Turkey Financial News » Foreign Investments

Iraqi governor invites more Turkish investors

meb — Tue, 25 Oct 2011 08:07:12 +0000

Baghdad could cooperate with Turkish companies in all fields, according to the Iraqi capital’s governor Salah Abdul-Razzaq.

Speaking at the inauguration of the “Turkish-Iraqi Trade Summit” in Istanbul on Tuesday, Abdul-Razzaq said that Iraq allocated $30 billion for new projects in 2011 and this figure would go higher next year.

Iraq is among the 10 countries in the world with most needs for public works. As such, there is a need for investments worth billions of dollars in Iraq.

Iraq presents highly important opportunities for investors, Abdul-Razzaq said. “We can cooperate with Turkish companies in Baghdad in many diverse fields. Turkish companies make quality production at prices lower than those of Europe. We regard Turkish companies closer to us than others. We want to see Turkish companies in infrastructure, tourism and telecommunications fields in Iraq.”

Philips may revisit Turkey for growth

meb — Tue, 25 Oct 2011 08:04:33 +0000

Philips is seeking double-digit growth in Turkey, according to a top executive. The Dutch company is planning to relaunch manufacturing in the country.
Multinational Dutch company Philips is aiming for aggressive growth in the robust Turkish market, according to the top executive of the Turkish branch of the company, who noted that Phillips is considering joint ventures and acquisitions in Turkey to achieve its goals.

Philips might consider restarting manufacturing in Turkey due to “tremendous change” in global economic stability in recent years, said Willem Rozenberg, chief executive of Philips Turkey & Caucasus, speaking to the Hürriyet Daily News in an interview on Thursday. Founded in Istanbul in 1930, the company manufactured a wide range of products in Turkey until 2008. Talking about the future plans of the company, Rozenberg said, “The company might return to Turkish with an industrial presence in some form.”
“Turkish President Abdullah Gül emphasized previously about the new balance between East and West, as the West is losing some of it power to the East,” said Rozenberg, noting that Turkey has the vision to understand the change and locate itself in the heart of the evolution. “No one could have known that United States’ credit rating was going to be downgraded a few months ago,” he added.

Talking about the Turkish economy, Rozenberg said the country has turned into “an economically independent country” from a country that was in need of constant support from others such as the International Monetary Fund, or IMF, a few years ago. “Turkey now says that it can solve its own problems,” he said, adding that many investors trust in Turkey more than before. According to him, Turkey has a serious challenge still waiting to be tackled; the income distribution gap and lack of infrastructure in some regions. “Turkey is highly developed on one side and needs a lot of development on the other side,” added Rozenberg.

Rozenberg said the company has currently total market size of $2 billion in home appliances, $1 billion in lighting and $250 million in health care, noting that Philips Turkey aims to reach double-digit growth on a yearly basis. “We aim to exceed Turkey’s gross domestic product growth by two times in each year,” he said, noting that the company targets to reach 15 percent growth in the market.

“We cannot just be successful by bombarding the market with new products, but need locals inside,” Rozenberg said. “We are interested in capitalizing on local opportunities through local partners, joint ventures and acquisitions.”

“Turkey is an important example for other countries in the region,” said Rozenberg, noting that many international investors sees the country as “a hub for penetrating into new markets” such as the Middle East or North Africa. Referring to Turkish construction companies actively running giant projects in Russia, Iraq and Central Asian countries, he said Philips also plans to penetrate into new markets especially in the lighting sector through Turkish construction companies.

The company also plans to grow in home health care equipment. “We are having talks with Turkish officials to bring health service into patients’ homes,” said Rozenberg, adding that the finance of home health care services could be provided through health insurance policies. Monitoring patients at home and giving some services at home through high-tech user-friendly equipment could be much more affordable and efficient for Turkey, said Rozenberg. “Our company aims to take an active role in such a project that Turkish Health Ministry would launch in the future.”
source: Hurriyet daily news

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

TeliaSonera says it plans to stick with ownership in Turkcell

meb — Tue, 19 Apr 2011 20:39:14 +0000

Swedish telecommunications operator TeliaSonera is going to stick with Turkcell, Turkey’s largest mobile operator where it holds a 38 percent stake and who is now trying to get more independent directors appointed to the board, Chief Executive Officer Lars Nyberg said in a telephone interview on Tuesday.

