In the event "Overview of the Sub-Saharan African Economy" held on April 19, 2021 with Standard Chartered Bank, foreign investors in African countries, the investment environment in the region, common problems and solutions to them were discussed.
The highlights of the online event "Regional Effects of Global Geopolitical Developments on Turkish Companies", moderated by Abdullah Çerekçi, Chairman of DEİK Foreign Investments Business Council, and Sinan Ülgen, Chairman of the Economics and Foreign Policy Research Center (EDAM) as a speaker, are as follows:
• Economy and Foreign Policy Research Center (EDAM) Chairman of the Board Sinan Ülgen stated that the COVID-19 epidemic will not change the global value chains permanently and that the reason for the decrease in world foreign trade during the epidemic period is due to the decrease in trade rather than the withdrawal of companies from the market.
• One of the most discussed issues with the epidemic was whether Turkey could get a share from the shortening of global value chains and the 'nearshoring' cake. Based on the 2008 crisis, this epidemic is not expected to have a permanent impact on global value chains.
• The European Union, which has not wanted to show a tooth against China until today, is gradually hardening its attitude towards China and can act jointly with the United States on this issue. For this reason, it is expected that the West-China relationship will not be the same as before. In this respect, changes in China's supply chains seem likely. Turkey, on the other hand, seems to be forced to decide which bloc to be close to.
• Technology will have a lasting impact on the course of trade and investments. Manufacturing technologies and new generation automation have a transformative effect. Although the unit cost increased on the Chinese side, productivity increased as well. Labor is no longer the main issue on the EU side. Technology, Production Costs, Politics are becoming evident as the most fundamental transformative and permanence factors.
• The Green Deal points to a serious structural transformation, and with border carbon regulations, Turkey may lose its competitiveness in trade with the European Union, which ranks first in exports.
The highlights of the conference titled "Consumer Trends and Prominent Investment Areas in the New Normal" held on 16 December 2020 with the participation of the international consultancy company McKinsey & Company Turkey Managing Partners İlke Bigan and Togay Özen under the moderation of Abdullah Çerekçi, Chairman of the Foreign Investments Business Council, are as follows:
• With the start of the pandemic consumers' arbitrary spending, other than their essential needs, decreased by 50%. Companies need to act according to this new macroeconomic balance.
• Economically, it will take 2022 for investments and expenditures to return to their pre pandemic state. Although there is a high probability that vaccines and applications will start to be effective in the second half of next year, the normalization process of people may vary according to the sector and region.
• In addition to the contraction and loss of income in various sectors such as energy and aviation, there are also sectors that significantly increased their business volume. This differentiation between services and sectors can only be balanced in the medium term.
The International Jeop Agenda and Global Investments was held on 22 October 2020 with Mr. Gökhan Taymaz, General Manager of QUATRO International Inc.
The long-term effects of COVID-19, the shortening of global supply chains and the orientation of manufacturers to local markets were discussed at the "Post-Pandemic International Supply Chains and Turkey" event held with Kearney Management Consulting on September 17, 2020. Turkey needs to focus on strengthening its position in the shortened supply chains, providing different services, and investing in new industries by using its geographical location and competencies in the manufacturing industry. In this context, it is mentioned that Kearney has the knowledge and competence to develop a strategy for Turkey's new position in global supply chains.
World was going through shifts in trademaps even before Covid-19. While manufacturing imports to the US from China have declined, those from other Asian LCCs and Mexico have grown between 2018 and 2019. During this time Vietnam accounted for almost half of US imports gained by Asian LCC Countries. After the pandemic, the World went through a change in terms of consumers, industries, and governments. In the seminar, packaging, textiles, automotive components, medical equipment, automation, and the PPP in Africa and the potential business ideas that could benefit Turkey in terms of these topics were discussed.
Kadir Has University (KHU) and the Foreign Economic Relations Board (DEİK), both based in Istanbul, Turkey, and the Vale Columbia Center on Sustainable International Investment (VCC), a joint initiative of the Columbia Law School and The Earth Institute at Columbia University in New York, are releasing today the results of their third annual survey of Turkish multinational enterprises (MNEs). Conducted in 2013, the survey is part of a long-term study of the rapid global expansion of MNEs from emerging markets and covers the period from 2010 to 2012.
Highlights
In 2012, the 29 largest Turkish MNEs had foreign assets totaling US$ 36.7 billion (Table 1), foreign sales of US$ 23.4 billion, and 115,539 foreign employees (Annex I, Table 1). Top five companies together controlled 58% or a total of US$ 21.4 billion. Top ten companies controlled slightly more than 70% of total foreign assets, amounting to US$ 26.4 billion. Five out of these ten are conglomerates ; the remaining five are active in the infrastructure, glass, oil and gas, food and beverage, and energy sectors. Nineteen of the 29 MNEs are listed on the Istanbul Stock Exchange, with two of those companies being also listed on a foreign stock exchange.
These 29 MNEs have 426 subsidiaries overseas, 326 of which are located primarily in Europe and Central Asia, followed by Middle East and Africa (53), East Asia, South Asia and the developed Asia-Pacific (31), and the Americas (16). Since the previous report published in 2011, the number of Turkish MNEs investing more than US$ 100 million has increased from 19 to 29. A comparison of the top 19 of the previous report to the top 19 of this one indicates that there has been a rise in foreign assets, total assets, total sales, total employment, and number of host countries, however the same comparison also shows that foreign sales, foreign employment, average TNI, and number of foreign affiliates have declined (Annex I, Table 8).
