All Posts By


How can Coronavirus Spread Impact Global Business?

By Business in Turkey No Comments

Coronavirus spread is not only threatening people’s health, but it has also become a risk for world economies. Due to the virus, China’s Asian neighbors and commodity exporters will also face difficulties, according to economists.

What is Coronavirus, and what is the situation now?

“Coronavirus is a virus that causes diseases in birds and mammals. It causes respiratory tract infections, which are generally not serious but have a risk of death, diarrhea in cows and pigs, and upper respiratory tract diseases in chickens.” as it is defined on Wikipedia. However, the current Corona Virus outbreak is more than this, according to scientists, and has enormous effects on human life and business life around the world but mostly on China at the moment.

The Chinese scientists are currently working on developing the vaccine to this virus, which is spreading inevitably fast. Together with government scientists in China, the United States and Australia, as well as those working at Johnson & Johnson, Moderna Therapeutics, and Inovio Pharmaceuticals, are all engaged. As of 30.01.2020, 170 Chinese citizens lost their lives due to the “new coronavirus,” and around 7.711 people are confirmed to have the infection.

All the countries around the world are on alert and warned by the World Health Organization to take action against the SARS-like virus, and it has been confirmed to be detected in almost 20 countries at the moment, and the WHO declared a global health emergency.

coronavirus spread

coronavirus spread

The economic impact of coronavirus spread

Asian stocks and currencies fell on January 30 as the number of people who died rose, and more cases were reported worldwide. The effects of the virus are already severely impacting China’s economy, the second-largest in the world, as companies cut back on business travel and tourists cancel trips during the traditional Lunar New Year holiday period.

A government economist said the crisis could reduce China’s first-quarter growth by 1.5-2% or less as the crisis affects sectors ranging from mining to luxury goods.

Also, it is stated that the outbreak will create a drop in Chinese tourism revenues in other parts of Asia, especially in Hong Kong and Thailand.

Turkey is among the major trading partners of China. In 2019, Turkey 19.1 billion dollars while imports with China, exports were $ 2.6 billion. Since 2002, the amount of foreign direct investment from China to Turkey reached $ 1 billion 38 million. The number of Chinese tourists came to Turkey last year to 450 thousand. Tourism is expected to be negatively affected at the first stage due to coronavirus.

As a result, tourism all over the world, including Turkey, will have a great loss since the Chinese government banned package tours outside China for a month, which can be extended later.

As economist Eswar Prasad, former head of the International Monetary Fund’s China unit stated, “A broader spread of this disease has the potential to disrupt travel, trade and supply chains throughout Asia, with knock-on effects on the world economy, since Asia is now a key driver of global growth.”

On the other hand, a weakening of the Chinese economy would affect oil demand as the country is the world’s largest importer of crude oil – importing a record 10.12 million barrels per day in 2019 – and the world’s second-largest oil consumer, according to data from the General Administration of Customs.

Important events canceled due to the coronavirus spread

Xiamen Natural Stone and Technologies Fair, one of the world’s largest natural stone fairs planned to be held in China on 16-19 March, and the World Indoor Athletics Championship, which is planned to be held in Nanjing, China on 13-15 March, were delayed due to the coronavirus outbreak.

What are the reactions of important brands?


Honda Motor stopped production until February 9 to support efforts to prevent a coronavirus outbreak at two motorcycle factories in China. No explanation was made as to when production will resume at Honda Motor’s 3 automobile plants in Wuhan. The facilities were planned to be operational again on February 3 after the Chinese New Year holiday.


The Japanese automotive giant announced that it had stopped its production in Tianjin and Guangdong in China until February 9. In addition to Honda and Toyota, PSA Group, owner of General Motors, Nissan, Renault, and Peugeot, also stopped production in China due to coronavirus.


The company authorities have stated that they are following the situation in China very closely. They have reduced the number of working hours of their employees in Apple stores in China and limited their travels. The factories which are producing for Apple have stayed closed for more than it is expected, and the mass production, which is planned to start in the third week of February, may be delayed due to the coronavirus.


Google is shutting down all its offices in China temporarily, which are located in China, Hong Kong, and Taiwan, according to the technology website, The Verge.


Together with other U.S. companies, Facebook has also restricted travel to China to keep its employees safe. As Business Insider stated, the company stated that they would not allow the staff to go to China unless it is necessary, they would have a special permit requirement for the staff who had to go to China and would be very sensitive to the issue.


Ikea announced that they have temporarily closed all its stores in China due to the coronavirus outbreak. They have 30 stores around China, and half of them closed while the rest shortened their opening hours.


Kevin Johnson, CEO of Starbucks, told CNBC that they have closed more than half of its stores in China and wouldn’t hesitate to close more if necessary. The remaining Starbucks shops required people to have their temperatures taken and to wear masks.

International Flights and Transport Links

Turkish Airlines, British Airways, American Airlines, Air Canada, Iberia, Air France, KLM, Lufthansa, Delta Airlines, El Al Israel Airlines, Seoul Air of South Korea and Lion Air Group of Indonesia have canceled, suspended or reduced their flights to and from China because of coronavirus. Other airlines have also started to cancel or suspend their flights to and China since the death toll and number of infected cases increase.

Kazakhstan government declared that it had stopped issuing visas to Chinese citizens and will cut all primary transport links with China. Passenger train services, cross-border bus journeys are suspended as well as regular flights between the two countries.

The government of Russia has also announced that they will limit the number of passenger trains starting from 31.01.2020 and will be active between Moscow and Pekin only.


Within the light of all this information, the coronavirus spread may have inevitable consequences on the world’s economy, and these consequences may be negative or positive for some countries, depending on their situation. Depending on the progress of the spread of the coronavirus, the world’s economy may experience great changes.

Although the negative effects have been stated in this article, it should be noted that for some countries which are competitors with China in terms of production facilities such as Asian countries, Middle East countries and Turkey, etc., this outbreak may have a positive effect. In the case of a nationwide quarantine in China, all the production facilities and factories would be shut down, and manufacturing would stop. At that point, international brands would look for other alternatives to continue their production. Obviously, among all the other countries, Turkey has an outstanding advantage of its location.

Not only Turkey’s geopolitical position puts the country one step forward, but also production facilities of high quality and high capacity, cultural similarities between European countries are all its advantages compared to Asian and Middle Eastern countries. As a result, Turkey may be the new production hub for important international brands who would like to benefit from the ease of transport, accessibility of the manufacturers, cheap workforce, and customs union with the European countries.

Over 84,000 New Companies Founded in Turkey in 2019

By Business in Turkey, News about Turkey No Comments

In 2019, 84.102 new companies founded in Turkey. More than 86% of the newly established enterprises were joint-stock companies, while 13.6% were joint-stock companies.

The three main areas of activity of the new enterprises were wholesale and retail trade, manufacturing, and construction.

In 2019, 12,634 new companies with foreign partners were established. Most of them, approximately 35,794, opened in Istanbul, followed by the capital Ankara with 8,673 and the Mediterranean city Antalya with 3,778.

Also, during the year, 1,161 new cooperatives were established.

At the same time, the number of newly created enterprises rose by 23.49% year-on-year in December to reach 7,849 enterprises on a yearly basis.

Within the framework of Turkey’s new strategy, it will provide various incentives and support to the business community and professional managers to support new technology companies. Minister of Industry and Technology Mustafa Varank announced Turkey’s Industry and Technology Strategy previously for 2023, a roadmap that will help the country become competitive in critical technologies and a significant player in the global league.

The strategy outlines the steps that will increase Turkey’s competitiveness, strengthen its economic and technological independence, and improve value-added production in the industry. It also covers policies to encourage and support the development of the high-tech entrepreneurial ecosystem.

Through the encouragement of business people and professional executives to support new technology companies, the number of angel investors will be more, and the utilization of mass financing will be increased.

Provisions will be established to ensure that angel investors do not limit themselves to financing, and they will also transfer experience and provide actionable advice to entrepreneurs. Thanks to their support and experience, the number of new companies founded in Turkey will increase in 2020.

If you would like to find out how to set up a business in Turkey in 8 steps you can check this article.


KOSGEB Supports Turkish Women Entrepreneurs

By Business in Turkey, News about Turkey No Comments

The Administration for the Development and Support of Small and Medium-sized Enterprises (KOSGEB) provided a total of 1 billion 5 million 363 thousand 551 TL between the years 2015-2019 to 55.046 enterprises owned by Turkish women entrepreneurs.

According to the information collected from the KOSGEB data for the year 2020, the institution has intensified its efforts to increase women’s participation in the workforce. There has been a significant increase in the support provided in the entrepreneurship of women.

