Made in Turkey August 2018

istmagmagazin

Made in Turkey August 2018

Monthly Economic Newspaper

Turkish contractors undertake projects

worth $9.2B abroad

Turkish contractors have undertaken foreign

projects worth $9.2 billion in the first half

of 2018, pushing the all-time total to over

$366.5 billion. According to the Trade Ministry,

Turkey’s overseas contracting services

sector, a key part of the country’s service

exports, has undertaken some 9,375 projects

in 120 countries since 1972. The projects

were valued at $366.5 billion as of June

2018. In the first half of the year, Turkish

contractors undertook a total of 84 projects

that cost an estimated $9.2 billion. P2

August 2018

Turkey’s tourism capital

Antalya welcomes

more than 2M

Tourist paradise Antalya welcomed more than

2 million tourists in June, including 1.94 million

foreigners and 68,710 local tourists, according

to Provincial Directorate of Culture and Tourism

data. The city hosted about 1.506 million

tourists in June of last year. In terms of nationalities,

Russians topped the list in June with

826,963 Russians visiting the city, an increase of

28.55 percent, while Russian tourists accounted

for 42.56 percent of all visitors. P5

ww.img.com.tr

Turkey plans to

export unmanned

aerial vehicle

engines

Committed to end its external dependence

on unmanned aerial vehicle

(UAV) engines, Turkey aims to export

engines in the near future. TUSAŞ

Engine Industries, Inc. (TEI), Turkey’s

center in aerospace engines, is getting

ready to reap the fruits of the projects

conducted on the UAV engines. P6

Bursa produced 2,041

vehicles per day in first half of

year, 79 pct of them exported

In Bursa, which hosts automotive giants OYAK Renault,

Tofaş and Karsan, 2,041 vehicles were produced per day

in the first half of the year, with an average 1,606 vehicles

(78.69 percent) exported. Bursa-based Tofaş, OYAK

Renault and Karsan reached 43.57 percent (367,401 units)

of total production of 843,193 units excluding tractors

(367,401 units) in the January-June period of this year.

They also reached 42.02 percent (289,124 units) of total

exports of 688,081 units in the January-June period of this

year. P11

President Recep Tayyip Erdogan was

sworn in and officially completed his

re-election run on a historic day as

Turkey steered into a new era with the

presidential system.

IKMIB continues its

efforts for 2023 targets

Istanbul Chemical and Chemical Products Exporters’

Association (IKMIB) strengthens its cooperation activities

to help its member companies to obtain leadership positions

at global markets. P9

Turkey is on the right

track along with the new

presidential government

system, especially with

the new economic team, President

Recep Tayyip Erdoğan told

journalists accompanying him on

his first official visit abroad, after

being re-elected on June 24.

It is time for

Turkey to

leap forward

P2

Turkey is on the right track.

The flow of credits given by international

financial institutions to

investors that invest in Turkey is

clear evidence of that. In fact, we

have procured the financial needs

of the Çanakkale 1915 Bridge

from those institutions. There is

no difficulty on that matter. We

will handle our own.” Erdoğan

said on his way from Azerbaijan

to Northern Cyprus, two countries

Turkish presidents traditionally

visit when they are first

elected.

Touching upon Turkey’s new

economic team, Erdoğan highlighted

the features of the team

and stated that all members

of the economic team are

well suited to their positions.

“Our new Minister of

Treasury and Finance

Berat Albayrak has both

practical and theoretical

expertise as well as an

academic background

in finance and the

private sector. I also

believe in him to put

the economy in order

successfully,” he added.

P3

The Central Bank launches robust monetary

policies to ensure price stability

Berat Albayrak, the first

Treasury and Finance

Minister in the new

presidential governance

system, elaborated on

the monetary and fiscal

policy that is set to be

implemented.

Albayrak assured the markets that the

independence of the Central Bank of

the Republic of Turkey (CBRT) and

its decision-making mechanisms cannot

be the subjects of speculation. He

added that the bank will carry out the

policies required by market conditions.

In addition to the implementation of policies

and reforms required by market dynamics,

the Minister stated that coordination with

international financial actors and stakeholders

will increase the flow of diversified external

resources into Turkey. Minister Albayrak

said that the capacities of the CBRT will be

widened by opening the clogged structural

channels

for

sta-

bilizing prices and

cutting down inflation and strengthening policy

coordination. “The policy in the new period

aims to render the central bank more effective

than ever,” he said. P6

Turkey establishes

Halal Accreditation

Agency

P7

Turkey’s automotive

exports to Europe reach

new heights

Turkey’s natural gas stock

exchange to begin trading

Turkey, which has emerged as a leader in the energy sector, has

completed its work to establish a natural gas energy stock exchange

that will start trading operations on Sept. 1. Aiming to become

a natural gas trading hub with this step, Turkey will also play an

active role in pricing. P8

P10


EconomicNewspaper

August

2 Please mention

2018

Made in Turkey” when writing to advertisers Monthly Economic Newspaper ww.img.com.tr

Mehmet Soztutan

Editor-in-Chief

The Turkish economy

sustains its dynamism

Turkey heralds a new

era, based on its presidential

system. It should be noted

that the Turkish economy

sustains its strong position

on the path of sustainable

growth. Turkey has so far

managed to weather the

geopolitical risks. However,

from the standpoint of

exporters, it is hard to keep

their competitive positions

in the world market

full of emerging players.

As for business people of

Turkey, they have recently

shifted their operations to

value-added products and

brand names. Currently, the

manufacturers have their

own designs and brands in

international markets.

In evaluating the future

export potential of the

region using cross-country

statistics, it is possible to indicate

that Turkey has comparative

advantage regarding

labor productivity, labor cost

and the share of capital in

the value added, especially

with respect to the mature

producers in the world.

Majority of the manufacturers

compete in international

markets and set high standards

of export figures.

It is evident that competition

appears from all corners

of the globe, customers

Letters to the Editor

turkey@ihlas.net.tr

Growth forecast

revised

In its Interim Economic Outlook

report, the Organization

for Economic Cooperation

and Development (OECD)

has revised its upward for the

Turkish economy. In its press

release, the OECD declared

that Turkey’s growth rate is

estimated to have risen by 6.9

percent in 2017 instead of 6.1

percent as previously expected.

The report estimates the

Turkish economy to grow by

5.3 percent in 2018 and 5.1 in

2019, from 4.9 percent and 4.7

percent, respectively.

The International Monetary

Fund (IMF) has also revised up

its growth estimates for Turkey

by 0.8 percent for 2018 and

2019.

M.Brick/Paris

Democratization

For less developed countries,

globalization offers access

to foreign capital, global export

markets, and advanced technology

while breaking the monopoly

of inefficient and protected

domestic producers. Faster

growth, in turn, promotes poverty

reduction, democratization,

and higher labor and environmental

standards.

While globalization may

confront government officials

with more difficult choices,

the result for their citizens is

greater individual freedom. In

this sense, globalization acts as

a check on governmental power

that makes it more difficult

for governments to abuse the

freedom and property of their

citizens.

M.Murp/Berlin

Letter From

The Editor

demand more. To respond,

manufacturers are reducing

costs and increasing responsiveness

through outsourcing,

sourcing globally and implementing

demand-driven

strategies such as pull-based

inventory management.

Following the shift of the

focus on customers, markets,

products and competition

from the local level to

the global level, manufacturers

and exporters of Turkey

now position themselves

globally.

Therefore, Turkey offers

significant opportunities for

foreign investors with its

geographically perfect position

to function as a gateway

between Europe, Middle

East and Central Asia. The

opportunities exist not only

in the dynamic domestic

market, but also throughout

the region.

Besides, in order to

achieve the targets of ”Turkey

2023”, exporters have

a part to play by utilizing its

resources and the competitive

advantages to the fullest

extent.

We wish them lucrative

trade.

Dependencia theory

Well, there was a kind of dependencia

theory, which was

very much left wing in its origins.

There were some European

intellectuals who fed into

it, and the idea was that these

poor, developing countries

were so dependent on world

marketplace, they were just

being exploited by the center.

[Raul] Prebisch talked about

the center versus the periphery,

which is another version

of dependencia. But I think

that there may be some vague

notion, an element of truth

behind this idea in the sense

that markets are impersonal. I

use the analogy of an elephant

going through the jungle, and

you’re a poor mouse. Now the

elephant is not going to go after

you. He is not against you;

he couldn’t care less about you.

G.Kron/ Frankfurt

European Central

Bank

Mario Draghi, the governor

of the Frankfurt-based European

Central Bank, calls on

eurozone governments to align

their budgetary policies – a

first step toward a tighter fiscal

union.

(ECB) chief Mario Draghi

said the countries that use the

euro must tether their economies

more tightly to avoid a

repeat of the debt crisis that is

threatening the global financial

system. He also hinted that the

ECB may play a more pivotal

role in the resolution of the

crisis, but he insisted that the

governments must first back

proposals to align their budgetary

policies.

B.Mutde/ Milan

Turkish contractors have undertaken

foreign projects worth $9.2 billion in the

first half of 2018, pushing the all-time

total to over $366.5 billion.

According to the Trade Ministry,

Turkey’s overseas contracting services

sector, a key part of the country’s service

exports, has undertaken some 9,375

projects in 120 countries since 1972. The

projects were valued at $366.5 billion

as of June 2018. In the first half of the

year, Turkish contractors undertook a

total of 84 projects that cost an estimated

$9.2 billion.

In terms of sectors, housing came out

on top corresponding to at least 13 percent

($47.5 billion) of all projects carried

out by Turkish builders since 1972. It

was followed by roads, highways, tunnels

and bridge constructions worth $47.4

billion; trade centers worth $30.1 billion,

power plants valued at $26.8 billion and

airports at $25.9 billion.

