ECONOMIC BRIEFS

• A total of 354 projects undertaken by Turkish contractors in 34 countries in 2007 amounted to nearly $20 billion. Turkish contractors undersigned giant projects in several countries such as Ireland, Ghana, Mali, Sierra Leone, Cameroon and India. According to officials, Turkish contractors assumed the projects in the areas of construction, transportation, industry, water works and infrastructure in several countries. Projects undertaken in Commonwealth of Independent States (CIS) became $7.4 billion. Turkish construction companies undertook projects worth $4.9 billion only in Libya.

 

• Turkey will start implementing various projects and making new investments in the new year. Turkey plans to make public a tender program for its first nuclear power plant in early 2008. Other possible projects Turkey wants to implement in 2008 are construction of a third bridge on the Istanbul Strait, a bridge on the Çanakkale Strait, a suspension bridge on the Gulf of Izmit, and a railway that will be connected to the Kars-Tbilisi railway. Turkey plans to construct the third bridge on the Istanbul Straits with a build-operate-transfer (BOT) model and use foreign loans. An international tender will be opened for construction of a 1.3-km suspension bridge on the Gulf of Izmit. In addition, Turkey will launch feasibility works for a railway and commuter train lines that will be connected to Kars-Tbilisi railway in 2008.

 

• A Turkish project to develop European-Turkish business centers has received a British Expertise International Award for "sustainability." "The development of European-Turkish business centers project has a budget worth 16.5 million euros and is the project with the highest budget in Turkey," Levent Erkan, the head of DeLeeuw International (DLI), said. DeLeeuw is a subsidiary of WYG International Limited, a British-based firm which is a consultant to the project. "This is the first time British Expertise has granted an award to a project implemented in Turkey," Erkan said. According to Erkan, the European-Turkish business centers are established in Izmit (northwestern Turkey), Izmir (western Turkey), Gaziantep (southeastern Turkey), and give consultancy services to small- and medium-size enterprises (SMEs). Erkan said the Turkish Union of Chambers and Commodities Exchanges (TOBB) and chambers of commerce in three provinces are benefiting from them.

 

• Prime Minister Recep Tayyip Erdoğan said that growth this year would probably be 5.5 percent. Addressing the Justice and Development Party's (AKP) parliamentary group on December 25, Erdoğan said they expected that the current account deficit would be 8 percent of GNP in 2008. Economic development in Turkey that was assured by the AKP government also continued in 2007, Erdoğan stated. "2008 year budget was approved in the parliament and it became a law. The same discipline and determination  will also continue and targets will be attained in the coming period. We will keep fulfilling sound monetary policies and we will work to reach medium-term targets in the inflation rate," he said. Erdoğan added they expected that proportion of public debt stock to GNP would drop below 40 percent at the end of this year.

 

• Alpaslan Korkmaz, chairman of the Turkish Investment Support and Publicity Agency said on December 25 foreign investors' views changed positively about Turkey as they get certain information. Korkmaz said the agency's primary goal was to attract direct foreign investment to Turkey. "Our agency, which was founded last year, informs foreign investors from all around the world. We tell them that Turkey is the 17th largest economy of the world and the sixth largest economy in the European Union," he told a conference in the northeastern province of Trabzon. "Direct foreign investments in Turkey soared to $20 billion in 2006 up from $10 billion in 2005. This amount was $3 billion in 2004. This September, $15.4 billion of direct foreign investments have been made in Turkey," he said. "Thanks to our publicity activities in the world, we have been able to attract several foreign investors to Turkey."

 

• Net foreign direct investments (FDI) to Turkey reached $16.1 billion in the first 10 months of 2007, marking a 0.7 percent increase over the same period last year, a report by the Turkish Treasury said on December 26. Net foreign capital inflow was $13.3 billion and net real-estate sales were $2.3 billion, the report said. Foreign capital outflow during January-October was $59 million.

 

• Sabancı Holding has become the first business group in Turkey to acquire an ISO 27001 certificate, an international information security management system (ISMS) standard. Ergün Hepvar, Sabancı's chief information officer, told reporters on December 26 that the holding acquired the certificate after an audit by the British Standards Institute (BSI). He said Temsa, a motor vehicle manufacturer, became the first Sabancı Group company to get the certificate as well. Hepvar said information security was a basic goal for Sabancı and the recent ISO 27001 certification would strengthen the company's strategic approach on such issue.

 

• Turkish businessmen invested $778 million in foreign countries in 2006, and this is expected to exceed $3.5 billion this year. Turkey's investments in foreign countries reached $11.5 billion since 1999. Turkish businessmen have large investments in the Netherlands, Azerbaijan and Malta. Turkish firms have investments in 90 countries throughout the world. The greatest number of Turkish companies operates in the Turkish Republic of Northern Cyprus (TRNC). Turkish companies are mainly active in sectors such as food, energy, household appliances and electronics. Analysts believe that investment of Turkish companies in foreign countries can reach $5 billion in 2008. Recently Turkish firm Ülker bought Godiva chocolate for $850 million.