The President of the KOSGEB, Professor Uzkurt, said that by 2018, they had provided almost 220 million Turkish liras of entrepreneurship support to 11,000 women entrepreneurs. Thus those 11,000 women started their businesses.

He said that many women entrepreneurs developed their businesses in a short time with the support of KOSGEB, and some of them even started importing abroad. At this point, the President of KOSGEB stressed the importance of their support to women entrepreneurs as women entrepreneurs have countless success stories in their support.

The total amount of support for women entrepreneurs, reached to 57.933.100 TL in 2015, increased five times in 5 years and reached 298.285.791 TL by the end of 2019.

The number of businesses owned by women entrepreneurs receiving support has also increased three times in 5 years. While this number was 5.681 in 2015, it rose to 14.978 in 2019.

Within the framework of the KOSGEB support programs, a total of 1.363,000,551 TL was granted to 55.046 enterprises owned by women entrepreneurs in the period 2015-2019, which will be more in 2020.


If you would like to read more news about Turkey you can visit our blog page.

Turkey is Still a Secure Hub for Investors

By Business in Turkey, News about Turkey No Comments

The Regional Director of the Islamic Development Bank (IDB) Group in Turkey, Salah Jelassi, commented on the IDB’s new strategies and Turkey’s current position. “In a climate where investment opportunities are limited worldwide, Turkey continues to be a secure hub for investors,” said Sallah Jelassi, Regional Director of the Islamic Development Bank (IDB) Group in Turkey.

Jelassi gave an interview to the Anadolu agency, where he commented on global economic issues, the IDB’s new strategies, and Turkey’s current position and future expectations.

“It is difficult to find a country with a strategic position like Turkey’s,” he said, adding that Turkey carries a very high potential to achieve its growth and development objectives.

He went on to discuss global economic problems and stressed that “political issues have created a global crisis. Jelassi said that it is mainly developing countries that are affected by it.

He said that Turkey, compared to other developing economies, has more significant potential.

“We ended 2019 with good news, and I hope this positive trend will continue in 2020 and beyond. In a climate where investment opportunities are limited worldwide, Turkey continues to be a safe port for investors,” he added.

Jelassi went on to discuss Turkey’s activities on the African continent.

“Turkey, which has developed an action plan for Africa, is on the right track. Many member countries of the IDB Group are grateful to Turkey. We believe that the experience of Turkish businessmen will help to realize the potentials of these countries,” he concluded.

As Jelassi stated Turkey continues to be a secure hub for investors in 2020 as well.


If you would like to read more news about Turkey you can visit our blog page.

Canal Istanbul: New Landmark Project of Turkey

By News about Turkey No Comments

The Turkish Government is working on a new project these days. According to the Turkish President, the European side of Istanbul may soon find itself transformed into an island. As Hürriyet Daily reports, Recep Tayyip Erdogan has reaffirmed his intention to dig a deep canal through the city linking the Black Sea and the Sea of Marmara. “We are going to launch the Canal Istanbul very soon,” said the Turkish leader, considering that “it is not possible to reduce traffic on the Bosphorus.”

As Mr. Erdoğan stated; “We, therefore, need an alternative seaway project. All the studies have been done, and we will have no problem financing or building this canal,” the Turkish leader concluded, without convincing the opposition press, which questions the argument that the project will relieve traffic on the Bosphorus. An academic specializing in the issue explained in an interview with the online media outlet Gazete Duvar: “We are living in a period when traffic on the Bosphorus is falling, and the number of accidents is also falling. We are not in a crisis, but on the contrary, in a reduction of risks […] This project does not meet a logistical or urbanistic need, it is only a way to open a huge market to the real estate sector in a sector of Istanbul that is still preserved from construction”.

The ambition is to create a canal about 40 kilometers long, 150 meters wide and 25 meters deep, at an estimated cost of more than 11 billion euros. On either side of this canal, the Turkish president imagines building a “new city.”

The main argument is that this artificial strait would ease traffic on the Bosphorus, one of the busiest waterways in the world, with its risks of collision and accidents. The government also talks about creating 10,000 direct jobs, contributing to the growth of the Turkish economy, and strengthening Istanbul’s position as a world center for maritime trade. The Istanbul Canal is presented as a prestigious project, “one of the biggest projects of the century, incomparable to the Panama Canal or the Suez Canal,” Tayyip Erdogan even said.


Construction of Metro Line for New Istanbul Airport Started

By News about Turkey No Comments

The Turkish authorities have begun construction of a new metro line for New Istanbul Airport which is between Istanbul’s financial district, Gayrettepe, and theNew Airport, as the Daily Sabah daily reported on Sunday.

“We did not neglect the transport problem when we built the New Istanbul Airport. In addition to bus transport from the city, we have started construction of a metro line connected to all public transport (in Istanbul),” said the President Mr. Erdoğan at the opening ceremony of the construction.

Mr. Turhan, the Minister of Transport and Infrastructure, stated that “the construction of Istanbul Airport simultaneously with the construction of the airport’s infrastructure during the construction of the check-in area has started. Stating that they have established the metro infrastructure between Gayrettepe and Istanbul Airport as a ministry, Turhan said: “Our goal is to eliminate the shortage of transport means to Istanbul Airport by offering this line service in 2020. We are building the infrastructure of the railway system between the new airport and Halkalı. We also completed the delivery of the square in March. In 2022, they will be in operation,” said the minister.

Istanbul Airport is located on the city’s Black Sea coast. Passengers can currently take a one-and-a-half-hour bus to the airport or pay about 100-150 lira ($17-25) to taxis in the central districts.

52.6 million passengers, including 12.7 million domestic passengers, used Istanbul Airport in 2019, stated in Daily Sabah.


If you would like to read more news about Turkey you can visit our blog page.

1 Million Electric Cars in Turkey Foreseen for 2030

By News about Turkey No Comments

According to the Minister of Energy and Natural Resources Fatih Donmez, it is predicted that more than 1 million electric cars in Turkey will be used in 2030.

Along with the local electric car production in Turkey, Donmez says they foresee that by 2030, “1 million electric vehicles will be on the roads. The government will evaluate the effect of the electric cars’ charging points on the distribution network, and we hope to put them into practice.” he stated.


Besides the electric cars, the Minister Mr. Donmez noted that “We’ve received 1,300 applications for roof-top installations for roof-top power plants, reaching 800 megawatts from almost 900 industrial plants and 10 megawatts from residences.” He continued.

In his statement, the Minister added: “In the last five months of 2019 alone, 696 industrial or commercial establishments have applied to electricity distribution companies with a total installed capacity of 432 megawatts. In homes, 1.187 applications have come in, there is a 10-kilowatt limit in houses, and we have received one application of approximately 11 megawatts. In total, we received 443 megawatts of applications for roof-top applications. In addition, based on the previous system, the number of applicants to install a solar energy system on their roofs is 5,000,402. This corresponds to 1.104 megawatts. However, we have reached 6,206,206 megawatts in all unlicensed GHG applications.”

To provide uninterrupted, high-quality electricity, the government will have invested approximately 41 billion Turkish liras in the current transmission and distribution lines during the implementation period 2016-2020. Additionally, as a result of the reforms carried out in the framework of the strategy to become an energy trading center, an investment of more than $100 billion has been made in the energy sector. Studies on the preparation of plans and programs for the implementation period covering the years 2021-2025 for the power sector are also underway.

As the Minister of Energy and Natural Resources stated there will be more than one million electric cars in Turkey by 2030 and more people will be benefiting from solar power in their houses and workplaces.

If you would like to read more news about Turkey you can visit our blog page.


2019: Golden Year for Turkish Exporters

By News about Turkey No Comments

Turkish exporters were supported with 3.2 billion TL ($543.2 million) in 2019, which is a record in the history of the Republic, as the Minister of Trade stated.

“We will offer a support budget of 3.8 billion TL to our exporters for the export of goods and services in 2020,” Ruhşan Pekcan told the Anadolu agency.

Pekcan said her ministry is expanding its financial support every year to create new exporters so that exporters can follow their global competitors and assist exporters in creating their brands.

The support is provided in three phases, export preparation, global market update, and the creation of brands and designs, she explained, adding that most of the support packages are also available for service exporters.

The year 2019 has been a “golden year” in terms of support for exporters, Pekcan noted.

“In terms of support payments, we broke the record in the history of the Republic and obtained the highest public support to date for exports, with a total of 3.2 billion lire, of which 2.4 billion lire was for good exports,” she stated.

“In 2020, we have a total support budget of 3,800 million lire for our exports of goods and services, of which 3,100 million lire are for the export of goods.” Our objective is to support our exporters using the entire budget. ”

Applications for support began January 1, she noted.