In terms of the regional distribution,

Turkish contractors played a prominent

role in the Commonwealth of the

Independent States (CIS), the Middle

East and Africa. The total amount of

the projects carried out so far in the CIS

It is time for Turkey

to leap forward

Ankara – Turkey to implement policies

to narrow current deficit, industry and

technology minister says. Turkey’s Industry

and Technology Ministry will support

research and development (R&D) and

investments, the minister said. Turkey

will also implement policies to reduce the

country’s current deficit, said Industry and

Technology Minister Mustafa Varank. “It

is time for Turkey to leap forward, and it

can come true through an economy that

produces technology, uses this technology

in its industry and makes the digital

transformation in the industry,” Mustafa

Varank stressed in a press release issued

by the ministry.

Turkey’s

Economic

Policy Council

to work on

sustainable

economic

growth

Turkish contractors

undertake projects

reached $171.7 billion in terms of value,

while it stood at $95.6 billion in the Middle

East and at $65.9 billion in Africa.

In terms of the distribution of Turkish

contracting projects by countries,

Russia ranked first with 19.6 percent of

all projects, worth $71.8 billion. It was

followed by Turkmenistan with a share

of 12.9 percent share and projects worth

$47.4 billion, and by Libya with a share

of 7.9 percent and projects worth $28.9

billion.

Thanks to a vast number of projects,

Turkish contracting companies have

gained a strong footing in the global

construction sector. While there were

merely eight Turkish companies in the

Engineering News Record’s (ENR)

“Top 250 International Contractors

List” in 2003, that figure rose to 46 last

year, considering the total number of international

projects undertaken within a

year. Some 10 of these companies were

listed in the top 100, and two – with revenues

of $3 billion each – ranked among

the top 50.

In terms of the number of companies

on the list, Turkey has ranked second

only after China in the past five years.

He added that uncertainty was to

disappear following the June 24 elections,

which would pave the way for investments

in the short term, he noted. “The

presidential system will allow to make

quick decisions and effective coordination,”

said Varank. Turkey’s industrial

production continued to rise and climbed

above expectations in May, he stated. The

country’s industrial production surged

6.4 percent in May from a year ago, the

Turkish Statistical Institute said. “These

figures showed that Turkey’s economy

increased, led by the industrial sector in

the second quarter of the year,” Varank

underlined.

He added that 94 percent of the country’s

exports came from industrial production.

The rise of industrial production also

supports employment in Turkey, he said.

The duties and authorities of the

Economic Policy Council as determined

by the decree will be to

monitor and evaluate developments

related to economic stability, conduct

research on economic issues, monitor

developments related to global and

national economy and development

issues, carry out research when necessary,

formulate policy recommendations

to identify and update procedures

and principles for economic

security and economic defense, monitor

and evaluate revenue enhancing

or expenditure reducing proposals

and conduct impact analyses on those

deemed appropriate if necessary.

Among other things, the council

will operate in the field of regional

development to determine general

policies and priorities at the national

level, make suggestions, develop

proposals to accelerate investment

processes made by the public and

worth $9.2B

abroad

Foreign trade

deficit down

nearly 9 pct

Turkey’s foreign trade deficit dropped by

8.87 percent to $5.5 billion in June, according

to Customs and Trade Ministry provisional

data released.

Exports in June were about $13 billion,

decreasing by 1.21 percent year-on-year, while

imports dropped 3.62 percent to $18.5 billion

in the said period.

In January-June period this year, exports

increased by 6.33 percent year-on-year, reaching

$82.3 billion. In the last 12 months, exports

climbed 9.2 percent to $161.9 billion.

Foreign trade volume reached $31.5 billion

in June year-on-year, decreasing by 2.64

percent, while the import coverage ratio of

exports rose to 70.2 percent.

Motor land vehicles, tractors, bicycles,

motorcycles and other land vehicles were the

most exported products in June at $2.1 billion,

followed by boilers, machinery, mechanical

devices and appliances, nuclear reactors at

$1.2 billion and iron and steel at $880 million.

In the January-June period this year, most exports

came from motor land vehicles, tractors,

bicycles, motorcycles and other land vehicles

at $13.8 billion.

Meanwhile, mineral fuels, mineral oils and

products of their distillation became the most

imported in June at $3.5 billion, followed by

boilers, machinery, mechanical devices and

appliances, nuclear reactors at $2.2 billion and

iron and steel at $1.6 billion.

The top three export destinations in June

were Germany with $1.3 billion, the U.K. with

$891 million and Italy with $817 million. The

top three countries with the highest imports,

on the other hand, were China with $1.84

billion, Russia with $1.83 billion and Germany

with $1.79 billion.

private sector, develop policy recommendations

for export-oriented

production strategies, contribute

to the formation of strategies and

action plans to facilitate trade and

develop policy recommendations

to contribute to the country’s vision

of the international financial center

along with faster development of the

interest-free finance system.

In addition, it will identify and

monitor systemic risks that may

spread throughout the financial

system and determine measures and

policy recommendations needed to

reduce such risks, express opinions

on the creation and implementation

of customs and internal trade policies

and conduct research and studies on

these issues, while also developing

policy recommendations to determine

procedures and principles for

government grants.


August

EconomicNewspaper

2018 Please mention

ww.img.com.tr

Made in Turkey” when writing to advertisers

Monthly Economic Newspaper

3

Turkey is on the right track along with the

new presidential government system

Turkey is on the right track along with

the new presidential government

system, especially with the new economic

team, President Recep Tayyip

Erdoğan told journalists accompanying him

on his first official visit abroad, after being

re-elected on June 24.

Turkey is on the right track. The flow of

credits given by international financial institutions

to investors that invest in Turkey is clear

evidence of that. In fact, we have procured

the financial needs of the Çanakkale 1915

Bridge from those institutions. There is no

difficulty on that matter. We will handle our

own.” Erdoğan said on his way from Azerbaijan

to Northern Cyprus, two countries Turkish

presidents traditionally visit when they are first

elected.

Touching upon Turkey’s new economic

team, Erdoğan highlighted the features of the

team and stated that all members of the economic

team are well suited to their positions.

“Our new Minister of Treasury and Finance

Berat Albayrak has both practical and

theoretical expertise as well as an academic

background in finance and the private sector.

I also believe in him to put the economy in

order successfully,” he added. The President

emphasized that Albayrak will strive to implement

the necessary policies. “It is only

possible for investors to carry out projects if

they are enabled and both private and public

banks will hopefully endeavor to provide the

necessary climate for investors,” Erdoğan said.

In relation to the new system regarding the

ministries, Erdoğan stressed that the ministries

should be strong and added, “It will be possible

to have more than one deputy minister.”

He underlined that in some ministries there

might be three deputy ministers. There will be

a decrease in the number of high-level administrators

as one of the features of the new

system is its simplicity, he added.

Erdoğan announced Fuat Oktay as his sole

vice president. However, Erdoğan stated in the

President Recep Tayyip Erdogan was sworn in and officially completed his re-election run on a

historic day as Turkey steered into a new era with the presidential system.

future he might appoint a second vice president

if necessary. He pointed to the previous

success of Oktay in his post at the Disaster and

Emergency Management Presidency (AFAD)

and stated that he would reflect these in his

new post as well. Referring to the re-appointment

of Foreign Minister Mevlüt Çavuşoğlu,

Interior Minister Süleyman Soylu and Justice

Minister Abdülhamit Gül, Erdoğan stated that

all three ministers have proven themselves in

their posts. It was noted that prominent figures

from various private sectors found a place in

the Cabinet formed by Erdoğan who highlighted

the previous achievements of each minister.

According to the European Union acquis

communitaire in 2014, a process to merge the

General Staff to the Ministry of Defense was

required, yet it did not take place. Erdoğan

underscored that there are no obstacles to

merging them. He stated that Hulusi Akar

was appointed as the new national defense

minister and immediately Turkish Land Forces

Commander Gen. Yaşar Güler was appointed

Chief of General Staff under a new presidential

decree, as there should not be any vacancy

in the Turkish Armed Forces during the

process.

According to the new system, nine separate

councils will develop, supervise and coordinate

relevant policy suggestions. The main priority

will be a more effectively run government by

delegating responsibility with authority.

“There are councils and presidencies. The

number of presidencies is 11, but it might

increase,” Erdoğan said, adding the heads of

some presidencies will be appointed following

negotiations.He commented that there would

be no confusion regarding the authorities of

the councils. Erdoğan indicated that he would

have a deputy in each of these councils who

will preside over meetings when the president

is absent. “The fields of these councils will be

in line with that of ministries,” he said.

“Four new offices are also being established

to introduce a faster process in governance.

Offices on human resources, finance, investment

and digital transformation will be established

to supervise the state’s human resources

and institute the state’s digital transformation

to adapt to the digital age and fight cyber terrorism”

he noted.

Regarding the finance office, Erdoğan said,

“The office will be directly tied to the presidency

and will focus on finding sources.”

The duties and authorities of the Economic

Policy Council, which was established within

the new presidential governance system,

were determined with 13 articles according to

the first presidential decree published in the

Official Gazette. The Council will develop

policy recommendations for export-oriented

production strategies to more quickly develop

the interest-free finance system and contribute

to the vision of Turkey’s international financial

center.

Turk Eximbank secures $550

million loan from abroad

Ankara – Turk

Eximbank has secured a

10-year-term $550 million

credit from a foreign banks

consortium, the bank announced.

The consortium—

Standard Chartered Bank,

BNP Paribas, ING Bank,

Societe Generale, Citibank

N.A. and Mitsubishi UFJ

Bank—is under guarantee

of the World Bank’s

member, the Multilateral

Investment Guarantee

Agency (MIGA), according

to a press release.

Turk Eximbank Chief

Executive Officer Adnan

Yildirim said due to the

MIGA-guarantee

loan, the bank

received lowcost

credit. “We

met with leading

financial institutions

in the Gulf

countries, Japan,

the U.S., Hong

Kong, Taipei, and

Zurich during

the last year to raise

international fundings for

Turk Eximbank,” he said.