There had been a number of additions to the previous survey. Following the EMGP methodology used, which requires a minimum of US$ 100 million in investment in foreign assets ten new MNEs fulfilling this condition were also included. These are; Anadolu Group (conglomerate), Yıldırım Holding (conglomerate), Gübretaş (fertilizers), Kürüm Holding (iron and steel), Evyap (consumer products), Turkish Airlines (airlines), Türk Telekom (communications), Hayat Holding (conglomerate), Ekol Lojistik (logistics), and Teklas (automotive).
Hosted by DEIK Outbound Investments Business Council and supported by Islamic Development Bankı (IsDB), FDI Center and Norton Rose Fullbright, Overseas Investments Forum was held in Istanbul on December 19, 2019 in Istanbul. Opening remarks were made by DEIK Outbound Investments Business Council Chairman Volkan Kara and Regional Manager of the Islamic Development Bank Group Regional Hub Turkey Salah Jelassi.
In the forum, the effects of possible international sanctions on the external assets of companies were discussed by Norton Rose Fulbright experts. Andreas Dressler, Managing Partner of Berlin-based Fdi Center, informed the participants about the location selection in foreign investments. The Overseas Opening Guide prepared in partnership with DEİK and Fdi Center was shared with the public.
You can access the report at https://www.deik.org.tr/contents-fileaction-20200.
Stating that Turkish foreign investments have grown more than 10 times in the last 15 years, DEİK / Outbound Investments Business Council Chairman Volkan Kara said, "Our companies have now started to prove themselves on a global scale and have strategically positioned globally rather than the mandatory conditions in the domestic market. We expect this trend to continue in the coming period. As a developing global player Turkey is increasingly carried out abroad M&A and greenfield investments abroad and scratches a certain standard especially after 2010. Outside on the post-2010 according to our calculations, Turkey's annual average international investments is around US $ 4 billion annually."This is certainly not enough. Foreign investments should definitely be included in our medium and long-term economic targets. We can reach annual capital export levels of over $ 10 billion "said.
In his remarks, Mr. Salah Jelassi also referred to the great emphasis that the leading multilateral development bank of the Muslim world places on fostering and promoting and promoting economic and social development of its member countries and Muslim communities in non-member countries.
"Under the IsDB Group President's Five-year Program (P5P) to transform the Bank to fit into a new development agenda, one of the core pillars is IsDB Group's aspiration is to support enhanced competitiveness and greater integration of its Member Countries into Global and Regional Value Chains", Mr. Jelassi explained.
The Islamic Development Bank (IDB) Group has been supporting Turkish exporters through strong cooperation with Turk Eximbank. The Group's cumulative financing support to Turk Eximbank amounts to more than US $3.3 billion. The sum includes $370 million financing by the IsDB and $2.9 billion financing by its trade financing arm, the International Islamic Trade Finance Corporation (ITFC).
According to Mr. Jelassi, collaboration with Turk Eximbank to boost export-related activities of Turkish contractors, midcaps and SMEs supports Turkey's aspiration to position itself as a global market leader through enhanced export competitiveness.
"Forign Direct Investment (FDI) acts as a powerful engine to enhance productivity, spread know-how, enable technology transfer, build new networks and open new markets and the IsDB Group would synergize its efforts to support broader integration of Turkish private sector companies into global value chains, which is so critical for enhancing their productivity and competitiveness," he elaborated.
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DEIK Outbound Investments Business Council President Volkan Kara evaluated the periodic foreign investment opportunities in the Foreign Economic Relations program offered by Melda Yücel on NTV. Video linkof the program.
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DEİK announced its Outbound Investment Index 2019' report.
Despite the Brexit process, the UK maintains its appeal to the Turkish investor
Despite the turbulent process of its divorce from the European Union, the U.K. has maintained its top rank as the most attractive destination for the Turkish business world, whose appetite for overseas investments increased last year amid a slowdown in global trade flows. This was revealed in the 2019 Outbound Investment Index prepared by the Foreign Economic Relations Board (DEİK) Outbound Investments Business Council in cooperation with Bain & Company Turkey. Data from the report show the size of Turkish overseas investments in 2018 reached approximately $6 billion.
Evaluated from the perspective of 500 leading Turkish companies, the report focuses on the risk and potential of investment regions with a general assessment independent of sectors for Turkish investors.
It evaluates countries according to the criteria: business environment and development level, know-how potential, domestic and neighboring market sizes, legislative infrastructure, production and raw material costs and relations with Turkey.
The index is prepared periodically and based on the fact that the internal dynamics of a country to be invested in affects investment priorities and examines the countries in three groups, namely high-, medium- and low-income countries.
The findings particularly highlight global investment flows, which have been slowing down especially in recent years. It reveals that the annual money flow of Turkey's foreign investments increased in 2018 despite having gone through a downward trend previously.
As in the previous year, in the category of high-income countries, the U.K. was the most attractive country for foreign investments for the Turkish business world, while Russia took the lead among middle-income countries, followed by Azerbaijan in the category of low-income countries.