Last year, 685 million TL were provided under the Turquality program, which supports companies in their branding efforts to become a global player in international markets with their brands, to build a positive image of Turkish goods and services by creating strong brands.

“Currently, 312 companies with 325 brands, 199 of them in the Turquality Program and 126 in the Marka Program, are receiving support,” said Pekcan.

The minister noted that Turkey especially encourages design companies and design competitions, believing in the power of design, which is a crucial element for value-added exports.

“Fifteen design companies, four design offices, and 19 design competitions are supported,” Pekcan said.

“Payments in design support have exceeded 150 million TL in 2019. The most significant indicator that our ministry’s efforts are yielding results is that while the unit price of Turkish exports in 2018 was $1.33, the unit price of exports of the companies that benefited from design support was $13.1”.

Around 13.550 companies were supported with 624.1 million TL ($106 million) in international fairs in 2019, while 170 million TL ($28.8 million) of support was used by Turkish exporters for export company announcements, brand, office, store and warehouse expenses, she continued. In 2019, the ministry also spent 80 million lire ($13.5 million) on market research, membership in e-commerce websites, purchasing committees, and acquisition financing.


EBRD plans to increase investment in Turkey in 2020

By Business in Turkey, News about Turkey No Comments

investment in TurkeyAfter achieving high investment volumes in challenging market conditions last year, the EBRD plans to increase its investment in Turkey in 2020 as the economy prepares to recover.

2019 has been a difficult and challenging year for the Turkish economy. It experienced a weakening of overall asset quality in the banking sector and a reduction in debt levels among creditors. The risk of sanctions and market instability undermined investor confidence, leading to unsatisfactory levels of public and private investment.

Within this context, the EBRD successfully provided € 1 billion of debt and equity financing for 35 projects in Turkey.

Arvid Tuerkner, EBRD Managing Director for Turkey, said: “In a challenging business environment, our business volume in Turkey in 2019 remained unchanged from the previous year. Last year we provided EUR 1 billion of financing in various sectors and were able to support our clients to ensure business continuity and growth opportunities. The vast majority of our investments were made in the private sector, and half of these investments were dedicated to Turkey’s sustainable development program, the country’s blueprint for implementing global development goals.

Mr. Tuerkner noted that the EBRD anticipates the Turkish economy to recover in 2020: “As investors seek financing, we will aim to support even more investment projects that stimulate the economy, create jobs and improve people’s lives.

In 2020, the Bank will also aim to enlarge its Women in Business program and focus on attracting new investors under this initiative. It will maintain its involvement with the Turkish government to deploy energy efficiency technologies in schools and the liberalization of the railway sector. The EBRD will keep its focus on renewable energy projects and make an investment in Turkey in this field as well.

The Bank will also investigate opportunities for Islamic financial products and expects an increase in issues from Turkish companies. Its involvement will be in line with the Bank’s recently approved country strategy, which focuses on building economic sustainability, encouraging a knowledge-based economy, enhancing inclusiveness, and promoting the shift to a green economy.

A large part of this financing is expected to be in Turkish liras, as in 2019. About one-third of the Bank’s financing in 2019 was tied to the local currency and the development of local capital markets to support businesses in reducing foreign exchange risks.

One such loan in Turkish Lira, equivalent to US$100 million, to energy group Enerjisa Enerji, significantly contributed to the improvement of the capital market in Turkey through its link to TLREF, a new overnight risk-free benchmark rate that the EBRD had helped develop.

The EBRD celebrated its 10th year of operation in Turkey in 2019. Twelve billion has been invested in various sectors of the Turkish economy since 2009, with almost all of it in the private sector. The EBRD’s €6.7 billion portfolio in Turkey is the largest of the 38 countries in which the Bank invests. The EBRD is a major investor in Turkey.

In the energy sector, the Bank also supported the expansion of a geothermal power plant and invested in a stake in Ictas Holding’s renewable energy activities in 2019.

The EBRD’s equity-related transactions in Turkey focused on the technology sector, with investments in Modanisa, the online shop for Muslim women’s clothing, and the Obilet bus ticketing application, as well as others.

The Bank also provided incentives to Turkish exporters such as white goods manufacturer Arcelik and dried fruit and nut producer Isik Organic and May Seed, exporting sunflower seeds, maize, cotton, and beans.

In response to the request to support the improvement of port facilities, the Bank has financed four Turkish ports: an innovative logistics center to be developed by Arkas Holding in Kocaeli, Asyaport and the port of Tekirdag through loans – all three in the Marmara region – and the international port of Mersin in the south of the country by taking part in a Eurobond issue.

While bank loans continued to be tight, the EBRD also investigated new ways to increase financing for Turkish companies and supported the leasing company QNB Finansleasing and the factoring company TAM Factoring, as well as the extension of a risk-sharing agreement with Turkiye Sinai Kalkinma Bankasi (the Industrial Development Bank). Turkey or TSKB).

Besides, the Bank’s small business team launched 113 local and nine international consultancy projects with small and medium-sized enterprises (SMEs) in 20 provinces, helping them to improve their performance and growth.

The EBRD achieved a record level of investment impact in all its regions in 2019, honoring its promise to enhance both the quality and quantity of its investments in 38 economies on three continents.

The Bank funded an unprecedented 452 individual projects, up from 395 a year earlier. Funding reached more than EUR 10 billion for the first time in the Bank’s history, rising from EUR 9.5 billion to EUR 10.1 billion.

EBRD funding for the green economy reached a record €4.6 billion or 46% of total business volume in 2019, underlining the EBRD’s strong support for the global climate agenda. They aim to continue their investment in Turkey in the future as well.


Latest Projects of Turkey in 2020

By Uncategorised No Comments

The Turkish government is supporting the companies to develop new projects in their industries and we have gathered some of them here. In this article, you will read about the latest projects of Turkey in 2020 in the following sectors: energy, environment, transport, industry, automotive, and innovation.



Energy, Environment, and Transport

Solar panels: The Minister of Energy and Natural Resources announced that the potential for rooftop solar panels is 4,000-5,000 MW. To date, the Ministry has registered 900 applications from industrialists for a total capacity of 800 MW and about 1,300 applications from individuals for a total capacity of 10 MW.

Construction of a boron fuel production plant: The Minister of Energy and Natural Resources announced that a boron fuel production plant, in which Turkey holds more than 70% of the world’s reserves, would be built within two years.

“Kanal Istanbul”: During the Congress on Intelligent Cities in Ankara, the Turkish President indicated that Dutch, Belgian, and French companies were interested in the “Kanal Istanbul” project. As a reminder, the agenda of this project is accelerating, and calls for tenders will soon be launched. The final version of the environmental impact study has been adopted by the Ministry of Environment and Urban Planning. Requests for modifications had been made to the Ministry of the Environment as well as to the CIMER (Communication Centre of the Presidency of the Republic).

Industry, Automotive, and Innovation

Industrial production up in November: According to TürkStat, the industrial production index recorded a 5.1% rise in November compared to the same month in 2018 and a 0.7% increase from the previous month.

Automotive: The production of the automotive sector amounted to 1.46 million vehicles produced in 2019 (a decrease of 6%). The production of passenger vehicles decreased by 4% and that of commercial vehicles by 9%. Over the same period, sales on the domestic market fell by 23% to 419,909 vehicles. However, this figure is above market forecasts (350,000), thanks to a recovery in the last quarter of 2019.

Startup/Technology: The Turkish startup Getir, which offers a fast delivery service for groceries via an application (4 million users and nearly 55 M USD of turnover in 2018), has raised 38 M USD of funds from a group of Turkish and foreign investors led by venture capitalist Michael Moritz, a partner of Sequoia Capital. Getir, created in 2015 and based in Istanbul, Ankara, Izmir, Izmit, and Bursa, intends to develop its activities abroad, initially in London, Sao Paola, Paris, and Mexico City.

If you would like to read more news about the latest projects of Turkey you can visit our blog page.

1.35 Million Houses sold in Turkey in 2019

By News about Turkey No Comments

Around 1.35 million houses were sold in Turkey in 2019 as the Turkish Statistical Institute (TÜİK) announced on Jan. 15.

House sales decreased by 1.9% or 26669 units in 2019 compared to the previous year, according to data from the Turkish Statistical Institute (TurkStat).

Approximately 511,700 houses were sold for the first time from January to December, while the rest were second-hand sales.

Istanbul – Turkey’s largest city in terms of population and one of its main tourist centers – has taken the most significant portion of house sales with 17.6%, a total of 237,675 houses in the year.

Official data showed that the capital Ankara and the Aegean region of Izmir achieved 132,486 (9.8%) and 79,221 (5.9%) of the total housing sales, respectively.

