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Why Turkey for Strategic and Private Equity Investments

Benefits to Partner with the Turkish Private Sector

Most Promising Market but need a Prominent Partner

Why Turkey for Strategic and Private Equity Investments

A secular democratic republic founded in 1923, strategically located in Eurasia, where Istanbul has become a hub for a vast number of business destinations within 3 hours of flight.

Reachable conviniently through direct flights with Turkish Airlines from Istanbul, which has become a world class airlines, flying over 200 countries. Flights include even the longest destinations, from Los Angeles to New York, London, Johannesburg, Dubai, Moscow, the CIS cities, Beijing, Tokyo, Singapore and the like.

A prominent member of the G20 and a most active contributor to world affairs as a member state in many business/trade, peace and defense multilateral organizations. Not to mention being an EU Customs Union Member since 1996 and progressing on the chapters in a committed way since the accession talks which started in December 2004.

Regarded as the top investment destination after BRIC, where not only investors but most governments have long launched business promotion campaigns to improve trade and investments between their respective countries. Coupled with new and highly-developed technological infrastructure in transportation, telecommunications and energy, the total FDI has reached over $200 billion during the last 16 years.

Grown to become the World’s 13th largest and 5th in EU according to GDP-PPP in 2018 and one of the youngest economies with $800 billion nominal GDP. With 82 million population where 50% below the age of 32, the average growth rate reaches a sustainable 5.5% levels since 2002.

Recorded soaring export and tourism revenues in the last two decades. Trade volumes reached $350 billion where exports surpassed $170 billion in 2018. Turkey has become the 7th most visited country with over 30 million tourists and $20 billion revenues in 2018 despite difficult economic times.

Became a center for major international events in the business, cultural and sports area, with IMF and NATO Summits, European Football and World Basketball Championships to Formula-1s.

Benefits to Partner with the Turkish Private Sector

A long history of private sector going back all the way to 1920s, different than in most socialist and closed economies in the past.

Resilient business community composed of 20+ large family conglomorates and more than 1,000,000 SMEs with well established business associations, who has transformed itself to become one of the largest export oriented manufacturing bases in the EMEA and Russia-CIS regions and between Germany and China.

Eurasian oriented, most adaptive, crises-immune, well-qualified and highly skilled entrepreneural & professional human capital, to manufacture-produce all sorts of products & services locally & globally.

A strong and innovative player in the financial, retail, tourism, healthcare, business and technical, IT and telecommunications services providing services to consumers.

A trend setter in the mobile and fixed telecoms and internet as well as artificial intelligence, augmented reality and robotics value added services, entertainment, content, banking, interactive digital-mobile marketing and advertising, and in doing business under social media dynamics, fueled by the tech-adaptive young and dynamic society.

Istanbul as a candidate to become one of the world’s top financial centers, Turkey posesses most advanced e-government and financial infrastructures in the world. Independent Central Bank, Banking Regulatory Authority, Capital Markets Board as well as Istanbul Stock Exchange (Borsa Istanbul) and the Depository Bank promote transparent and problem free financial transactions, fixed income and equity tradings.

The existence of over 65,000 foreign capital firms (up from 5000 in 2001), where many managing 10-100 countries from Istanbul, as well as numerous restructurings in the trade and investment laws and regulations over the last decade, is a testament for a stable and a reliable operating base.

Most Promising Market but need a Prominent Partner

 

 

FDI has reached $210 billion over the last 16 years with 30% of it being direct private equity direct and private equity driven investments. It is expected to reach close to $100 billion between the years 2019-2023, almost all through M&A.

Number of M&A transactions between foreign and Turkish firms including private equity, have surpassed 1500 between 2002-2018 and expected to reach a total of 2500 in the next 5 years as the transactions shift to small to mid-caps.

It hasn’t been easy and won’t be in the near future for Turkish Entrepreneurs and Professionals to absorb such high and rapid FDI inflows through M&As and many issues emerge at the board levels.

Foreign investors also face many challenges in a culturally different operating environment even though the circumstances are promising, just like the Turkish side.

 

 

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