Within the scope of the

loan, the bank will provide

credits to Turkish exporters

for up to 10 years.

Turk Eximbank ranks

second globally after South

Korea’s Eximbank in

terms of financing exports.

Since its establishment

in 1987, the bank has

implemented international

credit, guarantee, and

credit insurance programs

aimed at developing

economic and political ties

between Turkey and other

countries.

Turkey’s industrial

production up 6.4 pct

Turkey’s industrial production

surged 6.4 percent in May, compared

with the same month last

year, the statistical authority Turk-

Stat announced.

Among all manufacturing indices,

the highest increase year-onyear

was recorded in high technology

products with a 12.2-percent

hike, official data showed.

On a monthly basis, the country’s

total industrial output fell 1.6

percent in May, compared with

April, the institute noted. The institute

noted that the highest annual

increase was seen in the electricity,

gas, steam and air conditioning supply

index -- up 12 percent -- among

all sub sectors of the industrial sector.

The manufacturing index, with

a 6.5-percent hike, and the mining

and quarrying index, with a 1.9-percent

rise, followed.

Computer/electronic/optical

products index climbed 40.7 percent

in May compared to the same

month last year while manufacture

of chemicals and chemical products

rose 17.9 percent.

On the mining and quarrying

side, mining of coal and lignite

index recorded the biggest rise -- up

25.4 percent -- while the extraction

of crude petroleum and natural gas

index followed with a 17.9-percent

hike.

In industry, the production of

non-durable consumer goods rose

the most with a 8.6-percent annual

increase, and capital goods and durable

consumer goods saw 6.1 and

5.8-percent year-on-year increases,

respectively.


EconomicNewspaper

4 Please mention

Made in Turkey” when writing to advertisers

Monthly Economic Newspaper

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August

2018

Turkish firm to build

Kosovo’s first wind farm

Meeting of art with tailormade

design: “Art Design”

Art Design that has unseasonable line with

its designs continues adding value to living

spaces with its unmatched style since 1995.

We talked Turgay Terzi, CEO of Art Design,

about tailor-made design’s effects of the

furniture sector.

Can we know more about Art

Design, which is one of the biggest

representatives of Art Deco – that arose in

France - in Turkey?

Noticing the gap in the tailor-made design

of the furniture industry we, as Art Design,

decided to work in design field since 1995.

We have been providing services to the four

corners of the world with classic, elegant,

modern and art deco designs.

The energy company Güriş,

which is considered to be one

of Turkey’s leading renewable

energy-based power producers,

is establishing the first wind

farm in Kosovo, which is with

continuing efforts trying to

reach the European Union’s

(EU) renewable energy standards.

Kosovo aims to meet a

quarter of its energy need from

renewable sources by 2020 to

comply with EU standards.

In the first wind farm of

the country, nine 110 meter

General Electric (GE) turbines

will start operating in September.

This plant is expected to

meet 3 percent of the country’s

energy needs.

Tuncer Baltacı, Güriş

project manager, said, “We

will produce 110 million

kilowatt-hours (kWh) a year,

which is enough energy for

10,000 residences.”

Kosovo, which generally

has 14 billion tons of lignite

reserves, still provides 95

percent of its energy from two

older model coal power plants.

Lignite is known as the dirtiest

type of coal.

Baltacı said that Kosovo

should raise its share of wind

energy by more than the

planned 150 megawatts (MW).

“[The Kosovo government]

needs to define a new

quota for us, so we can invest

in a second project that will

increase the capacity,” Baltacı

said.

“The wind here is very good,

it is a very valuable resource

and Kosovo needs it,” he

added.

No doubt continuing the success and

carrying it to further steps is the work

of a quality team. What are the working

principles of Art Design, which delivers

designs to many countries of the world?

We are a company operating in the field

of architecture. We don’t have products that

stocked for we don’t make mass production.

We work with a architectural team of 5 on

our costumers orders.

Our priorities are tastes of customers and

their needs when we are designing. After the

orders are welcomed our team explore and

research. Most of our costumers contact us

by references. This advantage gives us the

opportunity to work with customers who are

familiar with our works and love our work.

Making tailor-made designs

necessitates special care and is a

difficult job”

How do you act when your customers

insist on unreasonable demands such as

higher capacity projects for inappropriate

buildings?

Making tailor-made designs necessitates

special care and it is a difficult job. First of

all we prepare our projects at 3D format and

offer to our customers. This way we explain

the reflection of inappropriate demands into

reality with a clear way. Since our customers

trust on our talent and experience they are

convinced with the solution way that we offer.

We make production drawing of all works

we do. We keep the original copies of these

drawings as one copy will be kept at the customer.

We compare the finished works with

the first original drawings. This is a method

which can be used by both, ourselves and the

customers to repair mistakes.

How was Art Design born?

Meaning literally art and design our brand

name directly reflects the work we do. We

decided to name “Art Design” because with

the idea that we chose making tailor-made

designs and this name could stay in mind

around the world.

When you consider your customer

portfolio, can you say that your products

attracted demand by lower revenue

group?

We are not working sales-oriented. Tailor-made

design is always a costly work. We

are working to keep customer satisfaction at

maximum level by using high standard materials

in addition to artwork designs. When

these are considered the products naturally

become costly. Since the lower revenue group

faces difficulty to meet these costs they don’t

usually demand our works.

You had said that your domestic portfolio

grows with reference-based demands.

How does this affect on exports?

We have foreign customers reaching us

upon references. Our profit margin is higher

in abroad. Wider homes offer us work at

Turgay Terzi, CEO of Art Design

more comfortable conditions. When you have

bigger homes you work better and you may

increase the number of furniture used in the

project.

Let’s talk about your works on developing

products. What does Art Design do in

terms of variety of your products and their

compliance with technology?

Our R&D team has been continuing its

works actively. We are always after innovations

since the day we were established. Our

team has constantly been developing new

designs and offering to our customers. There

are demands welcomed from our customers

and we are working to meet them. Besides,

we have promotional projects. When we established

Art Design, we didn’t have any idea

of opening dealerships one day. We would believe

that this idea might be risky for us since

we were making tailor-made designs. Considering

the demands of the customers today we

have started our activities at this regard.

The possibility of getting

influenced from the

fluctuations in the economy for

us is a little possibility. We never

halt our even at stagnant times

and we continue activities with

new projects”

What are your expectations for next years?

How was the first half of the current year

for you?

The volatility in the economic structure

in Turkey influences us as all others. Our

advantage is that our customers’ economical

profile is high. High-revenue people don’t do

savings at their private livings. This prevents

us from being influenced too much from the

economic volatilities when compared with

other companies or sectors.

The possibility of getting influenced from

the fluctuations in the economy for us is a

little possibility. We never halt our even at

stagnant times and we continue activities with

new projects.

Are there raw materials that you import?

Do you ever show your imported products

to your domestic suppliers and inquire

same quality products?

We import raw materials of polish and

sponge. We import our fabrics for better

quality and variety from different countries.

Even if we want this from domestic suppliers

it will take a long time to get the same quality.

It is difficult to establish the infrastructure,

set up manufacturing line and reshaping the

market. “There is nobody looking for job but

there are a lot choosing the job. The sector

needs quality intermediate staff.”

How is the need for human resources in

the sector?

It is a gap in Turkey not to be able to train

personnel on sectorial basis in recent years.

The government should develop new policies

in this issue. It is very important for the business

high school and university graduates to

improve and develop themselves. The number

of university graduates who want to work

in front of a computer has been very high.

You cannot make them produce cabinets but

it is a fact that you need cabinets, tables and

chairs. There is a big need for intermediate

staff. So, I don’t accept the idea of existing

unemployment. There is nobody looking for

job but there are a lot choosing the job. The

sector needs quality intermediate staff.

Can you pace with domestic competition?

Of course the group who imitates our

designs and redesigns them as their own

products to produce at lower quality forces

us. What differs us from them is our products

are more durable and we offer unaccustomed

after sale services. Since furniture is longterm

consumer material, customers’ first

priority should be durability.

What are your expectations from the

government?

Our most important expectation is the decrease

of VAT in order to remove the furniture

item from luxury consumer goods group

and considered among basic needs category.

The decrease of VAT rate will clear the way

of the sector. The government should also

prevent the unregistered manufacturing. We

also need attaching importance on business

high schools to develop human resources and

to train intermediate staff.

Do you think the promotional works

directed to abroad are enough?

Our country has deficiencies at this regard

but we notice some developments at this

regard in recent years. The furniture industry

has produced export surplus in last one or

two years. This proves that the promotional

works have been worked out.

You mentioned that the furniture industry

has produced export surplus in recent

years. What do you attribute this to?

It is important that we should develop

equivalent products to those firms operating

in superior segment. We differ from other

companies by providing better quality services

and by getting benefits of the geographic

advantage of our country. If you work with

trained people and keep your quality at higher

standards your efforts will yield success.

Turkcell joins global

telecom blockchain

consortium

Turkey’s leading mobile

network operator Turkcell has

joined the world’s fast-growing

blockchain consortium

the Carrier Blockchain Study

Group (CBSG), the operator

announced.

The U.S.-based company’s

mobile network operator Sprint

Corp., blockchain developer

TBCASoft and Japanese mobile

services provider Softbank are

among the founders of the

CBSG, according to a press

release issued by Turkcell.

Blockchain – a technology

that records and verifies transactions

safely based on cryptography

– provide solutions in a

number of areas, from money

transfers to marketing.

The consortium also includes

leading telecommunications

companies such as Axiata

Group Berhad from Malaysia,

the Philippines’ PLDT Inc.,

PT Telekomunikasi Indonesia

International, the Viettel

Group from Vietnam and the

Kuwait-based Zain Group, the

press release said.

