Turkey Financial News » Business World

Contractors pin hopes on gov’t for repayment of debts in Libya

meb — Thu, 03 Nov 2011 09:11:51 +0000

Turkish contractors, long unable to receive payments for projects in an unstable Libya, woke up Wednesday with renewed hope as Economy Minister Zafer Çağlayan arrived in Tripoli to discuss a solution for the problem with the country’s new rulers, the National Transitional Council (NTC).

Following months of heavy fighting against dictator Muammar Gaddafi, NTC fighters gained full control of Libya last month. Turkish construction companies that have the largest share of Turkish investments in Libya had to suspend projects following the national unrest.

Companies have failed to receive payment for projects — estimated at around $1.5 billion — they had completed prior to the uprising.

Economy Minister Zafer Çağlayan and a group of Turkish construction contractors met with Libya’s National Transitional Council (NTC) to discuss the future of payments of around $1.5 billion during a one-day visit on Monday. Observers said the visit had significant importance considering this is the first face-to-face interchange with the NTC on construction project payments following the council’s recent internationally recognized victory over Gaddafi forces. The minister met with Mustafa Abdul Jalil, head of the NTC on Wednesday in Tripoli. Speaking prior to the meeting, Abdul Jalil said they were grateful for Turkey’s support during the conflict and that Turkish companies will have a significant role in rebuilding the country’s civil war-torn towns. “Turkish companies will reconstruct buildings all across Libya, and some of these will be allocated to Libyan residents. This will be a great example of solidarity for future generations,” he explained. “Turkish companies had undertaken great projects in Libya, and they are famous for their quality work,” the NTC head added. Turkey has lent financial support as well as humanitarian assistance to victims of the Libyan conflict. Both Çağlayan and Abdu Jalil were expected to inform reporters about unpaid debts through the end of the day. The problems, however, may not come to an end as security is another issue that remains to be solved in the North African country.

Some Turkish contractors voiced concerns a possible authority gap in the post-Gaddafi Libya could endanger projects, currently underway at a total value of $15 billion. Turkish businesspeople are now hoping the government will also help secure the business rights they enjoyed during Gaddafi’s rule. But the issue that needs to be addressed first is the current unpaid debts. Evaluating the developments to Today’s Zaman on Wednesday, Association of Turkish Building Material Producers (İMSAD) Chairman Hüseyin Bilmaç said they attached utmost importance to healthy cooperation between Turkish advisors, industrialists and contractors in Libya. “This is crucial in maintaining our leadership in the Libyan construction market. … We are expecting the new government to address the safety concerns in the coming months,” he argued.

Speaking in Ankara on Wednesday, Union of Turkish Construction Industry Employers’ Union (İNTES) President Şükrü Koçoğlu said they “have to find an addressee with whom to discuss the future of Turkish projects in the country.”
source: todays zaman

Libya rush should start urgently, minister says

meb — Thu, 03 Nov 2011 09:07:41 +0000

Turkish construction companies should rush back to Libya, their one-time top market, as the government is ready to support them, according to Economy Minister Zafer Çağlayan.

“Our businessmen demand a special customs permit to take their machinery and equipment to Libya,” the minister said during a press meeting yesterday in Tripoli with his Libyan counterpart.

A business assembly of 200 people accompanied the minister during the one-day visit.

Turkish companies undertook $7.627 billion worth of projects in Libya in 2009 and 2010, according to official data.

Upon Turkish Prime Minister’s order, Turkey will build schools, mosques, police stations, courts and jails in Libya, the minister said.

Turkish contractors will start building these facilities for free once the Libyan authorities finalize determining their needs, he said.

The ministry runs a budget of $50 million to support consultancy practices for Turkish companies worldwide, Çağlayan said, adding that Turkey will pay up to $300,000 per project in Libya within the scope of this fund, calling it a gesture. “Libyan authorities will not pay for it.” he said.