 

• State Minister Kürşad Tüzmen met with Iranian Agricultural Jihad Minister Mohammad Reza Eskandari in Ankara on December 26. Tüzmen said to the economic relations between Turkey and Iran and said that trade volume between the two countries will exceed $8 billion this year. He said increase in crude oil and natural gas prices played an important role in this jump. Eskandari was also received by Environment and Forestry Minister Veysel Eroğlu. Eroğlu told reporters that they discussed how to further develop the cooperation between Turkey and Iran. He stated that officials from the two countries will also sign several agreements in Ankara. Eskendari said that they discussed cooperation possibilities in energy sector, adding that Iran is eager to learn from experiences of Turkey, especially on fight against drought and erosion.

 

• Turkey, which has the world's largest boron reserves, exports boron to 67 countries. Orhan Yılmaz, the head of Eti Mining, said exports of boron and its domestic sales in 2007 reached $405 billion. Yılmaz said boron was exported to countries from the United States to Colombia and Italy to Uzbekistan.

 

• Turkey's electricity production rose 8.4 percent to 191.2 billion kilowatt-hours in 2007, compared to 2006. Total domestic demand for electric energy in 2007 climbed 8.6 percent to 189.5 billion kilowatt-hours. Additionally, Turkey's electricity exports rose 15.2 percent to 2.6 billion kilowatt-hours last year. In 2007 Turkey exported electricity to Nakhchivan, Iraq, Georgia, Syria and Greece.

 

• The Turkish Union of Chambers and Commodities Exchanges (TOBB) has ramped up its efforts regarding Izmir's candidacy to host Expo 2015. TOBB Chair Rifat Hisarcıklıoğlu reiterated his call for support in a second letter he sent to chambers of commerce and industry of the countries that will vote on Izmir's candidacy on March 31. Hisarcıklıoğlu said in the letter that Izmir hosting Expo 2015, thanks to the city's geographical position, would create a dynamic atmosphere regarding the Aegean Free Trade Zone which opened to the markets in EU, Eastern Europe, Russia and Middle East, as well as organized industrial zones, ports, trade and investment opportunities and new partnerships. Hisarcıklıoğlu said such dynamism could create a business volume of nearly $10-15 billion.

 

• The Foreign Economic Relations Board (DEIK) made a decision to officially establish Turkish-Sudanese Business Council, the board said on December 31. The council already has 21 members and the founder chairman of the council is Abdülkadir Tacyıldız, DEIK said. The council is expected to play an important part to boost commercial relations between Turkey and Sudan which holds the third largest natural gas reserves of the world. Turkey exports around $217 million of goods a year to Sudan. Turkish  companies running business in Sudan are mostly engaged in textiles, furniture, ready-mixed concrete, construction equipments and iron-steel sectors. In recent years, Turkish companies have focused on construction projects in this country.

 

• State Minister Kürşad Tüzmen said that Sudan has a promising future and it is eager to see Turkish businessmen to be included in the future of this country. Speaking at Ankara Chamber of Trade (ATO) on December 28, Tüzmen said trade volume between Turkey and Sudan amounted to $300 million in 2007. Tüzmen said 100 Turkish companies were doing business in Sudan, indicating that Turkish businessmen assumed infrastructure and superstructure projects. Commenting on opportunities in Sudan, Tüzmen cited cotton and mineral resources. He also said that labor force market in Sudan is competitive.

 

• The Turkish Economic and Social Council convened on January 3 under the chairmanship of Prime Minister Recep Tayyip Erdoğan. Social Security Law and election of the members of Turkish-EU Joint Consultative Committee were the main agenda topics of the meeting. The function of the Council is to promote coordination between the state and private sector organizations and to provide a platform for society's economic and social institutions to participate in the making of appropriate government policies.

 

• Turkey earned $20.6 billion from automotive exports in 2007. According to data of Uludağ Exporters' Association (UIB), Turkey's automotive exports were up 33.4 percent in 2007 over to 2006. Turkey had only earned $15.3 billion from these exports in 2006. Turkey exported automobiles the most in 2007 and then came by-industry products and lorries and trucks. The automotive industry exported its products to 187 countries and autonomous regions and 14 free zones in 2007. Germany topped these countries and Italy, France, Britain and Spain came after Germany. Turkish automotive sector made exports worth of over $1 billion to five countries, Uludağ Exporters' Union (UIB) said on January 6. Automotive export worth of $11.2 billion which were made to Germany, Italy, France, Britain and Spain in 2007 is more than the half of total automotive export of Turkey. The sector made exports to 187 countries and autonomous regions and 14 free zones in five continents in 2007. Turkey earned $20 billion from total automotive export in 2007. $15.8 billion of this was from exports to EU countries.

