infrastructure – Muhasebe News

Infrastructure Sector in Turkey

MuhasebeNews — Mon, 20 Jan 2020 12:30:57 +0000

Infrastructure Sector in Turkey

Turkey’s developing economy offers lucrative investment opportunities in infrastructure across a wide variety of sectors including transportation, healthcare, and energy. According to the World Bank, Turkey ranks 3rd globally in Public-Private Partnership (PPP) projects, with a total contract value of USD 165 billion from 1990 to 2015. With a successful track record of over 220 PPP implementations across a diversified portfolio of infrastructure assets, Turkey has been able to realize around 80 percent of those projects over the past decade.

Turkey has solid rationales for investment in infrastructure:

The Turkish economy exhibits a robust annual GDP growth rate of 5.5 percent on average.
Turkey’s 82 million strong population is growing by an additional 1 million every year; this is coupled with a rapid urbanization process that has resulted in more than 20 urban centers with populations over 1 million, and of which 9 of those 20 have populations of over 2 million.
Turkey’s growing international trade volume and strategic location compel the country to develop its infrastructure.
As a bridge between the East and the West, Turkey leads the Middle Corridor at the heart of the Belt and Road Initiative (BRI).
Hosting more than 600,000 foreign patients a year, Turkey has significantly improved the quality of its healthcare services and will continue to invest in healthcare infrastructure to catch up with OECD.
From transportation to healthcare and to energy, ample opportunities from mega to micro projects are available in the pipeline.
Turkey has favorable investment legislation for PPP investments that may be realized through various models, such as build-operate, build-operate-transfer, transfer of operational rights, etc.
Turkey’s government provides various forms of support and incentives to accelerate the project development.
Turkey’s investment climate is further strengthened by domestic and international laws that protect investments and provide international arbitration.
Turkey’s macroeconomic policies, investments, and more importantly, strong public finance management, support PPP investments that require guaranteed purchase.

For further information, you can visit: https://www.invest.gov.tr/en/sectors/pages/infrastructure.aspx

Source: Republic of Turkey Investment Office / link: https://www.invest.gov.tr/en/sectors/pages/infrastructure.aspx
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

Turkish Cement Sector Increased Its Production By 50% In The Last Decade!

MuhasebeNews — Thu, 27 Apr 2017 11:30:26 +0000

The Chairman of the Cement Industry Employers’ Union (ÇEİS) Tufan Unal stated that the Turkish cement sector reached a production of 77 million tons in 2016 and added that “Turkish cement sector has increased its production by 50% in the last decade and became the leader of Europe. We have not only become the European leader but also made our country rank first in the world cement production. We are building a future for Turkey with infrastructure, roads, bridges, housing projects.” Unal stated that the US, Africa and Georgia may be potential export markets for the sector in the coming years.

Source: Ministry of Economy

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

Infrastructure, Energy and Health Sectors Were Evaluated At Turkey-Italy Business Forum

MuhasebeNews — Wed, 22 Mar 2017 13:10:16 +0000

Hosted by DEİK on February 22, 2017 in Istanbul, the Turkey-Italy Business Forum was attended by Turkish Economy Minister Nihat Zeybekci, Italian Economic Development Minister Carlo Calenda, DEİK’s President Ömer Cihad Vardan and DEİK/Turkey-Italy Business Council President Burak Vardan. Main agenda of the meeting was infrastructure, energy, health sectors and other business fields of potential Turkish-Italian partnerships. More than 100 Italian and Turkish business people participated the forum.

Turkish Economy Minister Nihat Zeybekci, drew attention to the significance of the agreement signed between Turkish and Italian Eximbanks as well as the need of new trade volume target. DEİK and its Counterpart Confindustria will establish a joint platform to seize business opportunities and to boost trade volume from 18 billion USD to 30 billion USD.
Renewal of Turkey- EU Custom Union will contribute significantly to EU and trade volume will increase by 55-60 percent. Turkish and Italian business communities will benefit from the renewal and he announced that Turkish Trade Center will be established in Italy in 2017. In the sectors of tourism and energy two countries complete each other; furthermore, new investments are kicked out in the energy sectors.

