Made in Turkey November - December 2018

Monthly Economic Newspaper 

November - December 2018 

ww.img.com.tr 

Turkey takes major steps toward 

becoming energy trading hub 

Aspiring to diversify its energy resources, Turkey has accelerated 

its efforts to ensure its natural gas supply security through bilateral 

agreements and major infrastructure projects and achieve the 

target of becoming a gas trading hub. Recently, the country has 

engaged in two important multinational natural gas pipeline projects, 

namely the Trans-Anatolian Natural Gas Pipeline (TANAP) 

and TurkStream. After the launch of TANAP, TurkStream became 

another gas pipeline project through which Turkey is emphasizing its 

interest in energy transfer and trade. P8 

Newly launched economıc polıcıes 

receıve posıtıve response from fınancıal markets 

Geothermal energy can cut 

Turkey’s gas imports by 20 pct 

The Minister recalled 

increased speculative 

movements against 

the Turkish economy 

stressing that they 

do not affect the 

macroeconomic 

fundamentals of the 

country. 

In August and September, in particular, 

a turbulent period dominated by 

running inflation and depreciating 

currency triggered by developments 

in local and global markets was the main 

topic of talk on the Turkish economy. 

However, strong measures implemented 

by the economy administration have parried 

the blow and ensured stabilization 

in Turkish markets. At a presentation in 

Parliament’s budget commission, Treasury 

and Finance Minister Berat Albayrak 

stressed that the measures included steps 

to ward off any speculative movements 

in foreign currency markets to lower the 

Turkish lira as well as massive discount 

and sectoral mobilization campaigns to 

mitigate inflation. 

Minister Albayrak noted that the government’s 

measures to stabilize the economic 

environment also have paid off in 

international financial markets as investors 

return to rallying Turkish assets. The 

Minister recalled the speculative movements 

that increased against the Turkish 

economy that do not affect the macroeconomic 

fundamentals of the country. 

But the Minister added the government 

introduced a number of measures to 

stabilize fluctuations, ease liquidity conditions 

and support financial stability and 

the effective operation of the markets. 

“These measures have paved the way for 

immense positive impacts on financial 

markets,” the Minister remarked. P3 

Turkey could cut its gas imports by 20 percent using geothermal 

energy, which could meet 30 percent of Turkey’s heating 

needs for district heating, according to Danish Consul General 

Anette Snedgaard Galskjot.District energy is an energy 

system that can provide economic and sustainable energy to an 

entire city or whole district using surplus energy from power 

plants or renewable sources. The model used in Denmark is an 

example to emulate, where savings of 40 percent or more have 

been made for households, a level considered extremely high, 

Galskjot said. P9 

BEAUTYISTANBUL 2019 was 

promoted in 61 countries 

throughout 2018! 

We display with pride that throughout the 

2018, BEAUTYISTANBUL 2019 showed 

exceptional performance and was promoted 

in 61 countries, like no other exhibition in 

the world! Proven by 20 years of experience 

Ipekyolu team swiftly continues its work all 

around the world. P4 

Turkish cosmetics industry targets 

to boost its export to Far East 

Cosmoprof Asia, the largest cosmetics fair of the Far East, 

was held in Hong Kong, 14-16 November 2018. According 

to the Istanbul Chemicals and Chemical Products Exporters’ 

Association (IKMIB), a total of 18 Turkish companies joined 

Cosmoprof Asia fair, held for the 8th time this year in the 

framework of national participation organization of Turkey. 

The participating companies held some 400 bilateral business 

meetings at the fair. P7 

Aslandağ Group 

leads industry’s 

future with its 

experience 

Aslandağ Group renders services with its various brands in the 

furniture and wooden door ındustry since 1980. We talked Cemal 

Aslandağ, CEO of Aslandağ Group which inherited from family 

seniors and an accomplished a leading position in the ındustry. P6 

Toyota to start mass production 

of its new hybrid car in Turkey 

Japanese car maker Toyota will start mass production 

of its new Corolla hybrid in Turkey in January. “A hybrid 

car in this segment will be produced in Turkey for 

the first time,” Mustafa Varank, Turkish technology 

and industry minister, said during his visit to Toyota’s 

factory in the northwestern province of Sakarya. P8 

Turkey’s consumer confidence 

index rises 4 percent in November 

Iraq to increase 

Kirkuk oil exports to 

Turkey’s Ceyhan port 

P6 


index went up month-on-month 

in November, according to official 

data released. The index rose four 

percent to hit 59.6 this month from 

57.3 points in October, a report by 

the Turkish Statistical Institute said, 

marking an increase rose for the 

first time since July. P2 

Russian tourists to 

Turkey hit record 

high 

P7 

Over 70 pct of Turkey’s 

foreign investments from 

Europe in 16 years 

The Turkish economy attracted $201.3 billion 

in foreign direct investment (FDI) and 

$152.1 billion capital inflow for the period 

from 2002 to August 2018. When broken 

into regions, 73.8 percent of the capital 

inflow came from European countries, 

according to Industry and Technology 

Ministry data. P5 

Private sector loans from 

abroad down in September 

Turkish outstanding private sector loans 

from abroad fell in September compared 

to the end of 2017, the Central Bank of the 

Republic of Turkey (CBRT) announced. 

Excluding trade credits, private sector 

short-term loans were $16.5 billion, a $2 

billion decline from the end of last year, as 

76.4 percent consists of liabilities of financial 

institutions, according to the CBRT. P5

EconomicNewspaper 

November 

2 Please mention 

December 

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

2018 

Mehmet Soztutan 

Editor-in-Chief 

Commitment to 

rebalancing… 

Actually, sustaining the 

stable growth process, 

increasing employment, 

securing the fiscal discipline, 

narrowing the current account 

deficit and as a result, 

strengthening the economic 

stability are the major priorities 

of the Turkish Government. 

Commitment to sound 

economic policies since 

2003 has placed the Turkish 

economy in a good position 

to embark on a sustained 

path of growth. Progress has 

been achieved in improving 

public finances, restructuring 

the financial sector, 

improving the business 

environment and reforming 

the public sector. In addition, 

the reforms of the last 

decade, together with the 

strengthening of the macroeconomic 

policy framework 

during that period, provide 

the necessary foundations 

for Turkey to reach its goal 

of becoming a high-income 

economy. 

Letter From 

The Editor 

Turkey is an attractive 

location for foreign investment 

because of its emerging 

role as a springboard for 

foreign companies coupled 

with joint ventures initiated 

by Turkish partners. Turkey’s 

own emerging potential 

and its market attractiveness 

arise mainly from the 

sustainable growth and 

development path launched 

by the Government. For 

this reason, Turkey closely 

monitors developments in 

global economy and implement 

policies in line with 

its medium-term economic 

program. 

The Government focuses 

on policies to increase 

private sector’s investments, 

direct international investments 

and exports. 

Nevertheless, it is hard to 

keep its competitive position 

in the world market full of 

emerging players. Thus, manufacturers 

have shifted their 

operations to value-added 

products and brand names 

more than ever. Currently, 

many of Turkish manufacturers 

have their own designs 

and brands in international 

markets. 

As known, Turkey, being 

the oldest of our publications, 

conveys the messages 

of the Turkish exporters for 

years by participating in a 

series of international fairs 

and exhibitions. 

We wish Turkish business 

people and their foreign 

counterparts lucrative trade. 

Business is business… 


index rises 4 percent in November 

Turkey’s consumer 

confidence index went 

up month-on-month in 

November, according to 

official data released. 

The index rose four percent to hit 59.6 

this month from 57.3 points in October, a 

report by the Turkish Statistical Institute 

(TurkStat) said, marking an increase rose 

for the first time since July.All subindices 

of the main index, except the number of 

people unemployed expectation index, 

were higher in the month. 

The general economic situation expectations 

index saw the largest improvement, 

up 6.2 percent to reach 77.4 points. The 

financial situation expectations of households 

index was the second-best performer, 

rising by 5.4 percent from last month to 

77.5 points in November.The probability 

of saving index – indicating people’s expectation 

of earning enough money to save – 

rose 4.8 percent to reach 20.1 points from 

19.2 in October. 

The number of people unemployed 

anticipation index – a gauge of sentiment 

about the health of the labor market – 

dropped 0.3 percent compared to last 

month, at 63.4 points. 