Turkey will work on using this fund mostly in Libya.

Turkey has always been on Libya’s side and this is where the country diverges from other countries eyeing businesses there, according to Çağlayan.

“The countries that colonized Africa are today trying to achieve a role,” he said, without naming specific countries.

These countries are thinking of “how to exploit the resources there” once again, he added.

Abdullah Shamia, the economy minister of the National Transitional Council (NTC) in Tripoli, said Libya had a lot to learn from Turkey’s experiences. Turkey backed Libya during the transition period, Shamia said.

“We have overcome our cash problem due to Turkey’s support,” he said.

Turkey’s e-commerce grows at rapid pace

meb — Thu, 03 Nov 2011 09:03:47 +0000

The total revenue earned through online payments increased by 52 percent to 16.9 billion Turkish Liras in the year’s first nine months compared to the same period last year, according to data released yesterday.

“Almost one in every five people in Turkey now shops online,” said Soner Canko, general manager of the Interbank Card Center (BKM), speaking at Cardist 2011 International Card and Smart Technologies Exhibition & Summit held in Istanbul. He said Turkey ranked among the biggest markets in Europe regarding online commerce. The number of Internet transactions jumped 37 percent in the first three quarters compared to the same period in 2010, reaching 91.4 million transactions.

Many international finance institutions watched Turkey with interest as the Turkish e-commerce market became promising with high revenue, Canko said.

Turkey’s service sector ranked first regarding spending in online platforms, growing 69 percent compared to the previous period. The total revenue from e-commerce platforms in the service sector reached 2.53 million liras in the first nine months of this year.

Turmoils shift the axis of Islamic investments

meb — Tue, 25 Oct 2011 07:59:15 +0000

The ongoing unrest in North Africa and the Middle East have directed many investors from Gulf countries to Turkey. The newcomers include many Islamic bankers, says to top executive of Dubai-based Noor.
Turkey has attracted significant investments from Gulf countries as well as Islamic bankers due to the Arab Spring in the Middle East and North Africa, according to the top executive of the Dubai-based Noor Islamic Bank.

“Turkey served as the safe haven regarding investments from the Middle East,” said Hussain Alqemzi, Noor’s chief executive officer, speaking to the Hürriyet Daily News yesterday on the sidelines of the Islamic Investment and Finance Forum in Istanbul.
“Certainly we would like to see more stability in the region, which would pave the way of the investment climate,” Alqemzi said, adding that the Noor Islamic Bank has been mandated to arrange and manage more than $1.4 billion Islamic finance capital market deals in Turkey in the last 18 months, making it the most active United Arab Emirate bank in the country.

“Turkey’s economic growth and strength make it an attractive market for Gulf investors,” Alqemzi said.

Turkey contracts

He said the Turkish deals led by Noor have been very well received by the global markets as demonstrated by the participation of over 55 institutions from 15 countries across Europe, Africa, Asia and Middle East.

The latest of the shariah-compliant transactions is a $350 million dual-currency Islamic-structured murabaha syndicated financing facility for Albaraka Türk, a participation bank in Turkey.

“Launched at $150 million, the facility was more than two times oversubscribed to close at $300 million and has in fact become the largest Islamic-structured syndicated financing facility raised by any Turkish financial institution, Alqemzi said.

Noor has an active pipeline of deals for the rest of this year and leading into 2012 regarding Turkey, he said.

“The deals that we are close to concluding will be worth nearly $600 million,” Alqemzi said. “We are setting records, while at the same time pushing the boundaries of existing Islamic banking business in Turkey.”

According to Alqemzi, Turkey currently is the top priority for the bank since Turkey’s interest in Islamic banking is rapidly increasing.

Gulf Cooperation Council (GCC) members Bahrain, Kuwait Oman, Qatar, United Kingdom of Saudi Arabia, United Arab Emirates already reached a total investment of $10 billion in Turkey as of the end of the last year, Alqemzi said.