“If you, as the biggest owner, consider leaving because a company is going through some difficulties, you are then more of a short term investor,” Nyberg said. “TeliaSonera is a telecom operator, we love this asset and we intend to keep it.”

TeliaSonera never planned to merge Turkcell with Russian operator MegaFon, in which it also holds a stake, Nyberg said. He wouldn’t speculate on the outcome of Turkcell’s annual investor meeting scheduled for Thursday.

TeliaSonera filed a lawsuit against Colin J. Williams, chairman of Turkey’s biggest mobile phone operator Turkcell, on March 30, for allegedly blocking its efforts to increase the number of independent board members at Turkcell’s shareholders’ meeting on Thursday.

source: hurriyet

‘I would make equity investments in the Turkish economy’

meb — Mon, 19 Oct 2009 13:16:08 +0000

The Turkish economy has registered superb improvement in competitiveness in recent years and proven its potential as a magnet for international investors, world-renowned strategist Professor Michael Porter has said. Addressing a group of businessmen and reporters on Saturday at a conference organized by İşTcell, a Turkcell brand directed at corporate customers, Porter, director of Harvard Business School’s Institute for Strategy and Competitiveness, said that if Turkey were traded on the stock market, he would definitely make an equity investment in the country.

During the first part of his speech, Porter described the major premises of creating strategies and determining and developing a competitive approach and the role of leaders in the competitiveness of a company. He also shared his views on possible strategies that may be adopted during times of economic crisis. He devoted the second part of his speech to discussing Turkey’s economic strategies, including an in-depth analysis of the business world’s role in these strategies.

Porter later announced the results of a study conducted by the Harvard Business School and Turkcell on Turkey’s competitiveness in the global economy. The study found that the Turkish economy has competitive advantages such as a vast labor force, a high level of entrepreneurship, a rich and dynamic internal market, vast land and a favorable geographic location. Easy access to a range of global markets and better established institutions compared to other emerging economies are two other assets that give Turkey an edge, Porter noted.

He proposed that the Turkish private sector take the initiative in establishing national and regional competition councils. This will help the formation of a consensus on the economic strategy of the country as a whole, he argued. Porter also advised supporting efforts to create industrial clusters in different regions since the Turkish economy is already prone to organizing into such clusters. Porter also encouraged developing more sound coordination in economic relations with neighboring countries to fully exploit the potential that Turkey’s geographic location provides.
source: Today’s Zaman

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

Gazprom plans to invest in Turkish market

meb — Fri, 02 Oct 2009 08:31:24 +0000

Russian natural gas giant Gazprom is eyeing the growing Turkish market, deputy chief executive Alexander Medvedev told business daily Referans, adding that the firm might invest in the natural gas distribution and electricity production markets.

Gazprom aims to build and operate a center with the Aksa Group, a Turkish energy producer and supplier, in order to sell gas directly to Aksa once Turkey changes regulations that prevent such sales, Medvedev said.

Detailing the company’s negotiations with Botaş, the state-owned Turkish pipeline company, Medvedev said a volume discount in the context of the “purchase or pay” model is being discussed, but no official negotiations have started yet over the issue.

“We have reached an agreement on the political aspects of the Blue Stream-2 project,” said Medvedev. Speaking on Gazprom’s plans for the Turkish market, Medvedev pointed toward current legislative problems.

“Supplying gas to private Turkish companies is expected to take place after the change of legislation,” he said. “We hope that Turkey will take care of this problem in the future. Gazprom and Aksa are considering possible cooperation on subjects such as building and operating a natural gas center.”

Botaş had previously requested a change to the “purchase or pay” clause after it faced difficulties selling the gas purchased from Russian in the market.

“We did not reach the level of official negotiations on this issue,” said Medvedev.

