 21 targets an increase of renewable capacity in Africa of respectively 10 GW by 2020 and 300 GW by 2030. AREI has received USD 10 billion support from G7 countries. This policy may offer tremendous perspectives to the renewable energy industry.

Renewable Energy Potential

Given that 600 million people in Africa remain without access to electricity and taking into account economic growth predictions, the International Renewable Energy Agency (“IRENA”) anticipates that the total net electricity generation in Africa will be between 1,800 TWh and 2,200 TWh by 2030, a threefold increase from today. This would require installing an additional 250 GW to 480 GW of new capacity by that date. To fulfill that goal, IRENA estimates that USD 45 billion per year would need to be invested in generation capacity and USD 25 billion per year in transmission and distribution networks. NOVEMBER 2017 ISSUE 52

The Turkish Perspective



Cover /Legal Framework of Investments in Africa: Recent Changes

Due to abundant solar and wind resources throughout the continent, as well as a huge hydroelectric potential, renewable energy is bound to hold a great share in Africa’s power generation. The leveled cost of energy for renewable technologies is on average constantly decreasing, making them effectively competitive with thermal energy. However, the African market for renewable energy shows some very disparate development rates depending on the country. Interest is often focused on South Africa, Maghreb countries (especially Morocco), and Egypt, which lie ahead by a great margin in terms of installed capacity from renewable sources and are already considered as fairly mature markets. Other countries are also currently emerging as key prospects for the coming years. In particular, in West Africa, energy generation is expected to increase a fivefold by 2030. This will require installing more than 60 GW of additional capacity, half of which is likely to come from renewable technologies according to IRENA’s projections. Stakeholders (including States and International Financial Institutions (“IFI”)) are demonstrating political commitment to sustain these objectives and reduce load shedding and power shortage. For instance, in 2012, the Economic Community Of West African States (“ECOWAS”) adopted a regional strategic and institutional framework aiming to increase significantly the share of renewable energy resources in the energy mix.

Outlines of Africa’s Legal Framework Investors interested in developing renewable energy projects in Africa will need to acquire a sound understanding of the applicable legal framework. In this regard, Africa’s legal framework are both extremely diversified, and increasingly integrated. NOVEMBER 2017 ISSUE 52

Selection of Private Investors: Bidding Process The right to develop renewable projects is generally awarded to private investors (either as single entities or consortia) by way of a reverse auction-type competitive tender process, based on their proposed purchase price for the electricity, and on the technical characteristics of the asset. The request for proposals (“RfP”) will usually require bidders to clearly state the price they will ask for the energy sold. Subject to meeting predefined technical criteria, the most economically profitable bid from the off-taker’s perspective will be selected.

Overview of the Contractual and Financing Structure Contractual Structure The risk allocation between the various parties is

The Turkish Perspective

determined through the project agreements. As such, structuring the underlying contractual framework is paramount to ensure the project’s bankability as it sets out the risk profile to be presented to potential lenders and investors. Broadly speaking, the terms of the various agreements will need to be aligned on a “back-to-back” basis, and in a way that will allocate each relevant risk to the party most able to manage it.

Power Purchase Agreement The power purchase agreement (“PPA”) being the sole source of revenue of the Project on which debt repayment will rely, is the key agreement of any bankable project structure. It sets out the terms and conditions on which the producer will sell and the off-taker (very often a public or semi-public entity) will buy the energy generated by the plant. The term of the PPA will need to be sufficiently long so as to allow for the full repayment of the debt

Many projects are now developed through nonrecourse or limited recourse financing and debt-to-equity ratio settles in excess of 70/30 for most projects, in line with typical international project funding arrangements.

(plus some headroom), and more generally the repayment of the sponsor’s investment and profit. Depending on the technologies considered, the terms of the PPA will usually be between 15 to 30 years. The PPA will generally provide for a fixed tariff (indexed) for the entire life of the project, and will provide that the offtaker will purchase all the energy generated and delivered by the producer. The PPA will also typically include an obligation for the off-taker to pay for curtailed energy by way of a deemed generation mechanism. The deemed generation calculation will be of critical importance: the risk of curtailment is typically high in subSaharan Africa, as local grids are likely to be unable at times to accept all energy generated by renewable projects.

Financing Structure With the emergence of the renewable energy market in sub-Saharan Africa and the steadily increasing amount of transactions closed, standard market practices are rapidly emerging. Benchmarking best practices from projects having reached financial close is now commonly performed when establishing the contractual framework for a project. As a result, lenders are getting more and more at ease with the risks and the legal structuring for this type of transactions. Many projects are now developed through non-recourse or limited recourse financing and debt-to-equity ratio settles in excess of 70/30 for most projects, in line with typical international project funding arrangements.



