Made in Turkey August 2018

Made in Turkey August 2018

Made in Turkey August 2018


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Monthly Economic Newspaper<br />

Turkish contractors undertake projects<br />

worth $9.2B abroad<br />

Turkish contractors have undertaken foreign<br />

projects worth $9.2 billion <strong>in</strong> the first half<br />

of <strong>2018</strong>, push<strong>in</strong>g the all-time total to over<br />

$366.5 billion. Accord<strong>in</strong>g to the Trade M<strong>in</strong>istry,<br />

<strong>Turkey</strong>’s overseas contract<strong>in</strong>g services<br />

sector, a key part of the country’s service<br />

exports, has undertaken some 9,375 projects<br />

<strong>in</strong> 120 countries s<strong>in</strong>ce 1972. The projects<br />

were valued at $366.5 billion as of June<br />

<strong>2018</strong>. In the first half of the year, Turkish<br />

contractors undertook a total of 84 projects<br />

that cost an estimated $9.2 billion. P2<br />

<strong>August</strong> <strong>2018</strong><br />

<strong>Turkey</strong>’s tourism capital<br />

Antalya welcomes<br />

more than 2M<br />

Tourist paradise Antalya welcomed more than<br />

2 million tourists <strong>in</strong> June, <strong>in</strong>clud<strong>in</strong>g 1.94 million<br />

foreigners and 68,710 local tourists, accord<strong>in</strong>g<br />

to Prov<strong>in</strong>cial Directorate of Culture and Tourism<br />

data. The city hosted about 1.506 million<br />

tourists <strong>in</strong> June of last year. In terms of nationalities,<br />

Russians topped the list <strong>in</strong> June with<br />

826,963 Russians visit<strong>in</strong>g the city, an <strong>in</strong>crease of<br />

28.55 percent, while Russian tourists accounted<br />

for 42.56 percent of all visitors. P5<br />

ww.img.com.tr<br />

<strong>Turkey</strong> plans to<br />

export unmanned<br />

aerial vehicle<br />

eng<strong>in</strong>es<br />

Committed to end its external dependence<br />

on unmanned aerial vehicle<br />

(UAV) eng<strong>in</strong>es, <strong>Turkey</strong> aims to export<br />

eng<strong>in</strong>es <strong>in</strong> the near future. TUSAŞ<br />

Eng<strong>in</strong>e Industries, Inc. (TEI), <strong>Turkey</strong>’s<br />

center <strong>in</strong> aerospace eng<strong>in</strong>es, is gett<strong>in</strong>g<br />

ready to reap the fruits of the projects<br />

conducted on the UAV eng<strong>in</strong>es. P6<br />

Bursa produced 2,041<br />

vehicles per day <strong>in</strong> first half of<br />

year, 79 pct of them exported<br />

In Bursa, which hosts automotive giants OYAK Renault,<br />

Tofaş and Karsan, 2,041 vehicles were produced per day<br />

<strong>in</strong> the first half of the year, with an average 1,606 vehicles<br />

(78.69 percent) exported. Bursa-based Tofaş, OYAK<br />

Renault and Karsan reached 43.57 percent (367,401 units)<br />

of total production of 843,193 units exclud<strong>in</strong>g tractors<br />

(367,401 units) <strong>in</strong> the January-June period of this year.<br />

They also reached 42.02 percent (289,124 units) of total<br />

exports of 688,081 units <strong>in</strong> the January-June period of this<br />

year. P11<br />

President Recep Tayyip Erdogan was<br />

sworn <strong>in</strong> and officially completed his<br />

re-election run on a historic day as<br />

<strong>Turkey</strong> steered <strong>in</strong>to a new era with the<br />

presidential system.<br />

IKMIB cont<strong>in</strong>ues its<br />

efforts for 2023 targets<br />

Istanbul Chemical and Chemical Products Exporters’<br />

Association (IKMIB) strengthens its cooperation activities<br />

to help its member companies to obta<strong>in</strong> leadership positions<br />

at global markets. P9<br />

<strong>Turkey</strong> is on the right<br />

track along with the new<br />

presidential government<br />

system, especially with<br />

the new economic team, President<br />

Recep Tayyip Erdoğan told<br />

journalists accompany<strong>in</strong>g him on<br />

his first official visit abroad, after<br />

be<strong>in</strong>g re-elected on June 24.<br />

It is time for<br />

<strong>Turkey</strong> to<br />

leap forward<br />

P2<br />

“<strong>Turkey</strong> is on the right track.<br />

The flow of credits given by <strong>in</strong>ternational<br />

f<strong>in</strong>ancial <strong>in</strong>stitutions to<br />

<strong>in</strong>vestors that <strong>in</strong>vest <strong>in</strong> <strong>Turkey</strong> is<br />

clear evidence of that. In fact, we<br />

have procured the f<strong>in</strong>ancial needs<br />

of the Çanakkale 1915 Bridge<br />

from those <strong>in</strong>stitutions. There is<br />

no difficulty on that matter. We<br />

will handle our own.” Erdoğan<br />

said on his way from Azerbaijan<br />

to Northern Cyprus, two countries<br />

Turkish presidents traditionally<br />

visit when they are first<br />

elected.<br />

Touch<strong>in</strong>g upon <strong>Turkey</strong>’s new<br />

economic team, Erdoğan highlighted<br />

the features of the team<br />

and stated that all members<br />

of the economic team are<br />

well suited to their positions.<br />

“Our new M<strong>in</strong>ister of<br />

Treasury and F<strong>in</strong>ance<br />

Berat Albayrak has both<br />

practical and theoretical<br />

expertise as well as an<br />

academic background<br />

<strong>in</strong> f<strong>in</strong>ance and the<br />

private sector. I also<br />

believe <strong>in</strong> him to put<br />

the economy <strong>in</strong> order<br />

successfully,” he added.<br />

P3<br />

The Central Bank launches robust monetary<br />

policies to ensure price stability<br />

Berat Albayrak, the first<br />

Treasury and F<strong>in</strong>ance<br />

M<strong>in</strong>ister <strong>in</strong> the new<br />

presidential governance<br />

system, elaborated on<br />

the monetary and fiscal<br />

policy that is set to be<br />

implemented.<br />

Albayrak assured the markets that the<br />

<strong>in</strong>dependence of the Central Bank of<br />

the Republic of <strong>Turkey</strong> (CBRT) and<br />

its decision-mak<strong>in</strong>g mechanisms cannot<br />

be the subjects of speculation. He<br />

added that the bank will carry out the<br />

policies required by market conditions.<br />

In addition to the implementation of policies<br />

and reforms required by market dynamics,<br />

the M<strong>in</strong>ister stated that coord<strong>in</strong>ation with<br />

<strong>in</strong>ternational f<strong>in</strong>ancial actors and stakeholders<br />

will <strong>in</strong>crease the flow of diversified external<br />

resources <strong>in</strong>to <strong>Turkey</strong>. M<strong>in</strong>ister Albayrak<br />

said that the capacities of the CBRT will be<br />

widened by open<strong>in</strong>g the clogged structural<br />

channels<br />

for<br />

sta-<br />

biliz<strong>in</strong>g prices and<br />

cutt<strong>in</strong>g down <strong>in</strong>flation and strengthen<strong>in</strong>g policy<br />

coord<strong>in</strong>ation. “The policy <strong>in</strong> the new period<br />

aims to render the central bank more effective<br />

than ever,” he said. P6<br />

<strong>Turkey</strong> establishes<br />

Halal Accreditation<br />

Agency<br />

P7<br />

<strong>Turkey</strong>’s automotive<br />

exports to Europe reach<br />

new heights<br />

<strong>Turkey</strong>’s natural gas stock<br />

exchange to beg<strong>in</strong> trad<strong>in</strong>g<br />

<strong>Turkey</strong>, which has emerged as a leader <strong>in</strong> the energy sector, has<br />

completed its work to establish a natural gas energy stock exchange<br />

that will start trad<strong>in</strong>g operations on Sept. 1. Aim<strong>in</strong>g to become<br />

a natural gas trad<strong>in</strong>g hub with this step, <strong>Turkey</strong> will also play an<br />

active role <strong>in</strong> pric<strong>in</strong>g. P8<br />


EconomicNewspaper<br />

<strong>August</strong><br />

2 Please mention<br />

<strong>2018</strong><br />

“<strong>Made</strong> <strong>in</strong> <strong>Turkey</strong>” when writ<strong>in</strong>g to advertisers Monthly Economic Newspaper ww.img.com.tr<br />

Mehmet Soztutan<br />

Editor-<strong>in</strong>-Chief<br />

The Turkish economy<br />

susta<strong>in</strong>s its dynamism<br />

<strong>Turkey</strong> heralds a new<br />

era, based on its presidential<br />

system. It should be noted<br />

that the Turkish economy<br />

susta<strong>in</strong>s its strong position<br />

on the path of susta<strong>in</strong>able<br />

growth. <strong>Turkey</strong> has so far<br />

managed to weather the<br />

geopolitical risks. However,<br />

from the standpo<strong>in</strong>t of<br />

exporters, it is hard to keep<br />

their competitive positions<br />

<strong>in</strong> the world market<br />

full of emerg<strong>in</strong>g players.<br />

As for bus<strong>in</strong>ess people of<br />

<strong>Turkey</strong>, they have recently<br />

shifted their operations to<br />

value-added products and<br />

brand names. Currently, the<br />

manufacturers have their<br />

own designs and brands <strong>in</strong><br />

<strong>in</strong>ternational markets.<br />

In evaluat<strong>in</strong>g the future<br />

export potential of the<br />

region us<strong>in</strong>g cross-country<br />

statistics, it is possible to <strong>in</strong>dicate<br />

that <strong>Turkey</strong> has comparative<br />

advantage regard<strong>in</strong>g<br />

labor productivity, labor cost<br />

and the share of capital <strong>in</strong><br />

the value added, especially<br />

with respect to the mature<br />

producers <strong>in</strong> the world.<br />

Majority of the manufacturers<br />

compete <strong>in</strong> <strong>in</strong>ternational<br />

markets and set high standards<br />

of export figures.<br />

It is evident that competition<br />

appears from all corners<br />

of the globe, customers<br />

Letters to the Editor<br />

turkey@ihlas.net.tr<br />

Growth forecast<br />

revised<br />

In its Interim Economic Outlook<br />

report, the Organization<br />

for Economic Cooperation<br />

and Development (OECD)<br />

has revised its upward for the<br />

Turkish economy. In its press<br />

release, the OECD declared<br />

that <strong>Turkey</strong>’s growth rate is<br />

estimated to have risen by 6.9<br />

percent <strong>in</strong> 2017 <strong>in</strong>stead of 6.1<br />

percent as previously expected.<br />

The report estimates the<br />

Turkish economy to grow by<br />

5.3 percent <strong>in</strong> <strong>2018</strong> and 5.1 <strong>in</strong><br />

2019, from 4.9 percent and 4.7<br />

percent, respectively.<br />

The International Monetary<br />

Fund (IMF) has also revised up<br />

its growth estimates for <strong>Turkey</strong><br />

by 0.8 percent for <strong>2018</strong> and<br />

2019.<br />

M.Brick/Paris<br />

Democratization<br />

For less developed countries,<br />

globalization offers access<br />

to foreign capital, global export<br />

markets, and advanced technology<br />

while break<strong>in</strong>g the monopoly<br />

of <strong>in</strong>efficient and protected<br />

domestic producers. Faster<br />

growth, <strong>in</strong> turn, promotes poverty<br />

reduction, democratization,<br />

and higher labor and environmental<br />

standards.<br />

While globalization may<br />

confront government officials<br />

with more difficult choices,<br />

the result for their citizens is<br />

greater <strong>in</strong>dividual freedom. In<br />

this sense, globalization acts as<br />

a check on governmental power<br />

that makes it more difficult<br />

for governments to abuse the<br />

freedom and property of their<br />

citizens.<br />

M.Murp/Berl<strong>in</strong><br />

Letter From<br />

The Editor<br />

demand more. To respond,<br />

manufacturers are reduc<strong>in</strong>g<br />

costs and <strong>in</strong>creas<strong>in</strong>g responsiveness<br />

through outsourc<strong>in</strong>g,<br />

sourc<strong>in</strong>g globally and implement<strong>in</strong>g<br />

demand-driven<br />

strategies such as pull-based<br />

<strong>in</strong>ventory management.<br />

Follow<strong>in</strong>g the shift of the<br />

focus on customers, markets,<br />

products and competition<br />

from the local level to<br />

the global level, manufacturers<br />

and exporters of <strong>Turkey</strong><br />

now position themselves<br />

globally.<br />

Therefore, <strong>Turkey</strong> offers<br />

significant opportunities for<br />

foreign <strong>in</strong>vestors with its<br />

geographically perfect position<br />

to function as a gateway<br />

between Europe, Middle<br />

East and Central Asia. The<br />

opportunities exist not only<br />

<strong>in</strong> the dynamic domestic<br />

market, but also throughout<br />

the region.<br />

Besides, <strong>in</strong> order to<br />

achieve the targets of ”<strong>Turkey</strong><br />

2023”, exporters have<br />

a part to play by utiliz<strong>in</strong>g its<br />

resources and the competitive<br />

advantages to the fullest<br />

extent.<br />

We wish them lucrative<br />

trade.<br />

Dependencia theory<br />

Well, there was a k<strong>in</strong>d of dependencia<br />

theory, which was<br />

very much left w<strong>in</strong>g <strong>in</strong> its orig<strong>in</strong>s.<br />

There were some European<br />

<strong>in</strong>tellectuals who fed <strong>in</strong>to<br />

it, and the idea was that these<br />

poor, develop<strong>in</strong>g countries<br />

were so dependent on world<br />

marketplace, they were just<br />

be<strong>in</strong>g exploited by the center.<br />

[Raul] Prebisch talked about<br />

the center versus the periphery,<br />

which is another version<br />

of dependencia. But I th<strong>in</strong>k<br />

that there may be some vague<br />

notion, an element of truth<br />

beh<strong>in</strong>d this idea <strong>in</strong> the sense<br />

that markets are impersonal. I<br />

use the analogy of an elephant<br />

go<strong>in</strong>g through the jungle, and<br />

you’re a poor mouse. Now the<br />

elephant is not go<strong>in</strong>g to go after<br />

you. He is not aga<strong>in</strong>st you;<br />

he couldn’t care less about you.<br />

G.Kron/ Frankfurt<br />

European Central<br />

Bank<br />

Mario Draghi, the governor<br />

of the Frankfurt-based European<br />

Central Bank, calls on<br />

eurozone governments to align<br />

their budgetary policies – a<br />

first step toward a tighter fiscal<br />

union.<br />

(ECB) chief Mario Draghi<br />

said the countries that use the<br />

euro must tether their economies<br />

more tightly to avoid a<br />

repeat of the debt crisis that is<br />

threaten<strong>in</strong>g the global f<strong>in</strong>ancial<br />

system. He also h<strong>in</strong>ted that the<br />

ECB may play a more pivotal<br />

role <strong>in</strong> the resolution of the<br />

crisis, but he <strong>in</strong>sisted that the<br />

governments must first back<br />

proposals to align their budgetary<br />

policies.<br />

B.Mutde/ Milan<br />

Turkish contractors have undertaken<br />

foreign projects worth $9.2 billion <strong>in</strong> the<br />

first half of <strong>2018</strong>, push<strong>in</strong>g the all-time<br />

total to over $366.5 billion.<br />

Accord<strong>in</strong>g to the Trade M<strong>in</strong>istry,<br />

<strong>Turkey</strong>’s overseas contract<strong>in</strong>g services<br />

sector, a key part of the country’s service<br />

exports, has undertaken some 9,375<br />

projects <strong>in</strong> 120 countries s<strong>in</strong>ce 1972. The<br />

projects were valued at $366.5 billion<br />

as of June <strong>2018</strong>. In the first half of the<br />

year, Turkish contractors undertook a<br />

total of 84 projects that cost an estimated<br />

$9.2 billion.<br />

In terms of sectors, hous<strong>in</strong>g came out<br />

on top correspond<strong>in</strong>g to at least 13 percent<br />

($47.5 billion) of all projects carried<br />

out by Turkish builders s<strong>in</strong>ce 1972. It<br />

was followed by roads, highways, tunnels<br />

and bridge constructions worth $47.4<br />

billion; trade centers worth $30.1 billion,<br />

power plants valued at $26.8 billion and<br />

airports at $25.9 billion.<br />

In terms of the regional distribution,<br />

Turkish contractors played a prom<strong>in</strong>ent<br />

role <strong>in</strong> the Commonwealth of the<br />

Independent States (CIS), the Middle<br />

East and Africa. The total amount of<br />

the projects carried out so far <strong>in</strong> the CIS<br />

It is time for <strong>Turkey</strong><br />

to leap forward<br />

Ankara – <strong>Turkey</strong> to implement policies<br />

to narrow current deficit, <strong>in</strong>dustry and<br />

technology m<strong>in</strong>ister says. <strong>Turkey</strong>’s Industry<br />

