Post on 01-Apr-2015
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1111UKTI 11Turk1ey1
Turkey: More than you knowJune 2011
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“Turkey has high potential to become one of the world's largest economies in the 21st century”.
GDP: £580 bn World’s 17th largest economy Population: 76 Million - the youngest
population in Europe
Jim O’Neill, Chief Economist,
Goldman Sachs.
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Goldman Sachs used the following criteria:
Economic stability
Political maturity
Openness to trade and investment
Quality of education
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Modern Turkey OECD estimates that Turkey will be the third highest growing country after China and India by 2017.
Turkey ranks 15th among 153 developing countries in terms of FDI inflows.
Turkey grew by average of 10% during 2010 and 9% so far in 2011.
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Modern Turkey Urban: Turkey has the world’s 13th largest urban population (about 50 m).
Style: Recent poll states the Turks are the most image conscious people in Europe. Brand aware with a preference for foreign brands.
Education: Each year, 1.8 million students graduate from high school.
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Rapid movement from corner shop to retail mall.
Brand aware, will pay a premium.
Embrace the latest technology.
Turkey has 67 million GSM users.
Current Trends in the Market
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Open to Trade and Investment Joined the EU Customs Union in 1996. UK-Turkey trade volume £6.6 billion
2009, Turkey is EU's 5th largest export and
7th largest import partner More than 2,400 British companies
operating: Vodafone, Tesco, HSBC, BAE Systems
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Turkey: Doing Business
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Know how it operates European business ethics and modern
management practices. Highly (often foreign) educated
managers, growing skills base. Increasing use of English for business,
but fluency varies. People are very internationally-minded.
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Know how it’s structured Hierarchical business structure - identify
key decision-maker. Relationships and building trust are
critical and take time. Honour, respect and family are very
important.
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One in four of the largest companies in Middle East and North Africa are Turkish.
65% of industrial exports from the MENA region originate from Turkey.
47% of Turkey's trade is with the EU. Turkish contractors are the second biggest
globally after China.
Know the opportunities
UKTI Turkey
Turkey: Sectors of Opportunity
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Oil and Gas Market Size: £640m total investment
for Exploration & Production operations Market Growth: By 2020, £85bn
investment in Energy of which £9.6bn in Oil and Gas
Opportunities: Black Sea Exploration, Nabucco, Projects in Iraq, BTC
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Construction
Market Size: £14.6bn Market Growth: Average 21% growth Opportunities: Third country projects; EU
funding; high-end, innovative project design, planning and specialist services; and PPP projects.
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Environment and Water Market Size: £81bn investment
required, covering waste-water treatment facilities and solid waste.
Market Growth: Both sectors have grown over 6% annually last 5 years
Opportunities: Waste water and solid waste treatment, air pollution, carbon management.
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Financial and Insurance Services Market Size: The banking and
Insurance sectors are worth £272bn Market Growth: Public-Private
Partnership, individual insurance, private banking
Opportunities: Financing infrastructure projects
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Defence Market Size: 9th top importer of
defence equipment with £2.6 bn budget Market Growth: Expanding and
improving indigenous defence industry. Opportunities: High level of
production technology & improvement and potential in research initiatives.
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Aerospace and Airports Market Size: 45 operational airports.
Total annual traffic figure is 45 million PAX.
Market Growth: Air traffic growth at 10% pa, higher than EU average, Technical Services.
Opportunities: Airport Infrastructure. 3rd Istanbul Airport announced.
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Railways Market Size: Massive network expansion
plan announced early 2011. Market Growth: 2.297km track, 3 railway
terminals, signalization by 2012. Opportunities: Consultancy, high-speed
system specialists, rail equipment suppliers, security and signalling specialists
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Automotive
Market Size: Total vehicle production in 2009 - 884,466 units (commercial vehicles:373,535 units).
Market Growth: 15 firms manufacturing motor vehicles, 4000 auto-parts manufacturers.
Opportunities: Growth in R&D, Design & Technology Management
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Marine Market Size: £1bn from new builds,
£700m from repair and maintenance Market Growth: 78% growth in
number of shipyards since 2002 Opportunities: New marinas, mega-
yacht design consultancy, defence
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Ports Market Size: 176 ports with a 350m
ton handling capacity Market Growth: 300% capacity
increase in the next 20 years Opportunities: Privatisation, BOT
Container Port Projects, Re-design of existing Ports & Terminals
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Education and Skills Market Size: £330m. EU IPA, IBRD Funds for
National Education Structural Development
Market Growth:30m primary, secondary, tertiary education population. Population increase rate 2%
Opportunities: Corporate Training, Business English, Continuous Personal Development, Vocational Training
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paul.hardy@fco.gov.uk Second Secretary Trade and InvestmentUKTI, Ankara
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