Cover /Legal Framework of Investments in Africa: Recent Changes

Key Risks and Risk Mitigation As indicated above, allocating the risks between the different stakeholders will be key to ensure that the Project can be financed in a non-recourse manner. Please see below some of the key risks that will need to be allocated between the Parties.

Off-taker credit risk The credit worthiness of the off-taker is a primary source of concern. Power off-takers in sub-Saharan countries are generally state-owned companies with monopoly over the transmission and distribution of electricity. The ability of an off-taker to meet its longterm PPA payment obligations is often questioned, because of their limited financial assets, and because the end-users tariff rates charged by the off-taker may be insufficient to cover the costs of purchasing the electricity produced by the independent producer. As a result, off-takers often have a weak record of making contractual payments on time. To cover this risk, lenders will generally require certain comfort and assurance as regards the public counterpart performance of its payment obligations under the PPA. This comfort will generally take the form of (i) a state guarantee provided by the government of the host country, under which the state would meet the payment obligations of the off-taker if the latter is defaulting on payments due, and (ii) liquidity support instruments such as on demand guarantees or escrow account, typically to cover a few months of payment. However, the instruments set out above may not always be sufficient to satisfy the lenders’ requirements, in which case they may need to be supplemented by political risk guarantees from IFIs, including partial risk guarantee or political risk insurance (as further explained below).

Political risks As broadly defined by the Multilateral Investment Guarantee Agency (MIGA), political risks are those “associated with government actions which deny or restrict the right of an investor/owner (i) to use or benefit from his/her assets; or (ii) which reduce the value of the firm”. Political risks typically include war and terrorism, civil unrest, strikes, expropriation, change in law, unjustified cancellation or refusal of licenses and authorizations, currency inconvertibility and exchange controls. One of the main risk mitigation mechanisms for political risks are the partial risk guarantees (“PRG”) issued in particular by the International Development Association (“IDA”) from the World Bank Group. The scope of the risks covered by PRGs can be negotiated with IDA, but typically include the risk of a government or a state-owned entity defaulting on its contractual obligations (such as failure to make payments or pay termination compensation) and other risks such as expropriation NOVEMBER 2017 ISSUE 52

and political force majeure. PRGs typically cover outstanding principal and accrued interest of a debt tranche in full. In the event the issuing institution makes payments under the PRG, the host government will be required to compensate the issuer. Another instrument available to cover political risk is the political risk insurance (“PRI”) issued by the Multilateral Investment Guarantee Agency (“MIGA”). Cross-border investments made by investors in any of the 181 MIGA member countries are eligible for MIGA insurance. Political risks are heightened in sub-Saharan Africa where unstable regimes and security issues are a persisting concern. However, we observe that despite these risks, developers and investors are pursuing the development of projects in the area. Indeed, a number of projects are currently being implemented in countries experiencing prolonged political instability and security troubles.

Currency exchange risks The financing for the project will typically be denominated in USD or EUR, while the company will generally collect revenues in local currency, resulting in a currency exchange risk. Hedging instruments may not always be available and/or commercially attractive. Therefore, the sponsors should attempt to mitigate such risk by ensuring that electricity tariff payments by the off-taker are denominated in the funding currency or else be fully covered by foreign exchange hedging mechanisms or adjustable for exchange rate risks.

Permitting risks Identification of permits and authorization is a significant task in the implementation of a project,

The Turkish Perspective

About the Contributor:

despite the risks, developers and investors are pursuing the development of projects in the area. Indeed, a number of projects are currently being implemented in countries experiencing prolonged political instability and security troubles. which should be conducted well ahead of the finalization of the project documentation particularly as such permits and authorization may have significant impact on the project schedule. This is generally done by way of an exhaustive regulatory due diligence, conducted at the outset. While the project company will typically remain responsible for identifying and obtaining the permits, it is common practice that power purchase agreements provide for protection against withdrawal, or delay in issuing the permits.

Conclusion - Renewable Energy Market Overview The market for renewable energy in subSaharan Africa is rapidly expanding, driven by the urgent need to increase installed capacity to sustain the high development growth rates. Market practices have significantly evolved in recent years with experience gathered from successfully implemented and financed deals, so as to create a sound investment environment where all major risks are adequately anticipated and mitigated, provided thorough risk analysis and legal due diligence have been performed upstream.