The consumer confidence index is seen 

as a vital gauge of the overall health of the 

economy, indicating people’s sentiments 

about spending their money, which in turn 

gives clues about economic vitality. Enver 

Erkan, an economist at GCM Menkul 

Kıymetler, said that the improvement in 

the November figure stems from positive 

political and geopolitical developments. 

“Decline and stabilization in exchange 

rates led to more confidence from the 

consumer side,” Erkan said. 

Erkan said that consumers still hesitate 

from inflation and high-interest rates in 

the country.Turkey’s annual inflation stood 

at 25.24 percent in October, according to 

the latest data from TurkStat. The figure 

rose 0.72 percentage points last month 

from 24.52 percent in September. Currently, 

the one-week repo rate – also known as 

the central bank’s policy rate – stands at 24 

percent.Erkan said tax cuts would support 

the domestic demand for automobile and 

white goods, until the end of the year.“- 

This could limit the economic slowdown a 

bit which is expected in the last quarter,” 

he added





ww.img.com.tr 


Please mention 

“Made in Turkey” when writing to advertisers 

3 

Newly launched economic policies receive 

positive response from financial markets 

As part of the measures, the banking 

watchdog, the Banking Regulation 

and Supervision Agency (BDDK), 

decreased the daily limit on foreign currency 

swap transactions from 50 percent of banks’ 

equity capital to 25 percent. Withholding tax 

on deposit accounts has been regulated, and 

business contracts inked in foreign currencies 

have been converted into Turkish lira. 

The Treasury and Finance Minister strongly 

emphasized that the recent measures have received 

a strong response from international investors. 

“Thanks to a strategic debt policy, we 

have decreased the sensitivity of the debt stock 

to interest rates, exchange rates and liquidity 

risks,” Albayrak said and added: “The Treasury 

received higher than expected demands in 

dollar and euro-denominated bonds in October 

and November. The success of auctions in 

international markets proves that the measures 

we have taken have received a strong response 

from financial investors.” 

International demand for euro bonds due 

in 2026 more than tripled the bonds’ actual 

issue size. The transaction was finalized with a 

nominal amount of $1.7 billion. The bond has 

a coupon rate of 7.25 percent, and its yield rate 

for investors is 7.50 percent. The largest national 

share of the bonds was sold to investors 

from the U.K. with 35 percent. The U.K. was 

followed by the U.S. with 20 percent, Germany 

and Austria with 14 percent, Nordic countries 

with 7 percent, France and Switzerland with 

5 percent, Benelux with 5 percent, various 

other European countries with 6 percent, 

Turkey with 6 percent, and other regions with 

2 percent. 

The euro bond issue brought the amount of 

funds raised from international capital markets 

this year to nearly $7.7 billion. In October, 

the Treasury issued dollar bonds worth $2 

billion, while the demand totaled $6 billion, 

three times the initial target. The bond, which 

matures on Dec. 23, 2023, has a coupon rate of 

7.25 percent and a yield rate of 7.50 percent for 

investors. Most of the bonds were sold to investors 

from the United States, followed by the 

U.K with 23 percent, other European countries 

with 11 percent, Turkey with 5 percent and 

other regions with 1 percent. More strikingly, 

following the issuance of these bonds denominated 

in foreign currency, the Turkish 

Treasury cancelled auctions scheduled to 

raise resources from domestic markets, and in 

three scheduled auctions the Treasury sharply 

cut its domestic bond offers on Nov. 14. The 

yields consequently fell markedly below 

market rates, hitting below 20 percent on twoyear 

government bonds since July. 

Preliminary indicators, Albayrak pointed 

out, suggest a slowdown in economic activity 

and the start of a balancing period in the 

Turkish economy. Citing the New Economic 

Program (NEP) announced on Sept. 20, 

Minister Albayrak said that the economy is 

expected to register a growth rate of 3.8 percent, 

2.3 percent, and 3.5 percent, respectively 

in 2018, 2019 and 2020. The NEP provides 

a vision to battle existing problems in the 

Turkish economy, including currency volatility, 

running inflation and a double-digit deficit 

and set targets that are based on Turkey’s 

macroeconomic realities, hence reassuring 

market confidence in the Turkish economy. 

Speaking about the current account balance, 

the Minister noted that the by September, 

Turkey has a current account deficit of $46.1 

billion. Excluding energy and gold imports, 

the current account has a surplus of $2.6 billion, 

he added. The ratio of current account 

deficit to the gross domestic product was 5.6 

percent last year. However, the figure is expected 

to fall to 4.7 percent this year. Showing 

a surplus for two consecutive months in 

August and September, Turkey is now expected 

to see a record current account surplus in 

October, according to Albayrak. For the first 

time in the past three years, Turkey’s current 

account balance posted a surplus in August – 

totaling $2.59 billion, improving sharply from 

a $923 million deficit in the same month last 

year. 

The improvement maintained its trend 

in September when the country’s current 

account balance showed a surplus for the 

second consecutive month this year. Turkey’s 

current account surplus totaled $1.83 billion, 

improving from last year’s deficit of $4.4 

billion. The Treasury and Finance Minister 

emphasized that fiscal policy will be conducted 

coordinately with monetary policy in line 

with the government’s targets, particularly 

inflation, current account balance and growth. 

“Fiscal discipline will be our main anchor in 

the upcoming period,” Albayrak said, adding 

that qualified investments, value-added production, 

and employment and export-based 

growth will continue to be supported with 

income policies. The Turkish banking sector 

has performed better than in many other 

countries with its strong capital structure, 

high profitability and asset quality, Albayrak 

noted, pointing out that the low-interest loan 

balance granted by state lender Ziraat Bank 

reached TL 45 billion ($8.51 billion) as of 

October. 

Emphasizing that oil prices have fallen 

from $85 to less than $65 since the beginning 

of October, the Minister said that the recent 

decline was “positive for oil-importing economies 

like our country.” 

Albayrak also suggested that risks related 

to the coming period in the global economy 

are seen as downward in the short term, 

saying that continuation of the U.S. Federal 

Reserve’s gradual increase of interest rates 

and reduction of its balance sheet constitute a 

risk for developing countries. 

Letters to the Editor 

turkey@ihlas.net.tr 

Trumponomics 

Is Trumponomics working? 

The answer is no. For one thing, 

Trump’s trade policy is turning 

out to be worse than expected. 

For another, the growth surge 

mostly reflects a temporary 

sugar high from last December’s 

tax cut. Economists are 

already penciling in a recession 

for 2020. But with a trade war 

looming and economists warning 

that the boom is unsustainable, 

some Republicans are distancing 

themselves from Trump. 

In regular English, this means: 

Trump has unilaterally launched 

a series of trade wars that will 

damage the global economy 

next year. Also, the tax cuts that 

were sold as growth-inspiring 

will so dramatically increase the 

U.S. government’s deficit that its 

economy will begin to slow. 

A.Ferr/ Berlin 

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/ Washington D.C 

A poor mouse! 

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 

Anti-Theory 

Trumponomics is something 

else entirely. For Trump, an economy, 

apparently, is best run when 

some person with power and 

good sense continuously weighs 

in on key economic questions. 

It could be called an anti-theory 

theory. For Trump, theoretical 

models—no matter how well 

grounded in data and experience—are 

binding constraints 

that limit the President’s ability 

to respond however he thinks 

appropriate and, worse, they telegraph 

which policies the President 

will likely pursue. This is an 

essential difference. In many ways, 

Trump’s views on economics are 

off base. Decades of research 

show that economies run best 

when there are clear and neutral 

rules, fairly applied. 

M.Hano/ Cairo







BEAUTYISTANBUL 2019 was promoted in 61 

Since January 2018, IPEKYOLU 

International Exhibitions team, 

organizer of BEAUTYISTANBUL 

exhibition, has been striving to 

attract buyers and visitors from all around 

the world. Starting with a roadshow in Qatar 

in January, the team met and invited many 

Qatari businessmen working in the field 

of cosmetics, pharmaceuticals and retail 

to BEAUTYISTANBUL at Turkish-Qatar 

business forum in Doha. Later in January, 

during a healthcare exhibition, thousands of 

business people and potential buyers operating 

in beauty industry from the Middle East, 

Gulf and Arabic Countries were invited to 

BEAUTYISTANBUL. 