Kaan Terzioglu, Turkcell’s

CEO said, “Due to blockchain

technology, which gives the

chance to transfer valuable digital

assets via mobile networks

safely, the digital economy will

grow fast and new generation

services will begin to show up.”

The CBSG – founded in September

2017 – aims to provide

digital services, especially safe

digital payment, authentication

and internet of things (IoT)

applications to its members and

customers, according to the

press release.

The press release noted that

the consortium also focused on

a global money transfer system.

Turkcell is a combined telecommunication

and technology

services provider, founded and

headquartered in Turkey. Turkcell’s

shares have been traded

on the Borsa Istanbul (BIST)

and New York Stock Exchange

(NYSE) since July 11, 2000, it

is the only Turkish company to

be listed on the NYSE. Turkcell

Group companies operate

in nine countries – Turkey,

Ukraine, Belarus, Northern Cyprus,

Germany, Azerbaijan, Kazakhstan,

Georgia and Moldova.

The group reported TL 17.6

billion ($3.84 billion) revenue in

2017 with total assets of TL 34

billion as of Dec. 31, 2017.


August

2018

Monthly Economic Newspaper

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EconomicNewspaper

Please mention

Made in Turkey” when writing to advertisers

5

Turkey’s tourism capital Antalya

welcomes more than 2M

Tourist paradise Antalya welcomed

more than 2 million tourists in June,

including 1.94 million foreigners

and 68,710 local tourists, according

to Provincial Directorate of Culture and

Tourism data.

The city hosted about 1.506 million tourists

in June of last year.

In terms of nationalities, Russians topped

the list in June with 826,963 Russians visiting

the city, an increase of 28.55 percent, while

Russian tourists accounted for 42.56 percent

of all visitors. It was followed by Germany

with 254,406, Ukraine with 153,961, the U.K.

with 91,518 and Poland with 66,221 tourists.

The number of tourists coming from

Germany increased by 23.71 percent compared

to the same period last year, while the

number of tourists from Ukraine, the U.K.

and Poland increased by 5.45 percent, 100.17

percent and 165.34 percent, respectively.

The tourism capital hit a new all-time

daily high in terms of the number of foreign

tourists coming to the town in one day on

June 23, welcoming around 79,485 tourists.

The number of tourists to Antalya reached

nearly 4.89 million in the January-June

period, according to the data. Around 4.65

million of these were foreign tourists, while

234,173 were local.

The number of visitors to the city in the

first six months of this year increased by

40.18 percent compared to the same period

last year when Antalya welcomed some 3.49

million tourists.

Russia again led the way among countries

as around 1.87 million Russians came to

Antalya in the first six months of this year,

an increase of 38.52 percent compared to the

same period last year, while 847,745 tourists

came from Germany and around 310,699,

239,360 and 153,554 tourists came from

Ukraine, the U.K. and Holland, respectively.

The number of tourists from Germany

increased by 41.92 percent, while the num-

ber of tourists from Ukraine, the U.K. and

Holland increased by 9.57 percent, 71.07

percent and 76.98 percent, respectively. Turkey

also saw an all-time high in the number

of tourists coming to the country in the first

quarter as it welcomed about 5.1 million

tourists, an increase of approximately 36

percent compared to the same period the

previous year.

The Culture and Tourism Ministry announced

that Turkey welcomed nearly 11.5

million foreigners in the first five months of

2018. The ministry said that the figure rose

by 30.8 percent on a yearly basis, up from 8.8

million in January-May last year. In 2016,

some 25.3 million foreigners visited the

country, in the midst of a tourism slowdown

after the Gülenist Terror Group’s (FETÖ)

defeated coup, but the sector improved in

2017.

Turkey hosted over 32 million tourists

last year, earning $26.5 billion, according to

the official data. Turkey expects 40 million

foreign tourists this year, according to private

sector representatives and officials. The

Turkish government has set the country’s

2023 targets as 50 million tourists and $50

billion in income.

Erin Motor grows

without slowing down

Established with the

purpose of becoming

a one hundred

percent domestic

producer firm with

its original design

and engineering

power, Erin Motor

combines its knowledge,

accumulation

and experience

originated from its

family companies

with technology and

R&D.

Established with

the power generated

by Şahin Metal,

which was established

in 1989, Erin

Motor, a 100%

Turkish Brand, has

caught up the world

standards with its

production in industrial

diesel motors,

moto-pumps, marine motors

and generators.

Taking pulse of the automotive

aftermarket industry

for almost 30 years and

maintaining its bright past

that started with Şahin Kalıp

in 1970s and Şahin Metal,

which was established in

1989 in order to produce

for the automotive supplier

industry, the group brand is

targeting to be a

number one of

the firms need

both industrial

diesel motors and

generators with its

Erin Motor. With

10,000 hours service

life, the new generation

motors force its borders by

putting forward its claim in

the sector. Offering regular

control and test area with its

remote-control feature, Erin

Motor’s unmanned test chamber,

running 24/7 at its factory

in the district of Esenyurt, has

been in a qualification to be

an example for a lot of firms.


EconomicNewspaper

6 Please mention

Made in Turkey” when writing to advertisers

Monthly Economic Newspaper

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August

2018

Turkey plans to export unmanned

aerial vehicle engines

Committed to end its external dependence

on unmanned aerial vehicle (UAV)

engines, Turkey aims to export engines in the

near future.

TUSAŞ Engine Industries, Inc. (TEI),

Turkey’s center in aerospace engines, is getting

ready to reap the fruits of the projects

conducted on the UAV engines.

TEI, which launched the mass production

of the PD155 engine developed within the

framework of ANKA-S Engine Modification

Project and delivered the first nine engines

to Turkish Aerospace Industries Inc. (TAI),

successfully carried ANKA to the sky with

the first engine upon the completion of

its aircraft integration studies. The PD155

engine successfully performed flight tests at

different altitudes and speeds after verification,

ground and taxiway tests.

One of the first prototypes of the PD170

engine, which was completely developed by

TEI engineers within the scope of Operational

UAV Engine Development Project,

was delivered to TAI. The integration of

PD170 engine into ANKA continues.

TEI General Manager Mahmut Akşit

said in the PD155 project, they developed

an engine equivalent to ANKA’s existing

engine, adding that they accomplished this

by converting a commercial engine into a

military instrument.

Noting that ANKA realized its first flight

with this engine in February, Akşit said

since the numbers are not too high, the

transformed engines in the UAV sector are

quite common, informing that a commercial

engine is converted into a military engine

that can operate at 30,000-40,000 feet in

this regard. “The engine performing the

first flight was converted from a commercial

engine. It can exactly provide requirements

of ANKA’s existing engine,” Akşit said.

“It performed the first flight and even the

second longer flight successfully. Our TAI

team will continue to test the engine under

different conditions. We took this engine

under mass production. We delivered nine

units last year.”

Aksit said the TEI-designed PD170

engine is more powerful than the current

155-165-horsepower engine and that it can

generate power over 170 horsepower. Akşit

stressed that its altitude ability doubled

the critical altitude of the existing engine,

pointing out that the current engine has a

critical altitude of 10,500 feet, while this new

generation engine can go up to 20,000 feet.

Highlighting that the engine can go up

to 20,000 feet at full throttle without losing

power, Akşit recalled that most operating

altitudes are between 20,000 and 25,000

feet. “This new generation engine has not

made its first flight. It is a diesel engine that

can easily take ANKA up to 40,000 feet and

also increase the cargo capacity of this vehicle.

The first engine was delivered to TAI

in November 2017, and integration work

started,” he continued. “I predict that within

a few months the first flight will take place

once the integration work is completed. We

are expecting it around mid-summer. We

are planning to go into the serial production

before the end of this year. We will deliver

the first five engines this year.”

Santa Farma now

offers Turkish medicine

to more than 40

countries

Santa Farma, one of Turkey’s

local companies, targets

to sell its products to over 40

countries in different regions

by the end of 2018.

As one of Turkey’s pharmaceutical

firms that have a

long-standing background,

Santa Farma has started to

reap the fruits of its R&D

projects and production

investment in 2017 and increased

its sales by 85 percent

with entering new markets

and launching products. Rapidly

increasing the number

of its business partners and

expanding to new export

markets, Santa Farma aims

to sell its products to more

than 40 countries in various

regions from Africa, Asia,

the Balkans and Russia, to

South America and to the Far

East by the end of 2018. The

company targets to be the export

champion of all Turkish

pharmaceutical companies in

2024, the date which is also its

80th anniversary.

Erol Kiresepi, Chairman

of the Executive Board and

CEO of Santa Farma, said:

“Our family is expanding

just like our targets. We have

added more than 200 employees

in our family in 2017 and

now we are a family of 990.

We plan to employ 100 more

in 2018.”

The Central Bank launches robust monetary

policies to ensure price stability

Berat Albayrak, the first Treasury and Finance Minister in

the new presidential governance system, elaborated on the

monetary and fiscal policy that is set to be implemented.

Albayrak assured the markets that

the independence of the Central Bank

of the Republic of Turkey (CBRT) and

its decision-making mechanisms cannot

be the subjects of speculation. He

added that the bank will carry out the

policies required by market conditions.

In addition to the implementation of

polire-

cies and reforms

quired by

market dynamics,

the Minister

stated that

coordination

with international

financial

actors and

stakeholders

will increase

the

flow of diversified external resources

into Turkey. Minister Albayrak said

that the capacities of the CBRT will be

widened by opening the clogged structural

channels for stabilizing prices and

cutting down inflation and strengthening

policy coordination. “The policy in the

new period aims to render the central

bank more effective than ever,” he said.

He added that the “utmost priority” in

the upcoming period would be fighting

inflation. “We will take steps to bring

inflation down to single digits in the

shortest possible time and eventually

match our target,” he said.