Focus on China, Russia, India and Mexico
Turkey's overseas investments increased ten-fold in the last 20 years, said DEİK Chairman Nail Olpak in his address at the report presentation in Istanbul yesterday. He explained that the index reflects the priorities, motivations, and concerns of Turkish companies, unlike other foreign investment indices.
Based on this infrastructure, Olpak said that they are preparing a country-specific periodic index with the perspective of Turkish companies to help companies make investment decisions abroad.
"In preparing our index, we considered countries as high, middle, and low-income in accordance with the World Bank's income categorization. Not only that, but our report also includes annual investment outlook for continents and countries," Olpak said.
"According to this year's index, the U.K. is still an important center of attraction for Turkish investors despite the Brexit process just as in the previous year. At a time when world trade has slowed down and global trade wars have broken out, it is quite normal for our overseas investments to shrink. Nevertheless, in 2018, we observed that the total size of Turkish investors' overseas investments reached around $6 billion."
Noting that they focused more on China, Russia, India and Mexico, the target countries determined by the Trade Ministry, Olpak said to increase economic relations with these countries, they both prepared market guides and came together with the stakeholders to formulate the action plan comprehensively.
On the other hand, Volkan Kara, Chairman of DEİK/Outbound Investments Business Council, said that 18 of the most prominent countries in foreign investments are from Europe, and when Turkish investments are examined periodically, Europe continues to be the source and address of investment for Turkey.
"Another remarkable finding is that Eastern European countries maintained their position as an investment address in recent years. The region attracts a significant amount of investment from both Turkey and the world, especially for manufacturing operations," he continued. "We see that Eastern Europe attracted 32% of Turkish investments in 2018 on a transaction basis."
Pointing out that the U.K. and Serbia received 24% of foreign investments determined by the Turkish business world in 2018 on a transaction basis, Kara said according to the data obtained, in 2018, 40% of Turkish foreign investments were realized in Russia and Portugal.
He also said that the Asia Pacific region increased its weight every year, adding the region was included in the index with a total of four countries in 2017, eight countries in 2018, and 10 countries this year. "It is seen that the Asia Anew strategy announced by our government during the year will become evident in our business world in the new period," Kara stressed. "Even though African countries are a region that is always evaluated, especially for Turkish companies, with opportunity-oriented approaches, we observed that the commercial activities of Turkish investors in Africa last year outperformed real investments. In our investor perception survey, we also tried to evaluate the effects of the China-based Belt and Road Initiative. More than 50% of the participants agreed that the Belt and Road project has yet to have a concrete impact but had a positive impact on the outlook in the long run."
Turkish business world has high appetite
The Investor Perception Survey conducted with approximately 500 local companies shows that Turkish investors have high investment appetite.
The rate of participants with high investment appetite, which was 40% last year, rose to 50% this year.
While Turkish investors made 17 (four mergers and acquisitions) investments in Africa and the Middle East region in 2017, nine (one merger-acquisition) investments were made in 2018.
While they invested approximately $760 million in the region in 2017, the estimated amount of investments made last year was $655 million.
In terms of investment activity, tourism and textile sectors were at the forefront, while Turkish investors stood out for commercial activities rather than real investments.
In 2018, Burkina Faso attracted the highest amount of Turkish investment in the region. The Americas, in general, attracted more Turkish investments than in recent years. The U.S. drew $252 billion worth of investment in 2018 and maintained its position as the country that attracts the most investment in the world.
In the region, the U.S. ranked first in terms of the number of both investments from scratch and mergers and acquisitions. While the amount of Turkish investments made in 2017 was $100 million, the total value of six Turkish investments made in 2018 reached approximately $60 million. Meanwhile, the logistics and textile sectors took the lead in terms of investment activity.
Report Dowload link.
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With the participation of Zafer Koç, Deputy General Manager of AHK Türkei, German Chamber of Commerce, German Investment Environment was presented to Council members.
DEinternational is the brand used by German foreign trade chambers to provide their services. AHKs gather three different tasks under one roof:
1. Members administration,
2. Official representation of German trade in the country where the foreign trade chamber is located
3. Paid services.
Among the services; Personalized consultancy services, including the preparation of information materials and the provision of other resources or external consultants,
Conducting market research, including detection of important economic data, Identifying business partners in the form of finding suppliers, customers, investors, joint-venture partners and distributors and meeting the parties.
Moreover, to provide information on import, law and tax legislation. Referring to external experts according to their location.
UK Turkish Overseas Investment Forum was held on May 10, 2018 at London Conrad St James Hotel. Hosted by EEL Events and Co-Hosted by DEIK Outbound Investments Business Council, the event was designed upon the needs and requests of Turkish investors who are seeking to expand their operations globally.
Opening remarks were made by Outbound Investments Business Council Chairwoman Volkan Kara, Chairman of TBCCI Emma Edhem, UK Trade Envoy to Turkey Lord Janvrin and Turkish Rebuplic UK Ambassador Abdurrahman Bilgiç.
Supported and sponsored by Dentons, Clifford Chance, Dome Group, UK Department of International Trade, BCCT and TBCCI the event covered UK Business Climate, Brexit and Changing Trade&Investment Regulation, Structuring Foreign Investments in UK, Financing & Developing M&As and Outbound Projects, Retail Sector Highlights for Corporate Turkish Investors, Wealth Management & Real Estate Sector Highlights for international investors topics.