 

• The privatization winds in 2008 in Turkey will begin with a tender for Tekel Cigarettes. Highways and Turk Telekom shares owned by the Treasury will be available for privatization. The privatization of electric distributions and production will begin in 2008. Halk Bank, sugar factories and ports belonging to Turkish Railways will also get privatized in 2008. The government expects an income of 11.8 billion new Turkish liras from privatizations this year.

 

• The Turkish business world is optimistic for prospects in 2008 but warns that many reforms remain to be made. As a year in which general elections and the election of the president, a referendum, constitutional amendments, and discussions on north of Iraq took place, 2007 was a year that witnessed an increase in Turkish exports and foreign investments. Murat Yalçıntaş, chairman of the Board of Istanbul Chamber of Commerce (ITO), said, "In 2008, Turkey will have difficulty with inflation and growth." "Reaching inflation targets in 2008 would be possible only with structural reforms," Yalçıntaş said. "High account deficit in Turkey poses a risk for the Turkish economy. In 2008, the account deficit in Turkey will rise and climb up to $40 billion."

 

• The Second Turkey-Eurasia Foreign Trade Bridge initiative, launched by Turkish Confederation of Businessmen and Industrialists (TUSKON) to diversify Turkey's exports and imports, started to yield results. Deals amounting to $1.5 billion could be concluded between Turkey and regional countries on areas extending from brick to flour factories and from toilet paper to wedding dress, thanks to the Turkey-Eurasia Foreign Trade Bridge. Companies started preparations for $25 million pipeline project in Ukraine, $1.5 million toilet paper production facilities in Tajikistan, establishment and joint operation of flour factory in Kazakhstan, sale of Turkish carpets in Kazakhstan, and establishment of a brick factory in Mongolia. TUSKON is intended to organize similar summits to flourish this initiative extending to Africa in May and to Pacific in June 2008.

 

• The World Trade Organization (WTO) declared that Turkey's strong foreign trade performance would continue in 2008 as well. According to a WTO report, Turkey's foreign trade volume, which has been rising rapidly since 2002, will continue to grow in 2008, with a greater amount of export and import of goods and services in existing and prospective markets. The competitive economic structure of the country and the increase in production by SMEs are important factors for the improvement of Turkey's foreign trade volume, the report said. "Turkey's merchandise exports have more than doubled since 2002, with the manufacturing sector contributing over 80 percent to its total merchandise exports," the report said. According to the report, continuation of structural reforms in Turkey's foreign trade will improve the country's economic performance as well. "More than half of Turkey's exports go to the EC (European Communities)," said the report, adding that Turkey's full membership in EU would also increase the country's foreign trade volume.

 

• Bureau of International Exhibitions (BIE) Secretary General Vincente Loscertales said BIE delegation members were impressed by what they saw during their visit to western   province   of  Izmir  which  bids  to  host  Expo 2015. A  statement  by  Izmir governor's office said on January 4 Loscertales sent a thank-you message to Governor Cahit Kıraç. Loscertales said the BIE delegation was very impressed by the program of the city, and they saw that high-level Turkish officials had a great determination to host Expo 2015. Kıraç also sent a message to Loscertales and said Turkey and the residents of Izmir were eager to host the event in 2015.

 

• Turkey earned more than $170 million from Baku-Tbilisi-Ceyhan oil pipeline which pumps Azerbaijani oil to world markets via Turkey, and defined as the "project of century.” BTC manager Botaş International said that the pipeline – which was formally inaugurated in July 2006 – started pumping oil one month earlier than that. The pipeline – which carries Azerbaijani oil from Turkish Ceyhan town of southern province of Adana to world market – further strengthened Turkey's strategic location as well as contributed to the economy. Nearly 297 million barrels of oil have been carried with 337 ships to various countries – especially Italy, Spain and Greece – so far; and it brought an income of $94.4 million. Also port income has reached $26.6 million, while tax income exceeded $50 million. When the pipeline starts to function with full capacity, Turkey will earn more than $1.5 billion annually.

