Turkey Financial News

Posted by meb at November 1st, 2008

Turkey has scored yet another major investment, totaling nearly $9 billion, from a major Gulf investment fund despite the ongoing turbulence in the global financial markets.

Turkish officials were quick to portray the investment as a vote of confidence and a sign of the success of Turkey’s economy in recent years. “We punched through the face of the crisis,” senior executives of the fund said. The investment is primarily focused on the agricultural industry in Turkey, particularly the multi-billion dollar Southeastern Anatolia Project (GAP), officials said.

Vision3, a strategic alliance between Ithmaar Bank B.S.C., Abu Dhabi Investment House and Gulf Finance House — all globally respected financial institutions in the Gulf region — signed an agreement yesterday with the Investment Support and Promotion Agency of Turkey (ISPAT) at Dolmabahçe Palace in İstanbul. (more…)

Posted by meb at November 1st, 2008

One of Italy’s largest textile, retail, and real estate companies, has decided on a 100 million euro investment in Turkey, reported the Ekonomist magazine.

The company, Fingen, is still working on buying land on the European-side of Istanbul for an outlet center, which will feature many high-end brands, such as Gucci, Prada, Guess and Valentino.

The real estate arm of the Italian company, RDM, will begin development of the outlet center in 2009 and Fingen will start operating the center in 2010. The outlet, which will be built over 150,000 square meters in a single story resort style, will be the first of its kind in Turkey with high-end brands and a central location, according to the company.

Fingen, the owner of some of Italy and Europe’s largest outlet centers such as Palazzo Mattci, Barberino Designer Outlet and Castel Romano, is also looking to bring Tie Rack, also owned by the company, to Turkey. Meetings for the franchising deal are still on-going. The company plans to grow both its retail and real estate business in Turkey. (more…)

Posted by meb at October 30th, 2008

Italian pharmaceuticals company Recordati has signed an agreement to acquire Yeni İlaç, a Turkish pharmaceutical company, for 48 million euros.

In a statement yesterday Recordati noted that the purchase price will come from its own funds. The completion of the transaction, expected to take place before the end of 2008, is subject to the clearance of the relevant competition authorities, the statement stated.

Founded in 1927, Yeni İlaç is a well-known Turkish pharmaceutical company dedicated to the production, marketing and sales of both proprietary and licensed drugs. Its products are well known and the company has a leading market position in the area of urology. The company is also engaged in contract manufacturing for other pharmaceutical companies. Yeni İlaç has 300 employees, around 100 of whom are medical representatives. The company has a solid financial infrastructure and is growing. Sales have increased consistently over recent years and in 2008 are expected to be around 17 million euros. The Turkish pharmaceutical market is 13th worldwide and is continuously expanding, with a growth rate of over 15 percent in recent years, due to the growth and increasing average age of its population within a national economic context, which has a growing gross domestic product (GDP) and where healthcare expenditures are still relatively low. (more…)

Posted by meb at October 30th, 2008

Representatives of the International Monetary Fund met with Turkey’s Mass Housing Administration, or TOKİ, for the first time Monday, to find out the challenges faced by Turkey’s housing industry.

The IMF committee, which included Rachel Van Elkan, who will become IMF chief to Turkey, and IMF representative Davide Lombardo, met withTOKİ chief Erdoğan Bayraktar and other TOKİ officers for 1.5 hours.

“Does Turkey confront problems in the financing of the houses?” asked the IMF committee during the meeting. They also wanted to know whether the provision of mass housing could provide a model for other countries.

The IMF committee was informed about the institutional structure and major activities of TOKİ, while TOKİ officers gave a visual presentation on the administration’s areas of operation. (more…)

Posted by meb at October 30th, 2008

Bacuon Yapex 2008, organized by Akdeniz Tanıtım in coordination with Messe Münih, the German Fairs Institution, is to open its doors tomorrow in the Antalya Expo Center. Faruk Nafiz Özak, minister of public works and settlement, will deliver the inaugural speech of the fair, which will remain open to the public until Nov. 2.

Generally held towards the end of the tourism season, Bacuon Yapex 2008 has some 300 firms participating from across Turkey. The fair is expected to attract some 30,000 domestic and international visitors.

Held around five main themes, which include Construction Technology, New Products in the Construction sector, Bathroom Technology, Window and Door Technology and Renovation and Restoration, Bacuon Yapex 2008 will also host many different activities such as the Turk-Romania Business Meeting, the 2nd Tourism and Architecture Symposium, the Occupational Information Application or Archipoint and Publicity Meeting for BAU 2009. (more…)

Posted by meb at October 29th, 2008

The Turkish automotive sector, which has been feeling the effects of the current crisis in global markets, is hoping to escape the turmoil with the help of a reduction in the Private Consumption Tax (ÖTV) that the government plans to institute in the near future.

The auto sector has fallen on hard times. Many car dealers have had to revise their targets for 2008. The sector longs for the kind of situation it found itself in at the end of last year, when car sales were up.

Vedat Gizer, president of Çukurova’s Authorized Car Dealers Union (YODER), said yesterday that the auto sector was struggling with stagnation and that they were looking forward to the tax reduction. “We had been seeing a boom, especially in the last four months of 2007, but now car sales are about to cease totally,” he explained. He underlined that with the recent increase in foreign exchange rates the sales of imported cars have declined dramatically and many companies will not be able meet their targets for 2008. “People will think twice before purchasing a car because of the uncertainty in the economy and the increase in interest rates,” he said, emphasizing that most consumers take out loans when buying a car. He noted that the forthcoming reduction in the ÖTV, recently announced by Finance Minister Kemal Unakıtan, would help automotive companies reach their targets. (more…)

Posted by meb at October 25th, 2008

Heat insulation regulations, which aim to make savings by reducing the amount of energy used for heating, have been revived and will be put into effect starting Nov. 1, said Kubilay Ulu, the head of the Heat Insulation Industrialists’ Association.

The heat insulation projects of new buildings and modifications in existing buildings must be carried out according to the standards of the TS 825 regulations, said Ulu, adding that this situation in turn would pave the way for more efficient energy use. Residents in buildings that are heated with room heaters will have to install insulation between both the walls and floors, according to the new standard, said Ulu. Residents will also have to use insulated windows from now on according to the new standard, he added. (more…)

Posted by meb at October 24th, 2008

The Construction Cost Index for the third quarter of 2008 has declined by 7.56 percent compared to the previous quarter of this year, reported the Turkish Statistical Institute, or TUİK, on its Web site. However, the level has increased by 12.33 percent compared to the last quarter of last year and risen by 12.92 percent compared to the third quarter of that year. In addition, the Construction Cost Index has experimented with a 13.19 percent hike compared to the averages of the four quarters of the previous year, according to TUİK.

Meanwhile, the Labor Index concerning the third quarter of 2008 has experienced a 3.04 percent increase compared to the previous quarter of the same year, while the Construction Materials Price Index has decreased by 10.28 percent during the same time span. (more…)