Gide was founded in Paris in 1920. It has grown over the years to become a truly international law firm, with 15 offices around the world and over 600 lawyers and legal consultants, including some 100 partners. Its legal teams comprise national and international lawyers and legal consultants with years of hands-on experience in their respective countries. Through their ongoing dialogue with leading companies in the market, they have developed a solid understanding of the legal, cultural and commercial particularities of the countries they work in, which they pass on to their clients. The lawyers have also developed close ties with governments, departments and agencies, including in Africa. Gide’s activity in Africa relies on a team of over 40 lawyers distributed between two key offices in Europe (Paris and London) and three in North Africa (Algiers, Casablanca and Tunis), liaising with the offices in China (Beijing, Shanghai and Hong Kong), Russia (Moscow), Turkey (Istanbul) and now Iran (Tehran) to develop its growing practice. The Africa team is supported by an extensive and well-established local network of contacts and leading law firms throughout the continent that have been carefully selected not only for their legal expertise, but also for their relationships with government departments and agencies. Gide’s international network is a sizeable and talented team spread across the globe that allows them to act for their clients effectively and efficiently both in Africa and in their cross-border transactions. This ensures they can provide clients with in-depth knowledge of local commercial, cultural and legal customs, combined with the resources and expertise of a major international law firm. The multilingual Africa team has very wide expertise of both French law and English law governed transactions and their associated documentation. Gide’s experience and expertise extends across the entire continent, not only in French-speaking Western and Central Africa but also in Southern and Eastern Africa and in Portuguese-speaking countries. Their lawyers possess extensive and detailed knowledge of both national and regional African legal systems and regimes, enabling them to advise notably on the policies and objectives of regional communities and laws such as those of the ECOWAS (Economic Community of West African States), CEMAC (Economic and Monetary Community of Central Africa), UEMOA (West African Economic and Monetary Union), SADC (Southern African Development Community) and OHADA (Organization for the Harmonization of Business Law in Africa).

Gide in Turkey Established in Istanbul in 1997, Gide Turkey offers comprehensive services in a wide range of business lines combined with outstanding local expertise. Gide’s Istanbul office assists its multinational clients in local investments and cross-border transactions and provides legal assistance to its Turkish clients in outbound investments. Gide Turkey is managed by partners Bülent Özdirekcan, Esra Dündar-Loiseau, Arpat Şenocak and Ali Osman Ak.



In Depth / Brand Country in Sport Organizations: Turkey


Turkey, which has become a center of world sports with important and prestigious organizations it has organized in recent years, continues to host important international organizations in many different branches. Turkey, which has reached the meeting point of the world sport in terms of organization regulation and experience, will continue to mention its name with important organizations that will be hosted in the next period. By ramazan gĂźzyurdu


The Turkish Perspective



In Depth / Brand Country in Sport Organizations: Turkey

“Millions of sports fans’ eyes were in Turkey”


hanks to European Youth Olympic Festival in Erzurum, Turkish Airlines EuroLeague Final Four in İstanbul, Summer Deaflympic Games in Samsun, FIBA Eurobasket 2017, European Amputee Football Championship and 53rd Presidential Cycling Tour of Turkey, millions of sports fans’ eyes around the world were in Turkey. With the experience in organizational regulation and the achievements in sportive infrastructure, Turkey once again gave the world the message that it will organize these organizations in the best possible way. These successes have been a sign that Turkey will be the meeting address of world sports in the coming period. EUROPEAN YOUTH OLYMPIC FESTIVAL 2017 – ERZURUM The games organized in Erzurum with close to 1,500 participants on 11-18 February 2017 were a great excitement scene. Athletes aged 1418 years competed in Alpine skiing, snowboarding, skiing, biathlon, ski jumping, figure skating, artistic gymnastics, curling and ice hockey in the five-day competition. In the organization organized with the slogan of “Stars Shining in Erzurum”, Russian athletes put an embargo to the medals. Russia, which is the most crowded group after Turkey, won 39 medals with 9 silver and 11 bronze medals, 19 of which were gold, taking first place in the general classification. Historical achievement from Turkish athletes Turkish athletes have achieved


Turkey once again gave the world the message that it will organize these organizations in the best possible way.

historical success in the European Youth Olympic Winter Festival, hosted by Turkey for the first time. Turkey, which has not made a medal in the winter organization of EYOF since 1991, won a silver medal with Hazar Karagöl in the branch of spade skate and also won a silver medal with women national curling team consisting of Mihriban Polat, Kader Macit, Zeynep Öztemir and Hilal Nevruz. Aydan Karakulak was Turkey’s first medal winner by winning bronze medal in big slalom parallel to snowboard. Erzurum, who hosted many local athletes and press members during the tournament, received a full score from everybody. Erzurum had no problems during the tournament, and after 2011 Winter Olympics, it stood up from another big organization and once again proved Turkey’s organization success.

