Made in Turkey November - December 2018

istmagmagazin

Made in Turkey November - December 2018

Monthly Economic Newspaper

November - December 2018

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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

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 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…

Turkey’s consumer confidence

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


November

December

2018

Monthly Economic Newspaper

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EconomicNewspaper

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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


EconomicNewspaper

November

4 Please mention

December

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

2018

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


November

December

2018

Monthly Economic Newspaper

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EconomicNewspaper

Please mention

Made in Turkey” when writing to advertisers

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

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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.


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December

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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.


November

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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.


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November

December

2018

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.


November

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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!

Doctor, doctor, I keep thinking

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.

Doctor, doctor, I keep thinking

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.

Doctor, doctor, I keep thinking

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.


EconomicNewspaper

November

10 Please mention

December

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

2018

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.

Monthly Economic Newspaper

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:

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November

December

2018

Monthly Economic Newspaper

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Please mention

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11

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