Once this
is done, the relevant Chamber will be able to forward
the proposal to its members very promptly. Our experience
in the past suggests that Turkish companies are very
sensitive to fit and proper business proposals.
Most of
valuable companies either are registered with the
Export Unions or operate in special industrial
parks.
Please
also note that the State Planning Organisation is
in charge of producing sectoral analysis reports (www.dpt.gov.tr
).
|
Sector-specific opportunities |
In our
opinion, the followings will be on the agenda of foreign
companies which focus on business opportunities in
Turkey (in no particular order):
Taking
into account the experience of the countries which
recently joined EU, very severe mergers and acquisitions
in the Turkish banking system are expected. In this
regard, outsourcing services for banks would be important
for potential investors (Banking).
Alike
the Banking sector, the size of the insurance sector
in Turkey is very small compared to those in the developed
economies. Introduction of the mortgage law by the
end of this year, introduction of new insurance instruments
based on the contemporary needs, the fact that recent
competitive markets laws require supply to be of quality,
secure and on a continuous basis, the fact that the
Turkish economy is eventually expected to converge
to the EU average when it becomes a full EU member
all suggest that opportunities in the insurance sector
(even for insurance brokers' and intermediaries' businesses)
are great (Insurance).
Privatisation
Administration (PA) of Turkey is in charge of privatising
the electricity distribution and generation assets.
The assets/companies listed at www.oib.gov.tr/portfoy/enerji_eng.htm
are now in the privatisation portfolio.
The PA carries out the prepatory work pursuant to
the Strategy Document issued by the Government in 2004. (www.oib.gov.tr/program/2004_program/2004_electricity_strategy_paper.htm).
For the details you are interested in, please contact
the PA through:
Address: Ozellestirme Idaresi Baskanligi Ziya Gökalp
Caddesi No : 80 Kurtulus 06600 Ankara/TURKEY
Tel: +90 (0) 312 435 4790 or +90 (0) 312 430 45 60
Fax: +90 (0) 312 435 93 42
Web: www.oib.gov.tr
The Government
encourages construction of new hydroelectric power
plants (HPPs). According to the relevant regulations,
HPPs of installed capacity of 50 MW or less (or of
reservoir capacity of 100 million cubic meters or
less-as they are deemed to be renewable energy sources-
are subject to several incentives (www.epdk.org.tr/english/regulations/electricity.htm).
Finally, current lignite-fired power plants need environmentally-friendly
investments especially in terms of coal-cleaning and
CO filtering. We think that after those plants are
privatised, the environmental regulations will push
new operators to make those necessary investments.
In this regard, firms having the relevant know-how
may help those future power plant operators.
Being between main supply (the Caspian and Middle
East resources) and main demand (EU) locations, having
a strategic position, and the Government's focus on
the energy issues will make Turkey one of the most
important energy hubs of the world. Current natural
gas pipeline networks for imports from Russia and
Iran, LNG-routes from Algeria, and Nigeria, oil imports
through the BTC pipeline and future energy projects
will make Turkey an energy gateway.
In this regard, not only physical flow but also the
financial dimensions of energy would be of importance.
Thus, Turkey is also expected to host an exchange
similar to the UK's IPE or the NYMEX of the US if
the above mentioned long-term target can be attained.
Moreover, Turkish energy sector is expected to focus
on energy-based financial instruments.
|
Construction and property market |
Increasing
interest by foreigners, implementation of mortgage
law in 2007 and the fact that housing supply lags
behind the demand will boost construction investments
and lead to great opportunities within the property
market. Moreover, Turkish companies started participating
in very big international projects and being found
very successful (www.tmb.org.tr).
Finally, construction-related industries such as cement
production, ready-mix-concrete production, carpentry,
doors-windows-PVC/window glass production, engineering
& architecture professionals are to benefit from
the future developments.
Please refer to buying
property pages.
The
number of tourists who visited Turkey reached 18 million
in 2006 and is expected to double within the medium
term. This means there are great opportunities for
businesses. Currently, Turkey is famous for its nice
beaches. However, there are great business opportunities
in the following segments: Faith tourism, cultural
tours, historical places and museums, winter sports,
golf, health tourism and 'spa's. Side-industries such
as catering etc. are also expected to enjoy the future
activities.
Many
economists estimate that Turkey will host lots of
foreign patients from petro-dollar rich countries
when appropriate investments are made. Turkish medical
professionals contribute well to the medical literature.
They also estimate that the prices of those services
will be very reasonable.
|
Leisure, sports, betting, lottery |
As
Turkey gets more integrated to the global economy,
more companies in this category are expected to emerge.
Football is the biggest sportive
fun for Turks. Majority of Turkish men are very fond
of the football clubs they support.