The Turkish Perspective

THE TURKISH AIRLINES EUROLEAGUE FINAL FOUR 2017 - İSTANBUL After 1992 and 2012, Turkish Airlines EuroLeague Final Four was held once again in Turkey between 19 and 21 May 2017. Fenerbahçe, Real Madrid, Olympiacos and CSKA Moscow teams competed in a tournament hosted by Sinan Erdem Dome in Istanbul. Fenerbahçe wrote history in the giant final, which was followed by the exhaling of millions, and won the Turkish Airlines EuroLeague for the first time, reaching the summit of Europe with the score of 80-64. With the investments made in recent years, with both its visibility and the number of spectators having increased, EuroLeague has contributed greatly to the promotion of the countries that host the Final Four games. It is estimated that EuroLeague will bring back about 300 million Euros of media to Turkey this year with Fenerbahçe lifting of the cup… It is expected that the EuroLeague final, watched by 2.4 billion people, will make a positive contribution to tourism in the summer season.

SUMMER DEAFLYMPIC GAMES 2017 - SAMSUN 23rd Summer Deaflympic Games, which had started on July 18, brought together more than 5 thousand participants and 3 thousand athletes from 6 continents and 97 countries, the most inclusive sports organization in Deaflympics and Turkish sports history has ended with a grand closing ceremony in Yaşar Doğu Sports Hall on the 30th of July. There has been intense interest in the organization that has been going on for two weeks in Samsun. The organization organized this year at 23rd showed the success of being the highest participating organization in the history of Deaflympics. The Olympic games that Samsun hosted did not cause any problems. This was also a beauty and success of Turkey. The host country Turkey completed 23rd Summer Deaflympics with 17 gold, 7 silver and 22 bronze medals for a total of 46. The Turkish team broke their own record and finished 4th on the Deaflympics 2017 medal count. The Turkish athletes have therefore surpassed their own previous record in Sofia 2013, where they had won 32 medals. According to digital media statistics, Samsun’s ad was made all over the world. Samsun is a big step towards becoming an Olympic and world city and it seems that Samsun will represent Turkey successfully for the following organizations.



In Depth / Brand Country in Sport Organizations: Turkey

FIBA EUROBASKET 2017 - İSTANBUL Having previously hosted the Eurobasket 2001, Eurobasket Women 2005, FIBA Basketball World Cup 2010 and FIBA Women’s Basketball World Cup 2014, Turkey has now qualified to host EuroBasket 2017’s group and final matches. The group matches were played at the Abdi Ipekci Arena where the Eurobasket 2001 final tournament was played and the final matches was played at the Sinan Erdem Dome, which hosted the final of the FIBA Basketball World Cup 2010. Turkey National Basketball Team lost to Spain in the quarterfinals with a score of 7356 and bid farewell to the tournament. The champion of the tournament was Slovenia, who defeated Serbia with a score of 93-85 in the final. New Standard for Organizations in Turkey The organization will become a new standard for sports organizations in Turkey as it was in 2001. Our National Team will be an inspiration for the


new generation, a starting point for the youngsters from now on and the organizations that will be done from now on. Targeting the excitement of FIBA Eurobasket, the Turkish Basketball Federation has collaborated with the biggest cities outside of Istanbul, including Ankara, Izmir, Gaziantep, Kayseri and Trabzon, to create public viewing areas with supporters and to pass the European Championship enthusiasm everyone who loves the sport. The FIBA Eurobasket 2017 also added a new addition to the successful social responsibility projects, such as the 2010 Children of the World Camp and the 2014 Camp Pass It On. The FIBA European member has also created a new project by organizing international basketball camps with coaches from 52 countries.

EUROPEAN AMPUTEE FOOTBALL CHAMPIONSHIP 2017 - İSTANBUL The Amputee Football National Team, which the Turkey Football Federation sponsored under the project “Turkey is playing football”, met with England in the final match of EAFF European Amputee Football Championship. The match played at Vodafone Park ended with Turkey’s superiority of 2-1. As a result, Turkey became the champion in the EAFF European Amputee Football Championship. Turkey ranked second at the EAFF European Championship in 2004 and 2008, and third at the World Championship in 2007. “This is why we love the game” The tournament, held in Istanbul between October 1 and October, attracted attention especially with the number of fans in the final match, visual feast and support. The match played at Vodafone Park and watched by 40,000 fans, echoed at the outside press. “The incredible support”, “40 thousand fans watched the final”, “This is why we love the game” and “That was nearly 9,000 more than watched Turkey’s home World Cup qualifiers” are some of the views about the tournament in the press. The 2017 European Amputee Football Championship was the first edition of the annual international competition of amputee football national men’s teams. It is organized by the European Amputee Football Federation (EAFF). The organization also provided a great opportunity to raise awareness of people with disabilities. This once again revealed how Turkey is the right choice for the organization.