With regards to the strong monetary

policy emphasis he announced. Albayrak

said that strong monetary policy means

action shaped toward the primary goal

of the price stability, adding that fighting

inflation tops the priority areas in terms

of macroeconomic stability.

A more predictable and stable

macroeco- nomic outlook

in Tur-

key could

clearly

be

established

by achieving low

inflation rates, and that

it would be essential for

the central bank, whose main

objective is to provide price stability,

to implement its monetary policy in a

strong manner.

In June, consumer prices in Turkey

rose 15.39 percent, compared to the

same month last year, the Turkish Statistical

Institute (TurkStat) announced in

July.

As noted in the country’s medium-term

program (MTP) introduced

last September, inflation is targeted to

converge to 5 percent through the end

of 2020.

“In the new period, we will be supporting

the central bank’s implementation

of a more predictable, simple and

determined monetary policy in line with

the objectives,” Albayrak continued.

“As the government, we will support

the monetary policy by removing the

structural obstacles that may limit the

effectiveness of these policies as much

as possible and strengthening the policy

coordination.”

Replying to a question on

the real sector’s unpaid bank

debts, Albayrak said that the

banking sector’s performance

is one of the strongest sides

of the Turkish economy, noting

that the sector’s

capital

adequacy ratio stands at 16.4 percent,

well above the world average.

Albayrak said the finance sector

operates in a transparent framework in

line with international rules and practices

and has been audited by the Banking

Supervision and Regulation Agency

(BDDK) and independent auditors in

accordance with international rules.

“The restructuring demands of some

well-known firms, which have been

reflected by the public, constitute the

basis for this question that you have led

regarding the investors. However, the

restructuring transactions cover maturity

extensions in line with the cash flows

of the credit periods required by the

banking sector and are generally not

common,” Minister Albayrak said, highlighting

that the institutions are conducting

the necessary studies for financial

stability.

The treasury and finance minister

underscored that the fiscal discipline will

continue without compromise and the

ministry

will

carry out

structural

reforms that will

ensure the compliance of costs

with the budget.

The fiscal discipline will effectively

continue in accordance with the budgetary

goals of the Medium-Term Plan.

“The government has a high capacity

to devise a problem-solving framework

with a holistic approach,” the Minister

stressed.

The coordination of real sector

firms, financial corporations and public

sector will ensure sustainable and stable

growth, Albayrak said.

“The macroeconomic goals will be

achieved thanks to the economic policies

to be implemented with resolution and

consistency. The harmony of economic

policies will be kept at a maximum. With

the coordination of firms and financial

sectors, the interest of local and foreign

investors will grow,” the Minister said.

Albayrak, also the head of the treasury,

further highlighted that cooperating

with all the actors and stakeholders in

international financial markets, the ministry

will increase the entry of external

capital to Turkey and diversify resources


August

2018

Monthly Economic Newspaper

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EconomicNewspaper

Please mention

Made in Turkey” when writing to advertisers

7

Turkey establishes Halal

Accreditation Agency

Turkey has established a new

halal certification body, the Halal

Accreditation Agency (HAK). The

HAK, established with a presidential

decree , will strengthen Turkey’s

central position in the field

of halal certification and accreditation.

It will allow the country to be

a gold standard in terms of rulemaking,

take steps moving forward

and capitalizing on the growing

global halal market. The agency, in

the form of a public entity, will be

responsible for accrediting halal-compliance

evaluation institutions

and ensure their operations

are in compliance with national

and international standards.

HAK will also operate to ensure

the acknowledgment of the documents

prepared by the halal-compliance

evaluation institutions on

national and international platforms.

Operating under the Trade Ministry,

it will be the only institution

that would provide halal accreditation

services in Turkey. The agency

will also offer halal accreditation

services for halal-compliance auditing

firms in and outside Turkey,

as well as determine and implement

benchmark and measures

regarding halal accreditation.

The agency will represent Turkey

at international and regional

accreditation associations and organizations.

It will also take part in

their boards or serve as the center

of such institutions. Turkey’s HAK

will sign bilateral and multilateral

agreements and establish networks

and relations with other halal accreditation

bodies worldwide.

The agency will also carry out

necessary scientific and technical

surveys on halal accreditation and

organize events to boost its importance.

The HAK will have a board

as its decision-making mechanism,

consisting of five members, an

advisory council and a general

secretariat. The board of directors,

which will be the decision-making

body of the institution, will

consist of a total of five members,

including the president and four

members. Members of the board

of directors will serve for three

years. The member of the board of

directors may be reassigned once

their office terms expire.

The advisory board will consist

of the representatives from

the Trade Ministry, Presidency of

Religious Affairs, Banking Regulation

and Supervision Agency

(BDDK), Capital Markets Board

(SPK), Development and Support

of Small and Medium-sized Enterprises

Administration (KOSGEB),

Turkish Accreditation Agency,

Turkish International Cooperation

and Development Agency

(TİKA), the Turkish Standards

Institute (TSE), Scientific and

Technological Research Council

of Turkey (TÜBİTAK), Council of

Higher Education (YÖK), Turkey

Exporters Assembly (TİM), Union

of Chambers and Commodity

Exchanges of Turkey (TOBB), Foreign

Economic Relations Board

(DEİK), Association of Turkish

Participation Banks (TKBB),

Turkish Capital Markets Union

(TSPB), Turkey Insurance, Reinsurance

and Pension Companies

Association, Turkey Tradesmen

and Artisans Confederation,

Union of Turkish Chambers of

Agriculture (TZOB), Turkey’s

Independent Industrialists and

Businessmen Association (MÜ-

SİAD), Turkish Industrialists and

Businessmen Association (TÜSİ-

AD), Turkey Hoteliers Association

(TÜROB) and a number of other

organizations.

The body’s service units will be

the Halal Accreditation Directorate,

the International Relations

Directorate and the Personnel and

Support Services Directorate. It

was also reported that offices may

be established abroad for the international

operations of the institution.

In 2010, Turkey took some

important steps regarding halal

certification within the framework

of the Organisation of Islamic

Cooperation (OIC). Regulations,

including the Halal Food Standard

and the Halal Accreditation Standard,

were approved by the OIC,

leading to the establishment of the

Standards and Metrology Institute

for Islamic Countries (SMIIC),

which is headquartered in Turkey.

It currently has 35 members.

Halal accreditation bodies

enforce halal standards according

to Islam in and outside Muslim

countries. They also aim to protect

the growing number of halal consumers

and facilitate international

trade.

Global trade in halal products

and services is currently valued at

around $3.9 trillion.

Humor

Anybody going slower than you

is an idiot, and anyone going

faster than you is a maniac.

Three people are stranded

on a small island. One

is a physicist, one is a circus

strongman, and one is

an economist. After a few

days of surviving on fruit,

they discover a cache of

canned food, and they

have to decide how to

open it. The physicist says

to the strongman “Why

don’t you climb that tree,

and smash the cans down

on the rocks, and burst

them open?”

The strongman says, “No,

that would spatter the

stuff all over. I can open

the cans with my teeth!”

The economist says “First,

we must assume that we

have a can opener.”

A man takes a balloon

ride at a local country

THE ECONOMIST

Do you have any bumpersticker?

fair. A fierce wind suddenly

kicks up, causing

the balloon to violently

leave the fair and carry

its occupant out into the

countryside. The man has

no idea where he is, so he

goes down to five meters

above ground and asks a

passing wanderer: “Excuse

me, sir, can you tell me

where I am?”

Eyeing the man in the

balloon the passer-by says:

“You are in a downed red

balloon, five meters above

ground.”

The balloon’s unhappy

resident replied, “You

must be an economist.”an

engineer.”an accountant.”a

consultant.”a mathematician.”a

tutorial writer.”a

sales representative.”

No....!

THOUGHT OF THE

MONTH

“How could you possible

know that?” asked the

passer-by.

“Because your answer is

technically correct but

absolutely useless, and the

fact is I am still lost”.

“Then you must be in

management”, said the

passer-by.

“Thats right! How did you

know?”

“You have such a good

view from where you are,

and yet you don’t know

where you are and you

don’t know where you

are going. The fact is you

are in the exact same position

you were in before

we met, but now your

problem is somehow my

fault!”

Actions speak better than the

bumperstickers!!!


EconomicNewspaper

August

8 Please mention

2018

Made in Turkey” when writing to advertisers Monthly Economic Newspaper ww.img.com.tr

Turkey’s natural gas stock

exchange to begin trading

Turkey, which has emerged as a leader

in the energy sector, has completed its

work to establish a natural gas energy

stock exchange that will start trading operations

on Sept. 1. Aiming to become a natural

gas trading hub with this step, Turkey

will also play an active role in pricing.

Having taken important steps of

being an energy hub in the region with

the Trans-Anatolian Natural Gas Pipeline

(TANAP), which recently brought

Azerbaijani gas to Turkey, and the oilgas

explorer vessel Fatih, Turkey is now

establishing a natural gas energy stock

exchange. With the natural gas market

actively commissioned, an important step

will be taken towards the pricing of natural

gas at accessible markets and Turkey’s

goal of becoming a regional natural gas

trading hub.

The Energy Market Regulatory Authority

(EMRA) has recently updated the

Organized Natural Gas Wholesale Market

Operation Procedures and Principles

(PUE), which can be regarded as the rules

of trade in the natural gas stock exchange,

are an important step in the direction of

Turkey’s goal in becoming a natural gas

trade center in the region.

The natural gas stock exchange, called

the Natural Gas Continuous Trading

Platform (STP), was launched virtually

on April 1, 2018. During the virtual

application, the system was heavily tested

by natural gas supply license holders. In

addition, under the supervision of EMRA,

scenario studies were carried out with Petroleum

Pipeline Corporation (BOTAŞ)

and Turkey’s Energy Stock Exchange

(EPİAŞ) and contracts were drafted. In

accordance with the purpose of the virtual

application, some problems encountered

during these studies and other issues identified,

necessitated the revision of some

of PUE’s articles. BOTAŞ, EPİAŞ and

market players’ views were taken, and the

issue was taken to board in order for the

stock market to operate in a healthy and

smooth manner.