and Technology M<strong>in</strong>istry will support<br />

research and development (R&D) and<br />

<strong>in</strong>vestments, the m<strong>in</strong>ister said. <strong>Turkey</strong><br />

will also implement policies to reduce the<br />

country’s current deficit, said Industry and<br />

Technology M<strong>in</strong>ister Mustafa Varank. “It<br />

is time for <strong>Turkey</strong> to leap forward, and it<br />

can come true through an economy that<br />

produces technology, uses this technology<br />

<strong>in</strong> its <strong>in</strong>dustry and makes the digital<br />

transformation <strong>in</strong> the <strong>in</strong>dustry,” Mustafa<br />

Varank stressed <strong>in</strong> a press release issued<br />

by the m<strong>in</strong>istry.<br />

<strong>Turkey</strong>’s<br />

Economic<br />

Policy Council<br />

to work on<br />

susta<strong>in</strong>able<br />

economic<br />

growth<br />

Turkish contractors<br />

undertake projects<br />

reached $171.7 billion <strong>in</strong> terms of value,<br />

while it stood at $95.6 billion <strong>in</strong> the Middle<br />

East and at $65.9 billion <strong>in</strong> Africa.<br />

In terms of the distribution of Turkish<br />

contract<strong>in</strong>g projects by countries,<br />

Russia ranked first with 19.6 percent of<br />

all projects, worth $71.8 billion. It was<br />

followed by Turkmenistan with a share<br />

of 12.9 percent share and projects worth<br />

$47.4 billion, and by Libya with a share<br />

of 7.9 percent and projects worth $28.9<br />

billion.<br />

Thanks to a vast number of projects,<br />

Turkish contract<strong>in</strong>g companies have<br />

ga<strong>in</strong>ed a strong foot<strong>in</strong>g <strong>in</strong> the global<br />

construction sector. While there were<br />

merely eight Turkish companies <strong>in</strong> the<br />

Eng<strong>in</strong>eer<strong>in</strong>g News Record’s (ENR)<br />

“Top 250 International Contractors<br />

List” <strong>in</strong> 2003, that figure rose to 46 last<br />

year, consider<strong>in</strong>g the total number of <strong>in</strong>ternational<br />

projects undertaken with<strong>in</strong> a<br />

year. Some 10 of these companies were<br />

listed <strong>in</strong> the top 100, and two – with revenues<br />

of $3 billion each – ranked among<br />

the top 50.<br />

In terms of the number of companies<br />

on the list, <strong>Turkey</strong> has ranked second<br />

only after Ch<strong>in</strong>a <strong>in</strong> the past five years.<br />

He added that uncerta<strong>in</strong>ty was to<br />

disappear follow<strong>in</strong>g the June 24 elections,<br />

which would pave the way for <strong>in</strong>vestments<br />

<strong>in</strong> the short term, he noted. “The<br />

presidential system will allow to make<br />

quick decisions and effective coord<strong>in</strong>ation,”<br />

said Varank. <strong>Turkey</strong>’s <strong>in</strong>dustrial<br />

production cont<strong>in</strong>ued to rise and climbed<br />

above expectations <strong>in</strong> May, he stated. The<br />

country’s <strong>in</strong>dustrial production surged<br />

6.4 percent <strong>in</strong> May from a year ago, the<br />

Turkish Statistical Institute said. “These<br />

figures showed that <strong>Turkey</strong>’s economy<br />

<strong>in</strong>creased, led by the <strong>in</strong>dustrial sector <strong>in</strong><br />

the second quarter of the year,” Varank<br />

underl<strong>in</strong>ed.<br />

He added that 94 percent of the country’s<br />

exports came from <strong>in</strong>dustrial production.<br />

The rise of <strong>in</strong>dustrial production also<br />

supports employment <strong>in</strong> <strong>Turkey</strong>, he said.<br />

The duties and authorities of the<br />

Economic Policy Council as determ<strong>in</strong>ed<br />

by the decree will be to<br />

monitor and evaluate developments<br />

related to economic stability, conduct<br />

research on economic issues, monitor<br />

developments related to global and<br />

national economy and development<br />

issues, carry out research when necessary,<br />

formulate policy recommendations<br />

to identify and update procedures<br />

and pr<strong>in</strong>ciples for economic<br />

security and economic defense, monitor<br />

and evaluate revenue enhanc<strong>in</strong>g<br />

or expenditure reduc<strong>in</strong>g proposals<br />

and conduct impact analyses on those<br />

deemed appropriate if necessary.<br />

Among other th<strong>in</strong>gs, the council<br />

will operate <strong>in</strong> the field of regional<br />

development to determ<strong>in</strong>e general<br />

policies and priorities at the national<br />

level, make suggestions, develop<br />

proposals to accelerate <strong>in</strong>vestment<br />

processes made by the public and<br />

worth $9.2B<br />

abroad<br />

Foreign trade<br />

deficit down<br />

nearly 9 pct<br />

<strong>Turkey</strong>’s foreign trade deficit dropped by<br />

8.87 percent to $5.5 billion <strong>in</strong> June, accord<strong>in</strong>g<br />

to Customs and Trade M<strong>in</strong>istry provisional<br />

data released.<br />

Exports <strong>in</strong> June were about $13 billion,<br />

decreas<strong>in</strong>g by 1.21 percent year-on-year, while<br />

imports dropped 3.62 percent to $18.5 billion<br />

<strong>in</strong> the said period.<br />

In January-June period this year, exports<br />

<strong>in</strong>creased by 6.33 percent year-on-year, reach<strong>in</strong>g<br />

$82.3 billion. In the last 12 months, exports<br />

climbed 9.2 percent to $161.9 billion.<br />

Foreign trade volume reached $31.5 billion<br />

<strong>in</strong> June year-on-year, decreas<strong>in</strong>g by 2.64<br />

percent, while the import coverage ratio of<br />

exports rose to 70.2 percent.<br />

Motor land vehicles, tractors, bicycles,<br />

motorcycles and other land vehicles were the<br />

most exported products <strong>in</strong> June at $2.1 billion,<br />

followed by boilers, mach<strong>in</strong>ery, mechanical<br />

devices and appliances, nuclear reactors at<br />

$1.2 billion and iron and steel at $880 million.<br />

In the January-June period this year, most exports<br />

came from motor land vehicles, tractors,<br />

bicycles, motorcycles and other land vehicles<br />

at $13.8 billion.<br />

Meanwhile, m<strong>in</strong>eral fuels, m<strong>in</strong>eral oils and<br />

products of their distillation became the most<br />

imported <strong>in</strong> June at $3.5 billion, followed by<br />

boilers, mach<strong>in</strong>ery, mechanical devices and<br />

appliances, nuclear reactors at $2.2 billion and<br />

iron and steel at $1.6 billion.<br />

The top three export dest<strong>in</strong>ations <strong>in</strong> June<br />

were Germany with $1.3 billion, the U.K. with<br />

$891 million and Italy with $817 million. The<br />

top three countries with the highest imports,<br />

on the other hand, were Ch<strong>in</strong>a with $1.84<br />

billion, Russia with $1.83 billion and Germany<br />

with $1.79 billion.<br />

private sector, develop policy recommendations<br />

for export-oriented<br />

production strategies, contribute<br />

to the formation of strategies and<br />

action plans to facilitate trade and<br />

develop policy recommendations<br />

to contribute to the country’s vision<br />

of the <strong>in</strong>ternational f<strong>in</strong>ancial center<br />

along with faster development of the<br />

<strong>in</strong>terest-free f<strong>in</strong>ance system.<br />

In addition, it will identify and<br />

monitor systemic risks that may<br />

spread throughout the f<strong>in</strong>ancial<br />

system and determ<strong>in</strong>e measures and<br />

policy recommendations needed to<br />

reduce such risks, express op<strong>in</strong>ions<br />

on the creation and implementation<br />

of customs and <strong>in</strong>ternal trade policies<br />

and conduct research and studies on<br />

these issues, while also develop<strong>in</strong>g<br />

policy recommendations to determ<strong>in</strong>e<br />

procedures and pr<strong>in</strong>ciples for<br />

government grants.

<strong>August</strong><br />

EconomicNewspaper<br />

<strong>2018</strong> Please mention<br />

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Monthly Economic Newspaper<br />

3<br />

<strong>Turkey</strong> is on the right track along with the<br />

new presidential government system<br />

<strong>Turkey</strong> is on the right track along with<br />

the new presidential government<br />

system, especially with the new economic<br />

team, President Recep Tayyip<br />

Erdoğan told journalists accompany<strong>in</strong>g him<br />

on his first official visit abroad, after be<strong>in</strong>g<br />

re-elected on June 24.<br />

“<strong>Turkey</strong> is on the right track. The flow of<br />

credits given by <strong>in</strong>ternational f<strong>in</strong>ancial <strong>in</strong>stitutions<br />

to <strong>in</strong>vestors that <strong>in</strong>vest <strong>in</strong> <strong>Turkey</strong> is clear<br />

evidence of that. In fact, we have procured<br />

the f<strong>in</strong>ancial needs of the Çanakkale 1915<br />

Bridge from those <strong>in</strong>stitutions. There is no<br />

difficulty on that matter. We will handle our<br />

own.” Erdoğan said on his way from Azerbaijan<br />

to Northern Cyprus, two countries Turkish<br />

presidents traditionally visit when they are first<br />

elected.<br />

Touch<strong>in</strong>g upon <strong>Turkey</strong>’s new economic<br />

team, Erdoğan highlighted the features of the<br />

team and stated that all members of the economic<br />

team are well suited to their positions.<br />

“Our new M<strong>in</strong>ister of Treasury and F<strong>in</strong>ance<br />

Berat Albayrak has both practical and<br />

theoretical expertise as well as an academic<br />

background <strong>in</strong> f<strong>in</strong>ance and the private sector.<br />

I also believe <strong>in</strong> him to put the economy <strong>in</strong><br />

order successfully,” he added. The President<br />

emphasized that Albayrak will strive to implement<br />

the necessary policies. “It is only<br />

possible for <strong>in</strong>vestors to carry out projects if<br />

they are enabled and both private and public<br />

banks will hopefully endeavor to provide the<br />

necessary climate for <strong>in</strong>vestors,” Erdoğan said.<br />

In relation to the new system regard<strong>in</strong>g the<br />

m<strong>in</strong>istries, Erdoğan stressed that the m<strong>in</strong>istries<br />

should be strong and added, “It will be possible<br />

to have more than one deputy m<strong>in</strong>ister.”<br />

He underl<strong>in</strong>ed that <strong>in</strong> some m<strong>in</strong>istries there<br />

might be three deputy m<strong>in</strong>isters. There will be<br />

a decrease <strong>in</strong> the number of high-level adm<strong>in</strong>istrators<br />

as one of the features of the new<br />

system is its simplicity, he added.<br />

Erdoğan announced Fuat Oktay as his sole<br />

vice president. However, Erdoğan stated <strong>in</strong> the<br />

President Recep Tayyip Erdogan was sworn <strong>in</strong> and officially completed his re-election run on a<br />

historic day as <strong>Turkey</strong> steered <strong>in</strong>to a new era with the presidential system.<br />

future he might appo<strong>in</strong>t a second vice president<br />

if necessary. He po<strong>in</strong>ted to the previous<br />

success of Oktay <strong>in</strong> his post at the Disaster and<br />

Emergency Management Presidency (AFAD)<br />

and stated that he would reflect these <strong>in</strong> his<br />

new post as well. Referr<strong>in</strong>g to the re-appo<strong>in</strong>tment<br />

of Foreign M<strong>in</strong>ister Mevlüt Çavuşoğlu,<br />

Interior M<strong>in</strong>ister Süleyman Soylu and Justice<br />

M<strong>in</strong>ister Abdülhamit Gül, Erdoğan stated that<br />

all three m<strong>in</strong>isters have proven themselves <strong>in</strong><br />

their posts. It was noted that prom<strong>in</strong>ent figures<br />

from various private sectors found a place <strong>in</strong><br />

the Cab<strong>in</strong>et formed by Erdoğan who highlighted<br />

the previous achievements of each m<strong>in</strong>ister.<br />

Accord<strong>in</strong>g to the European Union acquis<br />

communitaire <strong>in</strong> 2014, a process to merge the<br />

General Staff to the M<strong>in</strong>istry of Defense was<br />

required, yet it did not take place. Erdoğan<br />

underscored that there are no obstacles to<br />

merg<strong>in</strong>g them. He stated that Hulusi Akar<br />

was appo<strong>in</strong>ted as the new national defense<br />

m<strong>in</strong>ister and immediately Turkish Land Forces<br />

Commander Gen. Yaşar Güler was appo<strong>in</strong>ted<br />

Chief of General Staff under a new presidential<br />

decree, as there should not be any vacancy<br />

<strong>in</strong> the Turkish Armed Forces dur<strong>in</strong>g the<br />

process.<br />

Accord<strong>in</strong>g to the new system, n<strong>in</strong>e separate<br />

councils will develop, supervise and coord<strong>in</strong>ate<br />

relevant policy suggestions. The ma<strong>in</strong> priority<br />

will be a more effectively run government by<br />

delegat<strong>in</strong>g responsibility with authority.<br />

“There are councils and presidencies. The<br />

number of presidencies is 11, but it might<br />

<strong>in</strong>crease,” Erdoğan said, add<strong>in</strong>g the heads of<br />

some presidencies will be appo<strong>in</strong>ted follow<strong>in</strong>g<br />

negotiations.He commented that there would<br />

be no confusion regard<strong>in</strong>g the authorities of<br />

the councils. Erdoğan <strong>in</strong>dicated that he would<br />

have a deputy <strong>in</strong> each of these councils who<br />

will preside over meet<strong>in</strong>gs when the president<br />

is absent. “The fields of these councils will be<br />

<strong>in</strong> l<strong>in</strong>e with that of m<strong>in</strong>istries,” he said.<br />

“Four new offices are also be<strong>in</strong>g established<br />

to <strong>in</strong>troduce a faster process <strong>in</strong> governance.<br />

Offices on human resources, f<strong>in</strong>ance, <strong>in</strong>vestment<br />

and digital transformation will be established<br />

to supervise the state’s human resources<br />

and <strong>in</strong>stitute the state’s digital transformation<br />

to adapt to the digital age and fight cyber terrorism”<br />

he noted.<br />

Regard<strong>in</strong>g the f<strong>in</strong>ance office, Erdoğan said,<br />

“The office will be directly tied to the presidency<br />

and will focus on f<strong>in</strong>d<strong>in</strong>g sources.”<br />

The duties and authorities of the Economic<br />

Policy Council, which was established with<strong>in</strong><br />

the new presidential governance system,<br />

were determ<strong>in</strong>ed with 13 articles accord<strong>in</strong>g to<br />

the first presidential decree published <strong>in</strong> the<br />

Official Gazette. The Council will develop<br />

policy recommendations for export-oriented<br />

production strategies to more quickly develop<br />

the <strong>in</strong>terest-free f<strong>in</strong>ance system and contribute<br />

to the vision of <strong>Turkey</strong>’s <strong>in</strong>ternational f<strong>in</strong>ancial<br />

center.<br />

Turk Eximbank secures $550<br />

million loan from abroad<br />

Ankara – Turk<br />

Eximbank has secured a<br />

10-year-term $550 million<br />

credit from a foreign banks<br />

consortium, the bank announced.<br />

The consortium—<br />

Standard Chartered Bank,<br />

BNP Paribas, ING Bank,<br />

Societe Generale, Citibank<br />

N.A. and Mitsubishi UFJ<br />

Bank—is under guarantee<br />

of the World Bank’s<br />

member, the Multilateral<br />

Investment Guarantee<br />

Agency (MIGA), accord<strong>in</strong>g<br />

to a press release.<br />

Turk Eximbank Chief<br />

Executive Officer Adnan<br />

Yildirim said due to the<br />

MIGA-guarantee<br />

loan, the bank<br />

received lowcost<br />

credit. “We<br />

met with lead<strong>in</strong>g<br />

f<strong>in</strong>ancial <strong>in</strong>stitutions<br />

<strong>in</strong> the Gulf<br />

countries, Japan,<br />

the U.S., Hong<br />

Kong, Taipei, and<br />

Zurich dur<strong>in</strong>g<br />

the last year to raise<br />

<strong>in</strong>ternational fund<strong>in</strong>gs for<br />

Turk Eximbank,” he said.<br />

With<strong>in</strong> the scope of the<br />

loan, the bank will provide<br />

credits to Turkish exporters<br />

for up to 10 years.<br />

Turk Eximbank ranks<br />

second globally after South<br />

Korea’s Eximbank <strong>in</strong><br />

terms of f<strong>in</strong>anc<strong>in</strong>g exports.<br />

S<strong>in</strong>ce its establishment<br />

<strong>in</strong> 1987, the bank has<br />

implemented <strong>in</strong>ternational<br />

credit, guarantee, and<br />

credit <strong>in</strong>surance programs<br />

aimed at develop<strong>in</strong>g<br />

economic and political ties<br />

between <strong>Turkey</strong> and other<br />

countries.<br />

<strong>Turkey</strong>’s <strong>in</strong>dustrial<br />

production up 6.4 pct<br />

<strong>Turkey</strong>’s <strong>in</strong>dustrial production<br />

surged 6.4 percent <strong>in</strong> May, compared<br />

with the same month last<br />

year, the statistical authority Turk-<br />

Stat announced.<br />

Among all manufactur<strong>in</strong>g <strong>in</strong>dices,<br />

the highest <strong>in</strong>crease year-onyear<br />

was recorded <strong>in</strong> high technology<br />

products with a 12.2-percent<br />

hike, official data showed.<br />

On a monthly basis, the country’s<br />

total <strong>in</strong>dustrial output fell 1.6<br />

percent <strong>in</strong> May, compared with<br />

April, the <strong>in</strong>stitute noted. The <strong>in</strong>stitute<br />

noted that the highest annual<br />

<strong>in</strong>crease was seen <strong>in</strong> the electricity,<br />

gas, steam and air condition<strong>in</strong>g supply<br />

<strong>in</strong>dex -- up 12 percent -- among<br />

all sub sectors of the <strong>in</strong>dustrial sector.<br />

The manufactur<strong>in</strong>g <strong>in</strong>dex, with<br />

a 6.5-percent hike, and the m<strong>in</strong><strong>in</strong>g<br />

and quarry<strong>in</strong>g <strong>in</strong>dex, with a 1.9-percent<br />

rise, followed.<br />

Computer/electronic/optical<br />

products <strong>in</strong>dex climbed 40.7 percent<br />

<strong>in</strong> May compared to the same<br />

month last year while manufacture<br />

of chemicals and chemical products<br />

rose 17.9 percent.<br />

On the m<strong>in</strong><strong>in</strong>g and quarry<strong>in</strong>g<br />

side, m<strong>in</strong><strong>in</strong>g of coal and lignite<br />

<strong>in</strong>dex recorded the biggest rise -- up<br />

25.4 percent -- while the extraction<br />

of crude petroleum and natural gas<br />

<strong>in</strong>dex followed with a 17.9-percent<br />

hike.<br />

In <strong>in</strong>dustry, the production of<br />

non-durable consumer goods rose<br />

the most with a 8.6-percent annual<br />

<strong>in</strong>crease, and capital goods and durable<br />

consumer goods saw 6.1 and<br />

5.8-percent year-on-year <strong>in</strong>creases,<br />


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<strong>August</strong><br />

