DEİK, with 146 business councils, maintains its global-scale contacts adhering to a wide perspective from contracting to energy, defense to public-private sector projects. Noting that the topics they focused on this year were ‘Turkey-USA trade relations, Return to Asian Initiative, Green Agreement, updating the Customs Union with the EU, the African market, international investor perception, supply chain, transit trade and new trade blocks’, DEİK President Nail Olpak explained his future works to Explore Turkish Reality while evaluating Turkey’s agenda…
Due to the coronavirus epidemic that has affected the world, we are going through an extremely difficult process in terms of human health, economy and trade. The Turkish economy had a growth of 4.5 percent in the first quarter of 2020, when it made a good start. However, while this positive outlook was expected to continue, the Covid-19 pandemic has of course negatively affected Turkey as it did the whole world. However, after we got over the first short period of shock, we showed great resistance by focusing on staying afloat in all areas of life and trade with the aim of achieving balance in the fields of economy and trade. As DEİK, we prioritized the issues of not interrupting the supply chain, accessibility in terms of logistics, not being dependent on a single source and giving confidence to the investor.
Turkey succeeded in completing the year 2020 with a growth of 1.8 percent, thanks to it successfully handling the health challenge and its strong capacity in production. Along with China, Turkey was one of the two countries that achieved positive growth among the G20 countries. This performance has demonstrated a new level of confidence to both the markets and the business world for 2021. We expect the Turkish economy to make a good leap this year due to the delayed consumer and investment demands and the low base effect, and we expect the 2021 growth to be above 5 percent unless there is an extraordinary situation.
The biggest risk on economic activity will undoubtedly be the course of the epidemic and the measures taken in this regard. We expect economic activity to recover after the second quarter of 2021, since as of the last month of 2020, with the vaccine, hopes have elevated. While foreign demand made a negative contribution to growth in 2020, we expect this negative effect to decrease in 2021. Especially the increase in tourism revenues in the summer months with the control of the epidemic, and the expectation of a growth of over 4% in the European Union, our biggest export market, strengthens this expectation.
The investor needs stability based on trust
During the preparation phase of the Economic Reform Package announced by our President, Mr. Recep Tayyip Erdoğan, we, as DEİK, presented our suggestions and demands. As DEİK, we were very happy to see the issues of incentives for equity financing, infrastructure for the green bond market, green revolution in the industry, strengthening of the participatory financial infrastructure, special support in target countries, revision of the incentive system, impact analysis of incentives and KVKK in the reform package, which we have stated in the meetings under the 4 principle articles of investment, employment, production and export. The economic reforms, which are built on determination, predictability, transparency and accountability, and include critical steps that will carry Turkey to the future in terms of economy and trade, will strengthen our business world. We hope that these reformist steps will be implemented with a fast and timely action plan. We see that the keywords for the domestic investment environment and foreign direct investments from abroad are “Trust” and “Stability”.
DEIK strikes in ‘commercial diplomacy with its 146 business councils
As DEİK, with our 146 Business Councils spread all over the world, we host many commercial diplomacy meetings such as country and sector-based special reports, international webinars attended by our Ministers, Ambassadors and businesspeople, DEİK Interconnected Business and DEİK EU Talks online meetings, roundtables and hybrid participation meetings. With these activities, we continue to be the global horizon of our business world in every geography where the heart of the global economy and trade beats.
Turkey-US trade relations, Return to Asia Initiative, Green Deal, updating the Customs Union with the EU, the African market, international investor perception, supply chain, transit trade and new trade blocks will be our focus points this year. In addition, our diaspora work, which we carry out under the umbrella of the World Turkish Business Council, is among our important focal points.
Real estate sales to foreigners – a valuable export item
Turkey offers an attractive market and a quality showcase for the global real estate industry, as well as the contracting industry, which has achieved great success around the world. Especially in the last 10 years, we see that foreign investors prefer to invest in real estate in Turkey. While the share of foreign investments in the world real estate market, which amounts to approximately 400 billion dollars, is around 2.6-3 percent, Turkey has a share of 10.6 percent with 6.85 billion dollars. The rate of house sales to foreigners, which was 1.7 percent in 2015 in Turkey, realized as 2.7 percent at the end of 2020. Despite the effect of the pandemic, the fact that foreign investors did not decrease in the real estate sector reveals a very pleasing picture.
We anticipate that this positive picture will continue to accelerate in 2021 and beyond. The diversification of investors, especially in recent years, is extremely valuable. We are talking about a very wide range from England to Russia, from Jordan to China. We see that the Turkish real estate sector’s attraction of investment includes not only the nearby geography but also the world. Considering the changing consumer trends with the pandemic conditions, I think that our real estate industry, together with all its stakeholders, should give importance to digitalization in promotion. As DEİK, we have full faith in and support for all our business people who add value to the real estate sector and the Turkish economy and have the potential to attract investors from abroad. Because we consider real estate sales to foreign investors as a high value-added export item at the same time. I especially invite the big companies of the sector to benefit from DEİK’s global business network and influence in the field of commercial diplomacy in target markets.