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76 Pages·2015·17.9 MB·English

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PANORAMA
Historical Lessons from FED’s
Past Cycles
BRIEFING
Turkey’s Journey of Success:
Intrapreneurship
INDEPTH
Football Economy
BRANDS
Productisation of Anatolian
NOVEMBER-DECEMBER 2015 ISSUE 31 ECONOMY BUSINESS FOREIGN TRADE ANALYSIS Culture: Ece Şirin
20
G SUMMIT:
SHAPING THE FUTURE
The top twenty economies
gathering together again,
this time in Turkey.
rd th th
3 - 4 - 5 DECEMBER 2015
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The Turkish Perspective 1
05 | Watering theFlower of Peace
06 | Turkish Growth Continues
06 | Turkish Airlines Showing
Promise in North America
07 | Foreign Investors Ink 53 M&A 13 pANoRAMA
Deals in the Turkish Market
11 | Innovatıon Week Event Will hIsToRICAl lEssoNs FRoM
be Held in Adana FED’s pAsT CYClEs
09 | Mercedes-Benz to Invest in After nearly a decade, the
Their 20th Anniversary countdown for FED’s rate hike
began.
12 | Turkey and Japan Seek for
Streghtening Their Ties
42 CoVER
FEllowshIp oF ThE TwENTY
The top twenty economies gathering together again,
this time in Turkey; one of the first countries where
12 13
alliances were born.
15 BRIEFING
15 | TTMs:CENTER oF ThE 2023 GoAls 32 | NEw TuRkEY BRAND: wIll sooN
Turkey Trade Centers are another BE EVAluATED
step towards Turkey’s 2023 export As New Turkey Brand and its logo
targets. According to the new act, has found wide usage, the brand is
governmental support up to 75%
ready to leave the initial phase behind
will be given to the newly built trade
and results will be visible in the
centers.
forthcoming term.
17| TuRkEY: ThE lAND oF sTEEl 35 | TuRkIsh CAll CENTER sECToR:
CAll oF suCCEss
15 20 | TuRkEY’s 4.5G ADVENTuRE 32
35 | ThE AMBAssADoRs MEETING
22 | TuRkIsh sEAFooD: TREAsuRE 38 | RE-poRTING FRoM İsTANBul
uNDER ThE sEA
The Third Airport project will serve a
lot for the Best Aviation Company in
24 | RoCkET YouR BusINEss
Europe, Turkish Airlines.
26 | IsTANBul: A REMARkABlE 40 | MAkING ThE RouNDs: TuRkEY
CoNGREss TouRIsM CENTER CouRTs INVEsToRs AhEAD oF G20
A series of high profile events in
29 | IFs 2015: sIxTh CAuCus oN September and October allowed The
FINANCE Investment Support & Promotion
Organized in 8-9 September, 2015, Agency of Turkey (ISPAT) to
29 the 6th Istanbul Finance Summit showcase Turkey’s lucrative investment
40
seen huge attendance from both environment to international investors
and business people.
public and private sectors.