<strong>2018</strong><br />

Turkish firm to build<br />

Kosovo’s first w<strong>in</strong>d farm<br />

Meet<strong>in</strong>g of art with tailormade<br />

design: “Art Design”<br />

Art Design that has unseasonable l<strong>in</strong>e with<br />

its designs cont<strong>in</strong>ues add<strong>in</strong>g value to liv<strong>in</strong>g<br />

spaces with its unmatched style s<strong>in</strong>ce 1995.<br />

We talked Turgay Terzi, CEO of Art Design,<br />

about tailor-made design’s effects of the<br />

furniture sector.<br />

Can we know more about Art<br />

Design, which is one of the biggest<br />

representatives of Art Deco – that arose <strong>in</strong><br />

France - <strong>in</strong> <strong>Turkey</strong>?<br />

Notic<strong>in</strong>g the gap <strong>in</strong> the tailor-made design<br />

of the furniture <strong>in</strong>dustry we, as Art Design,<br />

decided to work <strong>in</strong> design field s<strong>in</strong>ce 1995.<br />

We have been provid<strong>in</strong>g services to the four<br />

corners of the world with classic, elegant,<br />

modern and art deco designs.<br />

The energy company Güriş,<br />

which is considered to be one<br />

of <strong>Turkey</strong>’s lead<strong>in</strong>g renewable<br />

energy-based power producers,<br />

is establish<strong>in</strong>g the first w<strong>in</strong>d<br />

farm <strong>in</strong> Kosovo, which is with<br />

cont<strong>in</strong>u<strong>in</strong>g efforts try<strong>in</strong>g to<br />

reach the European Union’s<br />

(EU) renewable energy standards.<br />

Kosovo aims to meet a<br />

quarter of its energy need from<br />

renewable sources by 2020 to<br />

comply with EU standards.<br />

In the first w<strong>in</strong>d farm of<br />

the country, n<strong>in</strong>e 110 meter<br />

General Electric (GE) turb<strong>in</strong>es<br />

will start operat<strong>in</strong>g <strong>in</strong> September.<br />

This plant is expected to<br />

meet 3 percent of the country’s<br />

energy needs.<br />

Tuncer Baltacı, Güriş<br />

project manager, said, “We<br />

will produce 110 million<br />

kilowatt-hours (kWh) a year,<br />

which is enough energy for<br />

10,000 residences.”<br />

Kosovo, which generally<br />

has 14 billion tons of lignite<br />

reserves, still provides 95<br />

percent of its energy from two<br />

older model coal power plants.<br />

Lignite is known as the dirtiest<br />

type of coal.<br />

Baltacı said that Kosovo<br />

should raise its share of w<strong>in</strong>d<br />

energy by more than the<br />

planned 150 megawatts (MW).<br />

“[The Kosovo government]<br />

needs to def<strong>in</strong>e a new<br />

quota for us, so we can <strong>in</strong>vest<br />

<strong>in</strong> a second project that will<br />

<strong>in</strong>crease the capacity,” Baltacı<br />

said.<br />

“The w<strong>in</strong>d here is very good,<br />

it is a very valuable resource<br />

and Kosovo needs it,” he<br />

added.<br />

No doubt cont<strong>in</strong>u<strong>in</strong>g the success and<br />

carry<strong>in</strong>g it to further steps is the work<br />

of a quality team. What are the work<strong>in</strong>g<br />

pr<strong>in</strong>ciples of Art Design, which delivers<br />

designs to many countries of the world?<br />

We are a company operat<strong>in</strong>g <strong>in</strong> the field<br />

of architecture. We don’t have products that<br />

stocked for we don’t make mass production.<br />

We work with a architectural team of 5 on<br />

our costumers orders.<br />

Our priorities are tastes of customers and<br />

their needs when we are design<strong>in</strong>g. After the<br />

orders are welcomed our team explore and<br />

research. Most of our costumers contact us<br />

by references. This advantage gives us the<br />

opportunity to work with customers who are<br />

familiar with our works and love our work.<br />

Mak<strong>in</strong>g tailor-made designs<br />

necessitates special care and is a<br />

difficult job”<br />

How do you act when your customers<br />

<strong>in</strong>sist on unreasonable demands such as<br />

higher capacity projects for <strong>in</strong>appropriate<br />

build<strong>in</strong>gs?<br />

Mak<strong>in</strong>g tailor-made designs necessitates<br />

special care and it is a difficult job. First of<br />

all we prepare our projects at 3D format and<br />

offer to our customers. This way we expla<strong>in</strong><br />

the reflection of <strong>in</strong>appropriate demands <strong>in</strong>to<br />

reality with a clear way. S<strong>in</strong>ce our customers<br />

trust on our talent and experience they are<br />

conv<strong>in</strong>ced with the solution way that we offer.<br />

We make production draw<strong>in</strong>g of all works<br />

we do. We keep the orig<strong>in</strong>al copies of these<br />

draw<strong>in</strong>gs as one copy will be kept at the customer.<br />

We compare the f<strong>in</strong>ished works with<br />

the first orig<strong>in</strong>al draw<strong>in</strong>gs. This is a method<br />

which can be used by both, ourselves and the<br />

customers to repair mistakes.<br />

How was Art Design born?<br />

Mean<strong>in</strong>g literally art and design our brand<br />

name directly reflects the work we do. We<br />

decided to name “Art Design” because with<br />

the idea that we chose mak<strong>in</strong>g tailor-made<br />

designs and this name could stay <strong>in</strong> m<strong>in</strong>d<br />

around the world.<br />

When you consider your customer<br />

portfolio, can you say that your products<br />

attracted demand by lower revenue<br />

group?<br />

We are not work<strong>in</strong>g sales-oriented. Tailor-made<br />

design is always a costly work. We<br />

are work<strong>in</strong>g to keep customer satisfaction at<br />

maximum level by us<strong>in</strong>g high standard materials<br />

<strong>in</strong> addition to artwork designs. When<br />

these are considered the products naturally<br />

become costly. S<strong>in</strong>ce the lower revenue group<br />

faces difficulty to meet these costs they don’t<br />

usually demand our works.<br />

You had said that your domestic portfolio<br />

grows with reference-based demands.<br />

How does this affect on exports?<br />

We have foreign customers reach<strong>in</strong>g us<br />

upon references. Our profit marg<strong>in</strong> is higher<br />

<strong>in</strong> abroad. Wider homes offer us work at<br />

Turgay Terzi, CEO of Art Design<br />

more comfortable conditions. When you have<br />

bigger homes you work better and you may<br />

<strong>in</strong>crease the number of furniture used <strong>in</strong> the<br />

project.<br />

Let’s talk about your works on develop<strong>in</strong>g<br />

products. What does Art Design do <strong>in</strong><br />

terms of variety of your products and their<br />

compliance with technology?<br />

Our R&D team has been cont<strong>in</strong>u<strong>in</strong>g its<br />

works actively. We are always after <strong>in</strong>novations<br />

s<strong>in</strong>ce the day we were established. Our<br />

team has constantly been develop<strong>in</strong>g new<br />

designs and offer<strong>in</strong>g to our customers. There<br />

are demands welcomed from our customers<br />

and we are work<strong>in</strong>g to meet them. Besides,<br />

we have promotional projects. When we established<br />

Art Design, we didn’t have any idea<br />

of open<strong>in</strong>g dealerships one day. We would believe<br />

that this idea might be risky for us s<strong>in</strong>ce<br />

we were mak<strong>in</strong>g tailor-made designs. Consider<strong>in</strong>g<br />

the demands of the customers today we<br />

have started our activities at this regard.<br />

The possibility of gett<strong>in</strong>g<br />

<strong>in</strong>fluenced from the<br />

fluctuations <strong>in</strong> the economy for<br />

us is a little possibility. We never<br />

halt our even at stagnant times<br />

and we cont<strong>in</strong>ue activities with<br />

new projects”<br />

What are your expectations for next years?<br />

How was the first half of the current year<br />

for you?<br />

The volatility <strong>in</strong> the economic structure<br />

<strong>in</strong> <strong>Turkey</strong> <strong>in</strong>fluences us as all others. Our<br />

advantage is that our customers’ economical<br />

profile is high. High-revenue people don’t do<br />

sav<strong>in</strong>gs at their private liv<strong>in</strong>gs. This prevents<br />

us from be<strong>in</strong>g <strong>in</strong>fluenced too much from the<br />

economic volatilities when compared with<br />

other companies or sectors.<br />

The possibility of gett<strong>in</strong>g <strong>in</strong>fluenced from<br />

the fluctuations <strong>in</strong> the economy for us is a<br />

little possibility. We never halt our even at<br />

stagnant times and we cont<strong>in</strong>ue activities with<br />

new projects.<br />

Are there raw materials that you import?<br />

Do you ever show your imported products<br />

to your domestic suppliers and <strong>in</strong>quire<br />

same quality products?<br />

We import raw materials of polish and<br />

sponge. We import our fabrics for better<br />

quality and variety from different countries.<br />

Even if we want this from domestic suppliers<br />

it will take a long time to get the same quality.<br />

It is difficult to establish the <strong>in</strong>frastructure,<br />

set up manufactur<strong>in</strong>g l<strong>in</strong>e and reshap<strong>in</strong>g the<br />

market. “There is nobody look<strong>in</strong>g for job but<br />

there are a lot choos<strong>in</strong>g the job. The sector<br />

needs quality <strong>in</strong>termediate staff.”<br />

How is the need for human resources <strong>in</strong><br />

the sector?<br />

It is a gap <strong>in</strong> <strong>Turkey</strong> not to be able to tra<strong>in</strong><br />

personnel on sectorial basis <strong>in</strong> recent years.<br />

The government should develop new policies<br />

<strong>in</strong> this issue. It is very important for the bus<strong>in</strong>ess<br />

high school and university graduates to<br />

improve and develop themselves. The number<br />

of university graduates who want to work<br />

<strong>in</strong> front of a computer has been very high.<br />

You cannot make them produce cab<strong>in</strong>ets but<br />

it is a fact that you need cab<strong>in</strong>ets, tables and<br />

chairs. There is a big need for <strong>in</strong>termediate<br />

staff. So, I don’t accept the idea of exist<strong>in</strong>g<br />

unemployment. There is nobody look<strong>in</strong>g for<br />

job but there are a lot choos<strong>in</strong>g the job. The<br />

sector needs quality <strong>in</strong>termediate staff.<br />

Can you pace with domestic competition?<br />

Of course the group who imitates our<br />

designs and redesigns them as their own<br />

products to produce at lower quality forces<br />

us. What differs us from them is our products<br />

are more durable and we offer unaccustomed<br />

after sale services. S<strong>in</strong>ce furniture is longterm<br />

consumer material, customers’ first<br />

priority should be durability.<br />

What are your expectations from the<br />

government?<br />

Our most important expectation is the decrease<br />

of VAT <strong>in</strong> order to remove the furniture<br />

item from luxury consumer goods group<br />

and considered among basic needs category.<br />

The decrease of VAT rate will clear the way<br />

of the sector. The government should also<br />

prevent the unregistered manufactur<strong>in</strong>g. We<br />

also need attach<strong>in</strong>g importance on bus<strong>in</strong>ess<br />

high schools to develop human resources and<br />

to tra<strong>in</strong> <strong>in</strong>termediate staff.<br />

Do you th<strong>in</strong>k the promotional works<br />

directed to abroad are enough?<br />

Our country has deficiencies at this regard<br />

but we notice some developments at this<br />

regard <strong>in</strong> recent years. The furniture <strong>in</strong>dustry<br />

has produced export surplus <strong>in</strong> last one or<br />

two years. This proves that the promotional<br />

works have been worked out.<br />

You mentioned that the furniture <strong>in</strong>dustry<br />

has produced export surplus <strong>in</strong> recent<br />

years. What do you attribute this to?<br />

It is important that we should develop<br />

equivalent products to those firms operat<strong>in</strong>g<br />

<strong>in</strong> superior segment. We differ from other<br />

companies by provid<strong>in</strong>g better quality services<br />

and by gett<strong>in</strong>g benefits of the geographic<br />

advantage of our country. If you work with<br />

tra<strong>in</strong>ed people and keep your quality at higher<br />

standards your efforts will yield success.<br />

Turkcell jo<strong>in</strong>s global<br />

telecom blockcha<strong>in</strong><br />

consortium<br />

<strong>Turkey</strong>’s lead<strong>in</strong>g mobile<br />

network operator Turkcell has<br />

jo<strong>in</strong>ed the world’s fast-grow<strong>in</strong>g<br />

blockcha<strong>in</strong> consortium<br />

the Carrier Blockcha<strong>in</strong> Study<br />

Group (CBSG), the operator<br />

announced.<br />

The U.S.-based company’s<br />

mobile network operator Spr<strong>in</strong>t<br />

Corp., blockcha<strong>in</strong> developer<br />

TBCASoft and Japanese mobile<br />

services provider Softbank are<br />

among the founders of the<br />

CBSG, accord<strong>in</strong>g to a press<br />

release issued by Turkcell.<br />

Blockcha<strong>in</strong> – a technology<br />

that records and verifies transactions<br />

safely based on cryptography<br />

– provide solutions <strong>in</strong> a<br />

number of areas, from money<br />

transfers to market<strong>in</strong>g.<br />

The consortium also <strong>in</strong>cludes<br />

lead<strong>in</strong>g telecommunications<br />

companies such as Axiata<br />

Group Berhad from Malaysia,<br />

the Philipp<strong>in</strong>es’ PLDT Inc.,<br />

PT Telekomunikasi Indonesia<br />

International, the Viettel<br />

Group from Vietnam and the<br />

Kuwait-based Za<strong>in</strong> Group, the<br />

press release said.<br />

Kaan Terzioglu, Turkcell’s<br />

CEO said, “Due to blockcha<strong>in</strong><br />

technology, which gives the<br />

chance to transfer valuable digital<br />

assets via mobile networks<br />

safely, the digital economy will<br />

grow fast and new generation<br />

services will beg<strong>in</strong> to show up.”<br />

The CBSG – founded <strong>in</strong> September<br />

2017 – aims to provide<br />

digital services, especially safe<br />

digital payment, authentication<br />

and <strong>in</strong>ternet of th<strong>in</strong>gs (IoT)<br />

applications to its members and<br />

customers, accord<strong>in</strong>g to the<br />

press release.<br />

The press release noted that<br />

the consortium also focused on<br />

a global money transfer system.<br />

Turkcell is a comb<strong>in</strong>ed telecommunication<br />

and technology<br />

services provider, founded and<br />

headquartered <strong>in</strong> <strong>Turkey</strong>. Turkcell’s<br />

shares have been traded<br />

on the Borsa Istanbul (BIST)<br />

and New York Stock Exchange<br />

(NYSE) s<strong>in</strong>ce July 11, 2000, it<br />

is the only Turkish company to<br />

be listed on the NYSE. Turkcell<br />

Group companies operate<br />

<strong>in</strong> n<strong>in</strong>e countries – <strong>Turkey</strong>,<br />

Ukra<strong>in</strong>e, Belarus, Northern Cyprus,<br />

Germany, Azerbaijan, Kazakhstan,<br />

Georgia and Moldova.<br />

The group reported TL 17.6<br />

billion ($3.84 billion) revenue <strong>in</strong><br />

2017 with total assets of TL 34<br />

billion as of Dec. 31, 2017.