Mortgage sales of houses reached 332,508, representing a 24.7% share of all sales for the same period.

In December 2019, house sales increased by 47.7% to about 202,000 units – 75,480 new and almost 126,600 used – on an annual basis.

Houses Sold to Foreigners

Last year, around 45,500 houses were bought by foreigners, an increase of 14.7% compared to 2018.

Istanbul was the leading city for foreigners with 20,857 property sales in 2019, while the Mediterranean seaside resort, Antalya (8,951 sales), the capital, Ankara (2,539 sales), and the northwestern region, Bursa (2,213 sales) followed.

Iraqi citizens were the primary buyers of Turkish properties, with 7,596 house sales. Iranians, Russians, Saudis, and Afghans were among the top five.

In December 2019, foreigners bought about 5,300 houses, an increase of 16.2% on an annual basis. Nearly 900 houses were purchased by Iraqis, 76 by Iranians, and 362 by Russians.

Interest Rates Have A Negative Impact on House Sales

Ahmet Erkurtoglu, deputy head of the Association of Entrepreneurs of the Anatolian part of Istanbul, said: “Housing sales have exceeded the 100.000 barrier in recent months and broke through the 200.000 barrier last December for the first time,” he said.

Lower interest rates for housing loans and deposits have had a positive impact on house sales, he underlined.

The Turkish central bank has gradually lowered interest rates to 12% from 24% in eight monetary policy meetings in 2019 which helped houses to be sold in Turkey.

He estimated that the construction sector would concentrate on urban transformation projects in 2020 and will build new houses worth up to 1 million Turkish liras (about $169,500).

“We can again sell between 1.2 and 1.3 million houses in 2020, and we aim to sell 60,000 houses to foreigners in 2020,” he noted.

If you would like to read more news about Turkey you can visit our blog page.

Export Grows with Chemical Industry in Turkey

By Business in Turkey, News about Turkey No Comments

The chemical industry in Turkey, which set a record in 2019 with the export of 20.6 billion dollars, became the second most exported sector in the past year. The chemical industry has drawn attention to the increased export performance, exporting more than 3 billion dollars in 2019, among the industries increasingly growing 18.54 percent of exports to Turkey and could be a growing industry.

The chemical sector, which stands out as the locomotive sector that exports to most countries among all industries, became the leader in this field with its exports to 208 countries and regions in November. The sector’s exports in terms of quantity in 2019 amounted to 26 million 539 thousand tons, with an increase of 35.83%. Spain, which is one of the countries with the highest export volume in the chemical industry, ranked first with exports of 1 billion 62 million dollars while the Netherlands ranked second with exports of 1 billion 32 million dollars, and Iraq ranked third with exports of 1 billion 12 million dollars.

Assessing the year-end exports of the chemical industry, the President of İKMİB, Adil Pelister, said: “Our chemical industry exports broke an all-time record in 2019. We have been very successful in exceeding our $20 billion targets with exports of $20.6 billion. Also, among the sector’s exports of more than 3 billion dollars in 2019, we were the fastest-growing sector of Turkey, with export growth of 18.54 percent. Our sector’s export in terms of quantity in 2019 was 26 million 539 thousand tons, with an increase of 35.83%. We beat our monthly export record with 1.94 billion dollars of exports in October 2019. During 2019, every month in a row as Turkey’s second-largest export sector, we have been leading our second permanent goal. In the chemical industry in Turkey, by taking a share of 11.44 percent of Turkey’s total exports, we have brought significant added value to our country. In 2020, the first sector, while maintaining our position as the second most exported sector of Turkey, Turkey’s exports, and we aim to increase our contribution to growth. Besides, we plan to conduct our activities more broadly following the roadmaps we will create for our sub-sectors. »

“Chemicals is a strategic industry with high growth potential.”

Stressing that the chemical industry is growing every year and that its growth potential is high, this is a strategic sector. As İKMİB, we successfully represent the Turkish chemical industry worldwide, with 16 subsectors of plastics, paint, cosmetics, medicine, rubber, organic, and inorganic chemicals. In this context, during 2019, with around 500 exporter companies, we participated in 14 national trade fairs and 11 international trade fairs. We visited 4 organization information stands, conducted five sector trade missions, 12 recruitment committees, 4 TTG (Turkey Promotion Group), three seminars, and continue in the framework of 7 international competitiveness development projects (URGE). We organized 3 URGE delegations and 3 URGE training and six workshops related to different sectors. In addition, we held our 8th event on the R&D projects market, the fourth of our IKMIB Export Stars award ceremony, and the Industrial Design Competition. »

The 2023 chemical export target is $30 billion.

Noting that they aim to export more than $22 billion in the chemical industry by 2020, Pelister said: “As part of our country’s 2023 targets, we aim to increase our sector’s exports to $30 billion and achieve a 13 percent share in the $226.6 billion export target. To achieve this export target, our Ministry of Commerce is forwarding our requests to the relevant ministries. This includes: facilitating our exporters’ access to financing, ensuring the digital transformation of the chemical industry, energy costs, and TCS, creating container lines, increasing fair participation rates, and investing in petrochemical plants.

The Star Refinery facility, opened in 2018 and operating in the petrochemical sector, has made a significant contribution to our industry in terms of chemical exports. Our chemical exports are also positively affected by the investments made in our industry. We need six new petrochemical plants. We expect investments in petrochemicals and pharmaceuticals to begin. However, it is essential for our exporters that efforts to update the customs union agreement with the European Union are completed as soon as possible. As exporters of chemicals, we will continue to contribute to the development and growth of our country. »

Spain was the most exported country in 2019

In analyzing the distribution of chemicals and chemical products exports by country in 2019, Spain ranks first with exports of $1.62 billion, while the Netherlands is second with exports of $1.32 billion and third Iraq with exports of $1.12 billion. Italy, Egypt, Germany, the United States, Greece, England, and Malta are in the top ten.

EU countries ranked first in chemical industry exports in 2019

In 2019, the European Union ranked first among the countries in which the chemical industry exports were made, with an exportation of 8.51 billion dollars and an increase of 27.24%, while the countries of Asia and the Near and Middle East were second with a rise of 3.9 billion dollars and an increase of 24.56%. Other European countries were third with exports of 2.66 billion dollars, and a rise of 17.16%, North African countries were fourth with exports of 1.85 billion dollars and an increase of 7.78% and other Asian countries with exports of 1.36 billion dollars and 1%, It ranked fifth with 12 decreases.

Most of the “plastics and products” were exported

The “plastics and products” product group ranked first in the chemicals and chemical sector’s exports in 2019, with an increase of 4.12% and exports of $6.12 billion and had a 29.67% share of the industry’s total exports. The group of “mineral fuels, oils, and mineral products” with an increase of 85.78%, exports of 6.08 billion dollars and a share of 29.46% and an increase of 0.91%, exports of 1.82 billion and 8%, The group of “inorganic chemicals” followed with 82 actions. The other most exported product groups in the chemical industry in Turkey were respectively “rubber, rubber products,” “essential oils, cosmetics and soap,” and “pharmaceuticals.”


Turkey’s CB Cuts Interest Rate More Than Expected

By Business in Turkey, News about Turkey No Comments

The Central Bank of Turkey cut its benchmark interest rate by 75 basis points, beating most economists’ forecasts and risking a possible liquidation of the pound.

The Bank of Ankara cut its one-week lending rate to 11.25% from 12%, according to a decision taken on 15th January. Turkey’s primary interest rate, minus inflation of 11.8%, is now negative, making assets denominated in lira less attractive.

In its reasoning, the central bank cited improved inflation prospects, weak investment, and weak global economic activity.

As the President Erdoğan said earlier Thursday that the central bank had another opportunity to cut rates at today’s meeting.

Economists were almost evenly divided on whether the central bank would cut rates, according to polls conducted by Reuters and the state-run Anadolu news agency. Those expecting a cut more commonly predict a 50-basis point cut.

President Erdoğan claims that higher interest rates are inflationary, an opinion that is in contradiction with conventional economic theory. Consumer price inflation in Turkey accelerated from 8.6% in October but is less than half the levels reached in the aftermath of the currency crisis.

Economists predict that inflation could slow to around 9.5% in 12 months, according to a central bank survey released earlier in January 2020.

If you would like to read more news about Turkey you can visit our blog page.


Chinese Realme is Entering the Technology Markets in Turkey

By Business in Turkey No Comments

Following Oppo, Xiaomi, and Huawei, one more Chinese smartphone producer is preparing to offer its products to Turkish consumers in January 2020 in the technology markets in Turkey.

Realme will initially launch three new models on the Turkish market and will also offer accessories and other phone models in the coming period, according to the news.