“Noor is pleased to work with its Turkish partners,” he said, adding that Noor might launch a branch in Turkey.

The total trade volume between Turkey and the six member states of the GCC reached approximately more than $17 billion last year.
source: Hurriyet daily

It’s Turkey time, board report says

meb — Fri, 21 Oct 2011 05:23:33 +0000

This is the best time to invest in Turkey, according to a recent report that will be presented to U.S. investors and fund managers who decide on the flow of millions of dollars in funds.

The Boston Consulting Group’s Turkey branch and the Foreign Economic Relations Board of Turkey (DEİK) will present today a report on the “Global Advantage of Turkey” at the Turkey Investment Conference in New York, hosted by the American Turkish Society and Goldman Sachs.
Automobiles, textiles, chemicals, steel and food are underlined as export champion industries in the report. It also emphasizes Turkey’s importance technologically and socially, not just the country’s strategic importance.

Turkey’s dynamic population creates an extensive labor pool, the report said, noting that Turkey had the largest working age population – between 15 and 64 – in the European Union and Central and Eastern European countries.

The report also underlines Turkey’s privatization plans for state-run energy generation plants and distribution firms, banks, highways and bridges, ports as well as the country’s sole landline provider, Türk Telekom, and the national lottery company Milli Piyango.

“Explaining ourselves properly is more than important nowadays,” DEİK Secretary General Bahri Can Çalıcıoğlu said.
source: Hurriyet daily news

Turkish Investment Summit takes off in London

meb — Mon, 19 Oct 2009 13:08:14 +0000

The Turkish Investment Summit opens at the Renaissance Chancery Court Hotel in London on Tuesday.

The three-day program will provide plenty of time for social networking, acquiring new contacts and discussing business with potential partners and clients.

Organized by the Turkish Embassy in London and the European Bank for Reconstruction and Development, the Turkish Investment Summit will provide an in-depth look into the global and domestic outlook for Turkey, including a spotlight on European Union accession.

Other topics discussed during the summit, which will also be attended by Turkish Finance Minister Mehmet Şimşek, are maximizing Turkey’s energy potential with a special focus on renewable energy sources, a review of Turkey’s best investment opportunities, an in-depth look at real estate; infrastructure; and banking, finance and private equity. A focus day on agriculture, food and beverage and retail grocery will also be included.

Varel Freeman, EBRD first vice president; Alpaslan Korkman, chairman of the Investment Support and Promotion Agency of Turkey; Tevfik Aksoy, an economist at Morgan Stanley in London and Bahadır Kaleağası, of Turkish Industrialists’ And Businessmen’s Association’s International Coordinator and EU Representative are also among the key speakers of the summit.
source: Hurriyet daily news

Minister unveils plan to turn Istanbul into global finance center

meb — Mon, 05 Oct 2009 11:42:29 +0000

Discussed for months but never detailed, key points of a government plan to turn Istanbul into a global financial center were finally revealed by a top minister on Friday.

Speaking at a press conference organized as part of the International Monetary Fund-World Bank annual meetings, Deputy Prime Minister Ali Babacan said Istanbul would soon become “a significant and prominent financial center.” Babacan tied the effort to the “void” created by the global financial crisis.

“Istanbul is the natural finance center of Turkey,” he told journalists. “We need to increase its competitive power regionally and globally. The competitive strength of our economy is very important.”

The project “Istanbul International Financial Center,” or IFC Istanbul, is included in the ninth development plan covering 2007-2013.

“In this action plan, in order to have Istanbul as a global finance center, priorities have been determined to build a legal infrastructure that operates on international standards, to increase diversity of financial products and services and to develop a simple and effective system,” said Babacan. “We need to enhance our legal infrastructure.”

“In the effort to turn Istanbul into such a center, it is necessary to improve the legal aspect, which would bring expeditious and effective resolutions of disputes in the area of finance, to establish an institutional arbitration center and to accelerate legislation of laws that would contribute to the IFC-Istanbul Project,” the minister said.

