“The ones who underestimate experience, pay a high price for inexperience.”

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 1995 and progressing on the chapters in a committed way since the accession talks which started in December 2004.

Regarded as the top investment destination in emerging markets , where not only strategic and private equity investors but most governments including U.S., Russia, China and many European, Middle Eastern, Asian and African states have already launched business promotion campaigns to improve trade and investments between their respective countries and Turkey.

Grown to become the World’s 16th largest and one of the youngest economies with $718 billion nominal GDP (15th largest w/$1 trillion GDP-PPP) and 80 million population where 50% below the age of 29. The average growth rates reached 7.5% levels since 2002 excluding the crises period of late 2008-2009 and recorded a most impressive de-coupling with a rate of 8.9% in 2010. Since 2010 Turkey has been growing with an average %5 perannum.

Recorded soaring export and tourism revenues in the last decade. Trade volumes reached $300 billion where exports surpassed $140 billion. Turkey has become the 7th most visited country with over 30 million tourists and $20 billion revenues 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 50+ large family conglomerates and more than 500,000SMEs with well established business associations, who has transformed itself to become one of the largest industrial, technical and services bases in the EMEA and Russia-CIS regions.

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 telecommunications services providing services to consumers.

A trend setter in the mobile and fixed telecoms and internet 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 and the Depository Bank promote transparent and problem free financial transactions, fixed income and equity tradings.

The existence of 50,000 foreign capital firms (up from 5000 in 2001), where many managing 10-100 countries from Istanbul, as well as governments efforts to improve the regulatory environment, is a testament for a stable and a reliable operating base.

Most Promising Market but need a Prominent Partner

FDI has reached $160 billion between the years 2005-2016, almost all through M&A.

Private equity has reached over $20 billion between the years 2005-2016.

Number of M&A transactions between foreign and Turkish firms including private equity, have surpassed 250 since 2005 and expected to reach 1000 going forward 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.