Founded in May 2018 and targeting young consumers, Realme comes seventh in the global smartphone market. The company is headed by Li Bingzhong, the former vice president of another Chinese smartphone brand, Oppo. Realme operates in more than 18 countries, including China, India, Indonesia, Vietnam, Thailand, and Malaysia. It has been present in Europe in the UK, Spain, France, and Italy since May 2019.

The company also launched a Turkish website and introduced phone models. According to the company, three smartphone models identified as Realme C2, Realme 5 Pro, and Realme XT will be on the market in January.

Realme C2 – which has a range of features, including a 4000 mAh battery, 16GB of internal storage, fast charging, a display fingerprint sensor, and a 2 GHz Cortex A53 processor – will be priced at 502-670 TL on the Turkish market.

The Realme 5 smartphone works on the Android v9.0 (Pie) operating system. The phone is powered by Octa-core. It has 3GB of RAM and 32GB of internal storage. The display has a resolution of 720 x 1600 pixels and a pixel density of 270 PPI. A 5000 mAh battery supports the device. It will have a price of about 1,120-1,360 TL on the Turkish market.

The Realme XT 128GB smartphone runs on the Android v9.0 (Pie) system. The phone is powered by an Octa-core processor (2.3 GHz, dual-core) and has the Qualcomm Snapdragon 712 chipset. It has 8GB RAM and 128GB of internal storage. It is supported by a 4000 mAh battery. It will be sold for 1,899 TL in Turkey.

The Chinese company Oppo, the world’s fifth-largest smartphone manufacturer, entered the technology markets in Turkey in 2018, opening its Turkish office in Istanbul. Xiaomi, Oppo’s closest rival in China and on the world market, also launched its operations in the country in 2018.

If you would like to reach more news about Turkey, you can visit our blog page.


The world’s first hydraulic hybrid tugboat from Turkey

By News about Turkey No Comments

Sanmar built the world’s first LNG tugboat and the first autonomous vessel, which is the first hydraulic hybrid tugboat. Boğaçay XXXVIII appointed environmental tug, will join the Turkish fleet, and serve in Izmit.

The Sanmar shipyard in Yalova, one of the world’s leading Tugboat manufacturers, has innovated. Having built the world’s first LNG tug and the industry’s first autonomous vessel Sanmar has produced the first hydraulic hybrid tug with Advanced Variable Drive (AVD) technology. Sanmar launched Boğaçay XXXVIII on Saturday with a ceremony attended by the Minister of Transport and Infrastructure Cahit Turhan. The ship built at the shipyard Altınova will serve in the Turkish naval fleet.

The AVD system is defined as a fully integrated propulsion solution that allows the propeller speed to be adjusted independently of the speed of the ship’s diesel engines. Meanwhile, the tug’s floral designs emphasizing environmentalism were inspired by the famous artist Andy Warhol’s work “Flowers.” Sanmar, which has built 200 tugs in its Tuzla and Yalova shipyards, exports 75% of its production. The Sanmar shipyard, one of the world’s leading tugboat manufacturers, has also built the first LNG-powered tug and the first autonomous vessel.

The yard has also manufactured the first hybrid hydraulic tug with Advanced Variable Drive (AVD) technology. AVD is defined as a fully integrated propulsion solution that allows the propeller speed to be adjusted independently of the speed of the ship’s diesel engines. Boğaçay XXXVIII (38) was launched at the shipyard Altınova at a ceremony attended by the Minister of Transport and Infrastructure, Cahit Turhan, on Saturday.

The old tug has been exported to Mexico.

Boğaçay XXXI, which will replace the hybrid tugboat, was exported to Mexico. Ali Gürün said, Vice Chairman of the Board of Sanmar, “Our country’s fleet is rejuvenating with more technological vessels, and our country is earning foreign currency with this export.” Sanmar, which also provides guidance and towing service, has added the tug Boğaçay XXXVIII to its fleet in the bay of Izmit.

Ali Gürün said that it is a shipyard that develops LNG and stand-alone technology with the Rolls-Royce group and “hydraulic hybrid” technology with the Caterpillar group. The world’s first LNG tugs were commissioned in Norway and the first autonomous tug in Denmark. The first hydraulic hybrid tugboat will be put into service in Turkey,” he said.

Greener and more economical

Boğaçay XXXVIII developed with Caterpillar Propulsion has lower emission values and lower fuel consumption. The tug, classified by ABS and flying the Turkish flag, has been produced with fully computerized modeling. The system, which consists of two main and one auxiliary engine, a reduction gearbox integrated with the planetary gears and software to control the hydraulic pumps and motors connected to them, has been applied to the 38th brother of the Boğaçay series, which has achieved great commercial success abroad. Boğaçay, which has a length of 24 meters, a traction power of 70 tons and can rotate around its own axis, has a quenching capacity of 2,500 tons per hour. The tugboat is equipped with high-tech navigation devices; the tugboat can provide traction in all directions and continuously transmit this power from zero to one hundred percent.

Flowers by Andy Warhol

The floral motifs on the tugboat were inspired by the famous artist Andy Warhol in his work “Flowers.” Ali Gürün said: “Today, it is not only engineering goals that are sufficient for high technology and technical excellence. The environment, safety at work, employee comfort, and the aesthetics of the product are essential. The aesthetic design makes people’s lives more beautiful.”

Minister Turhan: Sanmar’s success is no coincidence

In his speech at the ceremony, Cahit Turhan, Minister of Transport and Infrastructure, stressed that the Turkish shipbuilding industry had become an important sector that can build environmentally-friendly ships using the latest technology.  He said: One of the best examples of this work is Sanmar’s latest product Boğaçay XXXVIII hybrid tugboat. Among other technological features of the tug, it must have the world’s first AVD, the Advanced Variable Propulsion System. Sanmar’s success is not a coincidence, of course. Sanmar is a pioneer in the world that builds the first natural gas tugboat and then the first autonomous tugboat. Making the first hydraulic hybrid tugboat is a prideful event for our country and industry. ”


BGC Expects Growth in the Turkish Economy in 2020

By Uncategorised No Comments

BGC Partners has released a report on the expected Turkish asset base in 2020. In the first half of 2020, growth in the Turkish economy is expected to increase as business concerns have faded, and expansionary policies of central banks have diminished. Agency forecast that Turkey is expected to experience a balanced growth of 3 percent in 2020.

Fiscal balances have deteriorated due to weak economic activity and elections despite the government’s cost-cutting measures. According to the report, a recovery in economic activity, combined with measures taken to increase the tax collected, would bring the budget deficit-to-GDP ratio in 2020 below 3 percent.

After the sharp fall in interest rates, improved demand conditions could put upward pressure on inflation. The agency expects inflation to be in double-digit lows for most of 2020, ending the year at just over 10%.

According to the report, BGC expects the Central Bank to lower interest rates in early 2020, “Only 100 basis points to bet. According to the agency, further cuts will occur if CPI inflation falls to single digits which will eventually result in the growth in the Turkish economy.

You can read more news about Turkey on our blog page.


2023 Vision Project of Turkey

By News about Turkey No Comments

2023 Vision Project of Turkey was born about 15 years ago when the Turkish government began to change direction. They were not content to be mere background players and wanted global recognition.

Anyone who has followed Turkey could have quickly ignored the goals of the 2023 Vision Project, but over the years, it seems that the country is harvesting the fruits of hard work.

What is the 2023 Vision Project of Turkey?
2023 Vision Project is a set of collective goals that Turkey wants to achieve by the year 2023, the 100th anniversary of the Turkish Republic. The goals focus on the economy, tourism, energy, foreign policy, transport, and health care.

All are essential aspects of society, but together they collectively contribute to the ultimate and most important goal of being one of the most successful economies in the world.

Targets for the Turkish economy by 2023

In order to be one of the top ten economies in the world, Turkey has set smaller goals. Turkey wants to achieve:

– Five percent unemployment.

– 1 trillion USD in foreign trade

– A gross salary of 25,000 USD

– An export industry worth USD 500 billion a year

– A gross domestic product of US$2 trillion

The Turkish economy grew by 6.1% in 2015, 3.2% in 2016, and 7% in 2017. The Economist’s magazine called it one of the most dynamic markets in the G20. The areas currently underachieving are the account deficit, unemployment, and inflation, which the country plans to address as part of the government-approved medium-term program for Turkey from 2018 to 2020.

Foreign policy objectives

Foreign policy is a critical part of the 2023 vision project. EU membership is currently an uncertain issue for Turkey, especially after the UK, with which they have fruitful export and import links, voted for Brexit. It also wishes to play an active role in regional and security issues to maintain economic stability.