KEY SPEAKERS
• H.E. Abdurrahman Bilgiç, Ambassador of Turkish Republic to UK
• H.E. Lord Janvrin, UK Turkey Trade Envoy
• Volkan Kara, DEIK Outbound Investments Business Council Chairman
• Emma Edhem, Chairwoman of TBBCI
• Chris Gaunt, Chairman BCCT
• Barlas Balcıoğlu, Partner, Baseak & Dentons
• Phillip Souta, Head of UK Public Policy, Clifford Chance LLP
• Vomic Shah, Regional Head of Bus. Development UK Export Finance
• Antonio Marsocci, Managing Partner, Think Positive
• Omar Majid, Director, Salonica Gorup
• David Hutchings, Head of the European Investment Strategy, Cushman & Wakefield
• Tylor Hartwell, Head of Transport and Telco, Sumitomo Mitsui Banking Corporation Europe
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Select USA & US Investor Visa Programs were introduced in a meeting on Feb 2, 2018 at DEIK office. US Commercial Counsel John Coronado and Outbound Investments Business Council Chairman Volkan Kara hosted the meeting with the participation of US officials and council members.
The United States offers the largest consumer market on earth with a GDP of $18 trillion and 325 million people. Household spending is the highest in the world, accounting for nearly a third of global household consumption. At the same time, free trade agreements with20 other countriesprovide enhanced access to hundreds of millions of additional consumers –and the United States continues to work with foreign partners to increase opportunities for U.S. exporters.
Examples of Federal Support Programs and Incentives
EB-5 Visa for Immigrant Investors –EB-5 is a visa preference category that is available to immigrants seeking to enter the United States in order to invest in a new commercial enterprise that will benefit the US economy and create at least 10 full-time jobs.
Business Tax Credits in Renewal Communities (RCs) and Empowerment Zones (EZs) –Special federal tax incentives exist for businesses that hire local residents, upgrade their equipment needs, and build or rehabilitate commercial property in specially-designated areas.
Renewable Energy Investment Tax Credit –This credit reduces federal income taxes for qualified tax-paying owners based on capital investment in renewable energy projects.
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Hosted by Chadbourne & Parke and Norton Rose Fulbright and Organized in conjunction with the DEİK Outbound Investment Business Council, Investor State Arbitration Event was held on May 17, 2017 at St Regis Macka Hotel. Panel discussion on bilateral investment treaties, the protections afforded to investors and the valuation and funding of investorstate claims. The topics covered on panel:
¾ What is investorstate dispute settlement (ISDS) and why is it needed?
¾ What protections do investment treaties offer foreign investors?
¾ How to structure investments to benefit from investment treaty protections?
¾ Funding investorstate disputes Valuation and quantum – how are claims valued?
Introduction
Ayşe Yüksel, Managing Partner, Chadbourne & Parke İstanbul Ofisi
Volkan Kara, Chairman of DEİK Outbound Investments Business Council
Panel
James Rogers, Partner, Norton Rose Fulbright
Paul Stothard, Partner, Norton Rose Fulbright
NazIı Dereli Oba, Hukuk Direktörü, Karadeniz Holding
David Saunders, Genel Müdür, Berkeley Research Group
The Outbound Investment Index' report prepared in cooperation with the Foreign Economic Relations Board (DEIK) and Bain & Company was presented to the public at a press conference.
The index ranks the countries of the world based on selected criteria that are important for Turkish investors. Based on the fact that the periodically prepared index affects the investment priorities of the country's internal dynamics, this year; examines in 3 groups as high, middle and low income.
In his statement regarding the 2017 Foreign Investment Index, DEİK Chairman Ömer Cihad Vardan said that Turkish companies are a shining star in their category in order to become a global player with the mergers and acquisitions or investments from scratch abroad. Stating that foreign investments have increased 10 times in the last 15 years and the increasing trend has continued to increase, DEİK President Vardan said that the priorities of Turkish companies are far from reflecting their motivations and concerns. Stating that DEİK / International Investments Business Council is following an approach that prioritizes the sensitivity of Turkish companies while designing the index, President Vardan said, "The number of Business Councils that make up our backbone has also increased. Today, we continue our activities with our 135 Business Councils, 128 of which are on a country basis. We do not want the world to remain untouched or contacted, so to speak. In addition, instead of buying and selling products in these countries; We constantly think about how and with what investments we will ensure the development of our businessmen. In other words, while we are trying to attract foreign companies to our country in new and advanced technologies, we are trying to develop suggestions for our companies to go to countries that we think it is very convenient and profitable for them to invest. " DEIK Chairman Vardan, he recalled that the first and only study conducted in Turkey in the field of Overseas Investment Index and several international organizations, consulting companies, banks prepared by the investment index of the work of Turkish companies' priorities, he added motivation and concerns of the words is far from reflecting.