Panama City was an interesting and important 

place where BEAUTYISTANBUL team 

met and attracted lots of buyers and visitors 

from more than 30 countries from Central 

America and Caribbean region. These regions 

are among the main focus areas of BEAUTY- 

ISTANBUL in terms of visitors as well to host 

buyers from Central American-South American 

countries and Caribbean. 

Days after Panama, BEAUTYISTANBUL 

visited capitals of Ecuador and Costa Rica, 

Quito and San Jose and met with several associations 

along with chambers of commerce 

and they have been briefed about BEAUTY- 

ISTANBUL. The final stop of the Central 

American tour was Guadalajara City-Mexico. 

After meeting with hair and beauty professionals 

in Duesseldorf-Germany mid-March, 

BEAUTYISTANBUL 2019 was introduced to 

Jordanian and Yemeni business people during 

separate bilateral business forums in Istanbul. 

Bologna-Italy was an important platform 

during March, where BEAUTYISTANBUL 

team met with thousands of potential buyers 

from all over the world and they were invited 

to our exhibition. Also, BEAUTYISTANBUL 

was advertised in various outdoor and indoor 

locations in Bologna city. Simultaneously in 

Dubai, BEAUTYISTANBUL was promoted 

to the professionals from derma cosmetics 

sector which is a sector that is recently growing 

at a fast pace in Turkey. 

After meeting with potential buyers from 

private label sector and inviting them to 

BEAUTYISTANBUL in Moscow following 

the last week of March, promotion activities 

continued in Plovdiv-Bulgaria, Riga-Latvia, 

Kuala Lumpur-Malaysia, Shanghai-China, 

Kiev-Ukraine and Mumbai-India. Activities 

in April began with meeting Halal Cosmetics 

industry in Kuala Lumpur-Malaysia and continued 

with perfume industry professionals in 

Milano-Italy, along with cosmetic and beauty 

professionals in Almaty-Kazakhstan, Vilnius-Lithuania 

and Porto-Portugal during the 

first week of April. 

April was an active period for BEAUTYIS- 

TANBUL, meeting with cosmetics ingredients 

and raw materials professionals in Amsterdam 

also cosmetics and beauty importers, 

distributors in Ho Chi Minh City-Vietnam 

and continued with promotion activities in 

Moscow-Russia for beauty professionals along 

with distributors and importers in Nairobi-Kenya. 

Promotions of BEAUTYISTAN- 

BUL Exhibition for May and June period 

were launched with Dubai in a cosmetics and 

beauty exhibition where BEAUTYISTAN- 

BUL was on display in Dubai metro which 

drew great interest from all visitors and exhibitors. 

Our team contacted buyers and distributors 

primarily from Middle East, Gulf, Arabic 

countries. In Seoul, South Korea simultaneously 

with the Dubai, BEAUTYISTANBUL 

team promoted our exhibition to numerous 

buyers and distributors from Asian countries. 

countries throughout 2018! 

We display with pride that throughout the 2018, 

BEAUTYISTANBUL 2019 showed exceptional 

performance and was promoted in 61 countries, 

like no other exhibition in the world! Proven by 

20 years of experience Ipekyolu team swiftly 

continues its work all around the world. 

distributors and producers in the cosmetics 

and beauty industry. BEAUTYISTANBUL 

and Africa seem on the right track! We again 

have been present in Africa between 28 July 

and 2 August, this time in Nigeria where we 

launched a comprehensive network with all 

the participants in Turkish-Nigerian Business 

Forum including professional buyers, producers 

and suppliers. 

BEAUTYISTANBUL continues its promotions 

in August with various events including 

Sao Paulo. South America now has a clear 

vision of our organization and showed tremendous 

interest to our exhibition. KOREA 

hosted us in the modern city of Seoul, where 

cosmetics and beauty are well integrated into 

people’s lives. Promotions of August ended 

with pharmaceutical and beauty event. 

BEAUTYISTANBUL was present in the 

largest city of South Africa, in Johannesburg 

in September, during a beauty exhibition 

that covers an international participation of 

exhibitors. 

In the City of Lights, New York, during an 

event dedicated to the aerosol, dispensing, 

perfume BEAUTYISTANBUL got nicely 

smelled by the North American and South 

American participants. This time in Cambodia 

where the beauty market is growing 

significantly BEAUTYISTANBUL 2019 was 

introduced to industry professionals. The 

organic and natural market is growing and 

renewing its reference event in Italy, our team 

was in Bologna where European participants 

got to know clearly about BEAUTYISTAN- 

BUL 2019. New York and BEAUTYISTAN- 

BUL are showing mutual interest thanks to 

our attendance at the make-up exhibition 

during September, it was a great pleasure 

presenting Istanbul and our 2019 event in the 

City of Lights. 

BEAUTYISTANBUL 2019. Approaching to 

the end of October, BEAUTYISTANBUL 

team, participated in the event which was 

organized by the PLAT Association 

in Istanbul, our team 

was silver sponsor of that event. 

The Ipekyolu team working 

simultaneously all over the world 

continued their work at a comprehensive 

event in Santiago, the 

beautiful city of Chile. 

Ipekyolu team, which has 

established strong relations with 

Latin America, participated in an 

event in Cuba. The experienced 

and dynamic team of BEAUTY- 

ISTANBUL started its international 

promotion activities of 

November in Dubai. Buyers and 

exhibitors from Gulf countries 

introduced to BEAUTIYSTAN- 

BUL. Once again, BEAUTYIS- 

TANBUL were present in the 

trade center of Germany, Dusseldorf 

in a medical trade show 

where the team met professionals 

in the medical sector. The 

business center of Asia, Hong 

Kong hosted one of the biggest 

cosmetics exhibitions in the world 

where the BEAUTYISTANBUL 

2019 was promoted with a large 

team. Professional visitors and 

manufacturers from the Asian 

continent felt the presence of 

BEAUTYISTANBUL and were 

briefed about the potential 

business opportunities. Nigeria 

is West Africa`s gates, opening 

the way to meet professionals 

from that part of the continent. 

BEAUTYISTANBUL team was 

welcomed with warm and highly 

positive feedback. Our work was 

appreciated by visitors and exhibitors 

during a cosmetics event in 

Lagos. 

BEAUTYISTANBUL team 

contacted European raw materials 

buyers and manufacturers 

in Milano, Italy and received 

significant attention, resuming 

the worldwide presence and promotions. 

BEAUTYISTANBUL 

2019, the international exhibition 

for cosmetics, beauty, hair, private 

label, packaging and ingredients 

will welcome its professional 

guests on 2-3-4 October 2019, in 

Istanbul, Turkey. The show will 

bring together 400 exhibitors 

from 40 countries along with 

over 8.000 professional buyers 

and distributors from more than 

120 countries. Hope to see you 

at BEAUTYISTANBUL on October 

2 – 3 – 4 2019 in Istanbul, 

one of the world’s most attractive 

cities! www.beauty-istanbul.com 

– T. +90-212.222.90.60 

At the same time, our team was present 

in Sao Paulo-Brazil BEAUTYISTANBUL 

was promoted to beauty professionals from 

all over South America. Through the end 

of May, BEAUTYISTANBUL team was in 

Amsterdam-Netherlands for the private label 

exhibition.. 

BEAUTYISTANBUL carried out promotions 

in various exhibitions all over the 

world with no exception in June, starting with 

Mexico. Our team was present in Delhi-India 

beauty exhibition which occurred concurrently 

with Mexico. Saloon and spa professionals 

were informed about BEAUTYISTANBUL 

2019 and showed great interest to our exhibition. 

Latest visits of the month included 

Johannesburg-South Africa general trade 

show which includes cosmetics and beauty 

as well. As we express, the African market is 

vital for BEAUTYISTANBUL. After, BEAU- 

TYISTANBUL was in West Africa to attend a 

cosmetics exhibition organized in Porto Novo. 