<strong>August</strong><br />

<strong>2018</strong><br />

Monthly Economic Newspaper<br />

ww.img.com.tr<br />

EconomicNewspaper<br />

Please mention<br />

“<strong>Made</strong> <strong>in</strong> <strong>Turkey</strong>” when writ<strong>in</strong>g to advertisers<br />

5<br />

<strong>Turkey</strong>’s tourism capital Antalya<br />

welcomes more than 2M<br />

Tourist paradise Antalya welcomed<br />

more than 2 million tourists <strong>in</strong> June,<br />

<strong>in</strong>clud<strong>in</strong>g 1.94 million foreigners<br />

and 68,710 local tourists, accord<strong>in</strong>g<br />

to Prov<strong>in</strong>cial Directorate of Culture and<br />

Tourism data.<br />

The city hosted about 1.506 million tourists<br />

<strong>in</strong> June of last year.<br />

In terms of nationalities, Russians topped<br />

the list <strong>in</strong> June with 826,963 Russians visit<strong>in</strong>g<br />

the city, an <strong>in</strong>crease of 28.55 percent, while<br />

Russian tourists accounted for 42.56 percent<br />

of all visitors. It was followed by Germany<br />

with 254,406, Ukra<strong>in</strong>e with 153,961, the U.K.<br />

with 91,518 and Poland with 66,221 tourists.<br />

The number of tourists com<strong>in</strong>g from<br />

Germany <strong>in</strong>creased by 23.71 percent compared<br />

to the same period last year, while the<br />

number of tourists from Ukra<strong>in</strong>e, the U.K.<br />

and Poland <strong>in</strong>creased by 5.45 percent, 100.17<br />

percent and 165.34 percent, respectively.<br />

The tourism capital hit a new all-time<br />

daily high <strong>in</strong> terms of the number of foreign<br />

tourists com<strong>in</strong>g to the town <strong>in</strong> one day on<br />

June 23, welcom<strong>in</strong>g around 79,485 tourists.<br />

The number of tourists to Antalya reached<br />

nearly 4.89 million <strong>in</strong> the January-June<br />

period, accord<strong>in</strong>g to the data. Around 4.65<br />

million of these were foreign tourists, while<br />

234,173 were local.<br />

The number of visitors to the city <strong>in</strong> the<br />

first six months of this year <strong>in</strong>creased by<br />

40.18 percent compared to the same period<br />

last year when Antalya welcomed some 3.49<br />

million tourists.<br />

Russia aga<strong>in</strong> led the way among countries<br />

as around 1.87 million Russians came to<br />

Antalya <strong>in</strong> the first six months of this year,<br />

an <strong>in</strong>crease of 38.52 percent compared to the<br />

same period last year, while 847,745 tourists<br />

came from Germany and around 310,699,<br />

239,360 and 153,554 tourists came from<br />

Ukra<strong>in</strong>e, the U.K. and Holland, respectively.<br />

The number of tourists from Germany<br />

<strong>in</strong>creased by 41.92 percent, while the num-<br />

ber of tourists from Ukra<strong>in</strong>e, the U.K. and<br />

Holland <strong>in</strong>creased by 9.57 percent, 71.07<br />

percent and 76.98 percent, respectively. <strong>Turkey</strong><br />

also saw an all-time high <strong>in</strong> the number<br />

of tourists com<strong>in</strong>g to the country <strong>in</strong> the first<br />

quarter as it welcomed about 5.1 million<br />

tourists, an <strong>in</strong>crease of approximately 36<br />

percent compared to the same period the<br />

previous year.<br />

The Culture and Tourism M<strong>in</strong>istry announced<br />

that <strong>Turkey</strong> welcomed nearly 11.5<br />

million foreigners <strong>in</strong> the first five months of<br />

<strong>2018</strong>. The m<strong>in</strong>istry said that the figure rose<br />

by 30.8 percent on a yearly basis, up from 8.8<br />

million <strong>in</strong> January-May last year. In 2016,<br />

some 25.3 million foreigners visited the<br />

country, <strong>in</strong> the midst of a tourism slowdown<br />

after the Gülenist Terror Group’s (FETÖ)<br />

defeated coup, but the sector improved <strong>in</strong><br />

2017.<br />

<strong>Turkey</strong> hosted over 32 million tourists<br />

last year, earn<strong>in</strong>g $26.5 billion, accord<strong>in</strong>g to<br />

the official data. <strong>Turkey</strong> expects 40 million<br />

foreign tourists this year, accord<strong>in</strong>g to private<br />

sector representatives and officials. The<br />

Turkish government has set the country’s<br />

2023 targets as 50 million tourists and $50<br />

billion <strong>in</strong> <strong>in</strong>come.<br />

Er<strong>in</strong> Motor grows<br />

without slow<strong>in</strong>g down<br />

Established with the<br />

purpose of becom<strong>in</strong>g<br />

a one hundred<br />

percent domestic<br />

producer firm with<br />

its orig<strong>in</strong>al design<br />

and eng<strong>in</strong>eer<strong>in</strong>g<br />

power, Er<strong>in</strong> Motor<br />

comb<strong>in</strong>es its knowledge,<br />

accumulation<br />

and experience<br />

orig<strong>in</strong>ated from its<br />

family companies<br />

with technology and<br />

R&D.<br />

Established with<br />

the power generated<br />

by Şah<strong>in</strong> Metal,<br />

which was established<br />

<strong>in</strong> 1989, Er<strong>in</strong><br />

Motor, a 100%<br />

Turkish Brand, has<br />

caught up the world<br />

standards with its<br />

production <strong>in</strong> <strong>in</strong>dustrial<br />

diesel motors,<br />

moto-pumps, mar<strong>in</strong>e motors<br />

and generators.<br />

Tak<strong>in</strong>g pulse of the automotive<br />

aftermarket <strong>in</strong>dustry<br />

for almost 30 years and<br />

ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g its bright past<br />

that started with Şah<strong>in</strong> Kalıp<br />

<strong>in</strong> 1970s and Şah<strong>in</strong> Metal,<br />

which was established <strong>in</strong><br />

1989 <strong>in</strong> order to produce<br />

for the automotive supplier<br />

<strong>in</strong>dustry, the group brand is<br />

target<strong>in</strong>g to be a<br />

number one of<br />

the firms need<br />

both <strong>in</strong>dustrial<br />

diesel motors and<br />

generators with its<br />

Er<strong>in</strong> Motor. With<br />

10,000 hours service<br />

life, the new generation<br />

motors force its borders by<br />

putt<strong>in</strong>g forward its claim <strong>in</strong><br />

the sector. Offer<strong>in</strong>g regular<br />

control and test area with its<br />

remote-control feature, Er<strong>in</strong><br />

Motor’s unmanned test chamber,<br />

runn<strong>in</strong>g 24/7 at its factory<br />

<strong>in</strong> the district of Esenyurt, has<br />

been <strong>in</strong> a qualification to be<br />

an example for a lot of firms.

EconomicNewspaper<br />

6 Please mention<br />

“<strong>Made</strong> <strong>in</strong> <strong>Turkey</strong>” when writ<strong>in</strong>g to advertisers<br />

Monthly Economic Newspaper<br />

ww.img.com.tr<br />

<strong>August</strong><br />

<strong>2018</strong><br />

<strong>Turkey</strong> plans to export unmanned<br />

aerial vehicle eng<strong>in</strong>es<br />

Committed to end its external dependence<br />

on unmanned aerial vehicle (UAV)<br />

eng<strong>in</strong>es, <strong>Turkey</strong> aims to export eng<strong>in</strong>es <strong>in</strong> the<br />

near future.<br />

TUSAŞ Eng<strong>in</strong>e Industries, Inc. (TEI),<br />

<strong>Turkey</strong>’s center <strong>in</strong> aerospace eng<strong>in</strong>es, is gett<strong>in</strong>g<br />

ready to reap the fruits of the projects<br />

conducted on the UAV eng<strong>in</strong>es.<br />

TEI, which launched the mass production<br />

of the PD155 eng<strong>in</strong>e developed with<strong>in</strong> the<br />

framework of ANKA-S Eng<strong>in</strong>e Modification<br />

Project and delivered the first n<strong>in</strong>e eng<strong>in</strong>es<br />

to Turkish Aerospace Industries Inc. (TAI),<br />

successfully carried ANKA to the sky with<br />

the first eng<strong>in</strong>e upon the completion of<br />

its aircraft <strong>in</strong>tegration studies. The PD155<br />

eng<strong>in</strong>e successfully performed flight tests at<br />

different altitudes and speeds after verification,<br />

ground and taxiway tests.<br />

One of the first prototypes of the PD170<br />

eng<strong>in</strong>e, which was completely developed by<br />

TEI eng<strong>in</strong>eers with<strong>in</strong> the scope of Operational<br />

UAV Eng<strong>in</strong>e Development Project,<br />

was delivered to TAI. The <strong>in</strong>tegration of<br />

PD170 eng<strong>in</strong>e <strong>in</strong>to ANKA cont<strong>in</strong>ues.<br />

TEI General Manager Mahmut Akşit<br />

said <strong>in</strong> the PD155 project, they developed<br />

an eng<strong>in</strong>e equivalent to ANKA’s exist<strong>in</strong>g<br />

eng<strong>in</strong>e, add<strong>in</strong>g that they accomplished this<br />

by convert<strong>in</strong>g a commercial eng<strong>in</strong>e <strong>in</strong>to a<br />

military <strong>in</strong>strument.<br />

Not<strong>in</strong>g that ANKA realized its first flight<br />

with this eng<strong>in</strong>e <strong>in</strong> February, Akşit said<br />

s<strong>in</strong>ce the numbers are not too high, the<br />

transformed eng<strong>in</strong>es <strong>in</strong> the UAV sector are<br />

quite common, <strong>in</strong>form<strong>in</strong>g that a commercial<br />

eng<strong>in</strong>e is converted <strong>in</strong>to a military eng<strong>in</strong>e<br />

that can operate at 30,000-40,000 feet <strong>in</strong><br />

this regard. “The eng<strong>in</strong>e perform<strong>in</strong>g the<br />

first flight was converted from a commercial<br />

eng<strong>in</strong>e. It can exactly provide requirements<br />

of ANKA’s exist<strong>in</strong>g eng<strong>in</strong>e,” Akşit said.<br />

“It performed the first flight and even the<br />

second longer flight successfully. Our TAI<br />

team will cont<strong>in</strong>ue to test the eng<strong>in</strong>e under<br />

different conditions. We took this eng<strong>in</strong>e<br />

under mass production. We delivered n<strong>in</strong>e<br />

units last year.”<br />

Aksit said the TEI-designed PD170<br />

eng<strong>in</strong>e is more powerful than the current<br />

155-165-horsepower eng<strong>in</strong>e and that it can<br />

generate power over 170 horsepower. Akşit<br />

stressed that its altitude ability doubled<br />

the critical altitude of the exist<strong>in</strong>g eng<strong>in</strong>e,<br />

po<strong>in</strong>t<strong>in</strong>g out that the current eng<strong>in</strong>e has a<br />

critical altitude of 10,500 feet, while this new<br />

generation eng<strong>in</strong>e can go up to 20,000 feet.<br />

Highlight<strong>in</strong>g that the eng<strong>in</strong>e can go up<br />

to 20,000 feet at full throttle without los<strong>in</strong>g<br />

power, Akşit recalled that most operat<strong>in</strong>g<br />

altitudes are between 20,000 and 25,000<br />

feet. “This new generation eng<strong>in</strong>e has not<br />

made its first flight. It is a diesel eng<strong>in</strong>e that<br />

can easily take ANKA up to 40,000 feet and<br />

also <strong>in</strong>crease the cargo capacity of this vehicle.<br />

The first eng<strong>in</strong>e was delivered to TAI<br />

<strong>in</strong> November 2017, and <strong>in</strong>tegration work<br />

started,” he cont<strong>in</strong>ued. “I predict that with<strong>in</strong><br />

a few months the first flight will take place<br />

once the <strong>in</strong>tegration work is completed. We<br />

are expect<strong>in</strong>g it around mid-summer. We<br />

are plann<strong>in</strong>g to go <strong>in</strong>to the serial production<br />

before the end of this year. We will deliver<br />

the first five eng<strong>in</strong>es this year.”<br />

Santa Farma now<br />

offers Turkish medic<strong>in</strong>e<br />

to more than 40<br />

countries<br />

Santa Farma, one of <strong>Turkey</strong>’s<br />

local companies, targets<br />

to sell its products to over 40<br />

countries <strong>in</strong> different regions<br />

by the end of <strong>2018</strong>.<br />

As one of <strong>Turkey</strong>’s pharmaceutical<br />

firms that have a<br />

long-stand<strong>in</strong>g background,<br />

Santa Farma has started to<br />

reap the fruits of its R&D<br />

projects and production<br />

<strong>in</strong>vestment <strong>in</strong> 2017 and <strong>in</strong>creased<br />

its sales by 85 percent<br />

with enter<strong>in</strong>g new markets<br />

and launch<strong>in</strong>g products. Rapidly<br />

<strong>in</strong>creas<strong>in</strong>g the number<br />

of its bus<strong>in</strong>ess partners and<br />

expand<strong>in</strong>g to new export<br />

markets, Santa Farma aims<br />

to sell its products to more<br />

than 40 countries <strong>in</strong> various<br />

regions from Africa, Asia,<br />

the Balkans and Russia, to<br />

South America and to the Far<br />

East by the end of <strong>2018</strong>. The<br />

company targets to be the export<br />

champion of all Turkish<br />

pharmaceutical companies <strong>in</strong><br />

2024, the date which is also its<br />

80th anniversary.<br />

Erol Kiresepi, Chairman<br />

of the Executive Board and<br />

CEO of Santa Farma, said:<br />

“Our family is expand<strong>in</strong>g<br />

just like our targets. We have<br />

added more than 200 employees<br />

<strong>in</strong> our family <strong>in</strong> 2017 and<br />

now we are a family of 990.<br />

We plan to employ 100 more<br />

<strong>in</strong> <strong>2018</strong>.”<br />

The Central Bank launches robust monetary<br />

policies to ensure price stability<br />

Berat Albayrak, the first Treasury and F<strong>in</strong>ance M<strong>in</strong>ister <strong>in</strong><br />

the new presidential governance system, elaborated on the<br />

monetary and fiscal policy that is set to be implemented.<br />

Albayrak assured the markets that<br />

the <strong>in</strong>dependence of the Central Bank<br />

of the Republic of <strong>Turkey</strong> (CBRT) and<br />

its decision-mak<strong>in</strong>g mechanisms cannot<br />

be the subjects of speculation. He<br />

added that the bank will carry out the<br />

policies required by market conditions.<br />

In addition to the implementation of<br />

polire-<br />

cies and reforms<br />

quired by<br />

market dynamics,<br />

the M<strong>in</strong>ister<br />

stated that<br />

coord<strong>in</strong>ation<br />

with <strong>in</strong>ternational<br />

f<strong>in</strong>ancial<br />

actors and<br />

stakeholders<br />

will <strong>in</strong>crease<br />

the<br />

flow of diversified external resources<br />

<strong>in</strong>to <strong>Turkey</strong>. M<strong>in</strong>ister Albayrak said<br />

that the capacities of the CBRT will be<br />

widened by open<strong>in</strong>g the clogged structural<br />

channels for stabiliz<strong>in</strong>g prices and<br />

cutt<strong>in</strong>g down <strong>in</strong>flation and strengthen<strong>in</strong>g<br />

policy coord<strong>in</strong>ation. “The policy <strong>in</strong> the<br />

new period aims to render the central<br />

bank more effective than ever,” he said.<br />

He added that the “utmost priority” <strong>in</strong><br />

the upcom<strong>in</strong>g period would be fight<strong>in</strong>g<br />

<strong>in</strong>flation. “We will take steps to br<strong>in</strong>g<br />

<strong>in</strong>flation down to s<strong>in</strong>gle digits <strong>in</strong> the<br />

shortest possible time and eventually<br />

match our target,” he said.<br />

With regards to the strong monetary<br />

policy emphasis he announced. Albayrak<br />

said that strong monetary policy means<br />

action shaped toward the primary goal<br />

of the price stability, add<strong>in</strong>g that fight<strong>in</strong>g<br />