One priority is to increase the diversity of financial products and services, according to Babacan. “A global finance center should have diversity in the products and services it offers and the conditions of such offers should be attractive,” he said.

Noting that building a simple and effective tax system is also a priority, Babacan said tax laws and related legislation will be made “simple, clear, predictable and sustainable.”

Reforming taxation would help the inflow of financial transactions into Istanbul and Turkey, the minister said. “We should also consider improving the regulatory and supervisory framework.”

“The current global crisis once more demonstrated the importance of coordination among regulatory authorities of countries,” Babacan said. “On the other hand, we can say that Turkey has proved itself with its strong financial and banking system. Turkey sets an example for other countries.”

Enhancing physical infrastructure is another priority for the IFC-Istanbul project. “We are targeting to develop every part of the city in terms of standards and technology,” said Babacan. “We are also working to create new software for markets and a technology platform to serve as a communication center.”

Babacan mentioned that the IFC is a long-term plan. “The IFC-Istanbul project will not only focus on a specific site. In fact, all operations across Istanbul to enhance residential areas, security and transportation, shall support the IFC,” he said. “We will focus on developing human resources and the image of Istanbul. As you all know, Turkey is very strong on human resources.”

The government has created nine working groups for the project, he said.

Responding to a question on the perceived “unease” of the government about the independence of the Central Bank, Babacan said the government was not questioning the status of the bank.
source: Hurriyet daily news

Program weakens odds of IMF deal

meb — Thu, 17 Sep 2009 20:20:47 +0000

Economy Minister Ali Babacan announces the government’s long-awaited, medium-term economic program in Ankara, emphasizing that talks with the International Monetary Fund will go on from now on based on this program. ‘IMF financing is not a must,’ he says, but notes that the difference of opinion between the government and the fund has narrowed

The Turkish government has announced plans to lower budget deficits over the next three years, saying the proposals may form the basis for a new lending accord with the International Monetary Fund, or IMF.

Under the medium-term economic plan announced by Economy Minister Ali Babacan in Ankara on Wednesday, debt will rise as a proportion of economic output this year and next, before starting to decline in 2011. Future talks with the IMF may be based on the program, though Turkey doesn’t need the fund’s cash and hasn’t included it in the fiscal projections, Babacan said.

“If we can agree on a standby accord then that would be our preference,” Bloomberg quoted the minister as saying. “I don’t want to raise expectations, the foundation is the program we have announced.”

The program shows “IMF financing is not a must,” Babacan said, responding to a question. “Our assumption is that: If we make a deal with the IMF, the resources [to be received] will be resources that would be offered to the use of the market directly. [Thus] our domestic borrowing need will be reduced. Thus, we will use [foreign borrowing] in the amount we will have to borrow domestically and this resource will be one that the Turkish banking sector could distribute for private consumption and investment.”

The outlined program and the outlook of IMF officials represent a “bridging of the gap” on the situation of Turkey and the world, Babacan said. “Maybe it was not like this three or four months ago.”

Turkey has been negotiating with the fund for more than a year. Talks stalled as the government widened its budget deficit to revive an economy pushed into its deepest recession on record by the global crisis. Wednesday’s plan shows how Turkey will “gradually reduce” that borrowing, Babacan said, also promising legislation that will restrain future spending.

The ratio of public debt to GDP will rise to 47.3 percent at the end of this year and to 49 percent in 2010, Babacan said. The ratio will decline in 2011 to 48.8 percent and to 47.8 percent in 2012, he said.

“This path does not incorporate a fiscal adjustment that would be enough to satisfy the IMF,” İnan Demir, chief economist for Finansbank in Istanbul, said in an e-mailed report. “We are no more optimistic on the prospects of reaching a deal with the IMF after [this] announcement.”