 

• Turkish companies continue to grow in world markets and become brands preferred by consumers all around the world. Turkish appliance firm Vestel exports 90 percent of its overall production and sells its products to 106 countries. The firm makes 80 percent of its exports to EU member states. It sells about 20 million devices to foreign countries, and has earned more than $12.5 billion from its exports to 106 countries in the last 12 years. "We have 50 percent share in digital products in Britain, and 28 percent share in European TV market," Turan Erdoğan, the deputy chairman of the Executive Board of Vestel Group, said. Erdoğan added that Vestel earned $2.7 billion from its exports in 2007 and hopes to raise it to 2.9 billion in 2008. "We aim to become the number 1 in LCD market in 2010," he said. Turkish companies that gradually become global actors export their goods to many countries. Aka Gündüz Özdemir, the head of appliance maker Arçelik, said the company aims at 170 billion euros investments in 2008. "We aim at 8 billion new Turkish liras (YTL) of consolidated turnover ($1=1.17 YTL)," he told a January 7 press conference in Istanbul. Özdemir said Arçelik also targets at producing 11 million appliances in 2008. According to him, Arçelik doubled its household appliance sales in the last five years and boosted its foreign sales threefold in the same period. "Our main target is to grow in Chinese, North American and Asia-Pacific markets," he said. Özdemir said the company will raise its production capacity by three-folds in 2009. "Arçelik will continue to invest in different geographic locations," he also said.

 

• “About 1,500 Egyptian firms are willing to meet Turkish businessmen," officials of the Turkish Foreign Trade Undersecretariat said on January 4. The officials said Turkish-Egyptian trade volume was up 50 percent in 2007 over to 2006. According to the executives, the bilateral trade volume reached $1.5 billion in 2007. "Egypt is in the 25th place among countries to which Turkey exports products. Turkey earned about $900 million from exports to Egypt last year," they also said.

 

• The European Union has prepared a "Competitiveness and Innovation Framework Program-CIP" covering the period between 2007 and 2013 for small and medium scale enterprises (SMEs). A total of 3.6 billion euro was allocated for SMEs to benefit from the areas of entrepreneurship and innovation, information and communication technologies and smart energy as part of the program. Turkish Industry and Trade Ministry will coordinate the program in Turkey.

 

• Turkey exported 148 tons of gold jewelry in 2007 to earn $3.7 billion, said Atasay Kamer, head of an Istanbul-based jewelry exporters' association. Kamer said Turkey imported 239 tons of gold in 2007 and manufactured fine jewelry out of more than half of it and sold it back to foreign countries. "The most important economic effect of gold jewelry export is the added value, the employment and tax revenues it generates, and although Turkey imports all the gold it needs, it is exporting it by only creating added value," Kamer said. Kamer also estimated that jewelry and gold product exports would rise 50 percent in 2008. Some 25 Turkish jewelry companies attended the Vicenzaoro Winter Fair held in Italy. The fair bringing together 1,600 jewelry companies from all around the world, took place in Vicenza on January 13-20.

 

• Turkey's industrial production rose 7.7 percent in November 2007 over the same period in 2006, country's statistics authority said January 8. The increase in manufacturing sector in November 2007 was 8.1 percent, and 5.2 percent mining, electricity, gas and water sectors.

 

• The State Oil Company of Azerbaijan Republic (SOCAR) said it plans to invest $10 billion in Turkey to set up an oil refining plant. SOCAR Chairman Rovnag Abdullayev said his company hopes to become a major global gas seller just like Russia. We have projects to set up new petroleum refineries in Ceyhan town of southern province of Adana and at Petkim facilities and then we plan to build chemical processing plants in Turkey, Abdullayev said. We plan to make an investment about $10 billion, he added.

 

• The World Bank, in its Global Economic Prospects 2008 report, estimated the growth rate for Turkey as 5.4 percent in 2008, and 5.7 percent in 2009. The WB  also said  that  GDP  growth  is  going  to  slow  in  European  economies, but listed Turkey among the three exceptions – together with Albania and Hungary. "In Hungary and Turkey, further easing in monetary policy is expected to strengthen domestic demand, leading to a pickup in growth," said the report. World Bank said that current account deficit in Turkey would be 7.7 percent in 2008 and 7.6 in 2009.

 

• Executives of eight Turkish companies operating in the packing sector met with their Italian counterparts in Lucca, Italy. Rebii Akdurak, executive board chairman of Izmir Italian Chamber of Commerce, told reporters that they initiated an important project during this meeting in Lucca on January 13-17. Akdurak said exports from the packing sector constituted a major part in Turkey's overall exports. "There are important investments in this sector. Italy ranks second in packing sector after Germany in the world. We endeavor to boost cooperation in this area between the two countries," he said. Akdurak added that commercial relations between Turkey and Italy are rose in 2007 when compared with 2006.

 

• Oxford Business Group – publishing and consulting group focusing on emerging markets  in  the Middle East and Asia – said privatization would speed up in Turkey in 2008. A report by Oxford Business Group said appearance of single-party government from the parliamentary elections in Turkey was perceived as a positive development on markets and stability. It said Abdullah Gül's election as the president was an important development for implementation of reforms rapidly. Flow of direct foreign capital into Turkey may amount to $20 billion in 2008, the report added.