Noting that Turkey is the second biggest gas buyer from Russia after Germany, Medvedev said, “The gas that Turkey purchased in 2008 totaled 23.8 billion cubic meters.” As of Aug. 1, Turkey’s purchase will amount to 12 billion cubic meters, he said, adding that Gazprom expects this year’s total purchases to reach the 2008 level.

Gazprom is waiting to obtain permission from the Turkish authorities to start feasibility work for the South Stream project, a natural gas pipeline that will bypass Ukraine and carry Russian gas to southeast and Central Europe through Turkey, Medvedev said. The pipeline is regarded as a rival to the European Union and United States-backed Nabucco project.

“After obtaining the permissions, we will immediately start working in the Black Sea,” he said. “Cooperating with Turkey on natural gas opens many doors. Our cooperation enables us to lengthen long-term agreements,” such as the West Line agreement, which is expected to expire by 2011.

Noting that the Blue Stream project is still in its early phases, Medvedev said: “We have reached a deal with our Turkish partners on political issues. [Now] we will start negotiating the actual issues.”

Medvedev also said it was too early to talk about Gazprom’s potential interest in Botaş if Turkey decides to privatize the company.
source: Hurriyet daily news

Global giant re-invests in Turkish factory

meb — Thu, 24 Sep 2009 07:19:04 +0000

General Electric, or GE, a global media, technology, services and manufacturing company, has begun to invest in future technologies at its engine-parts division in Turkey’s northwestern city of Eskişehir, according to a GE executive.

The firm will produce new compressor-wing technologies only in Turkey, said GE Turkey Managing Director Kürşat Özkan. The investment totals nearly $50 million, he added.

Speaking about the global crisis and its impacts, Özkan said that GE will continue its activities in Turkey. “We have started investing in future technologies here in our Eskişehir division, although there is a capacity surplus in the world. New compressor-wing technologies will be produced only in Turkey.”

The firm has already started developing some of its production technologies in Turkey, he said, adding, “It may not sound reasonable to make such a manufacturing investment in a period marked with demand contraction in the market, but we will have positioned ourselves once the market demand returns.”

An additional building has been built at the current Tusaş Engine Industries factory, he said. “There is not a booming demand at present, but in time this will be the best facility in the world for our product. With all its elements, this investment approaches $50 million. There are long-term projects that we cannot cut. Our activities for train production are ongoing. The European market needs next-generation trains, therefore Turkey may become a strong center for this industry. I predict that the factory will start operating next year.”

Özkan also commented on an engineering center in Gebze, the largest district of the northwestern industrial city of Kocaeli. “This is also a long-term project. We will eventually employ 200 engineers there. Training this many people requires long-term work. We will not make cuts there due to the crisis, since we have to continue our investments by training our staff.”

Replacing business models

Noting that business models based on long-term financing have deteriorated both in developed and developing countries in the aftermath of the global turmoil, Özkan expressed the need to replace them with alternatives.

In such a climate, it would not be realistic to have very aggressive growth targets, Özkan said, adding, “There will be difficult times for a few years worldwide. In the upcoming period, we do not expect to regain the previous situation immediately. But the most-feared period is now over.”

According to Özkan, GE expects a decline in its Turkey revenues this year compared with 2008. However, Garanti Bank, in which GE holds a stake, has performed well despite the climate. “We do not know whether 2010 will be a year of stagnation, but we hope that the worst days are now over,” he said.

Noting that the private sector is advancing in Turkey, Özkan added, “We learn many things from our partners, even in issues that we think we know well. We always take off our hat to Garanti in terms of consumer finance. Garanti is one of the brightest spots among GE’s global investments. We have obtained very good results in all investments and partnerships. That’s because of our capability to find good partners and the opportunities Turkey offers.”

GE is gradually minimizing the share of its GE Capital financial-services division on its balance sheet in the medium term, Özkan said, explaining the firm’s back-to-basics policy in developing countries. “But we will continue to invest in places that have a rare, well-positioned bank such as Garanti. They have a promising future.”

GE takes a cautious stance regarding large investment items and energy investments. Some projects do not seem feasible within current financing parameters, he said, adding that there are some projects that need to wait for both financing and regulatory approval.