Volkan Kara, Chairman of DEİK Outbound Investments Business Council and Bain & Company Partner, in his evaluation regarding the report; "As can be seen from the findings of our report this year, although there has been a slight fluctuation in the global investment flows compared to the previous year, Turkish investments abroad have not been below the speed achieved in recent years. Global investment flows, under undersized global economic and commercial growth, fell 13% in 2016, reaching about $ 1.52 trillion. Global mergers and acquisitions reached $ 831 billion with a 13% increase, reaching the highest level after the 2007 crisis. However, with the triggering of large infrastructure projects carried out in a limited number of countries, new investments increased by only 5% compared to the previous year and reached 810 billion USD. In this context, I positively evaluate the performance of Turkish companies in foreign investments in 2016. In the index, in line with the behavior of the recent Turkish investors, in the selection of investment addresses; Countries with organic commercial ties and countries with political relations have become prominent, especially the Balkan countries and neighboring geographies. Production, tourism, infrastructure, energy, food and retail were the most invested sectors. " Stating that they will continue to invest in the foreign investment theme; "While companies that want to climb to the top of their value chain, foreign investments are an essential issue, they can be a springboard to overcome the structural problems of the Turkish economy," he said.
Methodology Index prepared with the contribution of DEİK Outbound Investments Business Council and Bain & Company consultants; world countries 'business environment and social development', 'know-how potential', 'domestic and neighboring market size', 'legislation infrastructure', 'production and raw material costs,' 'relations with Turkey' assesses in accordance with established criteria under the main headings. The categories determined by the results of the periodic investor perception survey conducted for DEİK members are high performance in many of the developed countries. This year, the index has been prepared in 3 categories in order to evaluate the less developed countries that are attractive for Turkish investors. Thus, it is possible to make a relative ranking among the countries separated by income level.
Highlights in the report:
Compared to the previous year, China maintained its leadership in the index in the category of high-income countries, USA and middle-income countries; Azerbaijan ranks first in the low-income countries class. European countries remain attractive. Britain and Russia are on the rise compared to the previous year.
In the index, while maintaining the leadership of the USA in the high-income countries class, and China in the middle-income countries class; Azerbaijan ranks first in the low-income countries class. European countries with the highest share of FDI stock in Turkey holds an important place in this year's index. Russia and England, which are on the rise in the index compared to the previous year, draw attention. The UK-based investments and sector players, which are stripped of the post-Brexit EU regulatory framework and constraints, are more hopeful compared to the previous year to scale up. Russia is Turkey's most crowded part of the country where the existing stock investment scheme over the previous year with the introduction of political relations this year broaches an important place.
Eastern European countries continue their exit as investment addresses in recent years. Poland, Hungary, Romania, Turkey is required from manufacturing operations around the world need to attract substantial investments turned on. In the widening EU axis, the Baltic countries have an important place in the index with their business environments and appropriate geographical locations.
According to the calculations of DEIK, the Middle East and Eurasia regions, which are the regions where the decreasing oil prices were the most affected, were the regions where Turkish-origin investments decreased significantly compared to the previous year. However, the relations that started to improve with Russia, which has the highest number of Turkish investments, cause this region to be evaluated a little better than the previous year. The Turkic Republics and Russia have an important place in the index results compared to the previous year.
It has been determined that there was a 2-fold increase in investment flow to the Asia-Pacific region compared to last year. This hot investment address of the world, which has remained in the foreground for reasons that are not very rational in our economy agenda, still contains important opportunities. Both the political and economic relations of these countries, which have a serious Muslim population, have made significant progress in the past year. Shanghai Cooperation Organization Energy Club Term Presidency, President Erdoğan's visits to India and China, investments from scratch and corporate purchases made by our corporate holdings, and the active interest of our contracting companies in the region are important steps. China, India, Indonesia and Malaysia, which have managed to enter the list, appear as important addresses on the radar of investors.
In 2016, an investment of 2.8 billion USD from scratch and a merger and acquisition of 3.6 billion USD were realized abroad. Investment in production, logistics, tourism and food sectors came to the fore.
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With the participation of The Economist Group Intelligence Unit (EIU) Retail Head John Copestake, on March 23, 2017 at 16:00-18:00 (River Plaza, 10.Kat, Levent-Istanbul) Turkey and neighboring regions retail and consumer goods sector outlook were reviewed in a closed event.
Overseas Investment Forum 2017 was held in Istanbul on February 23 with the participation of Turkish Deputy Prime Minister Mehmet Şimşek, European Bank of Reconstruction and Development Turkey Managing Director Jean-Partrick Marquet and DEİK/Outbound Investments Business Council President Volkan Kara.
The Forum was hosted by DEİK/Outbound Investments Business Council in partnership with European Bank of Reconstruction and Development, World Bank's International Finance Cooperation (IFC) and Dentons, Balcıoğu Selçuk Akman Keki Law Firm. Forum's agenda were Turkish companies' potential legal issues, investment risks and financial instruments in new markets.
Turkish Deputy Prime Minister Mehmet Şimşek stated that some of the global markets pursue mercantilism yet, globalization is inevitable in some of the sectors. "Investment is a long-run area, Turkey with a population of 80 million, continues to maintain its consumption behaviors and appeal. Problems in the neighboring countries did not affect Turkey's economic development. Over the next period, we will discuss restoration of Middle East and who we should do this with.
Deputy Prime Minister Mehmet Şimşek reminded brand acquisitions enable share growth in foreign markets, Turkish entrepreneurs' investments in foreign markets will contribute to Turkey, grow economy and decrease current account deficit". DEİK has prepared "Investment Index Abroad" report and this will serve as a guide to investors who are willing to expand to markets abroad.