Benin was a bridge to enlarge our network in 

the African market which is known with its 

natural beauty products. July ended with an 

event in Las Vegas where the team marked 

its presence and promoted BEAUTYIS- 

TANBUL 2019 to a wide variety of retailers, 

The leading event in Latin America for 

personal care and ingredients took place 

in Brazil during September. BEAUTYIS- 

TANBUL was one of the first comers to 

Latin America as we always do. BEAUTY- 

ISTANBUL has made its mark in Bolivia at 

an exhibition through the end of September 

2018, targeting buyers and companies from 

the region our team invited a lof of business 

people to Istanbul. 

Our team was in Warsaw again on 26th and 

27th September 2018. The exhibitors praised 

the visitors’ excellent professional quality 

and BEAUTYISTANBUL demonstrated its 

international appeal. Begining of the October 

our team spent in Monaco, the impressive 

city of France. We presented our project – 

BEUATYISTANBUL 2019 to important 

producers and visitors that were attending 

packaging exhibition. 

Following the event in France, BEAU- 

TYISTANBUL team visited exhibition in 

Moscow, the largest perfumery and cosmetic 

event in Central and Eastern Europe. Moscow 

is being the one of the most important 

doors to CIS countries. Ipekyolu team met 

with leaders of industry and invited them to





ww.img.com.tr 




5 

Over 70 pct of Turkey’s foreign investments 

from Europe in 16 years 

The Turkish economy attracted 

$201.3 billion in foreign direct 

investment (FDI) and $152.1 billion 

capital inflow for the period from 

2002 to August 2018. When broken 

into regions, 73.8 percent of the 

capital inflow came from European 

countries, according to Industry and 

Technology Ministry data. 

PayU chooses Turkey 

as regional center 

Global brands are closely watching Turkey where many new 

global and local technologies are being used in the banking and 

financial technology sectors. There are global companies such as 

PayU that choose Turkey as their regional center as opposed to 

companies that withdraw from Turkey upon sudden decisions. 

PayU, which provides more than 250 local payment methods to 

more than 100,000 businesses, is celebrating its seventh year in 

the Turkish market. Stating that PayU will increase its investments 

in Turkey, CEO of PayU EMEA Mario Shiliashki said, 

“We’re not like those who are scared and[therefore] will continue 

to invest in Turkey. There are important opportunities in 

Turkey. Our annual growth has consistently been surprisingly 

good. Turkey is one of our primary markets. Moreover we can 

see that the startup ecosystem is maturing and will continue our 

investments in Turkey.” 

The Turkish economy received $112.3 

billion from European countries in 

that period followed by Asian counties 

that accounted for 17 percent of total 

capital inflow, while the U.S. accounted for 

8.4 percent of accumulated foreign capital 

entering Turkey. 

Among European countries, the Netherlands 

was the top investor with $24.2 billion, 

or 15.9 percent of foreign direct capital 

inflow to Turkey over the last 16 years. 

Capital from the U.S. totaled to $11.5 billion, 

followed by Austria in third with $10.5 

billion capital investment in the Turkish 

economy. 

In terms of sectoral distribution, the 

tertiary sector accounted for 61.9 percent 

of total foreign investments from 2002 

through August 2018.The manufacturing 

sector and energy industry attracted 23.7 

percent and 11.8 percent of total foreign 

direct investments, respectively. Finance 

and insurance topped the list of service 

sector investments, receiving 34.2 percent 

of all foreign investments in Turkey. The 

telecommunications sector came second 

with 8.3 percent, while the wholesale-retail 

and transportation-storage sectors, claimed 

6.1 percent and 4.5 percent, respectively, 

of foreign direct investments. International 

Investors Association (YASED) Chairman 

Ahmet Erdem said Turkey offers great 

potential and attractive opportunities for all 

international direct investors, particularly 

Europeans. 

By the end of September, Turkey had 

received $8 billion in foreign direct investments. 

European countries claimed the 

lion’s share: nearly 70 percent of the total 

FDI in the first nine months of the year, 

Erdem noted. YASED Chairman Erdem 

stressed that the Turkish economy’s ability 

to increase FDI from global markets 

will depend on concrete steps to improve 

the investment climate, doing 

business and progress in structural 

reforms. “The energy, manufacturing, 

e-commerce, health and financial 

sectors receive the highest amount 

of foreign investment. But the development 

of venture capital funds and 

angel investors have also accelerated 

investments in technology, mobile 

services and the internet. In addition 

to traditional sectors like manufacturing 

and infrastructure, the technology 

and energy sectors are also attractive 

candidates to receive foreign direct 

investment next year,” Erdem concluded. 

Ankara, Sofia 

sign cooperation 

investment pact 

The Turkish and Bulgarian 

investment offices signed a cooperation 

agreement. The pact was 

signed by Trade Minister Ruhsar 

Pekcan and Bulgaria’s Economy 

Minister Emil Karanikolov in the 

capital Sofia. 

Saying the two countries have 

balanced bilateral trade, Pekcan 

added that last year Turkey’s exports 

to Bulgaria were $2.8 billion, 

while imports from the country 

also totaled $2.8 billion. 

“But this figures do not reflect 

the neighboring countries’ potential,” 

she said. Pekcan said Turkish 

businesspeople have $2 billion in 

investments in Bulgaria. 

“We invite Bulgarian investors 

to Turkey, and we will be pleased 

to see more Turkish businesspeople 

in Bulgaria,” she underlined. The 

two countries will hold joint economic 

cooperation meetings, she 

stated. During her visit to Sofia, 

Pekcan also met with Bulgarian 

Prime Minister Boyko Borisov 

and Finance Minister Vladislav 

Goranov. She also attended the 

Turkey-Bulgaria Business Forum, 

with the participation of over 500 

Turkish and Bulgarian businesspeople, 

organized by the Turkish 

Foreign Economic Relations Board 

(DEİK). 

Private sector 

loans from abroad 

down in September 

Turkish outstanding private sector loans 

from abroad fell in September compared to 

the end of 2017, the Central Bank of the Republic 

of Turkey (CBRT) announced. 

Excluding trade credits, private sector 

short-term loans were $16.5 billion, a $2 

billion decline from the end of last year, as 

76.4 percent consists of liabilities of financial 

institutions, according to the CBRT. 

As of September, long-term loans amounted 

to $216.6 billion, down $5.3 billion for the 

same period, while non-financial institutions’ 

share was 51.4 percent. 

“Regarding the currency composition of 

total long-term loans of $216.6 billion, 60.3 

percent consists of U.S. dollars, 34.7 percent 

consists of euros, 3.4 percent consists of 

Turkish liras and 1.6 percent consists of other 

currencies,” the bank said. 

“And of the total short-term loans in the 

amount of $16.5 billion, 46.5 percent consists 

of U.S. dollars, 34.1 percent consists of euros, 

19.3 percent consists of Turkish liras and 0.1 

percent consists of other currencies,” it added. 

The bank also said that principal repayments 

of the private sector’s total outstanding 

loans received from abroad amount to $66.3 

billion for the next 12 months. 

October 2 - 3 - 4, 2019 

Tel: +90 212 2229060 Fax: +90 212 6033134 - info@beauty-istanbul.com 

Turkey to host almost 

50 mln tourists in 2019 

Turkey will host around 50 million 

tourists in 2019, Culture and Tourism 

Minister Mehmet Nuri Ersoy said. Speaking 

at the opening of the Turkish pavilion 

at the World Tourism Market 2018 in 

London, Ersoy said the ministry projected 

a 30 or 35 percent increase in the 

number of British tourists visiting Turkey 

in 2018. 

This target will be reached if bookings 

continue with the same pace, the minister 

added. Ersoy also said the number 

of foreign tourists visiting Turkey would 

pass the 40 million mark in 2018. “I am 

expecting a 23 percent increase next 

year. I hope we will reach the target of 48 

million [tourists],” he added. Speaking to 

the representatives of tourism sector, Ersoy 

said they will increase the ministry’s 

budget to promote Turkish tourism and 

“the United Kingdom and Germany will 

be the main promotion points.” He said 

Russian speaking countries and Arabic 

countries will be the next targets for promoting 

Turkey as a tourism destination. 