2 Content
MANAGEMENT
Publisher on behalf of Turkish
exPorTers assembly/ Chairman of
The Turkish exPorTers assembly
52 IN DEpTh MEhMET BÜYÜkEkŞİ
52 | All RoADs lEAD To lAssA ManMaAgNeArG IEnM CEhNaTrge
Publhis.h BeArD oEnR b AeRhsallfA oNf P ThuDrkish
Being a trademark of Brisa exPorTers assembly/ Chairman of
The TurPkUiBsLhI eCxaPToIOrnTe BrOsa arsDsembly
Inc., Lassa is a pioneer of MEhMM. EİlTk BEÜRY AÜYkCEI kŞİ
Turkish brands that earn global TEMEl koTİl PhD
Manager In Charge
BÜlENT AYMEN
reputation. loREM IpsuM
MusTAFA ÇIkRIkÇIoĞlu PhD
sPÜUlBELYIMCaATNI Okno CBAOsaErRDT
ZMEk. İElRkİEYRA AMYECTIE
TEMEl koTİl PhD
BÜlENT AYMEN
MpuuBslTIACFAAT ÇIoIkNR MIkAÇNIAoGĞElMu EPNhDT
sÜlEYMAN koCAsERT
ZEPkrEeRsİYIDAe MnETTE
MEhMŞEAT hMİÜNC oAkhTİADY D EMİR
puBlICvIACTeI oPNr eMsAIDNeAnGTEMENT
YAPŞrAeRs MIDAeMnATTİ
MEhMET MÜCAhİD DEMİR
56 IN DEpTh
PrOJeCT COOrDInaTOr
vICe PresIDenT
İBRAhYAİMŞA ERD MhEAMM GATöİkhAN
FooTBAll ECoNoMY
MaaCrCKOeUTnInT gD DIrIreCeCTOTrOr
M. BAİhBARDAIhRİhMA GNö DkİhNAÇNAslAN
Footbal is nowadays is more than just a sports activity,.
PrOJeCT COOrDInaTOr
It is but a huge industry involving giant budgets, even TuREDGuITTo ERTIAİNlGÜ
having an impact upon national economies. rEeDPIOTorRTIeArls
MaEnFaEg DInAŞg MeDAINTOr
61 OF eCOnBOERMkICA PNU kBİLŞIİCNaTIOns
ohNAulRİ kl okÇApAlsAlANN
67 | ThIRD GENERATIoNs oF 68 AGENDA ENGİN öREN
COnTenT eDITOr
suCCEss: sAİT DERİ MC. OBnAhTrADIBIURThIAnNg DrİeNPÇOArsTleArN
61 BRAND Turkey is home to stories of many FAIRs, ExhIBITIoNs, suMMITs, AND GöZrDePE OBrATleCrIssoY
61 | DEsIGNER: ECE ŞİRİN small family businesses turning MEETINGs IN ThE NExT Two MoNThs CYAOĞnITZr öIBZEURTCOArNs
COnTrEIRBkUİTNI nŞgA hrİeNPöOZrTers
From the day it has created into global companies. Sait Deri is 70 FIGuREs EMRE kuRBAN,
until now, world’s first talisman a bright example of such Turkish BERDkEAsNIG kNİŞİN
brand BeeGoddess sparkles success stories. FIGuREs oF G20 CouNTRIEs, CrheaAarRTTuI DvNeIr ADekICrTTeuOCNrTÇO r
AhMET sAİD ÇElİk
with 72 symbols and over 800 ExpoRT PhOTO eDITOr
different designs. Ece Şirin laorRT EDMIr IepCsTuOMr
offers 12 different collections in hAILRLuUsNT ArkaTTuOrN Ç
sEDAT GİRGİN
an 8-year period.
COnpRTrINIBTUINTGOrs
64 | pAINTER: BILneloT RMEaMTB IpasauCIMLIK ve
aMBaLaJ san. a.Ş.
AhMET GÜNEŞTEkİN DUDULLU OrgpaRnIİNZeT I sNaGnaYİ BöLgesİ
1. CBaİDLDnee Tn MOa: 1T6B,a easCeInLKIKe nT
Inspired by Anatolian and BİLTUrÜ BMarsaInMİ YYaeY /I nİs vTea hnİBZUMLeT a.Ş.
Mesopotamian culture, as well DTUEDlU: L4L4U4 O4r4g 0a3n İ•Z we wsawn.baiYlnİ e Bt.önLegt.etsrİ
as Turkish novelist Yaşar Kemal, 1. CaDDe nO: 16, esenKenT
ÜMranİYe / İsTanBUL
Ahmet Güneştekin re-creates the TEl: [phone] • www.bilnet.net.tr
images and stories of the ancient
Anatolia towards today..