The Turkish Perspective

53RD PRESIDENTIAL CYCLING TOUR OF TURKEY 2017 – ALANYA-İSTANBUL There was a great interest from the beginning to the end of the 53rd Presidential Cycling Tour. TUR, which started in Alanya on 10 October and ended in Istanbul on 15 October, also supported the introduction of Turkey. 4 news agencies, 537 newspapers, 90 domestic and foreign media members followed the TUR. Approximately 2 billion people watched the TUR, which was under auspices of Presidency while Eurosport and TRT were broadcasting 284 hours live in 5 continents. A crowded community gathered in Istanbul Sultanahmet Square and foreign tourists showed great interest in the award ceremony. Especially

4 news agencies, 537 newspapers, 90 domestic and foreign media members followed the TUR and admıred to beautıes of turkey.

among the cyclists pedaling in streets of Istanbul, there were cheers and applauses to the end of the stage. Race Director Roland Hofer, who was appointed by the Union Cycliste Internationale (UCI) for the 53rd Presidential Cycling Tour of Turkey, made an announcement in Istanbul – Istanbul stage. He thanked to everyone especially the federation and organization as well as the judges, volunteers, motorcycle group, doctors, ambulance officials, media members, security forces. And he finished his message with the following announcement: “See you next year, Turkey!” Italian cyclist Diego Ulissi from UAE Emirates who completed TUR 2017 in the first place, won the Turquoise Jersey and Edward Theuns from the Trek-Sergafredo team won the Green jersey. The Italian Mirco Maestri from the Bardiani CSF team showed the success of picking the best climbing “Red Jersey”. Onur Balkan from Turkey National Team won the White Jersey while finishing the Beauties of Turkey classification in the first place. Bennett four, Theuns one and Ulisssi won one stage in the 53rd Presidential Cycling Tour starting from Alanya to Istanbul. Our National cyclist Ahmet Örken took second place in 5th stage and made Turkey proud.



In Depth / Brand Country in Sport Organizations: Turkey

Osman Aşkın

HOPEFUL AND WILLINGFUL FOR THE FUTURE Turkey continues to work continuously to maintain this success in the sportive sense and to move forward. For the organizations to be organized in the coming years, Turkey continues to invest both in the sense of infrastructure and in the sense of an athletes. World Rally Championship again in Turkey Turkey will host the World Rally Championship again after 7 years. The decision taken by the Federation Internationale de l’Automobile (FIA) at the Paris meeting was replaced by a recalculation of candidate countries from Poland instead of the championship. According to the schedule of the 2018 World Rally Championship, the 10th stage of the championship to be held on 13-16 September 2018 will be held in Muğla. The reappearance of such a large organization will undoubtedly re-establish itself for other major organizations. Such developments in the name of the country and sports are also of great importance in the progress of Turkey in this area. 2019 UEFA Super Cup Final at Vodafone Park UEFA President Aleksander Ceferin announced that the 2019 UEFA Super Cup match would be hosted by Beşiktaş stadium Vodafone Park. Before this final, the UEFA Champions League Final in 2005 at Atatürk Olympic Stadium and the UEFA Cup Final in Ülker Stadium in 2009, formerly known as Fenerbahçe Şükrü Saraçoğlu were the other important organizations that Turkey hosted. Vodafone Park, which opened its doors to football fans on April 11, 2016 and hosted many events, will attract the attention of the world NOVEMBER 2017 ISSUE 52

Youth and Sports Minister

Also Powerful in Sport

Youth and Sports Minister Osman Aşkın Bak said that Turkey could realize many sporting activities with its organizational ability revealed by the facilities it has built. Osman Aşkın Bak, “We are lucky as Turkey. Mr. President, as a person who can analyze and evaluate all the values of sports, he supports this organization as it is in many organizations. With Turkey’s potential, its facilities and its organizational ability, it can organize many sports activities. We gave the whole world the message ‘Istanbul is at least as safe as Paris, London, New York’. We want Turkey to be strong and grow. These are signs of growing Turkey. We are strong in the sport. I believe we will do better things,” he said.

in 2019. This decision, which is of great importance both for the country and for Turkish football, will be a clear indication that the problem of mistrust expressed for Turkey is also gone. Great Efforts Found Their Reward At the forefront of soft power elements that contribute to countries’ increasing prestige in the world public opinion and increasing importance are the achievement of sportive achievements and the regulation capacity of international sports organizations. In the last 15 years, it has been very important for Turkey the infrastructure of the developing countries, serious installation incidents, climate diversity

enabling almost any kind of sports organization, ability to make international sports organization and accumulation, advanced service and accommodation sector, In this respect, Turkey has successfully hosted over 100 international sports organizations. Turkey, which has come to a very different position in making international organizations, has become a country of organization as a whole. Turkey is now on the side of organizations choosing organizations instead of being on the selected side. As a country, we are also working on this issue in order to be an organization that will contribute to the promotion of Turkey and brand value.