The government has avoided saying whether it plans to sign up for more IMF loans, as talks with the fund foundered over spending plans. Central Bank Gov. Durmuş Yılmaz said Sept. 5 that Turkey can manage without IMF money, though sometimes “an external motivation is needed” to ensure fiscal discipline.

Turkey’s economy contracted 7 percent in the second quarter of the year after slumping 14.3 percent in the first three months, the deepest contraction since quarterly records began in 1987.

The slowing economy has eaten into tax revenue and forced authorities to spend more on pensions and unemployment benefits. The budget deficit in the first eight months was 31.1 billion Turkish Liras ($21 billion), compared to a surplus of 4.6 billion liras in the same period of 2008, the Finance Ministry said Tuesday.

This year’s overall budget gap will reach 63 billion liras, about six times the original target set before the crisis struck and equivalent to about 6.6 percent of GDP, Babacan said. The budget won’t start producing a surplus net of interest payments on debt, until 2011 under the new plan, he said. The plan foresees a primary deficit of 2.1 percent of economic output in 2009 and of 0.3 percent in 2010. There will be a surplus of 0.4 percent in 2011 and of 1 percent in 2012.

Government spending on dams and other infrastructure in Southeast Anatolia will not be cut under the plan announced by Babacan, State Minister Cevdet Yılmaz told reporters in the same meeting.

Turkey had been targeting primary surpluses of 6.5 percent under IMF programs after 2001.

The plan’s targets are “conservative and doable,” Yarkın Cebeci, economist for JPMorgan Chase, said in an e-mail. “I think the IMF will like them as well and I have become more hopeful on an IMF program.”

The IMF has called on Turkey to draw up plans to reduce the budget deficit and rein in borrowing. Failure to do so could impair growth because government borrowing would reduce the credit available to companies, John Lipsky, the fund’s first deputy director, said on June 19 during a visit to Turkey. “Realistic” budget plans could also help Turkey earn a higher credit rating, Moody’s Investors Service analyst Kristin Lindow said on Sept. 11. Moody’s rates Turkey’s debt at Ba3, or three steps below investment grade.

In an emailed report to clients, Timothy Ash, head of emerging markets economics at the Royal Bank of Scotland, said the program could “trigger a rating upgrade” for Turkey.

“What is clear now in our minds is that Turkey is underrated, at Ba3/BB-,” he said. “Turkey has been stress-tested through the current crisis and has come out stronger.”

But Citigroup economist İlker Domaç said the program “does not represent a strong effort aimed at placing the public debt to GDP on a declining path.” In an emailed report, Domaç said he finds it “difficult to believe that the IMF would be content with the size and the nature of the planned adjustment.”
source: Hurriyet daily news

Turkey worst hit by crisis

meb — Thu, 10 Sep 2009 14:06:01 +0000

Turkey has been the most affected by the economic crisis, according to Germany-based Dekabank, which investigated the performances of 31 countries during the global financial crisis.

According to the report released earlier this week, China, India and Poland were the only ones that managed to turn the crisis into an opportunity. The remaining 28 economies contracted significantly.

Turkey has been affected by the crisis the most, according to the research. The country experienced the biggest decline in gross national product, or GNP, with 14.2 percent. Russia followed Turkey to rank second, with an 11 percent contraction in its GNP.

The impact of the global turmoil was also undeniable among the European Union countries. Among the EU members, Germany ranked at the top in economic contractions, followed by Hungary.

Among the 31 countries investigated, Germany ranked eighth with a contraction of 6.9 percent, while Hungary ranked at seven with a contraction of 7.6 percent.

The report revealed that the contraction in the U.S. economy as well as the U.K. economy was lower than expected during the first quarter of the year compared to the same period a year earlier. The United States, which experienced what one can call an earthquake in its banking system as well as real estate industry, saw a contraction of 3.9 percent during just the first quarter of the year. The economic contraction n the U.K. was 5.6 percent during the same period.