CCOOnnTTaaCCTT
TT.. ++9900 221122 221111 1166 4466
FF.. ++9900 221122 221133 7777 7755
ttttpp@@mmeeddyyaattrr..ccoomm..ttrr
64 wwwwww..mmeeddyyaattrr..ccoomm..ttrr
neither text nor photographs from this
pnuebiltihceart itoenx tm naoyr pbhe oretopgroradpuhcse dfr ionm fu tlhl iosr
ppaurbtl wicaitthioonu tm aacyk nboe wrelperdogdinugc ethde in s fouulrl coer
paanrdt wseicthuoriuntg a pcrkionro pwelremdigsisnigo tnh fer osmou trhcee
and securing ppriuobr lpisehrmeri.ssion from the
publisher.
noVember-DeCember 2015 issue 31
The Turkish Perspective 3
Editorial
MehMet BüyükekŞi
President (tiM)
We Are IncreAsIng
Our MArket shAre In eurOpe
Despite the overall fall in the commodity prices and insecure exchange rates, Turkey
managed to increase its quantitative export.
A ccording to the latest that export volume is decreasing globally. increased our share in EU28 imports to
reports of IMF and World Bank, During the same period, Turkey suffered 1.2%. Therefore we understand that our
2015 and 2016 global growth forecasts a 10% loss, less than the average decline export is better than it seems at the first
are revised downwards, meanwhile throughout the world. glance.
World Bank’s October report increased Despite the decrease in global growth In order to ensure increase in export
Turkey’s 2015 growth forecast from 3.0% and narrowing trade volume, our of high value-added products, we
to 3.2%, which affected our expectations exporters are continuing to increase their need to understand the importance
from the future positively. Besides, 2016 export in terms of kilograms. In the first of innovation, R&D, design and
and 2017 growth forecast by World Bank nine months of this year our agriculture branding. The 2015 results of Global
is 3.5% for Turkey. and industry sectors experienced 1.6% Innovation Index, announced previous
FED’s interest rates policy is still increase of export in terms of kilograms. month, testify this. In the report, the
influencing economies of the developing Moreover, in the first nine months our three fundamental factors in order
countries. Moreover, it is the first time export to European Union increased by to make Turkey a leading innovative
we have witnessed that foreign currency 1.8% in terms of kilograms, and 7.3% country are stated as strengthening
reserves of these countries decreased in terms of Euros. This demonstrates the entrepreneurship and innovation-
since 1989, and their currencies lost that Turkey managed to increase its oriented education, direct financial
value, returning to their value of 15 quantitative export and gained market R&D support and political stability.
years ago. Ongoing decline in the share while per-unit prices fell and global In this regard, as we mention on all
commodity prices is still affecting our trade suffered a recession. According platforms, we believe that decisive
export negatively. Furthermore, the to the data covering last 12 months, we steps regarding innovation are vital
fading economic boom in China causes for our future. Within our Turkey
concerns in global markets. On the other Innovation Week activities, which we
hand, in the second quarter, economic have been holding for last four years,
growth in European Union has slightly we will host panels themed innovation
increased to 1.6%. We expect the growth in NGOs, entrepreneurship, design
to increase subsequently. and architecture, digital world and
Declining commodity prices and fall future smart cities, in Adana on 5th
of EUR/USD parity caused the world and 6th of November, 2015. In the
goods trade decrease by 11% in the event which will bring industrialists,
first seven months of this year. As USD scholars, entrepreneurs and students,
gained value throughout the world, our partner country will be Finland and
export volume of many countries shrank. we will host prominent speakers from
For instance, one of the countries that we Finland. Technology futurist Jordan
export to most, Germany, suffered a 13% Brendt and author of book “The Medici
decline in export in first seven months. Effect”, Frans Johansson are among the
France, Italy and Spain similarly suffered speakers. We would enjoy to see everyone
a 15% decrease in export, Brazil and interested in innovation visiting the
India 16% and Russia 30%, it is obvious event.