 

• Bursa's exports from the sector of textile rose 16 percent and from ready-to-wear clothing sector rose 8 percent in 2007 when compared with 2006. According to the data from Uludağ Exporters' Association (UIB), exports from the sectors of textile and ready-to-wear clothing amounted to $1.6 billion in 2007. The textile sector exported its products to 114 countries and autonomous regions and 10 free zones while the ready-to-wear clothing sector exported its products to 97 countries and autonomous regions and eight free zones in 2007.

 

• Deputy Prime Minister Nazım Ekren said, "While south-eastern Anatolia's total exports were worth $690 million in 2002, this figure climbed to $2.5 billion in 2007." Speaking at the meeting of the Batman Economic Coordination on January 12, Ekren stressed that the goal of the current Turkish government is to realize social restoration. "We are primarily interested in increasing income per capita to $10,000 and reducing inflation to single digit numbers," Ekren said.

 

• Turkey draws direct foreign capital as much as oil-rich countries in its region, according to United Nations Conference on Trade and Development (UNCTAD) figures. Turkish share in global direct foreign capital rose to almost 2 percent which was around 0.1 percent in 2000, a report by UNCTAD unveiled. Turkey was drawing $500-900 million a year in early 2000s, however, this amount reached $20-30 billion as  of   2005, UNCTAD   report  said. UNCTAD   said  Turkey's  structural  reforms  to improve investment climate played an important role in this significant rise of direct foreign capital inflow.

 

• Britain’s Banker magazine has chosen Finance Minister Kemal Unakıtan as the finance minister of the year in Europe. The magazine wrote that Unakıtan has been Turkey’s finance minister since 2002 and the Turkish economy made great progress in this period. Turkey has attracted record direct foreign investments in the mentioned period, The Banker said. According to the magazine, the foreign investments in Turkey reached $20.1 billion in 2006. The magazine said the inflation figure around 7 percent is still a high rate but Turkey targets it around 4 percent for 2008.

 

• Iron and steel industry had a performance "above expectations" in 2007 and grew about 11 percent. The iron and steel enterprises in Turkey made a production about 20 million tons and exceeded its growth rate of 10 percent in 2007. Turkey exported about 14 million tons of iron and steel, and earned around $8.5 billion from these exports in 2007. In 2008, the iron and steel production is expected to be up 12 percent and reach 29 million tons. Turkey ranked 11th in world steel production and third in European steel production in 2007.

 

• State Minister Mehmet Şimşek left for Dubai on January 14 to attend an international investment conference. Şimşek and his delegation were in Dubai until January 17. On January 15, Şimşek delivered a speech on the developments in the Turkish economy and invited representatives of investment funds to come and invest in Turkey. On January 16, Chairman of the Turkish Privatization Administration Metin Kilci and Deputy Chairman of the ruling Justice and Development Party (AKP) Şaban Dişli delivered speeches at the conference. Ten Turkish entrepreneurs held face to face meetings with investment representatives from the United Arab Emirates, Saudi Arabia, Kuwait and Qatar as part of the conference. Turkish officials also  briefed  investors  from  the  Gulf  countries  on  the  investment  environment in Turkey,  as  well  as  privatization,  real  estate and tourism projects. Officials said that executives of investment funds from the Gulf countries were particularly interested in investing in energy, telecommunication, retail and logistics sectors. Saudi Arabia, the biggest oil producer in the world, decided to establish a giant investment fund in order to protect its rising oil incomes. The new fund will compete with other investment funds in the Middle East and Asia. The fund, which will have a minimum initial value of $900 billion, is expected to reach $1 trillion in value within this year. Şimşek and his delegation returned to Turkey on January 17.

 

• A senior executive from the New York Stock Exchange urged Turkish companies to list on the NYSE, one of the world's biggest financial hubs. "We believe that Turkish companies  are  compatible  partners  for  the  Big Board, so let's work together," said Robert Thys, director of international affairs for NYSE Euronext, an NYSE holding company. Thys also cited "good relations" with Turkey's main shares index, the IMKB, saying that it has a significant place within the Eurasian region. "Turkey's market is dynamic, the country's economy is growing fast and it has a young population," Thys also said.

 

• The Turkish Housing Development Administration (TOKI) is set to implement "Spanish model" for property sales to foreigners which was first brought up by Finance Minister Kemal Unakıtan in 2006. TOKI will build holiday resorts and villas for foreigners along Turkey's western and southern coast, from the Aegean province of Çanakkale to the Mediterranean province of Mersin. These settlements will have medical units, sports and social facilities such as golf courses and rest houses. Private companies will market these holiday resorts and villas in foreign countries either by outright sale or time-sharing. Companies will share their profit with TOKI. Houses will not be rented. "These places will be operated by private companies that will offer 5-star hotel services," TOKI Chair Erdoğan Bayraktar said. "We aim to help Turkey expand to the world, increase tourism revenues and prettify coastal areas. We will build gardened, green, two/three-story houses. This is a model implemented in Spain," Bayraktar said.