Ersoy said Turkey has provided city 

breaks, cultural and health tourism 

besides mass tourism, and it has caught 

a rising tide in the tourism sector. Later, 

Ersoy later met his Bulgarian counterpart 

Nikolina Angelkova and representatives 

of the Turkish tourism sector before leaving 

the U.K. The World Travel Market is 

an annual event, which hosts thousands 

of people and brings tourism professionals 

from across the globe together.





ww.img.com.tr 




Aslandağ Group leads industry’s 

future with its experience 

Aslandağ Group renders services with its 

various brands in the furniture and wooden 

door ındustry since 1980. We talked Cemal 

Aslandağ, CEO of Aslandağ Group which 

inherited from family seniors and an accomplished 

a leading position in the ındustry. 

Let’s start to know more about Aslandağ 

Group. How did Aslandağ Group enter in 

the industry? 

As a family business the foundations of 

Aslandağ Group were laid by the carpentry 

business that is profession of our father Saadettin 

Aslandağ in Kastamonu. The carpentry 

workshop inherited by 4 sons has taken part 

among the most leading companies of Turkey 

in the course of time. We have currently been 

continuing our production in our factory of 

30,000sqm, which we would have been doing 

in a small workshop of 70smq in Istanbul in 

early 80’s. 

Did you want to continue with carpentry 

business when you came to İstanbul? 

We have been making design workshop 

business since we first got to İstanbul. In 2005 

we built up our own brand and we took place 

in the industry as Artella Kapı. We put our 

first factory into operation in 2005, too. When 

it comes to Tresette, it’s another brand put 

into operation in 2016. 

When furniture is mentioned sitting 

groups come to mind first. Generally 

kitchen and doors are thought out of 

furniture. Can you explain your furniture 

definition and the place of Artella Wooden 

Door Systems in the industry? 

Furniture takes up enormous place in all 

areas of human life. The most important 

group for us, is fixed furniture such as door 

and kitchen. Besides we built a 4A Collection 

which is new concept of merchandizing. We 

are realizing sales by assuming the distributorship 

of 4A Collection’s. 

“4A Collection, which is a part of merchandising 

system, is our brand founded for 

getting pace with time. 4A Collection has 

been rendering service at our stores in Caddebostan 

and Etiler.” 

How are your export operations? 

We have been exporting to 16 countries 

and we are at a good position. Our target is to 

grow the markets we are active. Our furniture 

generally welcomes good demand. Competition 

dominates in the furniture industry as in 

all industries. 

Raw materials are very important in 

this industry. How do you provide raw 

materials? 

Upon America’s imposing quotas on aluminum 

and steel Turkey has also made a similar 

application. We import wood raw material 

from America. The price of raw material 

in Turkey was also raised because of 22 % 

quota. We are depended on foreign countries 

at raw materials because we can’t use our 

forests good enough. We hope this situation, 

which affects product prices, gets better. 

If we want you to detail this issue more 

how can we make use of our forests 

better? 

It is impossible for our forest not to develop 

if they are managed properly. Our country 

has the potential of producing substructure. 

We should better benefit from technology to 

evaluate this potential. 

We know the importance in every stage of 

production. Do you have any difficulty to 

hire quality personnel? 

Finding qualified staff is the biggest 

Cemal Aslandağ, CEO of Aslandağ Group 

problem in every industry. Actually, if we can 

adapt the vocational high schools to the departments 

in the university we can overcome 

this situation. I can say that the youth should 

be down on the ground for knowing more of 

real life. My advice to the youth is that, they 

have to learn facts about their profession. 

Turkish people are familiar with wood and 

the statue. 

We had learnt that you also have some 

projects in the field of education. Would 

you tell us about your studies in this field? 

As Aslandag Group we have had built 

a classroom in Yakacik Vocational School. 

Students from this school come to our firm 

at certain days of the week and find opportunities 

to watch the works running in the field 

as part of the agreement we signed with the 

ministry of education. Unfortunately, older 

machines are used in these vocational schools 

for the practice of the students. It is hard to 

buy latest technology machinery for public 

schools. In our premises, students both meet 

with latest technologies and gain experiences 

before their professional lives. 

Would you mention about the accolade for 

students that focus on door and kitchen 

design? 

Door and kitchen cannot be separated. 

These two products are first designed at the 

Saadettin Aslandağ 

beginning of the project, though that can be 

modified later on in the production process. 

In retail sales, kitchens are designed specific 

to the individual. In mass orders, they 

are grouped as 2+1 or 3+1 then orders are 

mass-produced in the factory. 

Which is more in your customer profiles, 

the individual designs or designs for mass 

production? 

Mass projects are more at present. As an 

example I can say that 70% of buildings on 

Bagdat Avenue use our products. As branded 

projects, our products are preferred by 

Emaar Square and Skyland. Now we now 

produce for Piyalepasa Istanbul project. Yedi 

Mavi and Buyuk Yali are other projects that 

we signed contracts for. 

Will you tell about your company’s growth 

policy? 

We prefer to grow on our own resources. 

We have a land of 40,000 sqm in Kaynarca 

Organized Industrial Zone for furniture. We 

plan to build a factory by the year 2023. It is 

hard to grow under the current circumstances 

in Turkey. We are stepping securely to our 

targets. 

What are your plans for the future? 

Share of exports is about 20 percent. We 

aim to raise it to 50% and to sell in world 

markets. We aim to be a global brand to 

improve our brand awareness in abroad and 

increase our capital share even more. 

Does foreign companies’ coming to 

domestic market mean a threat for your 

business? 

Since Turkey has become a hub for 

production, currency fluctuations mean a 

disadvantage for foreign companies. There 

are segments that prefer markets abroad, 

there will be in the future as well. But, those 

who prefer foreign markets are diminishing. 

For example, there were about 10 importer 

companies in door business when we began to 

produce branded doors in 2005. Today, none 

of those companies exists. We made a good 

progress in the door industry. 

What are your expectations from the 

State? 

First of all, we wait for stability in economy. 

Stability and trust are important for us. 

Besides, VAT is still a burden on our shoulders. 

It causes a gap between costs and prices. 

Rates for VAT should be reduced to a reasonable 

level. (Editor’s note: Recently.it was cut 

down to 8% for furniture sales.) 

Lastly, what do you want to add more? 

You know that the construction industry 

had some problems recently. We mostly serve 

to this industry. Cash needs are still pressing. 

We think that when the construction and real 

estate sectors become active again, we will 

also feel more comfortable. 

Turkish government 

extends free of charge 

space allocations at 

industrial zones 

The scope of free of charge 

spaces in Turkey’s organized 

industrial zones has been 

extended, a decision by the 

Industry and Technology Ministry 

has shown. 

According to the decision, 

which was released on the 

Official Gazette on Nov. 2, the 

spaces 

in- 

at the organized 

dustrial 

zones in 

fourthranked 

districts 

will 

be 

allocated 

without 

any fees. 

This move was one of 

the measures in a package 

announced by Industry and 

Technology Minister Mustafa 

Varank who previously vowed 

to fight “the attacks against 

the Turkish economy.” 

According to the decision, 

the existing “free of charge” 

space allocation will continue 

to be applied to the 

fifth-ranked and sixth-ranked 

districts. Rent discounts in 

the organized industrial zones 

which are located in the 

second-ranked and thirdranked 

districts have also been 

extended to 60 percent and 

80 percent, respectively, from 

a previous 40 percent and 60 

percent. 

The decision aims to 

further raise production 

and employment by fueling 

investments in the organized 

industrial zones. 

Turkey’s pace of 

development gains 

momentum 

Turkey’s pace of development 

has gained momentum 

with the adoption of the presidential 

system, the country’s 

Vice President said . 

Speaking at the 32nd 

Asia-Pacific Chambers of 

Commerce and Industry 

(CACCI) conference, Fuat 

Oktay said Turkey “demonstrates 

a firm stance to ensure 

the confidence of global 

economic actors” with its new 

economic program. 

“Turkey is a country open to 

competition and international 

investors,” he added. 

“In our country, a historic 

success has been demonstrated 

in the field of economy in 

the last 16 years. Employment 

has reached 28.8 million from 

19.6 million, which means 9.2 

million new jobs were produced 

in 16 years,” he added. 

The vice president said that 

Turkey is not just a transportation 

and energy corridor 

between Asia and Europe but 

also a strong economic partner 

that constantly develops while 

encountering difficulties. 

“Our country is in a position 

to be a base of production 

and trade to cover a wide 

geography,” he said. 