The Turkish Perspective 5
Content: Rolls-Royce Joins Turkish Hi-Tech Center Project P06 Foreign Investors Ink 53 M&A Deals in the Turkish Market P07 Beko Entering the US Market P08
Mercedes-Benz to Invest in their 20th Anniversary P09 Turkey Brand Cars on Roads P10 Turkish Airlines and Monocle Cooperate for Top 20 Destinations P10 Mars
Logistics Set to Expand Further P11 Turkey and Japan Seek for Streghtening Their Ties P12
Editor: İbrahim Edhem Gökhan
first
ECONOMY, M&A, R&D, INVESTMENT, AUTOMOTIVE, LOGISTICS, FINANCE, POLITICS...
The construction
POLITICS of the pipeline
has jest been
completed.
waterıng the flower of peace
Turkish Prime Minister Erdoğan stated that new water supply pipe project from
Turkey to Turkish Republic of North Cyprus will enhance the peace talks.
T HE TURKISH for the next 50 years. water supply project
Republic of It is also the first line will also contribute
Northern Cyprus between Turkey and to the economy of
water supply project TRNC that suffered the Cyprus by enabling
is the first underwater lack of surface water the irrigation of 4824
pipeline between the and groundwater since ha area. The total
mainland and an 1950s. This project investment made by
island in the world that aims at helping the authorities for the
is approximately 80 people to improve the project is around $820
kilometers and it will living standards in this million. President
supply 75,000,000 region and according Recep Tayyip Erdoğan
PhOTOGRAPh bY PRESIDENCY OF TURKEY mito(MrhTfr 3eeRiNg r ToNsaouiftrn Cidrto,hkT)rn ieiufsn rrwhronkk ami ReCntyee gy rpap atunrnoubn dslui ca lly twpTCsoeeuyip laPprlack rrareieicaso spchttieerds adol ewenc.nr eThdats to hsEGe iw brsrtd heeeueotrenwkeğ i aeqneun,e sbfaDooatnea ri P d dy2pe e0teeashvatccihecersne i aJbp’t unisern loddiy njh .eFa icCsrst e y‘ swecppdaarenotueem scr h
6 first
FINANCE R&D AVIATION
turkısh turkısh aırlınes
Rolls-Royce Joins
growth showıng
Turkish Hi-Tech promıse ın
contınues
north amerıca
Center Project
Driven by domestic
consumption, Turkey’s North America is
Rolls-Royce has signed a cooperation agreement
economy continued to Turkish Airlines’ fastest
expand in the second with Turkey’s top scientific body, the Scientific growing passenger
quarter of 2015, achieving and Technological Research Council of Turkey region. The region
a year-on-year growth rate (TUBITAK). forms a relatively
of 3.8 percent. Accord- small proportion of
ing to data released by its total network, but
the Turkish Statistical contributes five of
Institute (TurkStat), the the airline’s top 10
country’s economy has
international routes by
continued on its growth
ASKs (Istanbul to New
track since the last quarter
York is the biggest).
of 2009 and beat the
After launching services
3.3% market estimate.
from Istanbul to
TurkStat also revised
Boston and Montreal
the country’s first-quarter
in 2014, it started San
growth rate from 2.3%,
Francisco this summer
to 2.5%. The Turkish
and will add Miami this
economy’s high growth
winter to give a total
rates are largely due to
of 10 North American
strong domestic demand
destinations. In 2016, it
and private sector
will commence flights
investments. A CCORDING to the deal, cooperating with experienced
to Atlanta.