 

• A group of Italian investment advisors looking for opportunities in Turkey arrived in the central Anatolian province of Karaman on January 16. The Italian delegation first paid a visit to Karaman Governor Fatih Şahin. During the visit, Şahin said that they offered remarkable opportunities to investors who want to invest in Karaman. Ruguero Tabossi from the Italian delegation said that investment advisors would examine the atmosphere in the city and brief companies on them.

 

• New EU-Turkey Business Centers will be opened in eight provinces of Turkey. "EU-Turkey Business Centers have already been inaugurated in Izmir (western Turkey), Kocaeli (northwestern Turkey) and Gaziantep (southeastern Turkey)," Tamer Taşkın, a  member   of    the  Executive   Board   of   the  Turkish  Union  of  Chambers    and Commodities Exchanges (TOBB), said on January 16. The European Commission and TOBB have been acting in close cooperation since 2002 to inaugurate business centers in various cities of Turkey. These centers are designed to support Turkish small and medium enterprises (SMEs) by providing them with management and economic development services aiming to improve their competitiveness and enable them to win a bigger share of business in the growing international marketplace.

 

• Turkish Vakıfbank International AG has initiated a project whereby it will provide loans to Turkish businessmen doing business in Hungary. Members of the Vakıfbank International AG's board of directors Sıtkı Karatekin and Erkut Akpınar arrived in Budapest from Vienna, where the headquarters of Vakıfbank International AG is located,  in order  to give  information to Turkish businessmen about the bank's credit program. Karatekin and Akpınar met with members of the Turkish-Hungarian Chamber of Industry and Commerce at the Ramada Hotel in Budapest on January 17. Speaking to reporters afterwards with Karatekin and Akpınar, chairman of the Turkish-Hungarian Chamber of Industry and Commerce Suat Karakus said, "the chamber is pleased with Vakıfbank's project. Turkish companies wishing to receive loans will work with Vakıfbank in Hungary."

 

• Bulgaria supports Izmir's candidacy to host Expo 2015, said Izmir Chamber of Commerce (IZTO) Chairman Ekrem Demirtaş in a January 17 statement. Demirtaş said that a delegation from IZTO held meetings with Bulgarian Foreign Minister Ivaylo Kalfin as well as Deputy Minister for the Economy and Energy Yavor Kuyumciev in Bulgaria. Demirtaş said that Kalfin called Izmir's candidacy "exciting,” and also praised Turkey as a "perfect neighbor." "Kalfin stressed the importance of investments which will flow (into Turkey) thanks to the Expo, and said that they plan to connect Sofia and Istanbul via motorways before 2009. Kalfin gave very strong messages to support Izmir's candidacy," said Demirtaş. he added that Bulgarian companies may take part in investment projects (worth $25 billion) in Izmir for the Expo.

 

• Deputy Prime Minister Nazım Ekren said the government expects to raise the national income per capita over $2,500 in the Southeastern Anatolia Project (GAP) region in the medium term (4-5 years). "We also expect to raise exports from the region from 2.5-3 to $7 billion," he said during a meeting with Governor Süleyman Kamçı of the southeastern province of Gaziantep on January 20. Ekren and State Minister Mehmet Şimşek were in Gaziantep to participate in the Gaziantep Economic Social Coordination Meeting. Ekren said GAP wants to irrigate 1,882 million hectares of land and produce 27 billion kw/hr hydroelectricity annually. "By GAP, we also aim to raise the national income per capita by 210 percent and create job opportunities for 3.8 million people," he said. Ekren said the project will cost 39.3 billion new Turkish liras (YTL), and 60 percent of it has been completed.

 

• Turkish plastic products exports rose 36 percent in 2007 to reach some $3 billion, said Selçuk Aksoy, head of a foundation of Turkish plastic products makers. There are nearly 7,000 producers in Turkey and only 113 of them are foreign-capital companies, Aksoy said, adding that Turkey is an ideal place for investing in plastics sector. "Turkey exported 1.6 million tons of plastics products and earned $3 billion, which marks a 36 percent increase," he said. "We aim to become by 2014 the top country to have the biggest plastics processing capacity," Aksoy said.

 

• The world's largest integrated hazelnut factory equipped with cutting-edge technology was set up in the town of Arsin in Trabzon (Black Sea). The factory founded  by  the  Oltan  Nutrition  Company covers an area of about 6 acres and cost $35 million. Some 250 workers are employed at the factory where 25,000 tons of hazelnuts will be processed to prepare processed hazelnuts, hazelnut paste, pralines and other candied products.