Brands / Lorem

The Turkish Perspective

Content: Aygaz: The Most Preferred Lpg Brand In Turkey P57 Begun To Export To European Countries P59 Editor: Ramazan Güzyurdu

energy, medıcıne.. Aygaz provides high quality and economic LPG for an extensive ecosystem.



Aygaz is also the first and only public LPG company in Turkey and currently provides its services in 81 cities with almost 4,000 cylinder gas dealers and auto gas stations. By ilhan alpay ogan


stablished in 1961, Aygaz is an only fully integrated LPG company in Turkey operating in all LPG processes, including procurement, storage and filling, as well as production and the sale of LPG-operated devices. As the most preferred LPG brand in Turkey, Aygaz products enter more than 60 thousand homes every day, and approximately one

million vehicles run on Aygaz Otogaz+. Thanks to its powerful logistics organization supported by four vessels, the only Turkish fleet of its kind, it provides high quality and economic LPG for an extensive ecosystem that includes its own end-use customers as well as other LPG distribution companies and foreign customers. In this regard, Aygaz is the largest

LPG exporter in Europe. It also conducts transit sales by utilizing the opportunities provided by its powerful logistics infrastructure, large supply volume and resource diversity. Aygaz views resource diversity as a strategic issue and plays a critical role when it comes to ensuring supply security for the Turkish LPG sector with the purchases it makes from major producers

such as Russia, Kazakhstan, Algeria, Norway and the US. In addition to its 5 sea terminals, 6 filling facilities and 12 distribution centers, Aygaz has one cylinder manufacturing facility and one cylinder refurbishing facility, all of which meet international standards and operate using the latest technology. Aygaz has the largest LPG storage capacity in Turkey with 178,400 cubic



Brands / Aygaz

meters. The Aygaz facilities are equipped with excellent technological infrastructure and equipment, making it possible to pump LPG automatically into cylinders and then distribute it after the completion of safety tests. Each Aygaz cylinder passes the following inspections “exact-fit seal replacement”, “overfill and gas leakage” and “underfill”, after which it is delivered to the customer sealed with the “Cylinder Information Card” and “Hologram Lid,” which ensure that the product is fully filled and has passed all quality tests. In addition to ISO 9001 Quality, ISO 14001 Environment and OHSAS 18001 Occupational Health and Safety, ISO 50001 Energy, ISO 10002 Customer Complaints Management Aygaz manufactures cylinders, valves, small bulk gas tanks, pressure regulators and similar items.


Systems certificates, Aygaz products bear the CE and PI markings, denoting free circulation within the EU. Aygaz also possesses the TSE Customer Friendly Organization and Customer Friendly Brand certifications. Aygaz has conducted marine transport operations using its own ships since 1967 and has four LPG ships that are specially equipped and fully pressurized. The fleet consisting of the Kandilli, Kuleli, Kuzguncuk and Beylerbeyi vessels is operated by Anadoluhisarı Tankercilik Inc., a 100% subsidiary of Aygaz. In addition to providing import and export services, these ships carry a significant portion of the LPG transferred between the Aygaz sea terminals. In addition to meeting approximately half of Turkey’s

As the most preferred LPG brand in Turkey, Aygaz products enter more than 60 thousand homes every day.

LPG requirements, Aygaz also manages the country’s largest LPG marine logistics operations. Aygaz uses tanker semitrailers to transfer LPG to filling stations that are not directly served by a pipeline or marine transport. Tanker trucks that satisfy international standards distribute bulk gas to residential, commercial and industrial customers and auto gas to gas stations. Aygaz also transports cylinder gas to filling station distribution centers and to its countrywide network of cylinder gas dealers. Aygaz’s LPG road tanker fleet has the “Certificate of Conformity for Vehicles Transporting Dangerous Goods by Road” and is tracked online 24/7 using GPS. Aygaz manufactures cylinders, valves, small bulk gas tanks, pressure regulators and similar items at its facility located in the Gebze Organized Industrial Zone on a site that encompasses 52,000 m2 of outdoor and 25,000 m2 of indoor space. The facility utilizes the most advanced technologies and has ISO 9001:2008 Quality Management Systems, ISO 14001 Environment Management Systems, OHSAS 18001 Occupational Health and Safety Managements Systems, and ISO 50001 Energy Management Systems certifications.