Commenting on the Rolls-Royce becomes companies like Rolls-Royce,
Turkish Airlines is
growth figures, Turkey’s the first industrial lead and with a proven record of success,
the sole operator on
Minister of Economy, founding member of Turkey’s is important for Turkey in order
all but one of its USA/
Nihat Zeybekci, said that Advanced Manufacturing and to develop advanced industrial
Canada routes from
despite the slowdown Technology Center (AMTC), capabilities. The project will
Istanbul (and its only
in the global economy, a research and development also serve to improve supplier
competitor, to Toronto,
observed during the project established by Turkey’s quality and capabilities through
second quarter, Turkey Ministry of Science, Industry its training programs.” is also a codeshare
managed to grow beyond and Technology, to develop Also speaking at the partner). This clearly
expectations. The Minister advanced capabilities for the ceremony, Patrick Regis, CEO positions it strongly
remarked, “affected by country’s national projects. of Rolls-Royce Turkey and in the Turkey-North
developments around the Also endorsed by the Central Asia, said that Turkey America O&D market.
world, the contribution Ministries of Energy, was planning a world-class Its expansion brings
of exports to the GDP Transportation, and Defense, manufacturing industry increased competition
growth has declined. With the project, initially aimed at and to become one of the with the much more
the recovery of exports, the aerospace industry, has leading nations in defense highly publicized Gulf-
we can say that Turkey’s future plans to encompass and aerospace technologies by based super-connectors
GDP growth will achieve nuclear energy, maritime 2023. He said, “Rolls-Royce in North America, but
a growth rate above 5 technologies, and other sectors. has chosen Turkey for its high Turkish Airlines should
percent.” Speaking at the signing skill levels, quality labor pool not fear this.
In 2014, Turkey’s ceremony, Fikri Işık, Turkey’s and manufacturing prowess.
annual economic growth Minister of Science, Industry, This initiative will form the
reached 2.9 percent. and Technology, said that regional supply chain to
Turkey’s manufacturing meet the future needs of the
industry is well positioned to aerospace industry.”
grow as a high added-value The AMTC is open for both
sector. international and Turkish
Işık added, “We believe that companies to join.
NOVEMbER-DECEMbER 2015 ISSUE 31
The Turkish Perspective 7
M&A INVESTMENT
Foreign Investors Ink 53 M&A
Deals in the Turkish Market
Turkish market attracts attention as foreign parties have reached a
volume of $3.5 billion during the first eight months of 2015.
5
“Foreign investor interest
DyDo Drınco 3
in fast-growing mid-sized
acquıres Turkish businesses in
consumer-oriented industries
turkısh
is likely to continue into the
beverage future, given the growing
population and rising income
branDs
levels”, Akgün noted.
Significant transactions
Japanese beverage in Turkey this year include
giant, DyDo DRINCO, the complete acquisition
has acquired 90% of online food delivery
stakes in the beverage company, Yemeksepeti, by
manufacturing Delivery Hero for $589
subsidiaries of Turkey’s million and Dubai-based
largest food products private equity investor
group, Ülker. Abraaj Group’s partnering
Yıldız Holding, the with Hepsiburada.com,
owner of Ülker brand, Turkey’s largest online
has reached a deal with retailer, for a deal said to be
DyDo for $110 million M ERGER AND the M&A operations are around $400 million. Abraaj
for the sale of 90% ACQUISITION the full financial details also invested in matress and
shares in each of its (M&A) operations in the publicly disclosed, and the bedroom textiles producer,
beverage units, Della Turkish market involving real volume is likely to be BRN Baza Ev Tekstili,
Gıda, İlk Meyve Suları foreign parties have reached appreciably higher. and Yu-Ce Medical, a
and Bahar Su. Yıldız a volume of $3.5 billion Out of the 124 deals, 53 medical supplies producer.
Holding will retain the during the first eight months with foreign involvement Another investor from the
remaining 10% shares in of 2015. Participating in have an estimated value of Gulf region, Investcorp,
the said companies. 53 transactions between USD 3.5 billion with the from Bahrain, took over
In a press release, January and August, foreign year-end expectation of the majority stakes in the
the Japanese company parties opted to invest heavily this figure exceeding USD 5 Turkish telematics company,
cited Turkey’s young in Turkish high-tech and billion. Arvento Mobile Systems
population and internet companies, while During the first eight while private school network,
economic growth chain retailers, restaurants months, foreign investors Mektebim Okullariı gained
prospects as the main and private school networks concluded 22 M&A deals a Saudi partner, SEDCO
reasons behind the in the country also saw in high-tech and internet Holding Group, with a
investment, stating that an increased cross-border sector, followed by deals in 50-percent stake sell.
