Turkey as a magnet of trust
Posted by meb at November 1st, 2008
Despite a global decline in oil prices, investors from the Middle East remain optimistic about the future due to existing capital accumulation in the region, according to participants speaking on the second day of the World Economic Forum on Europe and Central Asia 2008 on Friday.
While the current global economic turmoil is jarring established financial approaches and standpoints, Turkey stands as a “confidence magnet” in the region, according to Ibrahim Dabdoub, chief executive officer of the National Bank of Kuwait, or NBK, which acquired 40 percent of Turkish Bank last year.
“Turkey should expect more direct investments from the Gulf,” said Dabdoub, speaking at the “Turkey: Combining Europe and Asia” plenary session. “Even if oil prices drop to between $50 and $60, prosperity would create a great capital accumulation in the region,” said Dabdoub.
“Turkey is a power focus, proximate to the Middle East and a fellow Muslim country. This will keep attracting the attention of Middle Eastern investors. Once Turkey becomes more proactive in governmental and private sector levels, there will be a greater amount of Middle Eastern capital inflow here instead of elsewhere,” he said.
Diminishing role of the United States:
Speaking on the power equilibrium in the region, Dabdoub said the financial crisis was likely to cause key economic and political changes in the Middle East and this could be an opportunity for Turkey to take a leadership role.
“In my opinion, the financial crisis will diminish the role of the United States in the region,” he said, “Turkey may evaluate this opportunity to become more effective.”
Reminded of the upcoming presidential elections, Dabdoub said the United States would likely “turn inwards” under new leadership.
“[the United States] will abstain from spending more money in different parts of the world, particularly this region,” said Dabdoub. “This creates an opportunity for Turkey to take over the role of the United States in the region. Its strong military and well- structured economy makes the country the main actor in the Middle East.”
Dabdoub argued the global recession would last two or three years. “Turkey’s economy has the power to overcome the negative affects of the crisis. In fact, the crisis will make it stronger than ever,” he claimed. “Turkey’s companies and people have the spirit of entrepreneurship. Its economy is established on strong ground.”
An energy hub for the EU:
Speaking at the same session, Ahmet Dördüncü, chief executive of Sabancı Holding, said Turkey’s annual electricity production capacity was more than 40,000 megawatts and that he expected this figure to increase to between 60,000 and 70,000 megawatts with new investments in the next couple of years.
“There are many cooperation opportunities between Turkey and the European Union in electricity delivery,” said Dördüncü. “With such potential and considering its geopolitical situation, Turkey could function as a safe procurement alternative for the EU, in terms of delivering fossil-based fuel as well.”
‘earthquake about to end’
The global financial crisis may calm down in a week, as the United States elects its next president, according to Cüneyd Zapsu, chief advisor to Prime Minister Recep Tayyip Erdogan.
“Turkey has not been affected by the crisis,” Zapsu told the Turkish Daily News. “You should look at what is happening in the United States to get an idea about the crisis. For example, restaurants are empty over there, while the economy is still doing well in Turkey.”
“After next week, we will see the damage of this earthquake more clearly. Now the world is still being shaken by global turmoil,” he said.
source: Turkish Daily News
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