Football clubs’ budgets
are approaching the European average. For example,
Fenerbahçe, with 25-to-30 million fans, is
about to have an annual budget of US$ 100 million,
owns a contemporary stadium worth around US$ 120 million
and of capacity of 55,000 people, operates its own
TV channel which has a significant share, has stores
around the country and Europe in which the Club’s
products are sold and significant income is generated.
Football matches in Turkey are
broadcast by an encrypted-TV channel and the relevant
company (Digiturk) so far has paid hundreds of million
of dollars to the industry.
Sponsors contribute tens of millions
of Dollars in return for advertisements.
Majority of Turkish football fans are inclined to
purchase the products/services of companies which
sponsor the clubs they support.
Thousands of people are employed
by the industry.
Moreover, licensed betting
companies make hundreds of millions of Dollars per
year some portion of which is transferred to the football
industry.
The National lottery
makes revenues worth hundreds of millions of Dollars
per year through several instruments and those instruments
are to be privatised this year (www.millipiyango.gov.tr).
Future operators are expected to need creative business
solutions to boost their market share. In this regard,
foreign investors having the expertise are expected
to enjoy the market.
Taking into account the above
information, investors which are able to create fans-oriented
business innovations are expected to enjoy the football-related
industries in Turkey.
Especially,
the "cars and car parts production"
segment, the new national export champion, is worth
analysing.
The Textile industry is another national
champion. The Industry now tries to increase its market
share in the EU and US through quality products in
spite of severe competitive pressure from China.
In addition, giant international pharmaceutical
companies have been increasing their investments in
Turkey.
In the area of food processing and packaging,
there will be big opportunities for new investments
once the EU's relevant rules come into effect in the
near future.
Finally, many environmentally-sensitive production
facilities in the EU are being relocated
to Turkey. Setting up a business which would aim at
helping those EU companies would also be very profitable.
For
the official information on current reserves/potentials
of Turkey, please visit www.mta.gov.tr.
Please note that Turkey has always underutilised its
mining/minerals reserves and has failed to properly
market them.
Now, the Turkish Government encourages
private sector and welcomes FDI companies to make
use of this capacity. The following facts may also
be of use to you.
Turkey
has always underutilised its agricultural potential
although it has a very rich cultivable lands. Especially,
organic production and bio-fuel plant production are
worth assessing. The agricultural reform which is
underway is expected to transform Turkey to one of
the important global suppliers. Livestock raising
in Turkey, with a population of 72 million, is inadequate.
Thus, appropriate investments to raise livestock (integrated
to dairy facilities) may be beneficial.
Turkish
transport system has been heavily based on land-transport.
However, the more the Turkish economy integrates to
the global economy, the more diversified the transport
systems will be. Taking into account the Government's
announced priorities, use of railway networks and
airways is expected to have a significant share in
the overall transport system. In this regard, some
low-budget- European airliners are keen to invest
in Turkey. Many EU companies are keen to participate
in the tenders to be held for the renovation of the
railway networks. In addition, as the foreign trade
volumes are being rocketed, Turkey’s ports and
freight-forwarding fleets become very important
(www.ulastirma.gov.tr)
Telecoms
sector is regulated and supervised by the Telecommunications
Authority and the rules are in line with the EU norms
as are in other economic sectors (www.tk.gov.tr).
Furthermore, 55% stake of the fixed-line operator,
Turk Telekom,
has recently been privatised and the company needs
investment of billions of Dollars in few years to
come.
In addition, there are 3 private mobile phone operators:
Turkcell
(the largest mobile phone operated owned by Turkey's
Cukurova group and small investors, Swedish-Finnish
Telia-Sonera and Russia's Telecom Alfa), Avea
( a company owned jointly by Turk Telekom and Italy's
Telecom Italia) and Vodafone
(Vodafone has recently acquired Tel-Sim).
Phone calls within and from Turkey are very expensive
compared to the international figures. There is a
very big room for internet-based cheap-phone call
companies
The ADSL and cabled TV infra-structures
are currently not sufficient.
Increasing numbers of tourists visiting Turkey and
foreigners residing in Turkey are also important stimulants
for telecoms businesses.
Taking into account the above and the fruits to be
enjoyed on the way to full EU membership, the sector
is very highly likely to encounter a severe competition
and the ones which will outsource their activities
well and supply creative/stunning services will do
much better than the others.
In this regard, there are big opportunities for the
potential investors who would provide those companies
with necessary services.
Finally, Turkey is a very big cellular phone
importer. The market potential is big. The market
is subject to radical changes due to imminent fierce
competition and emergence of new players such as Vodafone
and the foreign shareholder of Turk Telekom. Researchers
who analyse Turkish market and opportunities well
may manage to sell their ideas to phone producers
abroad and make them persuade to invest in Turkey.