European Bank of Reconstruction and Development Bank Managing Director of Turkey expressed his admiration to Turkish private sector's progress in the past two years, development in international trade. Problems that Turkey recently is dealing with are temporary and foreign investment should be attracted to Turkey. Country has great influence in Mediterranean region and neighboring countries. Turkish entrepreneurs have competitive advantages and they should use this to invest abroad. The bank has reached 9 billion euro of investment in different field of areas, 2 billion euro was invested only in the past two years.
DEİK/Foreign Investments Business Council President Volkan Kara stated that Turkish investment abroad has grown more than 10 times in the past 15 years and Turkish companies prove themselves in the global market. Companies' strategy is now to be a global player instead of focusing on surviving in the local market. We expect this trend to continue, over the past five years Turkish companies invested 30 billion USD.
In the event where legal cases and financing instruments were introduced.; Under the theme of "Legislation of International Investments"; Representations and Coventants, Financial Assistance & Restriction Mitigation, Drivers of Vendor due diligence & Purchaser due diligence, Balanced request for contractual protection: Warranties, indemnities, limitation of liability, W&I Insurance, Limits & Costs. In the "International Financing: Policies & Procedures" section, it is discussed what kind of financing opportunities can be utilized in Turkish Manufacturing Investments and investments in the infrastructure & contracting sector in neighboring markets.
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Consul General of Hungary Balázs Hendrich and Country Director of the Hungarian Eximbank Arda Tugay presented Hungary Investment Climate report with members of the Business Council.
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In the presentation made by Cabinet Law partners Tuvan Yalım, Ural Aküzüm and Mehmet Karlı, recently developing mechanisms were shared with the participants in order to finance high cost international arbitration processes.
The 'Outbound Investment Index' report prepared in cooperation with the Foreign Economic Relations Board (DEİK) and Deloitte was announced to the public at a press conference held in Istanbul on May 17, 2016. DEIK Chairman of the Board Ömer Cihad Vardan, Deloitte Partner and Head of Corporate Finance Department Başak Vardar, DEİK International Investments Business Council President Volkan Kara and DEİK International Investments Business Council Vice President Ender Arslan attended the press conference.
The index ranks the countries of the world according to the selected criteria, which are important for Turkish investors. Developed for the first time for Turkish companies, the Index is planned to be updated regularly every year thereafter.
DEIK President Mr Vardan, "Turkey in the 1980s with exports starting the global economy integration process continues with the investments made in the company of our production capacity and the formation of capital accumulation and abroad. The investment made by the company in the global market in line with our long-term goal and we support Turkey sees itself as a strategic issue. Foreign investments, which will reduce the current account deficit, structural know-how transfer, and contribute to supply security, should be encouraged and supported. "
Turkey Deloitte Consulting Partner and Head of the Corporate Finance Basak Vardar said in relation to the report: "investment abroad, today it is an important agenda item for Turkish companies. Especially large-scale groups with a certain capital strength and leading companies in their sectors are actively evaluating foreign investment alternatives with the aim of becoming a regional power. We see that Turkish companies' purchases abroad are increasing every year. Over the past decade, Turkish companies have made 250 purchases in foreign markets, with a total value of about $ 25 billion. Neighboring geographies, countries that are the main trading partners and countries with strong political relations came to the fore among these markets. Production, construction, infrastructure, energy, tourism, food, chemistry and retail were the most invested sectors. "
Volkan Kara, Chairman of DEİK Outbound Investments Business Council operating under DEİK said, "The production, finance, employment and investment capacities of our Turkish investors abroad are; international competitiveness, productivity, similar processes on Turkey to increase the efficiency and profitability of incentives and support mechanisms need to be developed by the examined countries, "he said. Business Council President Kara stated that they have prepared a road map on this issue and they are working in cooperation with the economy management.
The Outbound Investment Index, whose methodology was created by DEİK experts and again, with the contributions of DEİK Outbound Investments Business Council Members and Deloitte experts, contains and weights; countries' level of development and know-how potential, domestic and neighboring market size, labor, logistics and production costs, raw potential, legislation advantages and disadvantages and economic and political relations with Turkey. In the index study, countries are indexed as 'middle and low income countries' (countries with annual income per capita less than $ 20,000) and 'high income countries' (countries with annual income per capita of $ 20,000 and above) according to their per capita national income levels. It is gathered under two groups and the first 25 countries in each group are ranked.
In the index, China is among the middle and low income countries; USA ranks first in the class of high income countries. European countries remain attractive.
China ranks first in the middle and low income countries, while the USA comes to the fore in the class of high income countries. FDI stock in Turkey in the European countries with the highest share in the index holds an important place.
Given the origin and economic size of the major brands bought by Turkish companies, developed European countries continue to be important investment addresses. Nevertheless, it is seen that European countries that were members of the EU after 2004 and developing countries like Romania, Poland, Hungary and Baltic Region are attractive geographies for Turkish investors.
It is stated that the countries in the American continent have the potential to stand out as attractive countries with their market diversification needs and raw material potentials, even though Turkish companies have a very limited share in the current investment stock.
It is estimated that the perception that the political uncertainty in the Middle East will continue in the coming period will push Turkish investors towards regions such as Asia-Pacific and America.