<strong>in</strong>flation tops the priority areas <strong>in</strong> terms<br />

of macroeconomic stability.<br />

A more predictable and stable<br />

macroeco- nomic outlook<br />

<strong>in</strong> Tur-<br />

key could<br />

clearly<br />

be<br />

established<br />

by achiev<strong>in</strong>g low<br />

<strong>in</strong>flation rates, and that<br />

it would be essential for<br />

the central bank, whose ma<strong>in</strong><br />

objective is to provide price stability,<br />

to implement its monetary policy <strong>in</strong> a<br />

strong manner.<br />

In June, consumer prices <strong>in</strong> <strong>Turkey</strong><br />

rose 15.39 percent, compared to the<br />

same month last year, the Turkish Statistical<br />

Institute (TurkStat) announced <strong>in</strong><br />

July.<br />

As noted <strong>in</strong> the country’s medium-term<br />

program (MTP) <strong>in</strong>troduced<br />

last September, <strong>in</strong>flation is targeted to<br />

converge to 5 percent through the end<br />

of 2020.<br />

“In the new period, we will be support<strong>in</strong>g<br />

the central bank’s implementation<br />

of a more predictable, simple and<br />

determ<strong>in</strong>ed monetary policy <strong>in</strong> l<strong>in</strong>e with<br />

the objectives,” Albayrak cont<strong>in</strong>ued.<br />

“As the government, we will support<br />

the monetary policy by remov<strong>in</strong>g the<br />

structural obstacles that may limit the<br />

effectiveness of these policies as much<br />

as possible and strengthen<strong>in</strong>g the policy<br />

coord<strong>in</strong>ation.”<br />

Reply<strong>in</strong>g to a question on<br />

the real sector’s unpaid bank<br />

debts, Albayrak said that the<br />

bank<strong>in</strong>g sector’s performance<br />

is one of the strongest sides<br />

of the Turkish economy, not<strong>in</strong>g<br />

that the sector’s<br />

capital<br />

adequacy ratio stands at 16.4 percent,<br />

well above the world average.<br />

Albayrak said the f<strong>in</strong>ance sector<br />

operates <strong>in</strong> a transparent framework <strong>in</strong><br />

l<strong>in</strong>e with <strong>in</strong>ternational rules and practices<br />

and has been audited by the Bank<strong>in</strong>g<br />

Supervision and Regulation Agency<br />

(BDDK) and <strong>in</strong>dependent auditors <strong>in</strong><br />

accordance with <strong>in</strong>ternational rules.<br />

“The restructur<strong>in</strong>g demands of some<br />

well-known firms, which have been<br />

reflected by the public, constitute the<br />

basis for this question that you have led<br />

regard<strong>in</strong>g the <strong>in</strong>vestors. However, the<br />

restructur<strong>in</strong>g transactions cover maturity<br />

extensions <strong>in</strong> l<strong>in</strong>e with the cash flows<br />

of the credit periods required by the<br />

bank<strong>in</strong>g sector and are generally not<br />

common,” M<strong>in</strong>ister Albayrak said, highlight<strong>in</strong>g<br />

that the <strong>in</strong>stitutions are conduct<strong>in</strong>g<br />

the necessary studies for f<strong>in</strong>ancial<br />

stability.<br />

The treasury and f<strong>in</strong>ance m<strong>in</strong>ister<br />

underscored that the fiscal discipl<strong>in</strong>e will<br />

cont<strong>in</strong>ue without compromise and the<br />

m<strong>in</strong>istry<br />

will<br />

carry out<br />

structural<br />

reforms that will<br />

ensure the compliance of costs<br />

with the budget.<br />

The fiscal discipl<strong>in</strong>e will effectively<br />

cont<strong>in</strong>ue <strong>in</strong> accordance with the budgetary<br />

goals of the Medium-Term Plan.<br />

“The government has a high capacity<br />

to devise a problem-solv<strong>in</strong>g framework<br />

with a holistic approach,” the M<strong>in</strong>ister<br />

stressed.<br />

The coord<strong>in</strong>ation of real sector<br />

firms, f<strong>in</strong>ancial corporations and public<br />

sector will ensure susta<strong>in</strong>able and stable<br />

growth, Albayrak said.<br />

“The macroeconomic goals will be<br />

achieved thanks to the economic policies<br />

to be implemented with resolution and<br />

consistency. The harmony of economic<br />

policies will be kept at a maximum. With<br />

the coord<strong>in</strong>ation of firms and f<strong>in</strong>ancial<br />

sectors, the <strong>in</strong>terest of local and foreign<br />

<strong>in</strong>vestors will grow,” the M<strong>in</strong>ister said.<br />

Albayrak, also the head of the treasury,<br />

further highlighted that cooperat<strong>in</strong>g<br />

with all the actors and stakeholders <strong>in</strong><br />

<strong>in</strong>ternational f<strong>in</strong>ancial markets, the m<strong>in</strong>istry<br />

will <strong>in</strong>crease the entry of external<br />

capital to <strong>Turkey</strong> and diversify resources

<strong>August</strong><br />

<strong>2018</strong><br />

Monthly Economic Newspaper<br />

ww.img.com.tr<br />

EconomicNewspaper<br />

Please mention<br />

“<strong>Made</strong> <strong>in</strong> <strong>Turkey</strong>” when writ<strong>in</strong>g to advertisers<br />

7<br />

<strong>Turkey</strong> establishes Halal<br />

Accreditation Agency<br />

<strong>Turkey</strong> has established a new<br />

halal certification body, the Halal<br />

Accreditation Agency (HAK). The<br />

HAK, established with a presidential<br />

decree , will strengthen <strong>Turkey</strong>’s<br />

central position <strong>in</strong> the field<br />

of halal certification and accreditation.<br />

It will allow the country to be<br />

a gold standard <strong>in</strong> terms of rulemak<strong>in</strong>g,<br />

take steps mov<strong>in</strong>g forward<br />

and capitaliz<strong>in</strong>g on the grow<strong>in</strong>g<br />

global halal market. The agency, <strong>in</strong><br />

the form of a public entity, will be<br />

responsible for accredit<strong>in</strong>g halal-compliance<br />

evaluation <strong>in</strong>stitutions<br />

and ensure their operations<br />

are <strong>in</strong> compliance with national<br />

and <strong>in</strong>ternational standards.<br />

HAK will also operate to ensure<br />

the acknowledgment of the documents<br />

prepared by the halal-compliance<br />

evaluation <strong>in</strong>stitutions on<br />

national and <strong>in</strong>ternational platforms.<br />

Operat<strong>in</strong>g under the Trade M<strong>in</strong>istry,<br />

it will be the only <strong>in</strong>stitution<br />

that would provide halal accreditation<br />

services <strong>in</strong> <strong>Turkey</strong>. The agency<br />

will also offer halal accreditation<br />

services for halal-compliance audit<strong>in</strong>g<br />

firms <strong>in</strong> and outside <strong>Turkey</strong>,<br />

as well as determ<strong>in</strong>e and implement<br />

benchmark and measures<br />

regard<strong>in</strong>g halal accreditation.<br />

The agency will represent <strong>Turkey</strong><br />

at <strong>in</strong>ternational and regional<br />

accreditation associations and organizations.<br />

It will also take part <strong>in</strong><br />

their boards or serve as the center<br />

of such <strong>in</strong>stitutions. <strong>Turkey</strong>’s HAK<br />

will sign bilateral and multilateral<br />

agreements and establish networks<br />

and relations with other halal accreditation<br />

bodies worldwide.<br />

The agency will also carry out<br />

necessary scientific and technical<br />

surveys on halal accreditation and<br />

organize events to boost its importance.<br />

The HAK will have a board<br />

as its decision-mak<strong>in</strong>g mechanism,<br />

consist<strong>in</strong>g of five members, an<br />

advisory council and a general<br />

secretariat. The board of directors,<br />

which will be the decision-mak<strong>in</strong>g<br />

body of the <strong>in</strong>stitution, will<br />

consist of a total of five members,<br />

<strong>in</strong>clud<strong>in</strong>g the president and four<br />

members. Members of the board<br />

of directors will serve for three<br />

years. The member of the board of<br />

directors may be reassigned once<br />

their office terms expire.<br />

The advisory board will consist<br />

of the representatives from<br />

the Trade M<strong>in</strong>istry, Presidency of<br />

Religious Affairs, Bank<strong>in</strong>g Regulation<br />

and Supervision Agency<br />

(BDDK), Capital Markets Board<br />

(SPK), Development and Support<br />

of Small and Medium-sized Enterprises<br />

Adm<strong>in</strong>istration (KOSGEB),<br />

Turkish Accreditation Agency,<br />

Turkish International Cooperation<br />

and Development Agency<br />

(TİKA), the Turkish Standards<br />

Institute (TSE), Scientific and<br />

Technological Research Council<br />

of <strong>Turkey</strong> (TÜBİTAK), Council of<br />

Higher Education (YÖK), <strong>Turkey</strong><br />

Exporters Assembly (TİM), Union<br />

of Chambers and Commodity<br />

Exchanges of <strong>Turkey</strong> (TOBB), Foreign<br />

Economic Relations Board<br />

(DEİK), Association of Turkish<br />

Participation Banks (TKBB),<br />

Turkish Capital Markets Union<br />

(TSPB), <strong>Turkey</strong> Insurance, Re<strong>in</strong>surance<br />

and Pension Companies<br />

Association, <strong>Turkey</strong> Tradesmen<br />

and Artisans Confederation,<br />

Union of Turkish Chambers of<br />

Agriculture (TZOB), <strong>Turkey</strong>’s<br />

Independent Industrialists and<br />

Bus<strong>in</strong>essmen Association (MÜ-<br />

SİAD), Turkish Industrialists and<br />

Bus<strong>in</strong>essmen Association (TÜSİ-<br />

AD), <strong>Turkey</strong> Hoteliers Association<br />

(TÜROB) and a number of other<br />

organizations.<br />

The body’s service units will be<br />

the Halal Accreditation Directorate,<br />

the International Relations<br />

Directorate and the Personnel and<br />

Support Services Directorate. It<br />

was also reported that offices may<br />

be established abroad for the <strong>in</strong>ternational<br />

operations of the <strong>in</strong>stitution.<br />

In 2010, <strong>Turkey</strong> took some<br />

important steps regard<strong>in</strong>g halal<br />

certification with<strong>in</strong> the framework<br />

of the Organisation of Islamic<br />

Cooperation (OIC). Regulations,<br />

<strong>in</strong>clud<strong>in</strong>g the Halal Food Standard<br />

and the Halal Accreditation Standard,<br />

were approved by the OIC,<br />

lead<strong>in</strong>g to the establishment of the<br />

Standards and Metrology Institute<br />

for Islamic Countries (SMIIC),<br />

which is headquartered <strong>in</strong> <strong>Turkey</strong>.<br />

It currently has 35 members.<br />

Halal accreditation bodies<br />

enforce halal standards accord<strong>in</strong>g<br />

to Islam <strong>in</strong> and outside Muslim<br />

countries. They also aim to protect<br />

the grow<strong>in</strong>g number of halal consumers<br />

and facilitate <strong>in</strong>ternational<br />

trade.<br />

Global trade <strong>in</strong> halal products<br />

and services is currently valued at<br />

around $3.9 trillion.<br />

Humor<br />

Anybody go<strong>in</strong>g slower than you<br />

is an idiot, and anyone go<strong>in</strong>g<br />

faster than you is a maniac.<br />

Three people are stranded<br />

on a small island. One<br />

is a physicist, one is a circus<br />

strongman, and one is<br />

an economist. After a few<br />

days of surviv<strong>in</strong>g on fruit,<br />

they discover a cache of<br />

canned food, and they<br />

have to decide how to<br />

open it. The physicist says<br />

to the strongman “Why<br />

don’t you climb that tree,<br />

and smash the cans down<br />

on the rocks, and burst<br />

them open?”<br />

The strongman says, “No,<br />

that would spatter the<br />

stuff all over. I can open<br />

the cans with my teeth!”<br />

The economist says “First,<br />

we must assume that we<br />

have a can opener.”<br />

A man takes a balloon<br />

ride at a local country<br />


Do you have any bumpersticker?<br />

fair. A fierce w<strong>in</strong>d suddenly<br />

kicks up, caus<strong>in</strong>g<br />

the balloon to violently<br />

leave the fair and carry<br />

its occupant out <strong>in</strong>to the<br />

countryside. The man has<br />

no idea where he is, so he<br />

goes down to five meters<br />

above ground and asks a<br />

pass<strong>in</strong>g wanderer: “Excuse<br />

me, sir, can you tell me<br />

where I am?”<br />

Eye<strong>in</strong>g the man <strong>in</strong> the<br />

balloon the passer-by says:<br />

“You are <strong>in</strong> a downed red<br />

balloon, five meters above<br />

ground.”<br />

The balloon’s unhappy<br />

resident replied, “You<br />

must be an economist.”an<br />

eng<strong>in</strong>eer.”an accountant.”a<br />

consultant.”a mathematician.”a<br />

tutorial writer.”a<br />

sales representative.”<br />

No....!<br />


MONTH<br />

“How could you possible<br />

know that?” asked the<br />

passer-by.<br />

“Because your answer is<br />

technically correct but<br />

absolutely useless, and the<br />

fact is I am still lost”.<br />

“Then you must be <strong>in</strong><br />

management”, said the<br />

passer-by.<br />

“Thats right! How did you<br />

know?”<br />

“You have such a good<br />

view from where you are,<br />

and yet you don’t know<br />

where you are and you<br />

don’t know where you<br />

are go<strong>in</strong>g. The fact is you<br />

are <strong>in</strong> the exact same position<br />

you were <strong>in</strong> before<br />

we met, but now your<br />

problem is somehow my<br />

fault!”<br />

Actions speak better than the<br />


EconomicNewspaper<br />

<strong>August</strong><br />

8 Please mention<br />

<strong>2018</strong><br />

“<strong>Made</strong> <strong>in</strong> <strong>Turkey</strong>” when writ<strong>in</strong>g to advertisers Monthly Economic Newspaper ww.img.com.tr<br />

<strong>Turkey</strong>’s natural gas stock<br />

exchange to beg<strong>in</strong> trad<strong>in</strong>g<br />

<strong>Turkey</strong>, which has emerged as a leader<br />

<strong>in</strong> the energy sector, has completed its<br />

work to establish a natural gas energy<br />

stock exchange that will start trad<strong>in</strong>g operations<br />

on Sept. 1. Aim<strong>in</strong>g to become a natural<br />

gas trad<strong>in</strong>g hub with this step, <strong>Turkey</strong><br />

will also play an active role <strong>in</strong> pric<strong>in</strong>g.<br />