Özkan also noted that fields such as energy, transportation and health care will continue to be the most important sectors in Turkey for GE in the post-2012 period. Regarding the issuance of the Renewable Energy Act, GE plans to undertake significant projects in this field, he said. Meanwhile, despite the crisis, the company has not interrupted its investments in research and development as well as hiring.
source: Hurriyet daily news

China’s Chery to invest $500 mln in Turkey

meb — Thu, 17 Sep 2009 20:28:22 +0000

Industry and Trade Minister Nihat Ergün on Wednesday said Chinese auto maker Chery expected to establish a factory in Turkey with an initial $500 million investment.
“The firm has expressed a desire to access world markets via Turkey. They have applied to build a production base in Turkey,” Ergün told a meeting at the ongoing Frankfurt Auto Show in Germany. Two executives from Chery had visited the northwestern province of Sakarya in January to acquire land to build an automotive factory. The auto producer had commenced feasibility studies with the Turkish Mermerler Group, Chery’s current distributor in Turkey. They are expected to shortly decide where to establish the factory. Chery plans to produce two of its models in Turkey through cooperation with the Mermerler Group. Exporting its products to 67 countries, Chery also has seven factories in six countries including Russia, Iran, Egypt and Indonesia.
source: Today’s Zaman

Renault to begin producing electric car in Turkey

meb — Thu, 17 Sep 2009 20:26:00 +0000

Turkish Industry and Trade Minister Nihat Ergün has said Tuesday that French car maker Renault would start producing its Fluence brand in Turkey in 2010.
Speaking to reporters at the 63rd Frankfurt Auto Show, which kicked off on Tuesday, Ergün said in 2011 Renault would begin production of the electric version of this car, noting that this would be a major landmark for the Turkish auto sector.

Commenting on the electric version of the Fluence, Foreign Trade Minister Zafer Çağlayan, who also attended the auto show, said this would make Turkey a base for electric car production and investment. The two ministers evaluated the latest developments in the Turkish auto sector for members of the press.
Ergün said they aimed at increasing Turkey’s auto production to somewhere between 1.5 to 2 million cars annually, noting that Turkey was emerging as one of the most competitive countries in the world automotive sector. “We have set our target to turn Turkey into a high technology products manufacturing hub in its region, from Europe to the Middle East and Central Asia.” The minister said the government placed heavy emphasis on using better technology than Turkey’s current industrial manufacturing standards and had accelerated efforts to encourage more companies to commence research and development (R&D) studies to this end. “In Turkey some 56 firms have their own R&D centers, and eight of these belong to the automotive industry, while around 12,000 staff members work at these centers. We have a long way to go since Turkey still cannot utilize high technology in our industry at the desired level,” he said.

Ergün said the government followed the latest developments in the automotive industry closely and that his and Çağlayan’s presence at the auto show was a clear indicator of such a fact. Referring to the tax cuts on automotive sales which are due to end in late September, Ergün said they helped boost auto sales in the domestic market. He said they were assessing the contribution of the tax cuts to auto sales, hinting that they might extend the incentive for a few more months. “As of the end of September we will make a new decision. We will decide whether or not to extend the tax cuts and at which rates, based on an evaluation we will make at the Economic Coordination Board [EKK] meeting,” said Ergün.
source: Today’s Zaman

Best Buy plans to enter Turkish market in October

meb — Fri, 17 Jul 2009 18:22:39 +0000

Best Buy, the largest US consumer electronics retailer, will enter the Turkish market in October.

As part of the company’s expansion plans, Best Buy will open its first store in the western province of İzmir. The US company plans to open two more stores by the end of the first quarter of 2010, one in the capital city of Ankara and the other in another western province, Bursa. TeknoSA, Turkey’s largest consumer electronics retailer, has over 220 stores spread throughout 67 cities in Turkey and employs over 3,000 people. Best Buy, in comparison, operates over 4,000 stores in 13 countries including the United States, Canada, China and several European countries. The company employs 155,000 people and made $45 billion in sales last year.
source: Today’s Zaman