With this last amendment, the rules of

trade and the rights and obligations of

the parties that will carry out transactions

in this platform will be clarified in order

to ensure that the stock exchange, which

will commence formal operations on

September 1, 2018, can operate smoothly.

The platform, to be operated by EPİAŞ,

will be used by natural gas suppliers and

exporters who want to trade natural gas,

as well as BOTAŞ to supply natural gas to

balance the transmission system. The trading

on the stock exchange will be 24 hours

a day, 365 days a year, and also provide

the foundation for the Daily Reference

Price (DRP).

Beware travelers: How

to avoid cyberattacks

on holiday

Taking incredible holiday

photos are no big deal thanks

to smartphones but posting

them on social media is a little

bit trickier. If you happen to

take too many pictures and

want to post them all, this

means that your internet quota

is doomed to dry out soon. To

prevent this, most of us use the

Wi-Fi services provided by the

hotels or restaurants we are in.

But is it safe?

Don’t forget that if you

don’t take precautions, it is

easy to be a target of cyberattacks.

However, it is possible

to dodge attacks from hackers

with a few easy tricks. First,

avoid downloading a travel app

from an unauthorized source.

Nowadays, people prefer to

book their holidays and even

flights via various travel apps

on their Android or IOS devices

but it is important to download

these apps from a reliable

source, preferably from their

official pages. Second, try to

avoid turning your Bluetooth

on unless it is necessary. Also

be sure to connect only to

secure Wi-Fi connections.

Usually, most unknown, open

Wi-Fi sources work as baits to

lure smartphones and laptop

users to steal their information.

Be sure to use a virtual

private network (VPN) and

do not click on the websites if

you are not 100 percent sure of

their authenticity. Moreover,

turn off the location services

on your phone or other devices

if you do not want to be traced

by malware.

EU

wants to

cooperate

with

Turkey on

regional

problems

The EU’s foreign policy

chief said that the

bloc would increase

cooperation with

Turkey on problems

related to regional

dynamics.

Federica Mogherini

said they will eleborate

on how the

EU and Turkey can

coordinate better”on

Syria and Iraq.

Mogherini said she

spoke with Turkish

Foreign Minister

Mevlüt Çavuşoğlu

early on Oct. 16 to

touch on “many

strategic topics” such

as counter-terrorism

and the Cyprus issue.

The meeting of the

foreign ministers,

known as the Foreign

Affairs Council, will

also have discussions

over the Iran nuclear

deal and North

Korea’s missile tests,

Mogherini added.

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August

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Monthly Economic Newspaper

9

IKMIB continues its efforts for 2023 targets

Istanbul Chemical and Chemical Products Exporters’

Association (IKMIB) strengthens its cooperation

activities to help its member companies to obtain

leadership positions at global markets.

We spoke to Adil Pelister,

Chairman of IKMIB about

exports and developments

in the sector.

What kinds of innovations are

expected in the sector on the matter

of export after Adil Pelister took the

chair of IKMIB?

Since its establishment in 1991, Istanbul

Chemical and Chemical Products

Exporters’ Association (IKMIB) has been

working to diversify export products and

gain competitiveness in products in order

to protect the professional ethics and

solidarity of exporting Turkish companies

in the chemical sector and to increase

exports. As a new management team,

we also organize a number of activities

to protect the interests of our members

who are affiliated with our Association,

to establish strong connections in the

international arena and to help our firms

enter into new markets.

Our goal is, by effectively solving the

problems of our firms, to provide them

for the support they need both on financial

matters and investment and new market,

to be a bridge between state and our

firms, and, by contributing to production

and branding activities, to support them

reach the highest level in export.

In this direction, firstly, due to the

market potential, we are planning to

make the chemical sector more effective

in potential countries such as the United

States of America, China and other Far

East countries. We aim to have Turkish

chemical sector, which is, in Turkey, on

the third seat in exporting among the

other sectors, rise to the second rank. As

a matter of fact, our sector reached to the

position of the second exporting sector

in June 2018. Among the subjects give

priority are the innovative projects such

as decreasing the limit of green passport

to 100 thousand dollars, establishment

of a private visa office for our exporters,

realizing exporter’s easy access to finance,

put the national container line project

into practice, and localization thrust.

What is the effect of increase in

exchange rate of dollar on export

figures and chemical products in the

first half of the year?

Our chemical sector depends on imports

in terms of raw material at the rate

of 70 percent, whereas even plastic and

rubber sectors are dependent upon imports

in terms of rat material at over the

rate of 90 percent. The most used currencies

in the global trade are the Dollar and

the Euro. From this point of view, we can

say that the fluctuations in our country especially

in the recent period in Dollar and

Euro exchange rate have had a negative

effect on the costs of our exporter firms

trading in this foreign currency.

Did these exchange rate increases

cause a drop in production? Even if it

did not happen, what measures did

the producers take?

Although the increases in exchange

rates negatively affect the costs for our

sector that provides the raw material

from abroad in production, it is possible

to prevent the exchange rate risk by realizing

foreign trade operations in Turkish

Lira instead of foreign currency units.

Trading in local currencies has a positive

effect on both sides. Today, Turkey

does business with many countries such as

Russia, India, China, South Korea, Indonesia,

Mexico, Brazilin local currencies.

When we look at export figures, we see

that there is an increase in exports made

with these countries.

“Our goal is to make a big

contribution to 2023 export

targets of Turkey with Digital

Export Platform”

You had mentioned previously the

project “Five Pieces of Gold”, at what

phase is that project?

We started to work on all our other

promises, especially the green passport

issue. We have initiated our initiatives fast

at our TIM chairman and Administration.

In order to increase our exports and

reach our 2023 targets, we need to orientate

our SMEs to exports more. Because

many of our firms which are already on

certain levels have already substantially

completed their institutionalization, they

know how to export and are be able to export

to many countries in the world. Also

most of our big firms are also eligible for

obtaining green passport.

However, the vast majority of our

SME-sized companies still suffer from

difficulties in exporting and finding new

markets. Those who have started exporting

cannot attend foreign trade fairs and

similar business trips because they have

passport and visa problems.

Our goal is, by ensuring the owners of

SMEs, which have reached 100 thousand

dollar annual exporting volume in 3 years

consecutively, or their one the manager

who is authorized signatory to get

the right of green passport,

to eliminate

their travel restrictions

and to

help them find

new markets.

Thanks to

that, we

believe

that we

can also

ensure

that they

can export

more.

Besides,

while we

declare our

“Digital Export

Platform” promise,

we have

foreseen

that our

new

govern-

men-

tal

management

system will

not remain

indifferent to the ver-

satile

digital transformation in the world.

As a matter of fact, both the statements

made by our Ministry of Industry and

Technology to speed up the studies on

this matter and the Digital Transformation

Office established at the presidency

of the republic have justified our vision.

Our goal here is, by embracing digitalism,

which started with Industry 4.0 and

leaped into the area of finance with digital

money, to catch up the digital transformation

in the world and accelerate

it and help our country’s exports reach

2023 targets. In this area, we will work

more closely with our TIM management

together with our government.

“We expect a big participation in

China International Import Expo

2018

There was a high level of

participation in the Private Label fair

in Amsterdam. What level of national

participation do you expect in a big

fair like the one in China?

As for private-label products sector,

we arranged Turkey National Participation

Organization this year as 10th time

to “PLMA’s World of Private Label” international

trade fair, which is held every

year. This year, 94 Turkish companies,

47 of which are as national participation

and operating on cosmetics, personal

car, cleaning, plastic household goods,

packaging and food sectors, took part in

this fair, which has been holding for over

30 years. We are delighted to have such a

high level of participation.

As İKMİB, we support our exporters

with our national participation organizations

in order to enable our firms to

get new ideas and to make cooperation

links. Overseas fairs offer very important

opportunities in terms of introducing the

products of our exporters, their brands

and making new cooperation. We anticipate

that participation in the “China

International Import Expo 2018” fair,

which will take place in Shanghai, China

between 5-10 November 2018, will also

be on high level in this respect.

Our studies have been continuing to

promote the fair, which so far 41 firms

have applied to, to Turkish exporters and

to

increase

participation.

The fair in

question is extremely important not only

for our exporting firms, but also for the

promotion of Turkey. The Chinese festival

will be organized for the first time and

we regard it as an important opportunity

for our country. The investment possibilities

and trade opportunities in Turkey will

be introduced to the visitors on the booth

with 136 m2, whereas Turkish culture will

be promoted.

Could you tell us at which level

Turkey Exporters Assembly figures

are, compared to the figures made

according to provinces?

According to Turkey Exporters Assembly

(TIM) data, exports rose 11.8 percent

in July and reached 14.11 billion dollars.

In the dispersion of the said exports,

Istanbul takes the first place with 6 billion

dollars. The top ten cities are Istanbul,

Bursa, Kocaeli, Izmir, Ankara, Gaziantep,

Sakarya, Manisa, Denizli and Hatay.

Where are we in the world on exports

R&D studies?

Today, the way of being able to exist

in domestic and foreign trade, where

competition is intense, is done by R & D.

While R & D investments and studies,

which are the biggest factor in the growth

of the country’s economies, have come to

the forefront in developed countries, in

developing countries, although not at the

desired level of industry, R & D investments

in Turkey continues to grow each

year.

Researches show that R&D investments

develop innovative and high-tech

products and increase exports. R&D

expenditures of developed countries are

on average 2.5 to 3 per cent of the Gross

Domestic Product (GDP), while the

proportion of developing countries is less

than 1 per cent.