• State Minister Mehmet Şimşek met with representatives of international investment banks in London on January 21. The next day he briefed representatives of investment banks about structural reforms, economic measures and macro-economic expectations in Turkey in 2008. He then proceeded to Davos, Switzerland to attend the World Economic Forum.

 

• Foreign Minister and chief negotiator for EU talks Ali Babacan met with the Expo 2015 working group in Ankara on January 18. "Expo 2015 Izmir is a project of the Turkish state and the government," he said. "We are working in various ways to help Izmir become the host for Expo 2015.”

 

• Turkey's main shares index stood at the 11th place in a list of world's 60 most profitable stock exchange markets for 2007. Istanbul Stock Exchange (IMKB) gained 42 percent in value over December 2006-December 2007 period, from 39,117.46 points to as high as 55,538.13 points, World Federation of Exchanges (WFE) said in a report. China's Shenzhen Stock Exchange and Philippine exchange market made the biggest profits for their investors with over 100 percent gains.

 

• Sabancı Holding Chairperson Güler Sabancı attended International Business Council (IBC) 2008 Winter Meeting which took place as part of World Economic Forum Davos summit. In a written statement, Sabancı Holding said Güler Sabancı was the only figure from the Turkish business world at the meeting on January 23, which influential figures steering the world economy attended. The IBC works like a consultation committee on the policies to be pursued by the forum to find solutions to various problems facing the business world. It convenes twice a year. Russian President Vladimir Putin and former US Secretary of State Henry Kissinger spoke at the meeting.

 

• British Penspen Group will be responsible for the coordination of all technical details, engineering and design activities regarding the Turkey-Bulgaria-Romania-Hungary-Austria natural gas pipeline project (NABUCCO). Hüseyin Saltuk Düzyol, director general of the Turkish Petroleum Pipeline Corp. (BOTAS), said in a statement that the engineering activities of the NABUCCO project officially started this January. Düzyol said Penspen was assigned as the responsible company which would prepare the basic engineering design of the project and also provide the necessary coordination regarding the activities to be carried out prior to the construction  phase.  Moreover,  Düzyol  said  that  the  local  engineering companies which would carry out the detailed engineering design studies of each participating country would be determined within the first half of 2008.

 

• Texbridge New York, a Turkish textile fair, took place in New York on January 22-23. The fair, which has been organized by Istanbul Textiles and Apparel Exporters' Association (ITKIB) twice a year since 2002, was at the Puck Building in Soho. Fourteen Turkish companies, including Akın Tekstil, Bahariye Mensucat, Bossa, Deba and Soktas participated in the fair. A Turkish leather goods fair also took place in New York City on January 28-30. Ismail Gülle, chairman of the Istanbul Textile and Raw Materials Exporters' Union (ITHIB), which held the fair, said that Turkey is world's second-largest supplier of textiles after China. Gülle added that Turkey's textile exports in 2006 totaled $5.4 billion, and they rose to $6.6 billion in 2007. He said that Turkey's textile and ready-made clothing exports exceeded $24 billion in 2007.

 

• Transportation Minister Binali Yıldırım attended "Public Infrastructure" congress in Hanover, Germany on January 23. Participants discussed details of public-private sector partnership for public infrastructure investments which is also on the agenda of Turkey. Yıldırım said that works on related laws and regulations about the issue will be completed soon. Yıldırım addressed a conference on urbanism and public infrastructure and made a presentation about Turkey's investment plans to improve infrastructure in the country. Yıldırım called on German companies to invest in Turkey, saying the country's economy has been growing continuously thanks to an environment of confidence and stability. He also met with German Finance Minister Peer Steinbuck on the sidelines of the conference. Yıldırım proceeded to Panama on January 24. Yıldırım represented his government in foreign ministers meeting of Caribbean countries in Panama. Yıldırım told reporters that he will ask for support for Turkish Aegean province of Izmir's candidacy to host Expo 2015, as well as for a non-lasting member seat for Turkey in the UN Security Council. Yıldırım, when in Germany, made a presentation on infrastructure investments planned for Turkey, and asked German entrepreneurs to invest in Turkey.

 

• Ziraat Bank Chairman Ilhan Uludağ said on January 22 that the bank would open three new branch offices in Germany. Akbulut said three new branches would be in Essen, Manheim, and Nuremberg, increasing its number of branches to 11. Uludağ said the first executive board meeting convened in Germany to assess 2008 budget of Ziraat Bank International AG in Frankfurt. Uludağ said Ziraat would be privatized after 2011.