5.2 billion dollars abroad in the last two years.
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With the support of DEIK, Exporta Publishing & Events hosted, March 22 to 23 2016't Shangri-La Hotel Turkey Trade & Export Finance Conference in Istanbul (Turkey Trade & Export Finance Conference) will be held.
It is expected that representatives of many financial institutions will participate in the event, where trade and export financing and many current issues will be discussed.
For the details of our members who wish to attend the event, visit www.gtreview.com/events/europe/turkey-trade-export-finance-conference-2016/ or via Exporta Publishing & Events (Lamide Ojutalayo, E.mail: lojutalayo @ gtreview. com, T: +44 (0) 20 8772 3011).
Note: 20% discount fee is applied for DEİK member companies.
Overseas Investment Forum, with the participation of Vice Chairman of Outbound Investment Business Council Ender Arslan and the World Bank International Finance Corporation (IFC) Director for Turkey, Aisha Williams, was held in Istanbul Intercontinental Hotel on January 21, 2016.
Allen&Overy and Ministry of Economy was also contributor of the conference.
Turkey was in 2015 the third largest partner of the World Bank Group's International Finance Corporation (IFC) unit, which made investments worth around $4.3 billion in the country, said IFC Turkey Manager Aisha Williams. "Turkey remains a priority country for IFC and for the World Bank Group. The IFC made investments worth around $18 billion last year globally. With a portfolio of around $4.3 billion as of 2015, Turkey became the third largest country exposure for IFC globally. The IFC has made record-high investments worth over $1.8 billion on energy sector in Turkey, where the unit has mainly focused on energy and infrastructure development, improve municipal services, develop public-private partnerships [PPPs], promote local capital markets, and help Turkish companies increase competitiveness and impact," said Williams.
She noted that Turkish companies have accelerated their outward direct investments heavily for the last couple of years, increasing the volume of such transactions from around $1.3 billion to $6 billion. She added that the IFC has recently offered financing to outward investments of TAV, Şişecam and Anadolu Group for the last three years.
Turkish companies' foreign assets have exceeded $50 billion with the acceleration in such transactions, said DEİK Foreign Investments Business Council President Ender Arslan.
"Turkish companies recently acquired a number of leading foreign companies, such as Belgium's Godiva, Britain's United Biscuits, Mexx from the Neterlands, Germany's Grundig, Russia's Trader Media East, Iran's Razi Petrochemicals, Sout Africa's DEFY and Italy's FinCuoghi. They have also made various greenfield investments across the world. Their foreign assets now exceed $50 billion," Arslan added.
Investments Abroad Will Be Notified To The Ministry Of Economy
Tim Scales, one of the partners of Allen Overy London office, evaluates contract-based risks in overseas projects, Cengiz Gürsel, Deputy General Manager, Ministry of Economy, Free Zones, Foreign Investments and Services, who gave information about foreign investment legislation in the last part of the forum, invested abroad with the amendment made in the decision numbered 32. He said that Turkish companies should inform the Ministry of Economy within 3 months of exporting capital. Gürsel stated that their notifications can be made on the Ministry's website via a digital questionnaire that will be opened soon.
Related Pictures
Turkish investments abroad, which exceeded 30 Billion USD as of 2013, have increased its visibility in the economy agenda with the momentum it has caught in the last 10 years. The foreign investments area, which is above it peers' average even during the crisis period, is a new playground for Turkish companies, but it is becoming more and more important. Intensive investment plans of Turkish companies especially in MENA and CIS regions stand out especially in the retail sector.
As the only business organization that continues to work on Foreign Investments, it is aimed to share the qualified information and experiences produced with the publication to be presented to the participants and guide the international players of the retail industry in this event and event planned within the DEİK International Investments Business Council. Labor and effectiveness of the Council's' Retail and Distribution Chain Investment Committee '' has been prepared in cooperation with EY Turkey.
10.00-10.30 Opening
Dr. Zeynel Abidin Erdem, DEİK Başkan Yardımcısı
Selim Elhadef, EY Türkiye, Şirket Ortağı, Danışmanlık Hizmetleri Lideri
10.30-11.00 Benchmarks of Internationalizing Progress of Brands
Hasan İbrahim Toksoy, Outbound Investments Business Council VP
11.00-11.15 Kahve Arası ve «10 Steps for International Retail Expansion» report launch
11.15-12.15 Understanding the forces that shape International Retail
Kristina Rogers, Partner, Global Emerging Markets Leader, Cons. Products, Retail, EY Global
Burak Övünç, General Manager, Mavi Jeans
Haluk Dörtlüoğlu, CFO, BİM Birleşik Mağazalar A.Ş.
Levent Yılmaz, Bay Döner
Moderator: Cem Seymen, CNN Türk
Report link.
Turkish investments abroad, which exceeded 30 Billion USD as of 2013, have increased its visibility in the economy agenda with the momentum it has caught in the last 10 years. The foreign investments area, which is above it peers' average even during the crisis period, is a new playground for Turkish companies, but it is becoming more and more important. Intensive investment plans of Turkish companies especially in MENA and CIS regions stand out especially in the retail sector.