Hav<strong>in</strong>g taken important steps of<br />

be<strong>in</strong>g an energy hub <strong>in</strong> the region with<br />

the Trans-Anatolian Natural Gas Pipel<strong>in</strong>e<br />

(TANAP), which recently brought<br />

Azerbaijani gas to <strong>Turkey</strong>, and the oilgas<br />

explorer vessel Fatih, <strong>Turkey</strong> is now<br />

establish<strong>in</strong>g a natural gas energy stock<br />

exchange. With the natural gas market<br />

actively commissioned, an important step<br />

will be taken towards the pric<strong>in</strong>g of natural<br />

gas at accessible markets and <strong>Turkey</strong>’s<br />

goal of becom<strong>in</strong>g a regional natural gas<br />

trad<strong>in</strong>g hub.<br />

The Energy Market Regulatory Authority<br />

(EMRA) has recently updated the<br />

Organized Natural Gas Wholesale Market<br />

Operation Procedures and Pr<strong>in</strong>ciples<br />

(PUE), which can be regarded as the rules<br />

of trade <strong>in</strong> the natural gas stock exchange,<br />

are an important step <strong>in</strong> the direction of<br />

<strong>Turkey</strong>’s goal <strong>in</strong> becom<strong>in</strong>g a natural gas<br />

trade center <strong>in</strong> the region.<br />

The natural gas stock exchange, called<br />

the Natural Gas Cont<strong>in</strong>uous Trad<strong>in</strong>g<br />

Platform (STP), was launched virtually<br />

on April 1, <strong>2018</strong>. Dur<strong>in</strong>g the virtual<br />

application, the system was heavily tested<br />

by natural gas supply license holders. In<br />

addition, under the supervision of EMRA,<br />

scenario studies were carried out with Petroleum<br />

Pipel<strong>in</strong>e Corporation (BOTAŞ)<br />

and <strong>Turkey</strong>’s Energy Stock Exchange<br />

(EPİAŞ) and contracts were drafted. In<br />

accordance with the purpose of the virtual<br />

application, some problems encountered<br />

dur<strong>in</strong>g these studies and other issues identified,<br />

necessitated the revision of some<br />

of PUE’s articles. BOTAŞ, EPİAŞ and<br />

market players’ views were taken, and the<br />

issue was taken to board <strong>in</strong> order for the<br />

stock market to operate <strong>in</strong> a healthy and<br />

smooth manner.<br />

With this last amendment, the rules of<br />

trade and the rights and obligations of<br />

the parties that will carry out transactions<br />

<strong>in</strong> this platform will be clarified <strong>in</strong> order<br />

to ensure that the stock exchange, which<br />

will commence formal operations on<br />

September 1, <strong>2018</strong>, can operate smoothly.<br />

The platform, to be operated by EPİAŞ,<br />

will be used by natural gas suppliers and<br />

exporters who want to trade natural gas,<br />

as well as BOTAŞ to supply natural gas to<br />

balance the transmission system. The trad<strong>in</strong>g<br />

on the stock exchange will be 24 hours<br />

a day, 365 days a year, and also provide<br />

the foundation for the Daily Reference<br />

Price (DRP).<br />

Beware travelers: How<br />

to avoid cyberattacks<br />

on holiday<br />

Tak<strong>in</strong>g <strong>in</strong>credible holiday<br />

photos are no big deal thanks<br />

to smartphones but post<strong>in</strong>g<br />

them on social media is a little<br />

bit trickier. If you happen to<br />

take too many pictures and<br />

want to post them all, this<br />

means that your <strong>in</strong>ternet quota<br />

is doomed to dry out soon. To<br />

prevent this, most of us use the<br />

Wi-Fi services provided by the<br />

hotels or restaurants we are <strong>in</strong>.<br />

But is it safe?<br />

Don’t forget that if you<br />

don’t take precautions, it is<br />

easy to be a target of cyberattacks.<br />

However, it is possible<br />

to dodge attacks from hackers<br />

with a few easy tricks. First,<br />

avoid download<strong>in</strong>g a travel app<br />

from an unauthorized source.<br />

Nowadays, people prefer to<br />

book their holidays and even<br />

flights via various travel apps<br />

on their Android or IOS devices<br />

but it is important to download<br />

these apps from a reliable<br />

source, preferably from their<br />

official pages. Second, try to<br />

avoid turn<strong>in</strong>g your Bluetooth<br />

on unless it is necessary. Also<br />

be sure to connect only to<br />

secure Wi-Fi connections.<br />

Usually, most unknown, open<br />

Wi-Fi sources work as baits to<br />

lure smartphones and laptop<br />

users to steal their <strong>in</strong>formation.<br />

Be sure to use a virtual<br />

private network (VPN) and<br />

do not click on the websites if<br />

you are not 100 percent sure of<br />

their authenticity. Moreover,<br />

turn off the location services<br />

on your phone or other devices<br />

if you do not want to be traced<br />

by malware.<br />

EU<br />

wants to<br />

cooperate<br />

with<br />

<strong>Turkey</strong> on<br />

regional<br />

problems<br />

The EU’s foreign policy<br />

chief said that the<br />

bloc would <strong>in</strong>crease<br />

cooperation with<br />

<strong>Turkey</strong> on problems<br />

related to regional<br />

dynamics.<br />

Federica Mogher<strong>in</strong>i<br />

said they will eleborate<br />

on how the<br />

EU and <strong>Turkey</strong> can<br />

coord<strong>in</strong>ate better”on<br />

Syria and Iraq.<br />

Mogher<strong>in</strong>i said she<br />

spoke with Turkish<br />

Foreign M<strong>in</strong>ister<br />

Mevlüt Çavuşoğlu<br />

early on Oct. 16 to<br />

touch on “many<br />

strategic topics” such<br />

as counter-terrorism<br />

and the Cyprus issue.<br />

The meet<strong>in</strong>g of the<br />

foreign m<strong>in</strong>isters,<br />

known as the Foreign<br />

Affairs Council, will<br />

also have discussions<br />

over the Iran nuclear<br />

deal and North<br />

Korea’s missile tests,<br />

Mogher<strong>in</strong>i added.<br />

Monthly Economic Newspaper<br />

Publisher:<br />

Responsible Editor:<br />

Editors:<br />

Advertis<strong>in</strong>g Sales Staff:<br />

Art sdirector:<br />

Chief Accountant:<br />

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Tel: (90 212) 454 30 00<br />

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The meet<strong>in</strong>g is seen<br />

as a prelim<strong>in</strong>ary one<br />

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Council meet<strong>in</strong>g of<br />

Oct. 19-20.

<strong>August</strong><br />

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Monthly Economic Newspaper<br />

9<br />

IKMIB cont<strong>in</strong>ues its efforts for 2023 targets<br />

Istanbul Chemical and Chemical Products Exporters’<br />

Association (IKMIB) strengthens its cooperation<br />

activities to help its member companies to obta<strong>in</strong><br />

leadership positions at global markets.<br />

We spoke to Adil Pelister,<br />

Chairman of IKMIB about<br />

exports and developments<br />

<strong>in</strong> the sector.<br />

What k<strong>in</strong>ds of <strong>in</strong>novations are<br />

expected <strong>in</strong> the sector on the matter<br />

of export after Adil Pelister took the<br />

chair of IKMIB?<br />

S<strong>in</strong>ce its establishment <strong>in</strong> 1991, Istanbul<br />

Chemical and Chemical Products<br />

Exporters’ Association (IKMIB) has been<br />

work<strong>in</strong>g to diversify export products and<br />

ga<strong>in</strong> competitiveness <strong>in</strong> products <strong>in</strong> order<br />

to protect the professional ethics and<br />

solidarity of export<strong>in</strong>g Turkish companies<br />

<strong>in</strong> the chemical sector and to <strong>in</strong>crease<br />

exports. As a new management team,<br />

we also organize a number of activities<br />

to protect the <strong>in</strong>terests of our members<br />

who are affiliated with our Association,<br />

to establish strong connections <strong>in</strong> the<br />

<strong>in</strong>ternational arena and to help our firms<br />

enter <strong>in</strong>to new markets.<br />

Our goal is, by effectively solv<strong>in</strong>g the<br />

problems of our firms, to provide them<br />

for the support they need both on f<strong>in</strong>ancial<br />

matters and <strong>in</strong>vestment and new market,<br />

to be a bridge between state and our<br />

firms, and, by contribut<strong>in</strong>g to production<br />

and brand<strong>in</strong>g activities, to support them<br />

reach the highest level <strong>in</strong> export.<br />

In this direction, firstly, due to the<br />

market potential, we are plann<strong>in</strong>g to<br />

make the chemical sector more effective<br />

<strong>in</strong> potential countries such as the United<br />

States of America, Ch<strong>in</strong>a and other Far<br />

East countries. We aim to have Turkish<br />

chemical sector, which is, <strong>in</strong> <strong>Turkey</strong>, on<br />

the third seat <strong>in</strong> export<strong>in</strong>g among the<br />

other sectors, rise to the second rank. As<br />

a matter of fact, our sector reached to the<br />

position of the second export<strong>in</strong>g sector<br />

<strong>in</strong> June <strong>2018</strong>. Among the subjects give<br />

priority are the <strong>in</strong>novative projects such<br />

as decreas<strong>in</strong>g the limit of green passport<br />

to 100 thousand dollars, establishment<br />

of a private visa office for our exporters,<br />

realiz<strong>in</strong>g exporter’s easy access to f<strong>in</strong>ance,<br />

put the national conta<strong>in</strong>er l<strong>in</strong>e project<br />

<strong>in</strong>to practice, and localization thrust.<br />

What is the effect of <strong>in</strong>crease <strong>in</strong><br />

exchange rate of dollar on export<br />

figures and chemical products <strong>in</strong> the<br />

first half of the year?<br />

Our chemical sector depends on imports<br />

<strong>in</strong> terms of raw material at the rate<br />

of 70 percent, whereas even plastic and<br />

rubber sectors are dependent upon imports<br />

<strong>in</strong> terms of rat material at over the<br />

rate of 90 percent. The most used currencies<br />

<strong>in</strong> the global trade are the Dollar and<br />

the Euro. From this po<strong>in</strong>t of view, we can<br />

say that the fluctuations <strong>in</strong> our country especially<br />

<strong>in</strong> the recent period <strong>in</strong> Dollar and<br />

Euro exchange rate have had a negative<br />

effect on the costs of our exporter firms<br />

trad<strong>in</strong>g <strong>in</strong> this foreign currency.<br />

Did these exchange rate <strong>in</strong>creases<br />

cause a drop <strong>in</strong> production? Even if it<br />

did not happen, what measures did<br />

the producers take?<br />

Although the <strong>in</strong>creases <strong>in</strong> exchange<br />

rates negatively affect the costs for our<br />

sector that provides the raw material<br />

from abroad <strong>in</strong> production, it is possible<br />

to prevent the exchange rate risk by realiz<strong>in</strong>g<br />

foreign trade operations <strong>in</strong> Turkish<br />

Lira <strong>in</strong>stead of foreign currency units.<br />

Trad<strong>in</strong>g <strong>in</strong> local currencies has a positive<br />

effect on both sides. Today, <strong>Turkey</strong><br />

does bus<strong>in</strong>ess with many countries such as<br />

Russia, India, Ch<strong>in</strong>a, South Korea, Indonesia,<br />

Mexico, Brazil<strong>in</strong> local currencies.<br />

When we look at export figures, we see<br />

that there is an <strong>in</strong>crease <strong>in</strong> exports made<br />

with these countries.<br />

“Our goal is to make a big<br />

contribution to 2023 export<br />

targets of <strong>Turkey</strong> with Digital<br />

Export Platform”<br />

You had mentioned previously the<br />

project “Five Pieces of Gold”, at what<br />

phase is that project?<br />

We started to work on all our other<br />

promises, especially the green passport<br />

issue. We have <strong>in</strong>itiated our <strong>in</strong>itiatives fast<br />

at our TIM chairman and Adm<strong>in</strong>istration.<br />

In order to <strong>in</strong>crease our exports and<br />

reach our 2023 targets, we need to orientate<br />

our SMEs to exports more. Because<br />

many of our firms which are already on<br />

certa<strong>in</strong> levels have already substantially<br />

completed their <strong>in</strong>stitutionalization, they<br />

know how to export and are be able to export<br />

to many countries <strong>in</strong> the world. Also<br />

most of our big firms are also eligible for<br />

obta<strong>in</strong><strong>in</strong>g green passport.<br />

However, the vast majority of our<br />

SME-sized companies still suffer from<br />

difficulties <strong>in</strong> export<strong>in</strong>g and f<strong>in</strong>d<strong>in</strong>g new<br />

markets. Those who have started export<strong>in</strong>g<br />

cannot attend foreign trade fairs and<br />

similar bus<strong>in</strong>ess trips because they have<br />

passport and visa problems.<br />

Our goal is, by ensur<strong>in</strong>g the owners of<br />

SMEs, which have reached 100 thousand<br />

dollar annual export<strong>in</strong>g volume <strong>in</strong> 3 years<br />

consecutively, or their one the manager<br />

who is authorized signatory to get<br />

the right of green passport,<br />

to elim<strong>in</strong>ate<br />

their travel restrictions<br />

and to<br />

help them f<strong>in</strong>d<br />

new markets.<br />

Thanks to<br />

that, we<br />

believe<br />

that we<br />

can also<br />

ensure<br />

that they<br />

can export<br />

more.<br />

Besides,<br />

while we<br />

declare our<br />

“Digital Export<br />

Platform” promise,<br />

we have<br />

foreseen<br />

that our<br />

new<br />

govern-<br />

men-<br />

tal<br />

management<br />

system will<br />

not rema<strong>in</strong><br />

<strong>in</strong>different to the ver-<br />

satile<br />

digital transformation <strong>in</strong> the world.<br />

As a matter of fact, both the statements<br />

made by our M<strong>in</strong>istry of Industry and<br />

Technology to speed up the studies on<br />

this matter and the Digital Transformation<br />

Office established at the presidency<br />

of the republic have justified our vision.<br />

Our goal here is, by embrac<strong>in</strong>g digitalism,<br />

which started with Industry 4.0 and<br />

leaped <strong>in</strong>to the area of f<strong>in</strong>ance with digital<br />

money, to catch up the digital transformation<br />

<strong>in</strong> the world and accelerate<br />

it and help our country’s exports reach<br />

2023 targets. In this area, we will work<br />

more closely with our TIM management<br />

together with our government.<br />

“We expect a big participation <strong>in</strong><br />

Ch<strong>in</strong>a International Import Expo<br />

<strong>2018</strong>”<br />

There was a high level of<br />

participation <strong>in</strong> the Private Label fair<br />

<strong>in</strong> Amsterdam. What level of national<br />

participation do you expect <strong>in</strong> a big<br />

fair like the one <strong>in</strong> Ch<strong>in</strong>a?<br />

As for private-label products sector,<br />

we arranged <strong>Turkey</strong> National Participation<br />

Organization this year as 10th time<br />

to “PLMA’s World of Private Label” <strong>in</strong>ternational<br />

trade fair, which is held every<br />

year. This year, 94 Turkish companies,<br />

47 of which are as national participation<br />

and operat<strong>in</strong>g on cosmetics, personal<br />

car, clean<strong>in</strong>g, plastic household goods,<br />

packag<strong>in</strong>g and food sectors, took part <strong>in</strong><br />

this fair, which has been hold<strong>in</strong>g for over<br />

30 years. We are delighted to have such a<br />

high level of participation.<br />

As İKMİB, we support our exporters<br />

with our national participation organizations<br />

<strong>in</strong> order to enable our firms to<br />

get new ideas and to make cooperation<br />

l<strong>in</strong>ks. Overseas fairs offer very important<br />

opportunities <strong>in</strong> terms of <strong>in</strong>troduc<strong>in</strong>g the<br />

products of our exporters, their brands<br />

and mak<strong>in</strong>g new cooperation. We anticipate<br />

that participation <strong>in</strong> the “Ch<strong>in</strong>a<br />

International Import Expo <strong>2018</strong>” fair,<br />

which will take place <strong>in</strong> Shanghai, Ch<strong>in</strong>a<br />

between 5-10 November <strong>2018</strong>, will also<br />

be on high level <strong>in</strong> this respect.<br />

Our studies have been cont<strong>in</strong>u<strong>in</strong>g to<br />

promote the fair, which so far 41 firms<br />

have applied to, to Turkish exporters and<br />

to<br />

<strong>in</strong>crease<br />

participation.<br />

The fair <strong>in</strong><br />

question is extremely important not only<br />

for our export<strong>in</strong>g firms, but also for the<br />

promotion of <strong>Turkey</strong>. The Ch<strong>in</strong>ese festival<br />

will be organized for the first time and<br />

we regard it as an important opportunity<br />

for our country. The <strong>in</strong>vestment possibilities<br />

and trade opportunities <strong>in</strong> <strong>Turkey</strong> will<br />

be <strong>in</strong>troduced to the visitors on the booth<br />

with 136 m2, whereas Turkish culture will<br />

be promoted.<br />

Could you tell us at which level<br />

<strong>Turkey</strong> Exporters Assembly figures<br />

are, compared to the figures made<br />

accord<strong>in</strong>g to prov<strong>in</strong>ces?<br />

Accord<strong>in</strong>g to <strong>Turkey</strong> Exporters Assembly<br />

(TIM) data, exports rose 11.8 percent<br />

<strong>in</strong> July and reached 14.11 billion dollars.<br />

In the dispersion of the said exports,<br />

Istanbul takes the first place with 6 billion<br />

dollars. The top ten cities are Istanbul,<br />

Bursa, Kocaeli, Izmir, Ankara, Gaziantep,<br />

Sakarya, Manisa, Denizli and Hatay.<br />

Where are we <strong>in</strong> the world on exports<br />

R&D studies?<br />

Today, the way of be<strong>in</strong>g able to exist<br />

<strong>in</strong> domestic and foreign trade, where<br />

competition is <strong>in</strong>tense, is done by R & D.<br />

While R & D <strong>in</strong>vestments and studies,<br />

which are the biggest factor <strong>in</strong> the growth<br />

of the country’s economies, have come to<br />

the forefront <strong>in</strong> developed countries, <strong>in</strong><br />

develop<strong>in</strong>g countries, although not at the<br />

desired level of <strong>in</strong>dustry, R & D <strong>in</strong>vestments<br />