“Indicators reflect the economic models of the countries. The impact of the crisis was perfectly in line with that country’s relation to the global conjuncture,” said Ulrich Kater, DekaBank chief economist.

Turkey ranked second to last in terms of resources allocated to ease the impact of the global turmoil, according to DekaBank. The country allocated 1.3 billion euros to revive its economy, read the report.

Positive outlook

Turkey has drawn a positive picture in terms of its economy, according to a report by the Independent Commission of Turkey.

Turkey is in a better position than some of the EU countries, according to the report “Turkey in Europe: Breaking the vicious circle,” which was announced in Brussels on Monday.

Turkey has a functional economy, said the report. The endurance the country showed against the crisis is proof of a significant improvement achieved since the country began its EU accession period, it said.

The Turkish market, which has a young and quickly growing market, also proved it has the capacity to become a hub of quality manufacturing. The country has become a valuable trade center and it presents a major opportunity to the European business world.
source: Hurriyet daily news

Record TL 3.76 billion tax fine jolts Doğan

meb — Tue, 08 Sep 2009 13:36:46 +0000

Doğan Yayın Holding, Doğan Group’s conglomerate in the publication business that runs newspapers like Hürriyet, Milliyet, numerous magazines and TV channels, sustained the record amount of tax fine, the highest ever imposed on a Turkish company

The Finance Ministry inflicted a grueling fine of TL 3.76 billion ($2.53 billion) to the company for evading tax regarding its accounts for a time period covering 2005, 2006 and 2007.

The harsh blow of the record fine was due to the findings of investigations by controllers that the Doğan companies concealed the profits that stemmed from the share transfers among the partners and avoided to pay the Corporate Tax and Value Added Tax (VAT) on the revenues from the share transfers.

The investigation reports also asserted that the fines didn’t include the penalties for delaying the payments of these debts, which will later be calculated and added to the total amount. The calculation of the delay penalty will start from 2005 and will cover the time period until the projected time of the clearance of the debts. This is estimated to create a tremendous cost on the company considering that the rate of default penalty is monthly 2.5 percent for 2009 alone.

Doğan Holding will be able to negotiate with the Finance Ministry officials to ask for a discount in the amount of the fine as the door of conciliation is left open. The company has 30 days to open a lawsuit for the cancellation of the fine and for initiating negotiations for solving the tax dispute.

Doğan Yayın’s initial reaction was to blame the Finance Ministry officials of acting discretionary against the group and of assessing the laws incorrectly.

The company sent an written statement yesterday to the Public Disclosure Platform to announce that the Finance Ministry Revenues Controllers notified the results of 15 Tax Investigation Reports — bearing the dates of August 10 and August 25 on their covers — at the evening hours of Monday to the Doğan TV Holding, D Yapım Reklamcılık ve Dağıtım, Doğan Prodüksiyon Hizmetleri and Alp Görsel İletişim Hizmetleri, which are all Doğan Yayın Holding companies.

The statement summarized the investigation reports saying that the Finance Ministry inflicted a round figure of TL 3.76 billion fine, embodying TL 1.88 billion as the tax arrears, another TL 1.88 billion as the fine for the tax evasion, TL 60,000 for irregularities and TL 282,173 for special irregularities.

Doğan Yayın Holding accused in its statement the Finance Ministry’s controllers to weigh their personal evaluations while conducting the investigations rather than “generally accepted approaches. It also claimed that the controllers proposed such conditions that are not included in the Corporate Tax Law while performing the investigations.

The written statement, carrying the signatures of the Holding’s Board Member Soner Gedik and the Coordinator Murat Doğu, defended that all the transactions and share transfers were totally in accordance with the current laws and that the tax fine was manifestly wrong.
source: Today’s Zaman

Istanbul Chamber of Commerce to hold fair in Qatar

meb — Mon, 27 Jul 2009 13:13:54 +0000

The İstanbul Chamber of Commerce (İTO) plans to hold a Turkish export goods fair in Qatar, in an effort to diversify Turkey’s export markets and create new business opportunities.