Oktay said that Turkey, with 

its young and qualified labor 

resources, domestic market 

capacity, steadily developing 

infrastructure in the region, 

disciplined financial sector 

and competitive private sector 

has become an important 

economic actor in the world. 

“The confidence of international 

investors in our country 

continues to grow stronger,” 

he added. 

Turkey’s net investment 

position improves 

Turkey’s net international 

investment position (NIIP) 

improved in September as compared 

to the figures at the end 

of 2017, the country’s central 

bank said. The gap between 

Turkey’s assets abroad and 

liabilities – the NIIP – narrowed 

27 percent in September from 

the end of 2017, according to 

the Central Bank of the Republic 

of Turkey (CBRT). The NIIP 

was minus $338.9 billion in the 

month while it was minus $461.8 

billion at the end of last year. 

“External assets recorded $226.3 

billion indicating a decrease of 

2.8 percent compared to the end 

of 2017 and liabilities against 

non-residents recorded $565.2 

billion indicating a decrease of 

18.6 percent,” the bank said in a 

statement. Showing a snapshot 

in time, the NIIP – which can 

be either positive or negative – 

is the value of overseas assets 

owned by a nation, minus the 

value of domestic assets owned 

by foreigners, including overseas 

assets and liabilities held by a 

nation’s government, the private 

sector and its citizens. Turkey’s 

reserve assets slipped 21.4 

percent to reach $84.7 billion, 

while other investment rose 18.1 

percent to $90.3 billion during 

the same period. “Currency and 

deposits of banks, one of the 

sub-items of other investment, 

recorded $47.9 billion indicating 

an increase of 37.2 percent 

compared to the end of 2017,” 

the bank said. On the liabilities 

side, direct investment – equity 

capital plus other capital – as of 

the end of September amounted 

to $112.3 billion, down 42.7 percent 

from the end of 2017 “with 

the contribution of the changes 

in the market value and foreign 

exchange rates,” it added. 

Total foreign loan stock of the 

banks reached to $85.8 billion, 

down 9.5 percent compared 

to the end of 2017 while total 

external loan stock of the other 

sectors was $110.1 billion, rising 

1.7 percent.




Monthly Economic Newspaper ww.img.com.tr 




7 

Turkish cosmetics industry targets 

to boost its export to Far East 

Cosmoprof Asia, the largest cosmetics fair of 

the Far East, was held in Hong Kong, 14-16 

November 2018. According to the Istanbul 

Chemicals and Chemical Products Exporters’ 

Association (IKMIB), a total of 18 Turkish 

companies joined Cosmoprof Asia fair, held 

for the 8 th time this year in the framework of 

national participation organization of Turkey. 

The participating companies held some 400 

bilateral business meetings at the fair. 

The 23rd edition of Cosmoprof Asia, held 

in Hong Kong, 14-16 November 2018, thirteen 

members of İKMİB’s National Participation 

Organization joined the event while 

five others participated individually. Turkey’s 

Consul General in Hong Kong Korhan 

Kemik, Turkey-Hong Kong Trade Attaché 

Merve Yılmazcan, İKMİB Vice Chairman 

M. İmer Özer and İKMİB Board Member 

Uğur Adıyaman visited the booths of the 

participating Turkish companies. 

“Participation in exhibitions is an 

opportunity” 

İKMİB Vice Chairman M. İmer Özer said 

that participating in international fairs is of 

great importance to be more active in the far 

eastern market. “Through the Hong Kong 

fair, our cosmetic exporters can evaluate 

the Chinese market. Fairs are great opportunities 

to enter new markets and conduct 

promotional activities,” he said. 

Cosmetic products promoted 

The participating companies held some 

400 bilateral business meetings at the fair 

where the cosmetic products, perfumery, 

skin care and personal hygiene products, spa 

products, packages, beauty shop products 

were promoted. As a result of the meetings, 

it is expected that Turkey’s export related 

to cosmetics industry will increase to Hong 

Kong and China, one of the world’s largest 

importers in the cosmetics industry. 

Over 80,000 visitors 

There were about 3 thousand participants 

from 22 countries and over 80 thousand visitors 

were welcomed in the Cosmoprof Asia 

fair, an international event in the professional 

beauty, personal care and cosmetics 

industry. 

18 companies participated from Turkey 

Thirteen members of İKMİB’s National 

Participation Organization joined the event 

such as Akten Cosmetics, Altona Cosmetics, 

Derma-Cos Pharmaceuticals Medical and 

Cosmetics, Dogus Cosmetics, Erte Cosmetics, 

Giz Cosmetics, Hunca Cosmetics, 

Kurtsan İlaçları, Lider Cosmetics, Olivos, 

Pinkar Kimya, Pinkim Cosmetics and Talya 

Natural Products; while five others participated 

individually such as Foneks, Eyüp 

Sabri Tuncer, Flormar, BFF and Kozmotek. 

Russian tourists to 

Turkey hit record high 

The number of Russian 

tourists visiting Turkey has hit 

a record high, the Russian envoy 

said. Aleksey Yerhov said: 

“Some 4.7 million Russian 

tourists visited Turkey last year 

and we expect the figure to 

reach 5.5 million this year.” 

He was speaking at a forum 

on Turkey-Russia relations was 

held at the Yildirim Beyazit 

University in the Turkish capital 

Ankara. Yerhov said Turkey’s 

President Recep Tayyip 

Erdogan and his Russian counterpart 

Vladimir Putin had met 

six times this year, in a sign of 

deepening of ties between the 

countries. Also bilateral trade 

had increased, he said. 

Noting the strategic importance 

of TurkStream, a gas 

pipeline from Russia to Turkey, 

and Akkuyu nuclear power 

plant projects, built by Russia 

in Turkey, he said the two 

countries will also gain from 

talks on Syria. Presidential 

spokesman Ibrahim Kalin and 

several Russian and Turkish 

bureaucrats and academics 

attended the event. 

Turkish-Russian trade in local 

currencies ‘necessary’ 

The use of local currencies 

in trade between Turkey and 

Russia is “necessary”, Russian 

deputy minister of industry 

and trade said. “By using our 

national currencies, we can 

protect our organizations and 

become independent of the 

decisions of other countries,” 

Alexey Gruzdev said. 

Gruzdev underlined that 

Russian and Turkish organizations 

intensified their efforts to 

increase trade by using national 

currencies. “We should establish 

a mechanism to make 

the use of ruble and lira more 

popular in our trade,” Gruzdev 

said. He also noted if countries 

increase the bilateral exchange 

of national currencies between 

the banks, the companies will 

also realize the advantage of 

this method and raise its usage 

in trade. 

Noting that Turkish companies 

are successfully represented 

in Russia, especially in the 

food, textile and construction 

sectors, Gruzdev said Russia 

agreed with Turkish counterparts 

on the “Foreign Trade 

Action Plan.” Gruzdev also 

emphasized on the need to 

increase cooperation in the 

civil shipbuilding industry. 

“Shipbuilding industry is in very 

strong position both in Turkey 

and Russia, and we see significant 

potential in this area,” he 

added.





ww.img.com.tr 




Turkey takes major steps toward 

becoming energy trading hub 

Aspiring to diversify its 

energy resources, Turkey 

has accelerated its efforts 

to ensure its natural gas supply 

security through bilateral agreements 

and major infrastructure 

projects and achieve the target 

of becoming a gas trading hub. 

Recently, the country has engaged 

in two important multinational 

natural gas pipeline projects, 

namely the Trans-Anatolian Natural 

Gas Pipeline (TANAP) and 

TurkStream. After the launch of 

TANAP, TurkStream became another 

gas pipeline project through 

which Turkey is emphasizing its 

interest in energy transfer and 

trade. As much as Turkey is also 

an energy transit country because 

of its location between the 

producers and buyers, the country 

is fast moving toward creating a 

meeting hub where consumers 

and suppliers can trade at prices 

set by free market dynamics. The 

first giant step in energy was taken 

in mid-June this year with the 

launch of TANAP, a multinational 

energy project, with partners like 

BP, Turkey’s Petroleum Pipeline 

Corporation (BOTAŞ) and the 

State Oil Company of the Azerbaijan 

Republic (SOCAR). 