The energy sector in 2023 Vision Project

Turkey is entirely dedicated to wind energy, as can be seen on the Aegean coast, where large wind farms have been built in many central districts. They aim to generate a combined 20,000 megawatts from wind energy, and in some areas, they have also ventured into geothermal power plants.

Turks and foreigners who have been living in Turkey for a long time will already have noticed an improvement in efficiency aimed at reducing overall consumption, and three nuclear power plants are also planned.

Health, transport, and tourism

Previously, the Turkish health system was in financial difficulties, and the insecure employment rules allowed many employers to have some flexibility in paying employee health premiums. However, by 2023, Turkey wants every citizen to be actively enrolled in the insurance system, and the number of doctors to be increased to 210 per 100,000 inhabitants.

11.000 kilometers of new railway lines will link up the once weak railway industry and, in turn, contribute to business and freight transport as well as domestic tourism. 15.000 kilometers of new and better-built motorways will also be part of the Belt and Road Initiative project launched by China, in which Turkey is an active participant.

Finally, despite a decline over the last two years, tourism has always been a powerful engine of the Turkish economy. Mass marketing campaigns around the world, as well as the government’s insistence on embracing the power of Internet advertising, have been successful, and the country is already one of the top ten destinations visited in the world.


The Spectator Index and other foreign financial institutions have designated Turkey as an emerging market for 2018. As economic performance improves year by year, there is a strong chance that the Vision Turkey 2023 plan will be realized and, in so doing, transform the country into a global powerhouse.


If you would like to read more news about Turkey you can check our blog page.

Novo Nordisk Makes Istanbul The Management Hub

By Business in Turkey No Comments

Danish drug manufacturer Novo Nordisk, which is best known for its leadership in diabetes care, will run operations in 73 countries with a population of about 1.6 billion people from its headquarters in Istanbul by making it the management hub of the company.

The world’s leading manufacturer of medicines for the treatment of diabetes, obesity, hemophilia and growth disorders has increased the number of countries it manages from Istanbul to 73, up from 22 in the last months of 2019, said the company’s Vice President, Emil Kongshøj Larsen in a recent interview.

From its headquarters in Istanbul, Novo Nordisk will now be managing the Middle East, Commonwealth of Independent States (CIS) and Africa (BANECA) business area with a combined population of approximately 1.6 billion people.

Its previous operations included a region of 22 countries, including Turkey, Russia, Israel, Pakistan, Kazakhstan, Lebanon, Ukraine, and Jordan, with a combined population of approximately 680 million people.

Nearly 5 million patients in the Middle East, CIS, and African countries are currently expected to be treated with Novo Nordisk medicines, a number that is expected to increase steadily in the coming period due to rising rates of diabetes and obesity.

“In recent years, Turkey has become an excellent and increasingly critical base for Novo Nordisk because of its geographical location and strong logistics infrastructure,” said Larsen.

In 1995, the pharmaceutical giant entered the Turkish market. It had conducted operations in 11 countries in the Middle East region from Istanbul in the first stage, a figure that has grown to 22 in 2017, according to Larsen. The company had moved its headquarters from Athens, Greece, to Istanbul in 2007, according to Larsen, for whom the company had found Istanbul to be a more cosmopolitan hub because of both logistics and Turkish expertise.

“Istanbul is a more natural hub if you want to cover much of the Middle East, the CIS countries, and Africa. And it has proven to be a success. Because of the success of the hub, we have expanded the geographical area over the years,” he added.

In reference to what he said, there were other reasons behind the company’s move to make Istanbul the management hub of the company. The Vice President of Novo Nordisk said: “it is the appreciation of the company’s highly skilled and innovative workforce that makes it open to change, in addition to the geographical advantages of managing operations in Turkey’s largest city.”

If you would like to read more news about Turkey, you can visit our blog page.


Silicon Valley Supports Turkish Start-up

By Uncategorised No Comments

A Silicon Valley investor is leading a $40 million financing for the ultra-fast delivery company Getir which is a Turkish start-up.

The company offering ultra-fast delivery has secured nearly $40 million in funding from a group of investors led by Silicon Valley venture capitalist Michael Moritz to boost Turkey’s emerging high-tech market.

Getir, an Istanbul-based company founded in 2015, allows users to order products ranging from ice cream to iPhone chargers, cat food to preservatives at no extra charge, with a small margin on supermarket prices. It promises an average delivery time of 10 minutes.

Last year, Getir, the Turkish start-up caught the attention of Sir Michael, a technology investor who is a partner in Sequoia Capital, the leading private equity firm. He previously made investments through Sequoia to a chain of processed cheese sandwiches and an Indian “cloud kitchen”.

After traveling to Istanbul to spend time at Getir’s Istanbul headquarters, Sir Michael offered to inject $25 million into the company via his personal investment company Crankstart, which is also the sponsor of the prestigious Booker Prize for English-language fiction.

An additional $13 million was provided by undisclosed investors in Brazil and Turkey, bringing the total amount raised under Series A to $38 million.

Getir, whose name stands for “bring” in Turkish, works through a network of franchises that are responsible for managing delivery, while the parent company manages product selection and pricing and the shipment of items to warehouses for distribution.

The company has grown rapidly, successfully doubling its order volumes in the second half of 2019, with nearly 1.5 million deliveries last month. After initially focusing on Istanbul, where it is also experimenting with takeaway deliveries, it has recently started operating in the Turkish cities of Ankara, Izmir, Bursa, and Kocaeli.

The target capitalization is expected to exceed $500 million, placing the Turkish start-up company among the most successful start-ups in Turkey.


If you would like to read more articles you can take a look at our blog page.

Antalya Broke Touristic Visit Record in 2019

By News about Turkey No Comments

Antalya, one of the most touristic cities of Turkey broke a visit record in 2019! The Turkish Ministry of Culture and Tourism shared data on the number of foreign tourists coming to Turkey between January and September 2019. So not only Antalya but also almost all cities around Turkey welcome tourists from different countries. More than 41.5 million tourists visited Turkey in the first nine months of 2019.

visit recordWith 15,644,108 tourists welcomed in 2019, the seaside city of Antalya, in southern Turkey, breaks an all-time record among all the other cities of Turkey.

The Governor of Antalya Province, Munir Karaloglu, reported that in 2019, the tourism sector in the region recorded significant growth. “In 2019, 15,644,108 tourists arrived in our province from Antalya and Gazipasa airports, as well as by land and sea. This trend will continue in 2020,” he assured.

In September, 5,426,818 foreign tourists chose Turkey as a destination for their trips, an increase of 13.23% compared to September 2018.
Turkey received 41,564,536 tourists between January and September 2019, including 36,428,212 foreign tourists, after an increase of 14.5% compared to the same period last year. This tourist attendance generated, in this 9-month period, 26.64 billion dollars in revenues.
Russian tourists were the most numerous in September (+14.7% compared to the same month in 2018). Next came the Germans (+6%), followed by the British (+9.64%). Between January and September, Russians also came in the first place, with an increase of +15.28% compared to the same period in 2018.

In addition, to Antalya, Istanbul, and Edirne were the Turkish cities from which the most entries were made and contributed to the visit record of 2019.

To read more news and articles about Turkey please visit our blog page.

Top 25 Companies of Aerospace and Defense Industry in Turkey

By News about Turkey No Comments

The aerospace and Defense Industry have been on the rise in recent years, and it is not only in Turkey but also all around the world. It employs many people in the world as a result of huge production numbers. Today, the Turkish aerospace and defense industry has been producing %60 of its own needs while %40 comes from international companies.

In the table below, you will see the top 25 Turkish defense and aerospace companies with their turnovers (2015), who are significant players in the sector, and some of those companies are among the top 100 global companies in this industry as well.