it planned to expand demand. real estate-construction, More recent activities
the product line in the The total volume of 124 manufacturing, food, include the Qatari
Turkish market. M&A operations made by beverages and energy investment fund Mayhoola’s
Already partner to a local and foreign investors industries in smaller partnering with the Turkish
number of global food in Turkey during the given numbers. retailer, Boyner, via a 30.7%
and beverage companies, period has reached USD Akgün stated that the stake acquisition deal for
Yıldız Holding had 4.3 billion, according USA, Germany, the UAE, $332 million, and the French
previously sold stakes of to Mustafa Akgün, a Austria and the UK, lined Lactalis Group’s 80% stake
its pasta producing unit, director at Pragma, the up as the origin countries acquisition in the Turkish
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8 first
MOU INVESTMENT FDI
fDı ınto
İncİ akü
turkey
teams up wıth
up 22% ın
Japanese
fırst seven
gıant
months
A world leader in
battery solutions, GS Foreign direct
Yuasa Corp of Japan, investment (FDI) into
has entered into a Turkey went up by
partnership agreement 22% during the first
with the Turkish seven months of 2015,
battery manufacturer, reaching $9.7 billion,
Beko Entering the US
İnci Akü. Following over the same period of
a Memorandum of last year.
Understanding that Market In July alone, $3.4
was signed last April, billion has been
talks between the two channeled into Turkey,
Increasing its global brand image in Europe, Beko decides
companies have reached the main utilizing
to enter the United States.
a successful conclusion sector being financial
with the signing of the services with over $2.1
partnership agreement A LREADY KNOWN in market however our line-up suits billion, according to
announced on the Inci European markets for its smaller homes, which is trending in data from Central
Aku website. leading white goods brand, Beko, the the US now,” he said, adding that the Bank.
According to the Turkish manufacturer Arcelik is now company was also designing new Turkey ranked 22nd
statement on Inci Aku heading to the US. The Koc Holding products especially for the US market. in the world in foreign
website, the equal-share subsidiary is preparing for an On a growth track in Europe, Beko direct investment
Turkish-Japanese joint entrance to the world’s second largest is increasing its share in the region’s (FDI) in 2014,
venture will operate durable goods market by the end of key markets, including Germany, attracting around
under the Inci GS this year, according to its Director Spain, Italy, and Russia while already $12.5 billion.
Yuasa brand, aiming for General, Hakan Bulgurlu. being the leader in Poland.
domestic and regional “We want to repeat our success Being the largest manufacturing
leadership in battery in new markets around the world,” hub in Europe for white goods, the
products. Bulgurlu told reporters at the IFA Turkish home appliances sector
“With its strategic 2015 trade show held in Berlin, exported 75% of its products to
location and strong Germany, stating that Turkish-made markets abroad in 2014.
industrial capacity, appliances are already being used to In addition to local brands,
Turkey is a key player furnish the kitchens of New York’s Arcelik, Vestel and many others,
in a region where landmark development projects with Germany’s BSH and Italy’s Indesit
GS Yuasa intends to Beko’s standalone entry into the US and Candygroup have production
expand its footprint. market expected by the end of the and product development operations
The partnership deal year. “The US is a large but difficult in Turkey.
with Inci Aku is very
important in this
export champıons of september 2015
respect”, GS Yuasa
President Osamu Murao According to the export reports of September, published by Turkish Exporters’ Association in 1 October,
said about the deal. He Automotive Industry holds the high ground, which is followed closely by Apparel Industry.
added that Inci Aku’s
production facilities in
1.87 1.39 1.09 0.86
Manisa would become a $ $ $ $
manufacturing base for
GS and Yuasa branded-
bıllıon bıllıon bıllıon bıllıon
products as well.
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NOVEMbER-DECEMbER 2015 ISSUE 31