<strong>in</strong> <strong>Turkey</strong> cont<strong>in</strong>ues to grow each<br />

year.<br />

Researches show that R&D <strong>in</strong>vestments<br />

develop <strong>in</strong>novative and high-tech<br />

products and <strong>in</strong>crease exports. R&D<br />

expenditures of developed countries are<br />

on average 2.5 to 3 per cent of the Gross<br />

Domestic Product (GDP), while the<br />

proportion of develop<strong>in</strong>g countries is less<br />

than 1 per cent.<br />

Accord<strong>in</strong>g to the latest expla<strong>in</strong>ed data<br />

of <strong>Turkey</strong> Statistical Institute (TSI), <strong>Turkey</strong>’s<br />

gross domestic R & D expenditure<br />

has risen to 24 billion 641 million TL <strong>in</strong><br />

2016 with an <strong>in</strong>crement of 19.5 percent<br />

by <strong>in</strong>creas<strong>in</strong>g 4 billion 26 million TL,<br />

compared to the previous year. The ratio<br />

of gross domestic R & D expenditure to<br />

GDP is 0.88 percent <strong>in</strong> 2015, and rose to<br />

0.94 percent <strong>in</strong> 2016.<br />

As we can see from the figures,<br />

Adil Pelister,<br />

Chairman of IKMIB<br />

<strong>Turkey</strong>’s R&D allocation ratio<br />

rema<strong>in</strong>s under the world<br />

average. It is of utmost<br />

importance that<br />

government promotion<br />

should<br />

be given by our<br />

government<br />

through<br />

tax reductions<br />

and<br />

low-<strong>in</strong>terest<br />

<strong>in</strong>vestment<br />

loans to<br />

R&D<br />

activities.<br />

It is necessary<br />

that<br />

our firms<br />

<strong>in</strong>vest more<br />

<strong>in</strong> R&D<br />

researches by<br />

mak<strong>in</strong>g use of<br />

these supports,<br />

and their work<br />

needs to be made widespread<br />

<strong>in</strong> our country.<br />

Could you mention about<br />

protectionism problems that our<br />

exporters face <strong>in</strong> the world market?<br />

The concept of protectionism, which<br />

was emerged from the politics of localization<br />

and balanc<strong>in</strong>g economics of the<br />

countries, has changed dimension <strong>in</strong><br />

recent years due to political relations of<br />

the countries. Especially after the recent<br />

US-Ch<strong>in</strong>a crisis, we are fac<strong>in</strong>g the risk<br />

that this understand<strong>in</strong>g of protectionism<br />

spread <strong>in</strong> waves by be<strong>in</strong>g accepted also by<br />

other countries. Exporters may encounter<br />

some embargoes aga<strong>in</strong>st Turkish<br />

products.<br />

Protectionist policies of neighbor<strong>in</strong>g<br />

countries such as Iraq, Iran, Algeria,<br />

Egypt (import prohibitions, additional<br />

customs tax, etc.) affect our exports<br />

negatively.<br />

What would you like to say about<br />

be<strong>in</strong>g handled <strong>in</strong>novation and design<br />

by exporters, and <strong>in</strong>vestment <strong>in</strong><br />

brand and R & D?<br />

The role of exports <strong>in</strong> <strong>Turkey</strong>’s growth<br />

and <strong>in</strong>crease <strong>in</strong> the level of welfare is<br />

huge. Innovation, design and brand<strong>in</strong>g<br />

factors come to the forefront <strong>in</strong> terms of<br />

compet<strong>in</strong>g with the countries and <strong>in</strong>creas<strong>in</strong>g<br />

exports by enter<strong>in</strong>g <strong>in</strong>to new markets.<br />

Companies that produce <strong>in</strong>novative and<br />

high-tech products are tak<strong>in</strong>g part at the<br />

forefront of the world market. It is possible<br />

for the market to be able to create<br />

new designs and produce productions<br />

with high value added only with research<br />

and developments activities. When we<br />

look at the countries with the greatest<br />

economies of the world, we see that these<br />

countries have reached their current positions<br />

as the result of R & D activities.<br />

Achiev<strong>in</strong>g susta<strong>in</strong>able exports and<br />

boost<strong>in</strong>g the unit kilogram value of exports<br />

are significantly dependent on R &<br />

D and <strong>in</strong>novation power. In this regard,<br />

as IKMIB, we support our exporters<br />

with both design competitions that we<br />

organize and activities such as R & D<br />

Project Market. Giv<strong>in</strong>g importance and<br />

priority to R & D will take our firms a<br />

step forward.<br />

After <strong>Turkey</strong>’s PIC/S membership,<br />

what changes are expected <strong>in</strong><br />

<strong>Turkey</strong>’s pharmaceutical market?<br />

The International Pharmaceutical<br />

Inspection Cooperation / Scheme (PIC /<br />

S), an association established by authorities<br />

that adm<strong>in</strong>ister drug registries around<br />

the world, is known as the most respected<br />

and valid <strong>in</strong>stitution recognized on<br />

this field. <strong>Turkey</strong>’s PIC / S membership<br />

became effective from January 1, <strong>2018</strong>.<br />

In this way, the technical barriers which<br />

prevent the drugs produced <strong>in</strong> <strong>Turkey</strong><br />

from globaliz<strong>in</strong>g were also largely elim<strong>in</strong>ated.<br />

The <strong>in</strong>spections made by <strong>Turkey</strong><br />

Pharmaceuticals and Medical Devices<br />

Agency (TITCK) are accepted worldwide<br />

and also quality and safety of the drugs<br />

produced <strong>in</strong> <strong>Turkey</strong> are registered. We<br />

expect this to reflect favorably on prices<br />

and <strong>in</strong>crease exports of pharmaceuticals.<br />

What are the effects of the economic<br />

and political developments tak<strong>in</strong>g<br />

place at the regional and global level<br />

on the sector?<br />

The economic and political developments<br />

that have taken place at the regional<br />

and global level directly and <strong>in</strong>directly<br />

affect our sector. In particular, if that the<br />

chemical <strong>in</strong>dustry is dependent on abroad<br />

by 70 percent <strong>in</strong> terms of raw materials is<br />

tak<strong>in</strong>g <strong>in</strong>to consideration, it is necessary<br />

for our firms to <strong>in</strong>crease market diversity<br />

and <strong>in</strong>vest <strong>in</strong> R & D and brand<strong>in</strong>g <strong>in</strong><br />

order to be affected at a m<strong>in</strong>imum level<br />

through these developments <strong>in</strong> the world.<br />

On the matter of raw material sources,<br />

especially <strong>in</strong> terms of plastic raw materials<br />

used <strong>in</strong> construction plastics and<br />

automotive <strong>in</strong>dustry, serious <strong>in</strong>vestment<br />

is needed for establish<strong>in</strong>g petrochemical<br />

plants <strong>in</strong> our country.<br />

When the domestic and abroad<br />

problems faced <strong>in</strong> <strong>in</strong>ternational trade<br />

and common problems of chemical<br />

sector are taken <strong>in</strong>to account, with<br />

which solutions are these problem<br />

can be overcome or elim<strong>in</strong>ated?<br />

In the chemical <strong>in</strong>dustry, which is<br />

dependent on abroad <strong>in</strong> the production<br />

of raw material, our sector will play an<br />

important role <strong>in</strong> f<strong>in</strong>anc<strong>in</strong>g deficit of<br />

<strong>Turkey</strong> with the supports of our State and<br />

<strong>in</strong>crease <strong>in</strong> domestic production. Therefore,<br />

it is necessary to create a center<br />

of attraction <strong>in</strong> the field of petrochemicals,<br />

to establish new companies and to<br />

commence production. If the planned<br />

<strong>in</strong>vestments <strong>in</strong> petrochemicals start up,<br />

we anticipate that, our chemical exports<br />

will be over 20 billion dollars after 2019.<br />

However, our exporters may have<br />

difficulty <strong>in</strong> access<strong>in</strong>g f<strong>in</strong>anc<strong>in</strong>g, we are<br />

prepar<strong>in</strong>g an action plan, as the voice of<br />

our sector, to extend the deadl<strong>in</strong>es for<br />

our exporters to reach direct f<strong>in</strong>anc<strong>in</strong>g.<br />

We are also work<strong>in</strong>g with relevant<br />

<strong>in</strong>stitutions and <strong>in</strong>dividuals on solutions<br />

to the problems of our sector, such as<br />

facilitat<strong>in</strong>g visa procedures and limit<strong>in</strong>g<br />

the lower limit for green passports to 100<br />

thousand dollars.<br />

Sectoral cluster<strong>in</strong>g is also important<br />

<strong>in</strong> terms of firms mov<strong>in</strong>g together, tak<strong>in</strong>g<br />

advantage of state support for common<br />

needs. In this regard, we support our<br />

firms, which operate <strong>in</strong> chemical sector,<br />

with sectoral committee meet<strong>in</strong>gs we<br />

organized, as IKMIB, and various R & D<br />

projects.<br />

What happens <strong>in</strong> the second half of<br />

<strong>2018</strong> on the next road map? (Fairs,<br />

new projects, etc....)<br />

First of all, until the end of <strong>2018</strong>,<br />

among the fairs and delegations which we<br />

will arrange national participation organization<br />

both at home and abroad are;<br />

10-14 October <strong>2018</strong> COSMEET Home,<br />

Clean<strong>in</strong>g and Care Sector and Cosmetics<br />

Sector Procurement Delegations- Istanbul<br />

/ <strong>Turkey</strong>,<br />

21-25 October <strong>2018</strong> Qatar Sectoral Trade<br />

Delegation- Doha / Qatar<br />

5-10 November <strong>2018</strong> Ch<strong>in</strong>a International<br />

Import Expo- Shanghai / Ch<strong>in</strong>a,<br />

12-15 November <strong>2018</strong> Medica <strong>2018</strong>- Dusseldorf<br />

/ Germany,<br />

14-16 November <strong>2018</strong> Cosmoprof Asia<br />

<strong>2018</strong>- Hong Kong / Ch<strong>in</strong>a,<br />

25-28 November <strong>2018</strong> Athens Sectoral<br />

Trade Delegation <strong>2018</strong> - Athens / Greece<br />

is located.<br />

Along with these, we br<strong>in</strong>g together<br />

our exporters at sectoral committees,<br />

which we have formed, and try to f<strong>in</strong>d<br />

solutions to their problems with common<br />

sense. As the chemical sector, we have set<br />

2023 target as$ 50 billion. We can list the<br />

topics stand<strong>in</strong>g out <strong>in</strong> the road map that<br />

we have set for reach<strong>in</strong>g the 2023 targets<br />

as follows: Updat<strong>in</strong>g of the Customs<br />

Union Agreement with the EU <strong>in</strong> favor<br />

of <strong>Turkey</strong>, guarantee<strong>in</strong>g the supply of raw<br />

materials with new formulas, <strong>in</strong>vestment<br />

<strong>in</strong> specific special chemicals, sectoral cluster<strong>in</strong>g<br />

and the creation of scale synergies<br />

<strong>in</strong> R & D. We will cont<strong>in</strong>ue to follow our<br />

efforts without slow<strong>in</strong>g down so that our<br />

chemistry sector will come to a better<br />


EconomicNewspaper<br />

10 Please mention<br />

“<strong>Made</strong> <strong>in</strong> <strong>Turkey</strong>” when writ<strong>in</strong>g to advertisers<br />

Monthly Economic Newspaper<br />

ww.img.com.tr<br />

<strong>August</strong><br />

<strong>2018</strong><br />

<strong>Turkey</strong>’s<br />

automotive<br />

<strong>Turkey</strong> ranks third <strong>in</strong> halal<br />

tourism market by rais<strong>in</strong>g its<br />

share by 20 pct <strong>in</strong> 2017<br />

exports to Europe<br />

reach new heights<br />

The Turkish automotive <strong>in</strong>dustry,<br />

which picked up some recent losses <strong>in</strong><br />

the domestic market, has seen a rise <strong>in</strong><br />

exports – exceed<strong>in</strong>g $16 billion <strong>in</strong> the<br />

first half of the year – with more than 80<br />

percent go<strong>in</strong>g to European countries.<br />

Accord<strong>in</strong>g to the Automotive Distributors’<br />

Association (ODD) and Turkish<br />

Exporters’ Association (TİM), the Turkish<br />

automotive and light commercial<br />

vehicle <strong>in</strong>dustry contracted 11.92 percent<br />

<strong>in</strong> the first half of the year compared to<br />

the previous year. The <strong>in</strong>dustry, however,<br />

recorded $16.4 billion <strong>in</strong> exports with<br />

a 14.5 percent rise compared to the same<br />

period of last year. In accordance with<br />

these figures, the automotive exports<br />

constituted 20 percent of <strong>Turkey</strong>’s total<br />

exports <strong>in</strong> the first half, which exceeded<br />

$80 billion. Meanwhile <strong>in</strong> the first half of<br />

2017, automotive exports stood at $14.3<br />

billion.<br />

The automotive sector’s exports to<br />

the European Union and other European<br />

countries <strong>in</strong> the first half of the year<br />

<strong>in</strong>creased by 15 percent and hit $13.6 billion,<br />

mak<strong>in</strong>g up 80.5 percent of <strong>Turkey</strong>’s<br />

$16.4 billion automotive exports <strong>in</strong> the<br />

first half of the year. Europe was followed<br />

by the Middle East for the Turkish<br />

automotive <strong>in</strong>dustry. Car sales to Middle<br />

Eastern countries rose by 2.2 percent,<br />

reach<strong>in</strong>g $805.1 million. With exports<br />

over $2.4 billion, Germany was the biggest<br />

market for Turkish manufacturers.<br />

It was followed by Italy with $1.8 billion<br />

and France with $1.7 billion. The U.K.<br />

ranked fourth <strong>in</strong> <strong>Turkey</strong>’s automotive<br />

exports with $1.4 billion. Accord<strong>in</strong>gly,<br />

automotive sales separately to Germany,<br />

Italy, France and the U.K. each exceeded<br />

$1 billion. In contrast, sales to the<br />

U.S. dropped by $159 million and stood<br />

at $463 million. Automotive sales to Iran<br />

and Denmark also fell by $51 million $22<br />

million respectively while the decrease<br />

<strong>in</strong> exports to Ireland was at $19 million.<br />

Turkish automotive <strong>in</strong>dustry’s exports<br />

to Syria also saw a $15 million fall <strong>in</strong><br />

the first half of the year.In 2017, the<br />

total automotive production <strong>in</strong>creased<br />

by 13 percent to 1.7 million compared<br />

to 2016, while automobile production<br />

reached 1.1 million with an <strong>in</strong>crease of<br />

18 percent, provid<strong>in</strong>g the sector with the<br />

highest levels <strong>in</strong> both total automotive<br />

and automobile production, accord<strong>in</strong>g to<br />

Automotive Manufacturers Association<br />

(OSD) data.<br />

With these figures, both total automotive<br />

and automobile production reached<br />

their highest levels <strong>in</strong> <strong>Turkey</strong>. In 2017,<br />

total automotive exports <strong>in</strong>creased by 17<br />

percent and automobile exports by 24<br />

percent compared to the previous year.<br />

In this period, total exports amounted<br />

to 1.3 million units, followed by automobile<br />

exports with 921,000 units. Thus,<br />

80 percent of the total production <strong>in</strong><br />

the automotive <strong>in</strong>dustry was exported.<br />

Accord<strong>in</strong>g to the Turkish Exporters<br />

Assembly (TİM) data, total automotive<br />

<strong>in</strong>dustry exports ma<strong>in</strong>ta<strong>in</strong>ed the lead<strong>in</strong>g<br />

position <strong>in</strong> 2017 with an 18.2 percent<br />

share <strong>in</strong> exports.<br />

Tak<strong>in</strong>g steps to develop alternative<br />

tourism follow<strong>in</strong>g the<br />

challeng<strong>in</strong>g periods <strong>in</strong> 2015 and<br />

2016, the Turkish tourism sector<br />

ranked third <strong>in</strong> the world by<br />

<strong>in</strong>creas<strong>in</strong>g its share of the halal<br />

tourism market by 20 percent <strong>in</strong><br />

2017, Yunus Ete, the chairman of<br />

World Halal Summit Council and<br />

Asel Group, said.<br />

“<strong>Turkey</strong> ranks third <strong>in</strong> the<br />

market right after Malaysia and<br />

Indonesia,” Ete said.<br />

He said that world halal<br />

tourism, which is expected to<br />

reach $300 billion <strong>in</strong> volume by<br />

2023, <strong>in</strong>cludes many countries<br />

from Spa<strong>in</strong> to New Zealand <strong>in</strong><br />

addition to the Muslim majority<br />

halal dest<strong>in</strong>ations like the United<br />

Arab Emirates (UAE), <strong>Turkey</strong><br />

and Malaysia.<br />

Po<strong>in</strong>t<strong>in</strong>g to the rapidly <strong>in</strong>creas<strong>in</strong>g<br />

number of guests hosted by<br />

<strong>Turkey</strong> <strong>in</strong> halal tourism, Ete said<br />

<strong>Turkey</strong> <strong>in</strong>creased the number of<br />

guests hosted <strong>in</strong> halal tourism,<br />

welcom<strong>in</strong>g three million visitors<br />

last year, stress<strong>in</strong>g that it is still<br />

far below its potential. “If we can<br />

get 10 percent of this market, we<br />

will have a serious jump <strong>in</strong> our<br />

tourism <strong>in</strong>come.”<br />

Ete stated that parallel to the<br />

grow<strong>in</strong>g awareness <strong>in</strong> the halal<br />

market, <strong>in</strong>vestments made <strong>in</strong> this<br />

area also ga<strong>in</strong>ed momentum.<br />

“Spa<strong>in</strong> is <strong>in</strong>vest<strong>in</strong>g heavily <strong>in</strong> the<br />