Here you can read more about the first 10 companies in the sector:

  • ASELSAN was established in 1975 to meet the communication device needs of the Turkish Armed Forces. It is an organization of the Turkish Armed Forces Foundation. It completed its investment activities in a short time and started production in Macunköy, Ankara facilities in early 1979. With more than 6,000 employees and a qualified engineering team, ASELSAN devotes 7% of its annual turnover to R&D activities financed by its equity.
  • TURKISH TECHNIC is Turkey’s national flag carrier and the airline company, Turkish Airlines’ maintenance, repair, and modification center. Turkish Technic Inc.’s facilities are located at the headquarters of Turkish Airlines at Sabiha Gökçen Airport (SAW), Atatürk Airport (IST) and Esenboğa Airport in Ankara. The international brand name is the Turkish Technic.
  • TAI (TUSAŞ) (TAI – Turkish Aerospace Industries, Inc.), the design of aerial platforms in Turkey, development, production, completion, and technology center in the field of regeneration and after-sales service. The company manufactures parts for the world’s largest passenger aircraft, the Airbus A380, and the military transport aircraft, the Airbus A400M. Besides, the company started to produce ailerons for the Airbus A350, which made its first flight in 2013.
  • TEI was established in 1985 by TUSAS and other partners for the assembly and maintenance of F110-GE-100 engines of F-16 aircraft. Turkish partners are TUSAŞ, TSKGV, and THK. The other partner is American General Electric. The transfer of the production technology of aircraft engine order established under the leadership TUSAŞ and TEI also serves customers from outside the country.
  • ROKETSAN is a defense industry company established in 1988 with the decision of the Defense Industry Executive Committee to lead national rocket and missile research and production programs. Since its establishment, Roketsan has been designing, manufacturing, training, and operating personnel in line with the needs of missile/rocket systems, including design and technology infrastructure development projects, product development and production programs, launch platform, and command units. ROKETSAN has become the most competent institution in Turkey with all the things mentioned above and logistic support to meet the needs of the system.
  • FNSS is the first private sector organization for the defense industry in Turkey. 51% of FNSS is owned by Nurol Holding and 49% by BAE Systems. The company was established in 1986 for the design, production, and sale of Track and Armored Combat Vehicle families and Weapon Systems for the use of the Turkish Armed Forces and the Allied Armed Forces. FNSS, which started its first production in 1990, has produced and sold over 4,000 armored combat vehicles to date. Apart from Turkey, the company has offices in Saudi Arabia, the United Arab Emirates, and Malaysia.
  • MKEK (Mechanical and Chemical Industry Company) is the state organization that meets all the weapons, ammunition, rockets, tools, and equipment needs of the Turkish Armed Forces. As of January 1, 2016, the Agency has 5548 employees and exports to more than 40 countries in the world. MKEK’s turnover target for the year 2020 is 1 billion dollars.
  • STM (Savunma Teknolojileri Mühendislik ve Ticaret A.Ş.) was established in 1991 by the decree of the Defense Industry Executive Committee. The company is to provide system engineering, technical support, project management, technology transfer, and logistics support services for the Turkish Armed Forces (TAF) and Under secretariat for Defense Industries (SSM).
  • OTOKAR is a Koç Holding subsidiary that produces minibusses, buses, armored vehicles, trailers, light trucks, and off-road vehicles. Otokar is a 100% Turkish-owned company and the leader in the bus sector, the defense industry, and motor vehicles in Turkey. Otokar has served as the prime contractor in Turkey’s national main battle tank Altay Period-1.
  • HAVELSAN was established in 1982 to meet the needs of the Turkish Armed Forces in the field of Software Engineering. In 1985, the company had separated from its foreign partners and had become an organization, 98% of which belongs to the Turkish Armed Forces Foundation. Havelsan has developed itself in C4ISR, Homeland Security, Simulation and Training Simulators, and Information Management Systems. This branch of the CASA CN-235 aircraft produced for pilot flight training simulator and simulator has been exported abroad as a first in the country’s history.

Some important projects in the aerospace and defense industry

TF-X fighter jet project

The total cost of the agreement signed with British BAE Systems is about 125 million dollars. According to the agreement, BAE Systems will work with TUSAŞ to develop TF-X National War Plane of Turkey. Rolls Royce has demanded to be the manufacturer of the engines of TF-X warplanes, which will be produced under the partnership of Turkish and British companies. BAE Systems has signed a framework contract with TAI for the first step of the plane’s designs. For the production of the TF-X’s engine, KaleAero is also aspirant.

ATAK Multirole Combat Helicopter project

T129 ATAK Helicopter is a joint production of TUSAŞ and AgustaWestland. Two engines by Rolls Royce and Honeywell joint productions are used in the helicopters. System designs were made by ASELSAN and TÜBİTAK. In February 2019, Defence Industries (SSB) signed a contract with Turkish Aerospace (TUSAŞ) to develop a heavy class attack helicopter based on the ATAK. The new helicopter will be called ATAK-II.

UAV – ANKA Project

Turkish Unmanned Aerial Vehicle – TUSAŞ engineers designed ANKA, and they have been manufactured with the support of many subcontractor companies. The vehicle was rolled out from the hangar in TUSAŞ facilities on July 16, 2010. Their radar systems were produced by ASELSAN, and ROKETSAN manufactured the weapon systems.

Ranking of Turkish Companies in the world lists

The major players of the Turkish aerospace and defense industry have found their place in the world’s top 100 defense companies, and since 2009 they have been climbing up in the list. ASELSAN has been on the list since 2009, and the company entered the list from 93rd place, and in 2017 they rose to 57th place. TAI has also started from the 83rd place, and in 2017 they rose to 61st place, and ROKETSAN entered the list in 2017 from the 98th place.

Partnerships in the sector

Although the Turkish companies have been working perfectly well, developing and maintaining important projects on their own, they also have been working as partners with many local and international companies as well. In the table below, you can see the most significant partnerships of Turkish companies with their domestic and international partners, which are created to sign much larger projects together.

If you would like to read more about the sector, you can take a look at our article about the aviation and defense industry in Turkey.

*Image source:

TurkStream Pipeline Officially Opened

By News about Turkey No Comments

The TurkStream pipeline, which will supply Europe with Russian gas via Turkey, officially started operating on 08.01.2020. An official ceremony was held in Istanbul, led by the President of the Republic of Turkey, Recep Tayyip Erdogan, and the President of the Russian Federation, Vladimir Putin.

At the ceremony, President Erdogan said that the TurkStream project was a project for which great efforts had been made with Russian friends and were of historic quality both in terms of bilateral relations and on the energy map. Mr. Erdogan stressed that cooperation with Russia in energy had overcome all challenges, as in other areas, showing steady growth in the volume of trade.

Russian President Putin said that despite all efforts to obstruct it, cooperation between his country and Turkey continues to develop. He said that the transfer of Russian natural gas to Europe via Turkey would also have an impact on the European economy.

The vast gas pipeline, 1,000 km from Anapa in Russia to Kiyiköy in Turkey, symbolizes the strategic and economic connection between Russia and Turkey. It is supposed to supply Turkey and southern Europe with Russian gas via the Black Sea and bypass Ukraine. However, this project includes two pipelines. Turkey will receive half of the pipeline’s total capacity, which is more than 15 billion cubic meters of gas. The other half of its capacity will go to Europe, specifically Bulgaria, Serbia, Hungary, and Slovakia. This immense gas pipeline will also have a substantial impact on the European energy market.

The Tanap, together with TurkStream, will be the key to secure energy supply, not only for Turkish people but also for Europe.

The cornerstone of the Tanap was laid in March 2017. The pipeline will transport about 16 billion cubic meters of Azerbaijani gas in the first phase (10 billion cubic meters to Europe and 6 billion cubic meters to Turkey). It is one of the largest strategic gas pipelines supervised by Turkey. For its part, the TurkStream, aimed at transferring Russian gas to Turkey and then to Europe, will consist of two lines crossing the Black Sea, the first of which will serve Turkey and second Europe, each with a capacity of 15.75 billion cubic meters per year.

You can visit the official website of the Turkstream pipeline to see the details of the project.

A Domestic Fighter Jet will be Flying by 2029

By News about Turkey No Comments

Turkey’s first domestic fighter jet will make its first flight with a domestic engine by 2029, while negotiations to recruit international partners are ongoing.

Turkey’s TF-X National Combat Aircraft (MMU) – a joint project of the Turkish Aerospace Industries (TAI) and the Presidency of Defence Industries (SSB) – is preparing for its maiden flight with a domestic engine in 2029.

According to Osman Dur, Managing Director of TR Engine, a new research and development (R&D) center for turboshaft engines, work on developing the engine is proceeding at full speed, in cooperation with the institutions concerned.

He stated that around 80 engineers have been working on the national engine project for the domestic fighter jet, in cooperation with the Turkish Air Force Command.

“The engine tests should be completed by 2026 or 2027. The first flight of the MMU with a domestic engine will take place in 2029,” he noted.

The MMU is a fifth-generation jet with similar characteristics to Lockheed Martin’s F-35 Lightning II. The domestically built aircraft is being developed to replace the Turkish Air Force Command’s F-16 fighter jets before they are phased out throughout the 2030s.

With the phasing out of F-16 fighters over the next decade, the importance of the domestic fighter jet “TF-X project” has increased.

A model of the national fighter aircraft was first presented at the Paris Air Show in June 2019 and then at the Istanbul Teknofest in September.

The project to develop national capacity for the manufacture of domestic fighter jet engines was initially launched by TAI, but was later taken over by TR Engine, a company created in 2017 by SSB to integrate various engine-related projects under one umbrella. About 55% of the company is owned by the Turkish defense contractor BMC, while TAI holds a 35% stake. SSTEK, a subsidiary of SSB, also holds a 10% share in TR Engine.