As the only business organization that continues to work on Foreign Investments, it is aimed to share the qualified information and experiences produced with the publication to be presented to the participants and guide the international players of the retail industry in this event and event planned within the DEİK International Investments Business Council. Labor and effectiveness of the Council's' Retail and Distribution Chain Investment Committee '' has been prepared in cooperation with EY Turkey.
10.00-10.30 Opening
Dr. Zeynel Abidin Erdem, DEİK Başkan Yardımcısı
Selim Elhadef, EY Türkiye, Şirket Ortağı, Danışmanlık Hizmetleri Lideri
10.30-11.00 Benchmarks of Internationalizing Progress of Brands
Hasan İbrahim Toksoy, Outbound Investments Business Council VP
11.00-11.15 Kahve Arası ve «10 Steps for International Retail Expansion» report launch
11.15-12.15 Understanding the forces that shape International Retail
Kristina Rogers, Partner, Global Emerging Markets Leader, Cons. Products, Retail, EY Global
Burak Övünç, General Manager, Mavi Jeans
Haluk Dörtlüoğlu, CFO, BİM Birleşik Mağazalar A.Ş.
Levent Yılmaz, Bay Döner
Moderator: Cem Seymen, CNN Türk
Report link.Turkish investments abroad, which exceeded 30 Billion USD as of 2013, have increased its visibility in the economy agenda with the momentum it has caught in the last 10 years. The foreign investments area, which is above it peers' average even during the crisis period, is a new playground for Turkish companies, but it is becoming more and more important. Intensive investment plans of Turkish companies especially in MENA and CIS regions stand out especially in the retail sector.
As the only business organization that continues to work on Foreign Investments, it is aimed to share the qualified information and experiences produced with the publication to be presented to the participants and guide the international players of the retail industry in this event and event planned within the DEİK International Investments Business Council. Labor and effectiveness of the Council's' Retail and Distribution Chain Investment Committee '' has been prepared in cooperation with EY Turkey.
10.00-10.30 Opening
Dr. Zeynel Abidin Erdem, DEİK Başkan Yardımcısı
Selim Elhadef, EY Türkiye, Şirket Ortağı, Danışmanlık Hizmetleri Lideri
10.30-11.00 Benchmarks of Internationalizing Progress of Brands
Hasan İbrahim Toksoy, Outbound Investments Business Council VP
11.00-11.15 Kahve Arası ve «10 Steps for International Retail Expansion» report launch
11.15-12.15 Understanding the forces that shape International Retail
Kristina Rogers, Partner, Global Emerging Markets Leader, Cons. Products, Retail, EY Global
Burak Övünç, General Manager, Mavi Jeans
Haluk Dörtlüoğlu, CFO, BİM Birleşik Mağazalar A.Ş.
Levent Yılmaz, Bay Döner
Moderator: Cem Seymen, CNN Türk
Report link.
https://www.deik.org.tr/uploads/10-baslikta-perakendecilikte-yurtdisi-acilimi.pdf
Turkish investments abroad, which exceeded 30 Billion USD as of 2013, have increased its visibility in the economy agenda with the momentum it has caught in the last 10 years. The foreign investments area, which is above it peers' average even during the crisis period, is a new playground for Turkish companies, but it is becoming more and more important. Intensive investment plans of Turkish companies especially in MENA and CIS regions stand out especially in the retail sector.
As the only business organization that continues to work on Foreign Investments, it is aimed to share the qualified information and experiences produced with the publication to be presented to the participants and guide the international players of the retail industry in this event and event planned within the DEİK International Investments Business Council. Labor and effectiveness of the Council's' Retail and Distribution Chain Investment Committee '' has been prepared in cooperation with EY Turkey.
10.00-10.30 Opening
Dr. Zeynel Abidin Erdem, DEİK Başkan Yardımcısı
Selim Elhadef, EY Türkiye, Şirket Ortağı, Danışmanlık Hizmetleri Lideri
10.30-11.00 Benchmarks of Internationalizing Progress of Brands
Hasan İbrahim Toksoy, Outbound Investments Business Council VP
11.00-11.15 Kahve Arası ve «10 Steps for International Retail Expansion» report launch
11.15-12.15 Understanding the forces that shape International Retail
Kristina Rogers, Partner, Global Emerging Markets Leader, Cons. Products, Retail, EY Global
Burak Övünç, General Manager, Mavi Jeans
Haluk Dörtlüoğlu, CFO, BİM Birleşik Mağazalar A.Ş.
Levent Yılmaz, Bay Döner
Moderator: Cem Seymen, CNN Türk
Report link.
https://www.deik.org.tr/uploads/10-baslikta-perakendecilikte-yurtdisi-acilimi.pdf
Related Pictures
The investment guarantee instruments and insurance coverage provided by the Multilateral Investments Guarentee Agency (MIGA) with the cooperation of DEIK International Investments Business Council and IFC were introduced by Noureddin Ennaboulssi (Senior Advisor, MIGA).
Related Pictures
In cooperation with DEIK Outbound Investments Business Council and Brokers House, a member of the global risk management company BPL senior risk advisor Zoe Towmdrow, the event was organized for business council members;
Political risks that investment / project / trade companies abroad may face
- Confiscation, nationalization,
Contract violations
-Political violence
Within the scope of it, some insured and uninsured cases and information about how the insurance market can provide support were given and various questions and problems experienced by the companies were consulted.