TANAP is the largest section 

of the Southern Gas Corridor 

(SGC) project. The 1,850-kilometer 

TANAP and the 878-kilometer 

Trans Adriatic Pipeline project 

(TAP) were interlinked at Maritsa 

River located on the Turkey-Greece 

border. The pipeline 

is seen as a move that is expected 

to earn Tukey political and 

economic prestige as it brings gas 

from the Shah Deniz-2 gas field 

to the Turkish border through 

Georgia via the South Caucasus 

Pipeline. It then connects to the 

TAP on Turkey’s İpsala border, 

going on to deliver Azeri gas to 

European markets through pipes 

in Greece, Albania and the Adriatic 

Sea before coming ashore in 

Italy’s south. TAP is expected to 

start delivering gas to European 

markets in the first quarter of 

2020. 

The second major energy 

move of the year came with the 

TurkStream natural gas pipeline 

project, a landmark for Turkish-Russian 

energy cooperation, 

as a ceremony for the completion 

of the sea part of the project was 

held in Istanbul with the participation 

of President Recep Tayyip 

Erdoğan and Russian President 

Vladimir Putin. TurkStream is 

one of the vital energy projects 

for Turkey to become an energy 

trading hub and it consists of two 

pipelines, every 930 kilometers 

in length. The project was first 

announced by Putin in 2014 when 

he shared the plans for an alternative 

country for the South Stream 

project that is not a European 

Union member. At a Turkey-Russia 

high-level cooperation council 

meeting on Dec. 1, 2014, Putin 

announced that Russia had canceled 

the South Stream project. 

Russian energy giant Gazprom 

CEO Alexey Miller announced a 

new gas pipeline project. 

The TurkStream project has 

an annual gas delivery capacity of 

31.5 billion cubic meters (bcm), 

each with a capacity of 15.75 bcm. 

While the first line will provide 

natural gas for the Turkish market, 

the second line will deliver 

the commodity to European 

countries via a route through Balkan 

nations. Energy and Natural 

Resources Minister Fatih Dönmez, 

speaking at the ceremony, 

hailed TurkStream as the opening 

of a new page for Turkey’s energy 

market. 

Dönmez said Turkey’s aim to 

become an energy hub is supported 

through strong political 

will and stability in the country. 

“Turkey aims to become an energy 

center, where buyers and sellers 

meet and where prices are determined,” 

he said, adding that the 

country is taking important steps 

for this goal via the TurkStream 

project, which he said would be a 

uniting factor in countries where 

the gas is transferred. 

Toyota to start mass production 

of its new hybrid car in Turkey 

Japanese car maker Toyota 

will start mass production 

of its new Corolla hybrid in 

Turkey in January. “A hybrid 

car in this segment will be 

produced in Turkey for the 

first time,” Mustafa Varank, 

Turkish technology and industry 

minister, said during 

his visit to Toyota’s factory in 

the northwestern province of 

Sakarya. 

The country’s foreign 

trade gap will be reduced as 

hybrid and electric vehicles 

become widespread in the 

country, Varank said. “The 

new model which has 50 

percent less fuel consumption 

per vehicle would be exported 

to 100 countries from 

Turkey,” Varank said. The 

new Corolla -- a trademark 

car of the brand -- will be put 

up for sale in the first quarter 

of 2019 in Turkey, according 

to a statement from Toyota 

Turkey. “The new local made 

Corolla will be our brand’s 

pioneer in the automotive 

market with cut-throat competition,” 

Toyota Turkey’s 

CEO Ali Haydar Bozkurt 

said. The 2019 Corolla Saloon 

Hybrid will be this model’s 

12th generation which 

made its debut in 1966. The 

company said that Toyota 

Corolla is still the best selling 

car worldwide with 46 

million units sold since its 

debut. Corolla will be available 

with two types of engines, 

1.8 liter self-charging hybrid 

and 1.6 liter petrol. Toyota 

Turkey launched its first hybrid 

vehicle, C-HR -- a sport 

utility vehicle (SUV)in October 

2016 in Turkey.




Monthly Economic Newspaper ww.img.com.tr 




9 

Geothermal energy can cut 

Turkey’s gas imports by 20 pct 

Turkey could cut its gas imports 

by 20 percent using geothermal 

energy, which could meet 30 percent 

of Turkey’s heating needs for 

district heating, according to Danish 

Consul General Anette Snedgaard 

Galskjot.District energy is an energy 

system that can provide economic 

and sustainable energy to an entire 

city or whole district using surplus 

energy from power plants or renewable 

sources. The model used in 

Denmark is an example to emulate, 

where savings of 40 percent or more 

have been made for households, 

a level considered extremely high, 

Galskjot said. 

In Denmark, 69 percent of the 

total population uses district heating 

while this percentage is close 

to 100 percent in Copenhagen, she 

said.Denmark wants to make more 

advances in district heating, and 

Turkey is also interested in developing 

this system more, she explained. 

Turkey has already made inroads 

with geothermal energy in Izmir and 

in neighboring towns as well as in 

Kırşehir and Afyon in the central 

Anatolian region. 

She drew attention to the example 

of a successful district system at work 

in Soma in Manisa province, an area 

that was traditionally heated through 

the local lignite-fired thermal power 

Iraq to 

increase 

Kirkuk oil 

exports to 

Turkey’s 

Ceyhan port 

or natural gas. However, through the 

district heating technology added 

in this plant, 8,000 households are 

currently being heated. 

These household users are paying 

50 percent less than the previous 

heating systems in their houses. 

Galskjot said that intergovernmental 

relations between Denmark and 

Turkey and relations with Turkish 

local authorities are very good.The 

Danish Energy Agency and Turkey’s 

Energy and Natural Resources 

Ministry signed a strategic energy 

cooperation agreement in 2017. 

“We are very enthusiastic about 

the Turkish government’s interest 

in renewable energy and especially 

in district heating,” she said, adding 

that a number of Danish companies 

are interested in doing business 

in Turkey. To promote this system 

further in Turkey, she said that a 

District Heating System conference 

would be held on Nov. 27 in İzmir 

where representatives of both countries 

will discuss current developments, 

including the ability to utilize 

renewable energy for district heating 

in some regions. There is a very big 

potential in Turkey to use renewables, 

which offer huge savings, 

security of supply and less dependence 

on natural gas imports, which 

she said was part of Turkey’s energy 

localization policy. 

Abdul-Mahdi told reporters that 

plans were underway to increase the 

export of the current 60,000 barrels 

daily to 100,000. He added that 

relations were amiable between his 

administration and the Kurdistan 

Regional Government (KRG), from 

where the oil would be transported 

to Turkey’s Ceyhan seaport on the 

Mediterranean coast. Relations 

between the Iraqi government and 

the KRG had been strained since 

September 2017, when the latter 

held an unconstitutional referendum 

on Kurdish regional independence. 

Baghdad responded to the illegitimate 

poll by imposing a broad 

range of sanctions on the Irbil-based 

KRG. In the wake of last year’s referendum, 

federal forces also seized 

control of all parts of Iraq “disputed” 

between Baghdad and Irbil, including 

the oil-rich Kirkuk province. 

Oil extraction and pumping from 

Iraq’s northern Kirkuk province was 

suspended in October 2017 until 

Nov. 16, 2018, when Iraq’s federal 

government and the KRG reached 

a tentative agreement to resume oil 

exports from Kirkuk to Ceyhan. 

Flows resumed at a modest level 

of around 50,000-60,000 barrels per 

day (bpd) compared with a peak of 

300,000 bpd seen last year. Kirkuk 

oil is an alternative to replace the 

shortage from Iran’s exports that 

were hit with the second phase of 

U.S. sanctions on Nov. 5. Iran’s oil 

exports are projected to fall by 1 

million barrels. Iraq is the OPEC 

second-largest oil producer after 

Saudi Arabia, producing roughly 4.5 

million barrels per day. 

Humor 

There is no better way to exercise the imagination 

than the study of the law. No artist ever interpreted 

nature as freely as a lawyer interprets the truth. 

A Soviet journalist walks into 

the hospital and tells the desk 

nurse, “I want to see the eyeear 

doctor.” 

“There is no such doctor” she 

tells him. “Perhaps you would 

like to see someone else?” 

“No, I need to see an eye-ear 

doctor,” he says. 