In a statement to the Anadolu Agency (AA) on Friday, Osman Dur, Group’s managing director, stated that the company had been negotiating with international engineering and design companies, as well as original equipment manufacturers (OEMs), as design and production were two separate operations. “There is no point in designing technologies that we can’t put into production. Therefore, we are continuing our best efforts to develop local suppliers for the domestic aerospace industry,” he said.

Human Resources in Aviation

Dur said that Turkey has a well-developed institutional structure in the aviation and aerospace industry and there wouldn’t be any problems in terms of human resources. “There are a few people with experience in critical technology sectors, but we have the experience and the links to attract more human resources from around the world,” he stated.

He added that the civil aviation sector in Turkey contributes to the defense industry in several technological areas, including computer science, software and artificial intelligence (AI), unlike in the past when the defense industry supported the development of civil sectors.

He stressed TR Engine’s role in uniting industry personnel with academics working in the field. The center also encourages university students to apply for jobs in the sector.

If you would like to read more about the aviation sector in Turkey you can check out our latest article.

U.S. Renewable Fuel Firm Invests $200 Million in Turkey

By News about Turkey No Comments

The U.S.-based clean technology company, Taronis Technologies, will open a facility in Turkey to operate the gasification units, the company stated in a press release on Saturday. The company is in the process of providing technological solutions to renewable fuel and sterilization problems through the use of its clean gas technology.

Taronis Technologies stated that 300kW gasification units will be produced at the facility that will be opened with an investment of $200 million.

In mid-November 2019, the company made an announcement about the launch of a Turkish joint venture, Taronis Fuels Turkey Gaz Enerji Sanayi ve Ticaret Limited Şirketi.

The press release also indicates that the legal process for the Ankara-based company has also been completed and that Turkey will supply all equipment for the production.

“Turkey’s strategic location in the heart of Europe, where the continent meets the ancient Silk Road trade route, offers competitive access to European and Asian markets,” said Scott Mahoney, CEO of Taronis Technologies, in the statement. “This will allow Taronis to access productive markets while seeking to accelerate the sale of additional gasification units to neighboring countries and the boom in sustainable fuels around the world.”

“With the possible sale of an additional fifty gasification units, this has the potential to generate millions of dollars in additional royalties back to Taronis Technologies. We have recently announced a share buyback program. We hope that shareholders can now begin to better understand why we canceled our recent proposed financing transaction and instead elected to pursue this strategy. We believe that the opportunity to collect scalable royalty income from international unit sales has the ability to deliver significant value beyond the initial Turkish joint venture,” concluded Mr. Mahoney.

Facebook is Opening 8 Offices Around Turkey

By News about Turkey No Comments

Facebook is preparing to open eight offices in Turkey, of which the center will be in Istanbul. The first office will be opened in Bursa in January to discover young entrepreneurs. Each of the offices will be established in different cities.

Chairman of the Commodity Exchange of Bursa Ozer Matlı stated that the opening of the Facebook offices in Turkey is affiliated with TOBB and the Association of Habitat. The center for the studies is determined as Istanbul, Matli said, yet Facebook went to 8 different cities to open the other branch offices.

Mr. Matlı, Chairman of Bursa Commodity Exchange, as well as the presidency of Turkey Chambers and Commodity Exchanges (TOBB) Board Member, explained that thanks to this office, young entrepreneurs, will be able to initiate new projects in digital media. Mr. Matlı stated that they signed a protocol with one of the universities in Bursa concerning Facebook’s office and said that young people would start to develop digitalization-based business models with the studies in the near future.

Turkey Presents First 100% Turkish Electric Car

By News about Turkey No Comments

The presentation ceremony of the first 100% Turkish electric car took place in the Gebze district of Kocaeli province in the northwest of the country. The vehicle, unveiled in the presence of President Recep Tayyip Erdogan, will come in five models and 175,000 units in one year. The all-electric car will have a range of up to 500 km and a locally produced lithium-ion battery that can be recharged to 80% in less than 30 minutes.

A total of 22 billion TL ($3.7 billion) will be invested in the Turkish electric car project over 15 years, said Rıfat Hisarcıklıoğlu, head of the Union of Chambers of Commerce and Stock Exchanges of Turkey (TOBB). The production facilities will be completed in 2021, and the first car will be produced in 2022, along with the installation of charging stations around the country. The government has also promised to buy 30,000 vehicles produced by 2035.

Meanwhile, production plants for Turkey’s first car – which will also be electric – will be inaugurated in the west of the country by presidential decree. According to the decision published in the Official Gazette on 27 December with the signature of President Recep Tayyip Erdoğan, the plant will be set up in the province of Bursa with the help of the government on a project basis.  Around 4000 people will be employed, including 300 qualified personnel.

Of the five industrial partners of the new brand, two already have experience in car manufacturing: the Anadolu Group has been manufacturing vans, pickups, and buses for Isuzu for decades. The Turkish Qatari company BMC is one of Turkey’s leading manufacturers of commercial vehicles. Turkcell, the country’s largest telephone operator, the Zorlu holding company and the Kok Group provide financial support.

Turkey has several vehicle manufacturing plants and therefore has some know-how in the field. But until now these have been foreign brands. Renault, Toyota, Fiat Chrysler, Ford, and Hyundai have their vehicles assembled there for the European market.

TOGG cars, which are the first Turkish electric cars, will not be reserved for the domestic market. President Erdogan stressed on Friday that TOGG intends to become a global brand that would first go on the offensive in Europe.

For further details, you can visit the official website of TOGG cars.

How to Work in Turkey as a Foreigner?

By ERAI Turkey services No Comments

Are you interested in working in Turkey? Or are you assigned to a position in Turkey by your company? If yes, you should know that the first step for a foreigner to work in Turkey (independently or as an employee), you will need a residence permit and a work permit. Law No. 4817 on Work Permits for Foreigners and its Implementing Regulations constitute the legal basis for work permits for foreigners. Work permits are issued for a minimum period of six months. The application takes at least 1.5 months.

Turkish companies applying for a work permit for foreigners are obliged to employ at least five Turkish citizens for each foreign employee hired. Depending on the case, the 5:1 rule (5 Turkish employees for one foreign worker) can be challenging to implement and generate high costs. However, it is possible to apply for a “mounting visa”. This kind of visa gives the possibility to other personnel to Turkey for a maximum period of 3 months. Foreigners who wish to stay in Turkey for a period of up to 90 days for assembly, maintenance, repair, troubleshooting or training work must obtain an assembly visa from a Turkish consulate in their country of residence or their home country. The stay may not exceed the total duration of three months in a calendar year.

Turkish Consulate Generals issue on request a “working visa – montage and repairman purposes”. No other work permit is required. The Consulate of Turkey provides further information on the application procedure.

If you would like to get a work permit, you can get in touch with ERAI Turkey, and we can deal with the bureaucratic issues on your behalf while you solely focus on your business. If you would like to learn more about how to get a work permit in Turkey, you can read our article about the work permit application process. You can always contact us for all your further questions.

Turkey Promotes Female Labor Force

By News about Turkey No Comments

In most countries of the world, men are more likely to belong to the labor market than women. Nevertheless, these gender differences in participation rates have narrowed considerably in recent decades. When we take a look at Turkey, we see that in the last two years, a total of TL 8 billion in loans at favorable rates have been granted to women entrepreneurs.

Through the state-owned banks, the Turkish authorities have granted more than 8 billion TL in loans to women entrepreneurs in the last two years. Around 80.000 women managers of small and medium-sized enterprises have been provided with interest-free loans for amounts below 50.000 TL and at low rates for amounts up to 300.000 TL.

For several years, the Turkish authorities have been pursuing a policy aimed at increasing the number of women in the labor market. Between 2005 and 2017, the labor force participation rate of the female population aged 15-64 increased by 12 points to 37.6%. The Government intends to continue this trend and has set itself the goal of reaching 41% by 2023.

Along with Turkish government support, many countries are encouraging women to take place in the labor force. Here is a map that shows the ratio of female to male labor force participation rates in 2017. Since then the rates have been increasing in many countries around the world.

As ERAI Turkey, our team also mostly consists of female employees which can be accepted as positive discrimination. We would like to support you if you are interested in investing in Turkey and recommend you to take a look at our articles about how to set-up business in Turkey and you will see how easy to follow the eight steps to establish your company.

You can also check our page about recruitment services if you want to enter the Turkish market with fewer risks and we can find the most suitable candidate for you and deal with all the bureaucratic issues on your behalf so that your employee can start working for your business immediately.