The Turkish Perspective




One of the leading pharmaceutical companies of our country, Pharmactive, with 100% domestic capital, has just begun to export to European countries after the Middle East, Balkans and Asian countries. By ramazan güzyurdu


harmactive Pharmaceutical has

been founded in December of 2010 with the conception of “how happy is one who remediate a sickness” with more than 200 million dollars investment and has one of the biggest and highest quality production sites not only in Turkey but also in Europe. Pharmactive puts its medicines which are developed by innovative approach in various therapeutic fields into service of doctors, chemists and patients via experienced team, “patient focused” understanding and high quality. GMP certified Pharmactive production site on the area of 108.000 sqm has capacity of

producing 330 million units on liquid, semi solid and solid lines. In February 2015, Pharmactive earned the right of getting the European GMP certificate which is globally prestigious and given by the BfArM, one of the respected authorities. In 2017, Pharmactive has renewed this certificate. R&D center (PharmAr-Ge) within our modern site on 3.200sqm has been approved by Turkish Ministry of Science, Industry and Technology in the rank. Pharmactive growing both in Turkish and international markets with wide product range is the production partner of global

pharmaceutical firms such as Abbott, Astra Zeneca, GlaxoSmithKline, Reckitt Benckiser and Sandoz thanks to the its flexible production ability and high production capacity. Pharmactive with the goal of becoming one of the 5 biggest pharmaceutical companies, by producing high quality medicine with suitable costs will keep being hope of patients in Turkey and the world. Based on its founders’ more than 50 years of experience in pharma industry, its core values and assertive targets, Pharmactive is taking firm steps forward. Pharmactive is already in collaboration with global pharmaceutical companies

for local, regional and global production thanks to its high service standards, solution oriented approach and its production site enabling closed system manufacturing with cutting edge technology equipment and designed according to the cGMP. In line with the localization politics, Pharmactive has been the production base for multinational companies. With its flexible and high manufacturing capacity, Pharmactive strives to offer a timely, proper and best-quality product service to contract customers, as well as offer marketing and selling services to other pharmaceutical companies as needed. Pharmactive is planning to implement its dynamic growth strategy in international markets as well by taking the advantage of its experienced and competent R&D, licensing and business development teams. Pharmactive establishes strategic collaborations globally within the principles of mutual trust and ethics by acting on win-win principle. Pharmactive releases its drugs, for which it was conducting researches for 2 years and which were developed in its own R&D center, to the markets after completing the licenses and permits from health authorities of 10 EU countries. These countries are Austria, Germany, Spain, Italy, Netherlands, Malta, Portugal, England, Franceand Hungary. After the patent expires in November, the products will be released to the market as the first equivalent through distributors in these countries. Pharmactive will make our country proud bydeliveringthe Turkish products to doctors, pharmacists and patients in Europe. Pharmactive celebrated the launch of its first



Brands / Pharmactive

stage products with the participation of all its employees, with a ceremony held last week. Pharmactive makes progress in contributing to the Turkish economy by increasing its drug exports as high-tech products and also aims to become one of the first 5 domestic companies in the export market in a short time with other equivalent products developed at its R & D center. Pharmactive made its first export to Europe with one million boxes of drugs.

THE PROPER PRIDE The Pharmactive Board Member Levent Selamoğlu, who spoke at the shipment ceremony of the first export products to Europe, said, “We are proud that Turkish products are reaching doctors, pharmacists and patients in Europe. He said that “even though Pharmactive is a new domestic company established in 2010 and completing its production facilities in 2012, it continues to grow rapidly and today it has achieved a significant success by sending its first batch of products to European markets. Emphasizing that

With its flexible and high manufacturing capacity, Pharmactive strives to offer a timely, proper and bestquality product service to contract customers.

Pharmactive attaches great importance to the R&D activities, Selamoğlu stated that, “In the direction of growth targets in export markets, more than 100 products which are developed and produced in Pharmactive R & D units will have offered to the service of patients by the end of 2017. Levent Selamoğlu stated that their goal is to achieve at least 25 percent of the total endorsement through export in 2022 and aim to reach an export figure of approximately 60 million dollars. Pharmactive made its first export to Europe with one million boxes of drugs.


WHOLLY DOMESTIC COMPANY Selamoğlu stated that, “we aim to be the export leader among the 100 percent domestic companies of Turkey.” Selamoğlu said that, they plan to reach this goal with European exports within the next 5 years, and they are expanding their portfolio by developing new high-tech equivalent drugs at the R & D center to make success sustainable.