Andalusian region, accelerat<strong>in</strong>g<br />

its efforts to br<strong>in</strong>g <strong>in</strong> halal-concept<br />

new hotels. It quickly began<br />

to stand out <strong>in</strong> this area,” Ete<br />

cont<strong>in</strong>ued. “Along with the<br />

<strong>in</strong>creas<strong>in</strong>g number of Muslims,<br />

Halal travel is <strong>in</strong>creas<strong>in</strong>gly becom<strong>in</strong>g<br />

a more profitable sector<br />

for future <strong>in</strong>vestments.”<br />

Ete suggested that with <strong>Turkey</strong><br />

becom<strong>in</strong>g a major halal travel<br />

dest<strong>in</strong>ation and surpass<strong>in</strong>g other<br />

Muslim tourist dest<strong>in</strong>ations <strong>in</strong><br />

the Mediterranean region was<br />

a sign of the country’s popularity,<br />

while Turkish hoteliers have<br />

begun to focus on this new segment<br />

as compared to traditional<br />

tourism, after not<strong>in</strong>g the <strong>in</strong>tense<br />

consumer demand.<br />


Model No<br />

Input Power max<br />

Vacumm<br />

Rated Voltage<br />

Air Flow<br />

Water Suction Capacity<br />

Pump Power<br />

Pump Pressure<br />

Extra Bas<strong>in</strong> Volume<br />

Waste Bas<strong>in</strong> Volume<br />

Conta<strong>in</strong>er Dust Capacity<br />

Dust Bag Capacity<br />

IP Code<br />

Gross Weight<br />

Size<br />

: 114H<br />

: 1300 W<br />

: 1950 mmH2O<br />

: 220-230 V AC, 50/60 Hz<br />

: 200 m 3 /h<br />

: 1,5 L/S<br />

: 26 W<br />

: 2,5 bar<br />

: 7 L<br />

: 8,5 L<br />

: 5 L<br />

: 5 L<br />

: IPX4<br />

: 13,5 kg<br />

: 410x510x593 mm<br />


Model No<br />

Input Power max<br />

Vacumm<br />

Rated Voltage<br />

Air Flow<br />

Water Suction Capacity<br />

Pump Power<br />

Pump Pressure<br />

Extra Bas<strong>in</strong> Volume<br />

Waste Bas<strong>in</strong> Volume<br />

Conta<strong>in</strong>er Dust Capacity<br />

Dust Bag Capacity<br />

IP Code<br />

Gross Weight<br />

Size<br />


Model No<br />

Input Power max<br />

Vacumm<br />

Rated Voltage<br />

Air Flow<br />

Dust Bag Capacity<br />

IP Code<br />

Gross Weight<br />

Size<br />

: 114R<br />

: 1300 W<br />

: 1950 mmH2O<br />

: 220-230 V AC, 50/60 Hz<br />

: 200 m 3 /h<br />

: 1,5 L/S<br />

: 26 W<br />

: 2,5 bar<br />

: 3,5 L<br />

: 6 L<br />

: 5 L<br />

: 5 L<br />

: IPX4<br />

: 11,5 kg<br />

: 385x485x485 mm<br />

: 114L<br />

: 1300 W<br />

: 1950 mmH2O<br />

: 220-230 V AC, 50/60 Hz<br />

: 200 m 3 /h<br />

: 5 L<br />

: IPX4<br />

: 8,5 kg<br />

: 390x418x440 mm<br />

BOSB, Mermerciler Sanayi Sitesi 7.Cd. No:12, 34524 Beylikduzu, Istanbul/TURKEY<br />

Phone: (0212) 875 35 62 pbx - Fax: (0212) 875 36 64 www.iea.com.tr<br />

Istanbul to host <strong>in</strong>t’l<br />

automotive eng<strong>in</strong>eer<strong>in</strong>g<br />

conference<br />

The movers and shakers of<br />

the global automotive <strong>in</strong>dustry<br />

will attend the “International<br />

Automotive Eng<strong>in</strong>eer<strong>in</strong>g Conference”<br />

(IAEC’18) be<strong>in</strong>g held<br />

for the third time <strong>in</strong> Istanbul.<br />

Accord<strong>in</strong>g to the written<br />

statement released by the<br />

Uludağ Automotive Industry<br />

Exporters’ Association (OİB),<br />

the conference will be held at<br />

Swissotel The Bosphorus from<br />

Nov. 1-2 to discuss future automotive<br />

trends and address the<br />

latest developments <strong>in</strong> automotive<br />

electronics and software.<br />

Preparations for the event<br />

jo<strong>in</strong>tly organized by the OİB,<br />

the Automotive Industry Association<br />

(OSD), the Automotive<br />

Technology Platform (OTEP),<br />

the Vehicles Procurement Industrialists<br />

Association (TAYSAD)<br />

and the Association of American<br />

Automotive Eng<strong>in</strong>eers (SAE)<br />

are underway.<br />

The event is designed to<br />

facilitate discussion about the<br />

necessary steps to be taken by<br />

the automotive <strong>in</strong>dustry <strong>in</strong> eng<strong>in</strong>eer<strong>in</strong>g<br />

<strong>in</strong> the current dynamics<br />

of the sector while tak<strong>in</strong>g <strong>in</strong>to<br />

account the op<strong>in</strong>ions of <strong>in</strong>ternational<br />

specialists from a technical<br />

po<strong>in</strong>t of view.<br />

Topics <strong>in</strong>clude: “New Developments;”<br />

“Software Security<br />

and Block Cha<strong>in</strong>;” “Regulations<br />

and Tests for Smart Vehicles;”<br />

“Adaptive Platform for Smart<br />

Vehicles;” “Impacts of Develop<strong>in</strong>g<br />

New Technologies on the<br />

Automotive Industry;” “Future<br />

of 5G and Communication between<br />

Tools;” “Future of Electronics<br />

<strong>in</strong> Vehicles;” “Artificial<br />

Intelligence <strong>in</strong> Vehicles;” “Technology<br />

and Ethics;” “Domestic<br />

Entrepreneurship Strategies <strong>in</strong><br />

Automotive;” and “Impacts of<br />

Develop<strong>in</strong>g Technologies and<br />

Innovative Initiatives on the<br />

Automotive Sector,” and will be<br />

addressed <strong>in</strong> the third edition<br />

of the event under the theme<br />

“Present and Future of Automotive<br />

Electronics and Software.”

<strong>August</strong><br />

<strong>2018</strong><br />

Monthly Economic Newspaper<br />

ww.img.com.tr<br />

EconomicNewspaper<br />

Please mention<br />

“<strong>Made</strong> <strong>in</strong> <strong>Turkey</strong>” when writ<strong>in</strong>g to advertisers<br />

11<br />

Bursa produced 2,041 vehicles per day <strong>in</strong><br />

first half of year, 79 pct of them exported<br />

In Bursa, which hosts automotive<br />

giants OYAK Renault, Tofaş and Karsan,<br />

2,041 vehicles were produced per day <strong>in</strong><br />

the first half of the year, with an average<br />

1,606 vehicles (78.69 percent) exported.<br />

Bursa-based Tofaş, OYAK Renault and<br />

Karsan reached 43.57 percent (367,401<br />

units) of total production of 843,193<br />

units exclud<strong>in</strong>g tractors (367,401 units)<br />

<strong>in</strong> the January-June period of this year.<br />

They also reached 42.02 percent (289,124<br />

units) of total exports of 688,081 units <strong>in</strong><br />

the January-June period of this year.<br />

Ford Otosan closed the first half of the<br />

year as the sector leader <strong>in</strong> production<br />

and exports, followed by OYAK Renault<br />

and Tofaş, respectively.<br />

Accord<strong>in</strong>g to data compiled from<br />

Uludağ Automotive Industry Exporters’<br />

Association (OİB) and Automotive Manufacturers<br />

Association (OSD), production<br />

of the Turkish automotive <strong>in</strong>dustry,<br />

which totaled 869,162 units, exclud<strong>in</strong>g the<br />

tractors, <strong>in</strong> the January-June period of<br />

2017, dropped by 3 percent to 843,193 <strong>in</strong><br />

the same period this year.<br />

Ford Otosan, which produced 198,600<br />

vehicles, closed the first half of the year<br />

as the sector leader by provid<strong>in</strong>g close<br />

to one quarter of total production (23.5<br />

percent) by itself, followed by OYAK<br />

Renault with 189,006 vehicles and a share<br />

of 22.41 percent and Tofaş with 175,138<br />

vehicles and a share of 20.77 percent.<br />

Toyota, on the other hand, came fourth<br />

with 129,644 vehicles and 15.37 percent<br />

share, while Hyundai Assan ranked fifth<br />

with 107,377 vehicles and 12.73 percent<br />

share. In the city where another Bursa-based<br />

company, Karsan, produced<br />

43.5 percent (367,401 units) of the total<br />

production with 3,257 vehicles, 85 vehicles<br />

were produced per hour, amount<strong>in</strong>g<br />

to 2,041 vehicles per day.<br />

The exports of the automotive <strong>in</strong>dustry<br />

decreased by 3.7 percent to 688,081<br />

units compared to last year <strong>in</strong> the January-June<br />

period when 714,283 units <strong>in</strong><br />

were produced, not <strong>in</strong>clud<strong>in</strong>g tractors.<br />

In exports, Ford Otosan led the way with<br />

165,131 vehicles, hold<strong>in</strong>g 24 percent of<br />

total exports, <strong>in</strong> the first half of the year,<br />

followed by Bursa-based OYAK Renault<br />

with 147,119 vehicles and 21.38 percent<br />

share, Tofaş with 140,191 vehicles and<br />

20.39 percent share, Toyota with 117,469<br />

vehicles and 17.07 percent share and<br />

Hyundai Assan with 98,346 vehicles and<br />

14 percent share.<br />

In Bursa, which realized 42.02 percent<br />

of total exports <strong>in</strong> the first half of the<br />

year with Karsan’s 1,714 units of exports,<br />

an average of 67 vehicles were exported<br />

per hour, amount<strong>in</strong>g to 1,606 vehicles per<br />

day.<br />

German tour operators<br />

say book<strong>in</strong>gs for <strong>Turkey</strong><br />

almost doubled<br />

The number German<br />

book<strong>in</strong>gs for summer holidays<br />

<strong>in</strong> <strong>Turkey</strong> this year has almost<br />

doubled compared to 2017,<br />

German tour operators have<br />

said. “In <strong>2018</strong>, we see <strong>Turkey</strong>’s<br />

comeback,” German Travel<br />

Association (DRV) spokesperson<br />

Kerst<strong>in</strong> He<strong>in</strong>en told. She<br />

added that book<strong>in</strong>gs and sales<br />

revenues for summer <strong>2018</strong> have<br />

almost doubled. A record 5.5<br />

million German tourists visited<br />

<strong>Turkey</strong> <strong>in</strong> 2015, but the number<br />

dropped to 3.9 million <strong>in</strong> 2016,<br />

and 3.5 million <strong>in</strong> 2017, largely<br />

due to political tensions between<br />

Ankara and Berl<strong>in</strong>, and<br />

conflicts <strong>in</strong> countries neighbor<strong>in</strong>g<br />

<strong>Turkey</strong>.<br />

He<strong>in</strong>en stressed that this<br />

year <strong>Turkey</strong> has aga<strong>in</strong> become<br />

one of the most popular holiday<br />

dest<strong>in</strong>ations for German<br />

tourists. Despite the impressive<br />

figures, however, the peak<br />

numbers of 2015 are yet to be<br />

reached, she noted. Europe’s<br />

largest holiday operator TUI<br />

Group also recorded a significant<br />

<strong>in</strong>crease <strong>in</strong> summer <strong>2018</strong><br />

book<strong>in</strong>gs to <strong>Turkey</strong>. “<strong>Turkey</strong><br />

has aga<strong>in</strong> become one of the<br />

most popular holiday dest<strong>in</strong>ations<br />

for German tourists. It is<br />

currently <strong>in</strong> the third place,”<br />

TUI spokesperson Susanne<br />

Stunckel has said. With a thaw<br />

<strong>in</strong> <strong>Turkey</strong>-Germany relations,<br />

tourism professionals expect<br />

that <strong>Turkey</strong>’s overall target of<br />

40 million tourists this year will<br />

be achieved, with the major<br />

contribution of the ris<strong>in</strong>g number<br />

of German tourists that is<br />

expected to reach 7.5 million.<br />

German tour operators have<br />

welcomed <strong>Turkey</strong>’s move to lift<br />

a two-year-old state of emergency<br />

but noted that it would<br />

not make an immediate impact<br />

on the figures, as the ma<strong>in</strong><br />

season is runn<strong>in</strong>g already.<br />

<strong>Turkey</strong>’s sectoral confidence<br />

rises to 91.9 po<strong>in</strong>ts <strong>in</strong> July<br />

Confidence <strong>in</strong> <strong>Turkey</strong>’s services,<br />

retail trade, and construction<br />

sectors rose <strong>in</strong> July compared to<br />

the previous month, the Turkish<br />

Statistical Institute (TurkStat)<br />

announced.<br />

The services sector <strong>in</strong>dex rose<br />

0.7 percent to 91.9 <strong>in</strong> the month,<br />

from 91.2 <strong>in</strong> June. Accord<strong>in</strong>g to<br />

TurkStat, this resulted from an<br />

<strong>in</strong>creased number of managers<br />

evaluat<strong>in</strong>g the bus<strong>in</strong>ess situation<br />

as improved and demand-turnover<br />

as up over the past three<br />

months.<br />

The retail trade confidence<br />

<strong>in</strong>dex was up 3.1 percent monthon-month<br />

to reach 97.3 <strong>in</strong> July,<br />

from 94.4 <strong>in</strong> the previous month.<br />

The uptrend came from an<br />

<strong>in</strong>creased number of managers<br />

expect<strong>in</strong>g an improvement <strong>in</strong><br />

bus<strong>in</strong>ess activity/sales over the<br />

next three months, TurkStat<br />

said.<br />

Auto market aims over $30B<br />

for exports <strong>in</strong> <strong>2018</strong><br />

<strong>Turkey</strong>’s automotive <strong>in</strong>dustry<br />

exports will exceed $30 billion<br />

<strong>in</strong> <strong>2018</strong>, the CEO of the Uludağ<br />

Automotive Industry Exporters’<br />

Association (OİB) said.<br />

“We had aimed for $29 billion<br />

[of exports] <strong>in</strong> <strong>2018</strong>. If we look<br />

at the data for the first half of<br />

the year, we reached an export<br />

level of $16.4 billion.<br />

“This shows us that we will<br />

exceed far beyond our aim. We<br />

will exceed over $30 billion,”<br />

Baran Çelik told. Çelik said<br />

The construction sector<br />

confidence <strong>in</strong>dex also rose 2.4<br />

percent to 77.1 po<strong>in</strong>ts <strong>in</strong> July<br />

from 75.3 <strong>in</strong> June. This rise<br />

“stemmed from an <strong>in</strong>creased<br />

number of managers evaluat<strong>in</strong>g<br />

current overall order books as<br />

above normal for the season and<br />

expect<strong>in</strong>g an <strong>in</strong>crease <strong>in</strong> total<br />

employment over the next three<br />

months,” TurkStat said.<br />

Sectoral confidence <strong>in</strong>dices<br />

range from 0 to 200, <strong>in</strong>dicat<strong>in</strong>g<br />

an optimistic outlook when<br />

above 100, but a pessimistic outlook<br />

when below 100, accord<strong>in</strong>g<br />

to TurkStat. Meanwhile, consumer<br />

confidence <strong>in</strong> the Turkish<br />

economy also soared 4 percent<br />

to 73.1 <strong>in</strong> July, TurkStat reported.<br />

TurkStat is due to announce<br />

<strong>Turkey</strong>’s economic confidence<br />

<strong>in</strong>dex on Aug.<br />

$16.4 billion of exports <strong>in</strong> <strong>2018</strong><br />

were an “all-time record” for the<br />

first half of a year.<br />

He said Turkish automotive<br />

sector’s exports reached $28.5<br />

billion <strong>in</strong> 2017, add<strong>in</strong>g that the<br />

sector will break a record <strong>in</strong><br />

<strong>2018</strong>. Accord<strong>in</strong>g to the Turkish<br />

Exporters’ Assembly (TİM), automotive<br />

was the lead<strong>in</strong>g sector<br />

with $2.5 billion exports <strong>in</strong> June.<br />

The sector’s exports <strong>in</strong>creased<br />

by 1.9 percent compared to the<br />

same month the previous year.

FLY HIGH<br />



HALL 4.2 A1-02<br />

HALL 2 C6-007<br />

HALL 1 C6-003<br />



HALL 4.1 A1-02<br />


ARBETA<br />

ASAV<br />



AKSA<br />

ATP<br />

HALL 5.1 A7-04<br />

ARZUM<br />

<br />

URAŞ<br />

<br />

4.2<br />

HALL 7.2 B2-28<br />

ALTUN<br />

<br />


<br />


<br />

BARAN <br />

<br />

ELED<br />

HALL 6.1 C5-06<br />


<br />

MEHTAP<br />

<br />

SEBA<br />

<br />

<br />



<br />


<br />


<br />


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