 

• Finance Minister Kemal Unakıtan said that the privatization of highways, bridges and lottery games will begin in May. Speaking at a press briefing on economic developments  on  January 23,  Unakıtan  said  that  privatizations  in Turkey in 2003-2007 pumped over $40 billion into the market. "We will receive final offers for TEKEL's privatization on February 18," Unakıtan said. "We're currently working on a strategy for the privatization of sugar factories. We plan to develop a strategy for the privatization of electric power plants too. The privatization of Bandırma and Samsun sea ports will take place in 2008," Unakıtan announced. "Fifteen percent of Turk Telekom shares owned by the Treasury will be sold to the public. A strategy will be developed to privatize government shares of Halkbank."

 

• Agriculture and Rural Affairs Minister Mehdi Eker said that Sudan is an important country in the world in cotton sector, adding that Turkey wants to benefit from Sudan's potential in this issue. Speaking at the Turkish-Sudanese businessmen meeting – held by Turkish Foreign Economic Relations Board (DEIK) – in Istanbul on January 22, Eker said that relations between Turkey and Sudan had entered to an important period thanks to the trade agreement which was signed in 1980s. He added that the relations continued to develop in the last eight years. Eker said that agriculture takes an important place in Sudanese economy, and there are many sectors which Turkey can work with Sudan. Eker said, "Sudan is an important country in cotton sector in the world. Turkey also is an important cotton producer, and it has a shortage in supply in cotton regarding textile and ready-made clothing. Turkey wants to benefit from Sudan's potential in this aspect."

 

• Chilean Ambassador in Ankara Francisco Marambio gave his support to candidacy of the Aegean province of Izmir to host Expo 2015. Speaking at a meeting with Izmir Acting Mayor Yusuf Ali Karaman on January 24, Marambio said all the world should see the changes and developments occurring in Izmir. Karaman said an honorary consulate of Turkey that would be opened in Chile would boost relations between Turkey and Chile. The Expo, which is known as a universal exhibit or world fair, is a non-profit event aiming to contribute to humanity through international participation and sharing of experiences. Organized in 1851 in London for the first time, the 6-month-long organization is held once in every five years. Despite its non-profit status, the event draws large numbers of tourists to host cities and leads to abundant tourist revenues. Turkish officials say they expect 80 million tourists to visit Izmir which is bidding under theme "New Routes to a Better World/Health for All.” BIE member countries will vote and choose the host city on March 31.

 

• Head of an influential Turkish chambers association has been elected as the representative of non-EU members in Eurochambers, an association of European chambers of commerce. Rifat Hisarcıklıoğlu, chairman of the Turkish Union of Chambers and Commodities Exchanges (TOBB), was unanimously elected to become the first person to receive the mandate within Eurochambers. Hisarcıklıoğlu will serve for a period of two years.

 

• Massimo Rustico, Italian consul general in Istanbul, said Italy fully supports Turkey's EU membership. In a visit to the Bursa Chamber of Trade and Industry (BTSO) on January 24, Rustico said, "The present trade volume of $17 billion between Turkey and Italy is rapidly increasing. Turkish-Italian cooperation in automobile and textile sectors must also be reflected in other industrial areas. Bursa plays an important role in commercial relations between Turkey and Italy. We're working on a protocol between the automobile capital of Turkey, Bursa and the automobile capital of Italy, Turin, that would make the two cities sisters."

 

• Gökçebey, a small town in the Zonguldak province, exported $13 million in ceramics to 40 countries in 2007. The products of the ceramic factory in the town, the Çanakçılar Group, are exported to countries such as Germany, Britain, Ukraine, Israel, Palestine, Greece, Jordan and Bulgaria. Çanakçılar Group deputy chairman Mithat Çanakçı said that 40 percent of factory's products is sold in foreign countries and 60 percent in Turkey. Çanakçı said that they aim to export 55 percent of their products to foreign countries in 2008.

 

• İstanbul Chamber of Trade (ITO) Chairman Murat Yalçıntaş and a delegation of 73 businessmen went to south-eastern province of Malatya upon invitation of chairman of the Malatya Chamber of Trade and Industry Hasan Hüseyin Erkoç on January 25. Yalçıntaş said that Turkey has the necessary infrastructure to overcome all economic crises. Yalçıntaş and his delegation paid a courtesy call to the Malatya governor Halil İbrahim Daşöz.

 

• Prime Minister Recep Tayyip Erdoğan chaired a seven-hour Economic Evaluation Committee meeting on January 30. Also in attendance were Deputy Prime Minister Nazım Eken, Finance Minister Kemal Unakıtan, Industry Minister Zafer Çağlayan, State Ministers Kürşad Tüzmen and Mehmet Şimşek, and Foreign Minister Ali Babacan. “Turkey’s economy has reached stability as a result of the government’s policies,” said a statement afterward. “It has gained the ability to resist global and local crises. These advantages will be effective in limiting the impact of global fluctuations on Turkey.”