Releasing a written statement Sunday, İTO said more than 200 Turkish companies operating in sectors ranging from furniture to construction, cosmetics to food, will attend the fair, to be held in Qatar between Sept. 3 to 6 in a 15,000-square-meter exhibition area.

Commenting on the fair Sunday in İstanbul, İTO Chairman Murat Yalçıntaş said they were pleased to be holding a fair with such a wide range of products for the first time in Qatar, the rising star of the Gulf.

“Qatar has constructed the world’s largest science and technology park; it has the largest tanker fleet in the world and is home to one of the largest natural gas reserves in the world. There is a need for many infrastructure investments in the country, which has boosted its development in the last decade. Turkish entrepreneurs have an opportunity in Qatar. We believe we will reap the benefits of this fair in the near future,” said Yalçıntaş. Underlining that the participating firms are the pioneers in their field, he also said they included successful small and medium-sized enterprises (SMEs) in the fair list so that these companies will have the ability to expand their customer base. Yalçıntaş said they will also display the cultural and historical values of Turkey during the fair, adding, “We hope this fair will strengthen the already existing close relationship between the two nations.”

ITO first started organizing international fairs in 1999 with a fair in Bahrain. Recognizing the benefits of this fair shortly afterwards, the association later intensified its quest to improve relations with Middle Eastern economies in the region. Later another two fairs were held in Oman and Kuwait.
source: Today’s Zaman

Turkey, UAE to improve economic relations

meb — Mon, 27 Jul 2009 13:10:12 +0000

Turkey is making an effort to boost relations with the United Arab Emirates.

The Turkish ambassador to the UAE, Hakkı Akil, told the Anatolia news agency correspondent on Sunday that there had been great progress in military, economic and cultural relations between the two countries in the past seven years.

“Between 2002 and 2009, our country’s foreign trade volume rose 800 percent. Today it is worth $9 billion. United Arab Emirates is the third largest exporter for Turkey. Our business volume has also been enlarging non-stop. Turkish companies assumed projects worth $5.3 billion dollars in this country during the past three years,” he said.

Business volume between the two countries will continue to increase in the upcoming years, said Akil. These improved relations will not be just economy related, he said. Within the framework of memorandum of understanding signed by both countries, Middle East Technical University and Istanbul technical University are going to establish campuses in Abu Dhabi, the capital and the second largest city in the UAE, he said.

Global turmoil is the biggest bump in front of investments, according to Zeki Burgucu, chairman of the Dubai Turkish Business Council. The relations between the two countries can be considered to be in a crawling stage, he said. “Both countries have just started to get to know one another. Dubai started to eye Turkey within the past two years or so. So it is fairly new. Therefore, it would be impossible to say that there has been a great development. However, we expect to see some serious development in the near future.”

Turkish TV shows

The entrance of Turkish TV shows and movies to the UAE market has benefited Turkey, said Burgucu. “Thanks to these shows families got closer. They have also helped significantly revive the tourism sector. As people begin to set closer ties with one another, certainly the business ties improve as well.”

The construction of skyscrapers, business centers and giant apartment complexes in the UAE continues at full speed despite the global economic crisis. Turkish construction companies have also put their signature on many buildings in the region. Yüksel Construction, which was established in 1963 in Ankara, is one of those companies.

“People here have much respect for Turkey. They are very helpful once they hear you are Turkish. A lot of Turkish construction companies and investors have been pouring into the region for the past few years,” said Tahsin Bakal, Yüksel Construction’s general manager for its Dubai office.

“The crisis has dampened the business a bit. But this really is a great market for Turkish companies,” he said. “Certainly things are not the same after the global turmoil and it would probably taker a year or two to get back to the way things were. Dubai needs to regain investors’ confidence.”
source: Hurriyet daily news