According to the latest explained data

of Turkey Statistical Institute (TSI), Turkey’s

gross domestic R & D expenditure

has risen to 24 billion 641 million TL in

2016 with an increment of 19.5 percent

by increasing 4 billion 26 million TL,

compared to the previous year. The ratio

of gross domestic R & D expenditure to

GDP is 0.88 percent in 2015, and rose to

0.94 percent in 2016.

As we can see from the figures,

Adil Pelister,

Chairman of IKMIB

Turkey’s R&D allocation ratio

remains under the world

average. It is of utmost

importance that

government promotion

should

be given by our

government

through

tax reductions

and

low-interest

investment

loans to

R&D

activities.

It is necessary

that

our firms

invest more

in R&D

researches by

making use of

these supports,

and their work

needs to be made widespread

in our country.

Could you mention about

protectionism problems that our

exporters face in the world market?

The concept of protectionism, which

was emerged from the politics of localization

and balancing economics of the

countries, has changed dimension in

recent years due to political relations of

the countries. Especially after the recent

US-China crisis, we are facing the risk

that this understanding of protectionism

spread in waves by being accepted also by

other countries. Exporters may encounter

some embargoes against Turkish

products.

Protectionist policies of neighboring

countries such as Iraq, Iran, Algeria,

Egypt (import prohibitions, additional

customs tax, etc.) affect our exports

negatively.

What would you like to say about

being handled innovation and design

by exporters, and investment in

brand and R & D?

The role of exports in Turkey’s growth

and increase in the level of welfare is

huge. Innovation, design and branding

factors come to the forefront in terms of

competing with the countries and increasing

exports by entering into new markets.

Companies that produce innovative and

high-tech products are taking part at the

forefront of the world market. It is possible

for the market to be able to create

new designs and produce productions

with high value added only with research

and developments activities. When we

look at the countries with the greatest

economies of the world, we see that these

countries have reached their current positions

as the result of R & D activities.

Achieving sustainable exports and

boosting the unit kilogram value of exports

are significantly dependent on R &

D and innovation power. In this regard,

as IKMIB, we support our exporters

with both design competitions that we

organize and activities such as R & D

Project Market. Giving importance and

priority to R & D will take our firms a

step forward.

After Turkey’s PIC/S membership,

what changes are expected in

Turkey’s pharmaceutical market?

The International Pharmaceutical

Inspection Cooperation / Scheme (PIC /

S), an association established by authorities

that administer drug registries around

the world, is known as the most respected

and valid institution recognized on

this field. Turkey’s PIC / S membership

became effective from January 1, 2018.

In this way, the technical barriers which

prevent the drugs produced in Turkey

from globalizing were also largely eliminated.

The inspections made by Turkey

Pharmaceuticals and Medical Devices

Agency (TITCK) are accepted worldwide

and also quality and safety of the drugs

produced in Turkey are registered. We

expect this to reflect favorably on prices

and increase exports of pharmaceuticals.

What are the effects of the economic

and political developments taking

place at the regional and global level

on the sector?

The economic and political developments

that have taken place at the regional

and global level directly and indirectly

affect our sector. In particular, if that the

chemical industry is dependent on abroad

by 70 percent in terms of raw materials is

taking into consideration, it is necessary

for our firms to increase market diversity

and invest in R & D and branding in

order to be affected at a minimum level

through these developments in the world.

On the matter of raw material sources,

especially in terms of plastic raw materials

used in construction plastics and

automotive industry, serious investment

is needed for establishing petrochemical

plants in our country.

When the domestic and abroad

problems faced in international trade

and common problems of chemical

sector are taken into account, with

which solutions are these problem

can be overcome or eliminated?

In the chemical industry, which is

dependent on abroad in the production

of raw material, our sector will play an

important role in financing deficit of

Turkey with the supports of our State and

increase in domestic production. Therefore,

it is necessary to create a center

of attraction in the field of petrochemicals,

to establish new companies and to

commence production. If the planned

investments in petrochemicals start up,

we anticipate that, our chemical exports

will be over 20 billion dollars after 2019.

However, our exporters may have

difficulty in accessing financing, we are

preparing an action plan, as the voice of

our sector, to extend the deadlines for

our exporters to reach direct financing.

We are also working with relevant

institutions and individuals on solutions

to the problems of our sector, such as

facilitating visa procedures and limiting

the lower limit for green passports to 100

thousand dollars.

Sectoral clustering is also important

in terms of firms moving together, taking

advantage of state support for common

needs. In this regard, we support our

firms, which operate in chemical sector,

with sectoral committee meetings we

organized, as IKMIB, and various R & D

projects.

What happens in the second half of

2018 on the next road map? (Fairs,

new projects, etc....)

First of all, until the end of 2018,

among the fairs and delegations which we

will arrange national participation organization

both at home and abroad are;

10-14 October 2018 COSMEET Home,

Cleaning and Care Sector and Cosmetics

Sector Procurement Delegations- Istanbul

/ Turkey,

21-25 October 2018 Qatar Sectoral Trade

Delegation- Doha / Qatar

5-10 November 2018 China International

Import Expo- Shanghai / China,

12-15 November 2018 Medica 2018- Dusseldorf

/ Germany,

14-16 November 2018 Cosmoprof Asia

2018- Hong Kong / China,

25-28 November 2018 Athens Sectoral

Trade Delegation 2018 - Athens / Greece

is located.

Along with these, we bring together

our exporters at sectoral committees,

which we have formed, and try to find

solutions to their problems with common

sense. As the chemical sector, we have set

2023 target as$ 50 billion. We can list the

topics standing out in the road map that

we have set for reaching the 2023 targets

as follows: Updating of the Customs

Union Agreement with the EU in favor

of Turkey, guaranteeing the supply of raw

materials with new formulas, investment

in specific special chemicals, sectoral clustering

and the creation of scale synergies

in R & D. We will continue to follow our

efforts without slowing down so that our

chemistry sector will come to a better

point.


EconomicNewspaper

10 Please mention

Made in Turkey” when writing to advertisers

Monthly Economic Newspaper

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August

2018

Turkey’s

automotive

Turkey ranks third in halal

tourism market by raising its

share by 20 pct in 2017

exports to Europe

reach new heights

The Turkish automotive industry,

which picked up some recent losses in

the domestic market, has seen a rise in

exports – exceeding $16 billion in the

first half of the year – with more than 80

percent going to European countries.

According to the Automotive Distributors’

Association (ODD) and Turkish

Exporters’ Association (TİM), the Turkish

automotive and light commercial

vehicle industry contracted 11.92 percent

in the first half of the year compared to

the previous year. The industry, however,

recorded $16.4 billion in exports with

a 14.5 percent rise compared to the same

period of last year. In accordance with

these figures, the automotive exports

constituted 20 percent of Turkey’s total

exports in the first half, which exceeded

$80 billion. Meanwhile in the first half of

2017, automotive exports stood at $14.3

billion.

The automotive sector’s exports to

the European Union and other European

countries in the first half of the year

increased by 15 percent and hit $13.6 billion,

making up 80.5 percent of Turkey’s

$16.4 billion automotive exports in the

first half of the year. Europe was followed

by the Middle East for the Turkish

automotive industry. Car sales to Middle

Eastern countries rose by 2.2 percent,

reaching $805.1 million. With exports

over $2.4 billion, Germany was the biggest

market for Turkish manufacturers.

It was followed by Italy with $1.8 billion

and France with $1.7 billion. The U.K.

ranked fourth in Turkey’s automotive

exports with $1.4 billion. Accordingly,

automotive sales separately to Germany,

Italy, France and the U.K. each exceeded

$1 billion. In contrast, sales to the

U.S. dropped by $159 million and stood

at $463 million. Automotive sales to Iran

and Denmark also fell by $51 million $22

million respectively while the decrease

in exports to Ireland was at $19 million.

Turkish automotive industry’s exports

to Syria also saw a $15 million fall in

the first half of the year.In 2017, the

total automotive production increased

by 13 percent to 1.7 million compared

to 2016, while automobile production

reached 1.1 million with an increase of

18 percent, providing the sector with the

highest levels in both total automotive

and automobile production, according to

Automotive Manufacturers Association

(OSD) data.

With these figures, both total automotive

and automobile production reached

their highest levels in Turkey. In 2017,

total automotive exports increased by 17

percent and automobile exports by 24

percent compared to the previous year.

In this period, total exports amounted

to 1.3 million units, followed by automobile

exports with 921,000 units. Thus,

80 percent of the total production in

the automotive industry was exported.

According to the Turkish Exporters

Assembly (TİM) data, total automotive

industry exports maintained the leading

position in 2017 with an 18.2 percent

share in exports.

Taking steps to develop alternative

tourism following the

challenging periods in 2015 and

2016, the Turkish tourism sector

ranked third in the world by

increasing its share of the halal

tourism market by 20 percent in

2017, Yunus Ete, the chairman of

World Halal Summit Council and

Asel Group, said.

Turkey ranks third in the

market right after Malaysia and

Indonesia,” Ete said.

He said that world halal

tourism, which is expected to

reach $300 billion in volume by

2023, includes many countries

from Spain to New Zealand in

addition to the Muslim majority

halal destinations like the United

Arab Emirates (UAE), Turkey

and Malaysia.

Pointing to the rapidly increasing

number of guests hosted by

Turkey in halal tourism, Ete said

Turkey increased the number of

guests hosted in halal tourism,

welcoming three million visitors

last year, stressing that it is still

far below its potential. “If we can

get 10 percent of this market, we

will have a serious jump in our

tourism income.”

Ete stated that parallel to the

growing awareness in the halal

market, investments made in this

area also gained momentum.

“Spain is investing heavily in the

Andalusian region, accelerating

its efforts to bring in halal-concept

new hotels. It quickly began

to stand out in this area,” Ete

continued. “Along with the

increasing number of Muslims,

Halal travel is increasingly becoming

a more profitable sector

for future investments.”