Italian Economic Development Minister Carlo Calenda, stated that Turkey can always trust Italy in the matters of EU, furthermore, during the Custom Union renewal Italy will act as supervisor and will follow up the procedure. Turkey shouldered great responsibility regarding illegal migration and Calenda thanked Turkey for its great efforts. The agreement between to Exim Banks will accelerate investment and necessary studies will be carried out to correctly inform and guide investors.
Italian Economic Development Minister Carlo Calenda expressed that Turkey and Italy are stronger in different countries of Africa and partnership efforts should be accelerated. Turkey and Italy do not only have economic interest, as a result, their partnership will be very fertile.

DEİK President Ömer Cihad Vardanstated that Turkey and Italy is in a great harmony and synchronization. In the past two years trade is declining between two countries, thus, business communities from both countries should expand this volume as soon as possible. Italy has chosen Turkey as a “Target Country” and this is very important for Turkey, as a result, many new partnerships will be established in the sectors of energy, agriculture, automotive, food, start-ups, innovative technology and renewable energy.
Turkey-EU Custom Union negotiations will start soon and DEİK hopes that Custom Union will be completed soon addressing many chronicle problems between Turkey and EU. Turkey hopes for permanent solutions to chronicle problems such as transportation quota, driver license, Visa practice to Turkish citizens. Business communities of Turkey and Italy can do much greater projects than today via joint projects.

DEİK/Turkey-Italy Business Council President Burak Vardanindicated that opportunities in both countries should come to live. Both economy complete each other, thus, project in third countries should be initiated. Partnerships in the field of health, infrastructure and energy would be beneficial for both countries. “To be a key player in the global economic arena, both countries should form partnerships not only in Italy and Turkey but in Africa, Iran, Middle East and Central Asia”.

Turkey-Italy Trade Figures (Ministry of Economy-2016)
Turkish export to Italy: 7.5 billion USD
Main export items: Automobile, motor vehicles, crustaceans, parts and components for land vehicles, iron-steel
Turkish import from Italy: 10.2 billion USD
Main import items:Parts and accessories for land vehicles, petroleum oils, diesel, semi-diesel engines, motor vehicles
Trade Volume: 17.8 billion USD
Trade Balance:2.6 billion USD in favor of Italy

China Starts 2017 with Economic Robust!

MuhasebeNews — Mon, 20 Mar 2017 09:04:09 +0000

China starts 2017 with economic robust; however, retail sales rose less than expected.
There was strong bank lending, a lot of spending on infrastructure by the government and a much-needed expansion in private investment as surging demand for steel for new roads, bridges and homes lifted factory output.

On the other hand, retail sales rose less than expected at the beginning of the year – up by 9.5 percent.

Source: Euronews

Date: 20 March 2017

Machinery in Turkey

MuhasebeNews — Mon, 13 Mar 2017 07:44:45 +0000

Machinery manufacturing continues to be one of the key growth drivers of the Turkish economy. This sector plays a crucial role in the development of Turkey’s greater manufacturing industry due in no small part to its capability to produce intermediate goods and provide inputs to other key sectors such as construction, energy, textiles, agriculture, and mining. The machinery manufacturing sector in Turkey is known for being R&D intensive — Turkey graduates over 450,000 engineers every year — and for creating high value. Local sourcing accounts for approximately 85 percent of all inputs at the production level.

Total export value of the machinery industry reached USD 13.4 billion in 2015, up from USD 5.2 billion in 2005.
Annual growth rate of machinery exports between 2005 and 2015 was 16 percent, double Turkey’s overall export growth rate during the same period.
As the 2^nd largest export industry of Turkey, accounting for a 9.3 percent share in Turkey’s total exports, machinery products are exported to more than 200 countries.
60 percent of the total machinery product exports are shipped to the EU countries and the USA.
Total imports of the machinery sector surpassed USD 26 billion in 2015 while posting an average annual growth of 10.3 percent over the past decade, evidencing the strong demand from the domestic market.
FDI inflow in machinery manufacturing represents a significant source for Turkey’s overall FDI amount, making up around 20 percent of total manufacturing FDI between 2005 and 2015.
R&D expenditures on machinery manufacturing reached USD 600 million in 2014, accounting for almost 10 percent of the total R&D expenditure of Turkey.
Turkey’s competitiveness in the machinery sector is driven by favorable input costs and strong enablers. Input costs include competitive labor cost, an affordable and reliable energy supply, and logistical advantages based on the geostrategic location of Turkey, while enablers include a skilled workforce, generous investment incentives, an innovation-oriented infrastructure, and a strong supply base and domestic clusters.

Date: 13 March 2017