“But there is no such doctor,” 

she replies. “We have doctors 

for the eyes and doctors for 

the ear, nose and throat, but no 

eye-ear doctor.” 

No help. He repeats, “I want to 

see the eye-ear doctor.” 

They go around like this for 

a few minutes and then the 

nurse says: “Comrade, there is 

no eye-ear doctor, but if there 

were one, why would you want 

to see him?” 

“Because,” he replies, “I keep 

hearing one thing and seeing 

another.” 

Welcome to the Psychiatric 

Hotline. 

If you are obsessive-compulsive, 

please press 1 repeatedly. 

If you are co-dependent, please 

ask someone to press 2. 

THE ECONOMIST 

What is a consultant? 

If you have multiple personalities, 

please press 3, 4, 5, and 6. 

If you are paranoid-delusional, 

we know who you are and 

what you want. Just stay on the 

line so we can trace the call. 

If you are schizophrenic, listen 

carefully and a little voice will 

tell you which number to press. 

If you are depressed, it doesn’t 

matter which number you 

press. No one will answer. 

If you are delusional and 

occasionally hallucinate, please 

be aware that the thing you 

are holding on the side of your 

head is alive and about to bite 

off your ear. 

Doctor, doctor, I keep thinking 

I am a set of curtains! 

Pull yourself together, man! 


I’m a bell. 

Well, just go home and if the 

feeling persists, give me a ring. 

Doctor, doctor, people tell me 

I’m a wheelbarrow. 

Don’t let people push you 

around. 


Well!!! 

THOUGHT OF THE 

MONTH 

I’m invisible. 

Who said that?! 

Doctor, doctor, nobody understands 

me. 

What do you mean by that? 

Doctor, doctor, People keep 

ignoring me! 

Next! 

Doctor, doctor, No one believes 

a word I say. 

Tell me the truth now, what’s 

your REAL problem? 

Doctor, doctor, I feel like a pack 

of cards. 

I’ll deal with you later. 

Doctor, doctor, people keep 

telling me I’m ugly! 

Lay on the couch, face down. 

Doctor, Doctor, I can’t stop 

stealing things. 

Take these pills for a week; if 

that doesn’t work I’ll have a 

computer. 


I’m a spoon. 

Sit there and don’t stir. 

A consultant is someone who 

takes the watch off your wrist 

and tells you the time.







Elruha Karagül 

gorgeous, 

romantic and 

mystique 

fragrance ever 

There are thousands of fragrances that 

have come and gone, but only a handful have 

earned the title of being called the most romantic 

of all time. They have become staples 

in the perfume arsenals of many and have 

captured the hearts of women across several 

generations. If you’re in the market to invest 

in a charming potion, look no further. 

Elruha Kozmetik, which achieved a big 

difference through hundreds of fragrance 

varieties, Elruha Kozmetik has also been 

producing cologne, perfume, auto fragrances, 

soap, bamboo (stick room odor) and cream of 

this legendary flower. 

With 

its 

unparalleled quality, aesthetic appearance 

and unmatched fragrance Karagül, which 

resembles a state-of-art item, is grown only 

in Halfeti town of Şanlıurfa. It is known 

that Karagül is a very special and distinctive 

flower with a feature that it leaves its color on 

the soil when it is picked up and blossoms red 

when taken away. 

Subjected to many books, poems and 

serials, Karagül attained this unmatched fragrance 

thanks to two and a half years of painstaking 

efforts of Elruha Kozmetik in spring 

months when it blossoms darkest black picked 

up from roses and processed with a special 

formula developed by Elruha Kozmetik. Contrary 

to classic perfumes and colognes which 

are losing their fragrances in time, the permanent 

fragrances of Elruha Karagül stays for 

many days and make all others 

neglected to users. 

New port expected to 

boost Turkey’s cruise 

tourism 

With the cruise port 

planned to be built in Istanbul’s 

coastal neighborhood 

Yenikapı, Turkey expects to 

increase its share of global 

cruise tourism, which has 

an annual turnover of $35 

billion, to approximately 

$1.5 billion. So, Istanbul will 

be one of the major cruise 

centers in the Mediterranean 

region. 

According to the information 

compiled from the Turkish 

Transport and Infrastructure 

Ministry’s Directorate 

General of Merchant Marine 

and the Cruise Lines International 

Association (CLIA), 

the number of individuals 

who preferred cruise tourism 

across the world was 25.8 million 

in 2017, and this figure 

is expected to rise to 27.2 

million by the end of 2018. 

Turkey 

uses the 

cheapest 

electricity 

in Europe 

The consumer price 

index in Turkey is 

expected to meet 

year-end targets, the 

Central Bank of the 

Republic of Turkey 

(CBRT) Governor 

Murat Çetinkaya 

said. “With the contribution 

of coordinated 

measures, it 

is expected that the 

inflation [rate] will 

gradually converge 

with our targets,” 

Çetinkaya said in during 

his presentation 

titled “Macroeconomic 

Outlook and 

Monetary Policy” at 

the JP Morgan Investor 

Conference in Istanbul. 

According to 

Çetinkaya, the CBRT 

implemented a strong 

monetary tightening 

policy to limit the deterioration 

in pricing 

behavior. 

Commenting on Turkey’s 

macroeconomic 

outlook, Çetinkaya 

said “The stabilization 

tendency in the 

economy has become 

evident. Economic 

activity has slowed 

down due to the 

tightening of financial 

conditions and weak 

domestic demand.” 

Credit growth 

continues to slow 

down as the recent 

credit growth trend 

currently falls below 

historical averages, 

he added. 


Last year, a total of 35.4 

percent of tourists who traveled 

with “floating five-star 

hotels” preferred the Caribbean 

region, 15.8 percent 

the Mediterranean, including 

Turkey, and 11.3 percent 

European countries without 

shores on the Mediterranean. 

The number of cruise ships 

berthed at Turkish ports fell 

to 311 last year from 1,542 

in 2013, as a result of cruise 

ships removing the Eastern 

Mediterranean from the 

route. In the same period, 

the number of cruise tourists 

Turkey hosted plummeted 

to 307,000 from 2.2 million. 

With cruise companies 

re-including Turkey in their 

route, the sector has gained 

momentum in 2018 and is 

expected to return to the 

previous figures soon. 

Publisher: 

Responsible Editor: 

Editors: 

Advertisement Manager: 

Art sdirector: 

Chief Accountant: 

Subscription: 

HEAD OFFICE: 

LIAISON OFFICES 

BURSA: Ömer Faruk Görün 

Buttim A Blok Kat: 4 

No: 4029 BURSA / TURKEY 

Tel : (90.224) 211 4450 - 51 

Fax: (90.224) 211 4481 

KONYA: 

PRINTED BY: 

ISTMAG Magazin Gazetecilik 

İç ve Dış Ticaret Ltd. Şti. Adına sahibi 

H. Ferruh Işık 

Mehmet Söztutan 

(mehmet.soztutan@img.com.tr) 

Prof. Dr. İsmail Kaya 

Assoc. Prof. Mehmet Ali Özbudun 

Ayça Sarıoğlu 

Yüksel Ekinci 

Recep Arslantaş 

(recep.arslantas@img.com.tr) 

Tolga Çakmaklı 

(tolga.cakmakli@img.com.tr) 

Mustafa Aktas 

(mustafa.aktas@img.com.tr) 

Ismail Özçelik 

(ismail.ozcelik@img.com.tr) 

ww.img.com.tr 

Güneşli Evren Mah. Bahar Cad. Polat İş 

Merkezi B Blok No:3 34197 

ISTANBUL/TURKEY 

Tel: +90. 212 604 51 00 

Fax: +90. 212 604 51 35 

www.img.com.tr - img@img.com.tr 

Metin Demir 

H. Ulusahin Is Mrkz. C Blok 

No: 603-604-605 KONYA / TURKEY 

Tel : (90.332) 238 10 71 

Fax: (90.332) 238 01 74 

İhlas Gazetecilik A.Ş. 

Merkez Mah. 29 Ekim Cad. 

İhlas Plaza No: 11/41 PK: 34197 

Yenibosna - Bahçelievler 

ISTANBUL / TURKEY 

Tel: (90 212) 454 30 00 

Fax (90 212) 454 34 83





ww.img.com.tr 




11

Made in Turkey November - December 2018

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?