İnci Ayyıldız, General Manager of Pharmactive Overseas Markets and Strategic Planning, announced that they applied 350 license applications in 28 countries and aim to start sales of Pharmactive products in 50 countries in Europe, Middle East, Africa, Russia and CIS region until the end of 2019 within short and medium term export targets. Ayyıldız noted that they aimed to include the USA and Far East countries among export markets as well. After the speeches, the first truck loaded with the drugs produced at the Pharmactive production facilities took the road to Europe.









Eurasia Urban Fair TÜYAP – İSTANBUL

08-10 November 2017

10th International Energy Congress and Fair / EIF 2017 Ankara Congresium - Ankara

“10th International Energy Congress and Fair / EIF 2017” is a platform, in which wide range of topics related with energy production in Turkey and all around the world, will be discussed. The purpose of this congress, which will be organized by our association under the auspices of Republic of Turkey, Ministry of Energy and Natural Resources, is to evaluate all dimensions of various energy sources and energy markets and also create an environment that discusses latest developments and practices in many ways.

Infrastructure and Landscaping for Livable Cities Fair, aims to build the safe, more easily accessible and welcoming cities of the future. Bringing together the top-level decision makers in the Eurasian region, Eurasia Urban Fair focuses on urban development. Thanks to the fair, people can see the future of the cities; have opportunity to follow the developing sector, meet the decision makers of public and private sectors, build new business connections and business opportunities and directly observe new products and technologies.


ARCHITECT@WORK IFM Yeşilköy –İSTANBUL 04-05 November 2017


4th EKSPOSHOES ISTANBUL Pullman Convention Center – İSTANBUL

TÜYAP Anatolian Fairs will be hosting SANTEK 2017 - the 4rd Eastern Marmara Industry and Technology Fair in association with the Kocaeli Chamber of Industry (KSO) and the Kocaeli Chamber of Commerce (KOTO) with the support of the Governor’s Office of Kocaeli, the City of Kocaeli and the Eastern Marmara Development Agency at the Kocaeli Municipal International Exhibition Center between November 2 and 5, 2017, NOVEMBER 2017 ISSUE 52

The very first ARCHITECT@WORK Istanbul event, held on 4-5 November 2016, has been successful in terms of both visitors and participants. A total of 1327 architects and interior architects visited ARCHITECT@ WORK Istanbul: 608 on Friday and 719 on Saturday. Our visitors were unanimously positive about the quality of the offer and expressed their excitement about this new, stylish concept. More than 80 innovations, which were carefully selected, have been introduced to this exclusive audience for 2 days.

EKSPOSHOES, an exhibition of fashionable leather footwear, which will be held 4th times in Istanbul and will provide a wide range of footwear (women’s, children’s shoes, sports, for workers and slippers) and other leather accessories (bags, suitcases, belts, purses, etc.). This exhibition will be held on area of 16,000 m2, where more than 100 famous footwear manufacturers of Turkey will show their new models for 2018. Place of the exhibition EKSPOSHOES in center of Istanbul, in Pullman hotel, which is located near the Shoe center, and Ataturk Airport. Between Airport and Pullman Convention Center about (3 km).




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

2017 1 - 30 September

Sectors (Thousand $)

2.152.110 1.294.611 1.280.260 868.672 746.656 664.711 522.426 481.126 474.500 379.271

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

Data: TİM

DOUBLED IN SHIP AND YACHT EXPORT Ship and Yacht sector is rising successfully and doubled its figures compared to period of January-August 2016.

JAN - AUG JAN - AUG Total Export



Top 5 countries with the highest export growth* Turkey’s export growth is rising unceasingly among these countries compared to the same month of the previous year.

494. 494.000 $ 903. 961.000 $

The first 3 countries to export Country


Value (%)

Marshall Island




Kocaeli Free Zone
















September 2016 September 2017

VALUE (Thousand $)

ICELAND 126.453.000 NORWAY 130.156.000

MALTA 146.962.000

Cities with the most ship and yacht export Country


COUNTRY (Thousand $)

VALUE (Thousand $)

KOCAELİ 19.723.000

İZMİR 43.425.000 YALOVA 190.340.000

İSTANBUL 628.650.000 Data: AA

* Among the countries exported over 10 million dollars

64 Figures




share of tOP 20 COuNTRIES ın total export (%)





Turkish exports shares to most prominent 20 markets in September 2017.



6,39 USA

















5,75 Algerıa


Data: TİM


saudı arabıa









KURBAN BAYRAMI 20X26cm.indd 1 B777 YENI FOTOLU 20x26cm ING.indd 1 KURBAN BAYRAMI 20X26cm.indd 1

17.08.2017 15:45 21/04/17 19:07 17.08.2017 15:45

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