Ete suggested that with Turkey

becoming a major halal travel

destination and surpassing other

Muslim tourist destinations in

the Mediterranean region was

a sign of the country’s popularity,

while Turkish hoteliers have

begun to focus on this new segment

as compared to traditional

tourism, after noting the intense

consumer demand.

TECHNICAL SPECIFICATIONS

Model No

Input Power max

Vacumm

Rated Voltage

Air Flow

Water Suction Capacity

Pump Power

Pump Pressure

Extra Basin Volume

Waste Basin Volume

Container Dust Capacity

Dust Bag Capacity

IP Code

Gross Weight

Size

: 114H

: 1300 W

: 1950 mmH2O

: 220-230 V AC, 50/60 Hz

: 200 m 3 /h

: 1,5 L/S

: 26 W

: 2,5 bar

: 7 L

: 8,5 L

: 5 L

: 5 L

: IPX4

: 13,5 kg

: 410x510x593 mm

TECHNICAL SPECIFICATIONS

Model No

Input Power max

Vacumm

Rated Voltage

Air Flow

Water Suction Capacity

Pump Power

Pump Pressure

Extra Basin Volume

Waste Basin Volume

Container Dust Capacity

Dust Bag Capacity

IP Code

Gross Weight

Size

TECHNICAL SPECIFICATIONS

Model No

Input Power max

Vacumm

Rated Voltage

Air Flow

Dust Bag Capacity

IP Code

Gross Weight

Size

: 114R

: 1300 W

: 1950 mmH2O

: 220-230 V AC, 50/60 Hz

: 200 m 3 /h

: 1,5 L/S

: 26 W

: 2,5 bar

: 3,5 L

: 6 L

: 5 L

: 5 L

: IPX4

: 11,5 kg

: 385x485x485 mm

: 114L

: 1300 W

: 1950 mmH2O

: 220-230 V AC, 50/60 Hz

: 200 m 3 /h

: 5 L

: IPX4

: 8,5 kg

: 390x418x440 mm

BOSB, Mermerciler Sanayi Sitesi 7.Cd. No:12, 34524 Beylikduzu, Istanbul/TURKEY

Phone: (0212) 875 35 62 pbx - Fax: (0212) 875 36 64 www.iea.com.tr

Istanbul to host int’l

automotive engineering

conference

The movers and shakers of

the global automotive industry

will attend the “International

Automotive Engineering Conference”

(IAEC’18) being held

for the third time in Istanbul.

According to the written

statement released by the

Uludağ Automotive Industry

Exporters’ Association (OİB),

the conference will be held at

Swissotel The Bosphorus from

Nov. 1-2 to discuss future automotive

trends and address the

latest developments in automotive

electronics and software.

Preparations for the event

jointly organized by the OİB,

the Automotive Industry Association

(OSD), the Automotive

Technology Platform (OTEP),

the Vehicles Procurement Industrialists

Association (TAYSAD)

and the Association of American

Automotive Engineers (SAE)

are underway.

The event is designed to

facilitate discussion about the

necessary steps to be taken by

the automotive industry in engineering

in the current dynamics

of the sector while taking into

account the opinions of international

specialists from a technical

point of view.

Topics include: “New Developments;”

“Software Security

and Block Chain;” “Regulations

and Tests for Smart Vehicles;”

“Adaptive Platform for Smart

Vehicles;” “Impacts of Developing

New Technologies on the

Automotive Industry;” “Future

of 5G and Communication between

Tools;” “Future of Electronics

in Vehicles;” “Artificial

Intelligence in Vehicles;” “Technology

and Ethics;” “Domestic

Entrepreneurship Strategies in

Automotive;” and “Impacts of

Developing Technologies and

Innovative Initiatives on the

Automotive Sector,” and will be

addressed in the third edition

of the event under the theme

“Present and Future of Automotive

Electronics and Software.”


August

2018

Monthly Economic Newspaper

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EconomicNewspaper

Please mention

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11

Bursa produced 2,041 vehicles per day in

first half of year, 79 pct of them exported

In Bursa, which hosts automotive

giants OYAK Renault, Tofaş and Karsan,

2,041 vehicles were produced per day in

the first half of the year, with an average

1,606 vehicles (78.69 percent) exported.

Bursa-based Tofaş, OYAK Renault and

Karsan reached 43.57 percent (367,401

units) of total production of 843,193

units excluding tractors (367,401 units)

in the January-June period of this year.

They also reached 42.02 percent (289,124

units) of total exports of 688,081 units in

the January-June period of this year.

Ford Otosan closed the first half of the

year as the sector leader in production

and exports, followed by OYAK Renault

and Tofaş, respectively.

According to data compiled from

Uludağ Automotive Industry Exporters’

Association (OİB) and Automotive Manufacturers

Association (OSD), production

of the Turkish automotive industry,

which totaled 869,162 units, excluding the

tractors, in the January-June period of

2017, dropped by 3 percent to 843,193 in

the same period this year.

Ford Otosan, which produced 198,600

vehicles, closed the first half of the year

as the sector leader by providing close

to one quarter of total production (23.5

percent) by itself, followed by OYAK

Renault with 189,006 vehicles and a share

of 22.41 percent and Tofaş with 175,138

vehicles and a share of 20.77 percent.

Toyota, on the other hand, came fourth

with 129,644 vehicles and 15.37 percent

share, while Hyundai Assan ranked fifth

with 107,377 vehicles and 12.73 percent

share. In the city where another Bursa-based

company, Karsan, produced

43.5 percent (367,401 units) of the total

production with 3,257 vehicles, 85 vehicles

were produced per hour, amounting

to 2,041 vehicles per day.

The exports of the automotive industry

decreased by 3.7 percent to 688,081

units compared to last year in the January-June

period when 714,283 units in

were produced, not including tractors.

In exports, Ford Otosan led the way with

165,131 vehicles, holding 24 percent of

total exports, in the first half of the year,

followed by Bursa-based OYAK Renault

with 147,119 vehicles and 21.38 percent

share, Tofaş with 140,191 vehicles and

20.39 percent share, Toyota with 117,469

vehicles and 17.07 percent share and

Hyundai Assan with 98,346 vehicles and

14 percent share.

In Bursa, which realized 42.02 percent

of total exports in the first half of the

year with Karsan’s 1,714 units of exports,

an average of 67 vehicles were exported

per hour, amounting to 1,606 vehicles per

day.

German tour operators

say bookings for Turkey

almost doubled

The number German

bookings for summer holidays

in Turkey this year has almost

doubled compared to 2017,

German tour operators have

said. “In 2018, we see Turkey’s

comeback,” German Travel

Association (DRV) spokesperson

Kerstin Heinen told. She

added that bookings and sales

revenues for summer 2018 have

almost doubled. A record 5.5

million German tourists visited

Turkey in 2015, but the number

dropped to 3.9 million in 2016,

and 3.5 million in 2017, largely

due to political tensions between

Ankara and Berlin, and

conflicts in countries neighboring

Turkey.

Heinen stressed that this

year Turkey has again become

one of the most popular holiday

destinations for German

tourists. Despite the impressive

figures, however, the peak

numbers of 2015 are yet to be

reached, she noted. Europe’s

largest holiday operator TUI

Group also recorded a significant

increase in summer 2018

bookings to Turkey. “Turkey

has again become one of the

most popular holiday destinations

for German tourists. It is

currently in the third place,”

TUI spokesperson Susanne

Stunckel has said. With a thaw

in Turkey-Germany relations,

tourism professionals expect

that Turkey’s overall target of

40 million tourists this year will

be achieved, with the major

contribution of the rising number

of German tourists that is

expected to reach 7.5 million.

German tour operators have

welcomed Turkey’s move to lift

a two-year-old state of emergency

but noted that it would

not make an immediate impact

on the figures, as the main

season is running already.

Turkey’s sectoral confidence

rises to 91.9 points in July

Confidence in Turkey’s services,

retail trade, and construction

sectors rose in July compared to

the previous month, the Turkish

Statistical Institute (TurkStat)

announced.

The services sector index rose

0.7 percent to 91.9 in the month,

from 91.2 in June. According to

TurkStat, this resulted from an

increased number of managers

evaluating the business situation

as improved and demand-turnover

as up over the past three

months.

The retail trade confidence

index was up 3.1 percent monthon-month

to reach 97.3 in July,

from 94.4 in the previous month.

The uptrend came from an

increased number of managers

expecting an improvement in

business activity/sales over the

next three months, TurkStat

said.

Auto market aims over $30B

for exports in 2018

Turkey’s automotive industry

exports will exceed $30 billion

in 2018, the CEO of the Uludağ

Automotive Industry Exporters’

Association (OİB) said.

“We had aimed for $29 billion

[of exports] in 2018. If we look

at the data for the first half of

the year, we reached an export

level of $16.4 billion.

“This shows us that we will

exceed far beyond our aim. We

will exceed over $30 billion,”

Baran Çelik told. Çelik said

The construction sector

confidence index also rose 2.4

percent to 77.1 points in July

from 75.3 in June. This rise

“stemmed from an increased

number of managers evaluating

current overall order books as

above normal for the season and

expecting an increase in total

employment over the next three

months,” TurkStat said.

Sectoral confidence indices

range from 0 to 200, indicating

an optimistic outlook when

above 100, but a pessimistic outlook

when below 100, according

to TurkStat. Meanwhile, consumer

confidence in the Turkish

economy also soared 4 percent

to 73.1 in July, TurkStat reported.

TurkStat is due to announce

Turkey’s economic confidence

index on Aug.

$16.4 billion of exports in 2018

were an “all-time record” for the

first half of a year.

He said Turkish automotive

sector’s exports reached $28.5

billion in 2017, adding that the

sector will break a record in

2018. According to the Turkish

Exporters’ Assembly (TİM), automotive

was the leading sector

with $2.5 billion exports in June.

The sector’s exports increased

by 1.9 percent compared to the

same month the previous year.


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