Industry in Turkey
Aerospace and transport sector in Turkey's defense industry
Turkey has taken advantage of favorable geographical position at the crossroads between Europe, the Caucasus, the Middle East and Central Asia. As a regional logistics base, the Turkish transportation sector occupies a significant place among sectors that are the main engines of economic growth and employment.
The impact of economic development and a period of entry into the EU, the modernization of the transport sector had already been dropped from the accounts through privatization and foreign direct investment. Several ongoing projects, mainly on infrastructure development, and many projects on privatization were implemented mainly through the conclusion of contracts of BOT (build-operate-transfer). Moreover, a report on the strategic plan of development of transport for the Ministry of transport of Turkey, which covers numerous project proposals for the development of infrastructure, transport, communications and transport management models was recently prepared.
Hoping to implement a nostalgic dream of the revival of the historic silk route as part of the international transport routes introduced in 2006, where Turkey plays a major role as a natural bridge as part of silk road project that will connect the Asian economy with major trading routes in Europe, thanks to its strategic geographical location, proximity to international transport routes, updated transport infrastructure and road transport companies.
Road transports in Turkey
Road transport is the main means of transportation of goods and passengers in Turkey. 43% of all exports of Turkey in 2008, we had on the road and covered 57 countries and 1453 road transport companies in the country. The Government intends to upgrade existing roads and launches new projects. The estimated cost of the modernization and construction of roads is 37 billion dollars. Roads subject to modernization:
- Denizli-Antalya-135 km
- Şanlıurfa-strip of the Khabur River is 400 km
- Uzunkopru-Malkara-54 km
- Iskenderun-Antakya-Džil′vegëzû-70 km
- Havsa-Malkara-87 km
- Gerede-Amaz′â-Erzincan-Erzurum-Aari-Gürbulak 1300 km
- Ankara-Samsun-400 km
- Trabzon-Şanlıurfa-550 km
- Urfa-Diyarbakir-Gürbulak-650 km
- Ankara-Pozantı-316 km
- Aydin-Denizli-182 km
Among the projects to implement, as part of the Silk Road project the construction of the Black Sea ring highway, high-speed totalling 7140 km, passing through the border of member countries of the Black Sea economic organization takes place. To relieve the traffic congestion in Istanbul, the program includes the construction of a third bridge over the Bosphorus and the underwater tunnel. Bridges connecting the Istanbul Strait will be privatized.
Rail transport in Turkey
In Turkey there are railways, stretching 8 697 km, owned by public organizations. However, since most railways are obsolete and uneconomical, the Turkish Government intends to modernize them through a variety of projects. The programme of construction of high-speed routes Ankara-Istanbul, Ankara-Konya, Ankara-Izmir and Istanbul-Bulgaria.
Turkey intends to become a center of rail freight through the implementation and execution of the project for the modernization of the binders and suburban railways (MARMARAY), which will link Turkey with the trans-European network. Full-length project approximately 76 km and the total amount of approximately 3 billion dollars. When the project is completed, Turkey would become the main centre of railway transportation between Europe, Central Asia and Middle East countries. Until 2023, it is planned to spend 23.5 billion dollars on the development of railways.
Turkey has also played a leading role in the project Kars-Tbilisi-Baku, which is an alternative route to the modern Silk Road. Known as "Iron-Silk Road project Kars-Tbilisi-Baku creates an alternative route to the existing East-West corridor through Iran. Total project length is 124 km. 92 km will pass through Turkey, the rest through Georgia. Other railroads of Turkey subject to modernization:
- Van Lake North
Domestic and international air services in Turkey
Domestic and international air services are provided by the State Organisation for Turkish Airlines, as well as numerous private airlines.
Map of airports in Turkey
Source: Ministry of transport of Turkey
67 airports in Turkey:
- 23 airport serving domestic and international flights
- 41 Airport work, 18 of them serve only domestic flights
- 12 airports, open only for the Protocol and military purposes
- 10 airports exclusively private appointments
- 4 airport, intended only for the Turkish Aeronautical Association
Approximate costs for modernization and construction of airports in Turkey make up 4 billion Turkish Liras. The construction airports in Bingöl, Iidyre, Hakkari Yuksekova, Šyrnake, Kütahya-Afyon production plant-Uşak, Istanbul, Diyarbakir and Čukurove is among the future projects.
Istanbul-Izmir, Izmir, Adana-Mersin and Samsun-main ports of internal and external cargo and passenger shipping. With a view to improving quality and productivity, Bandyrmy and Samsun airports will be privatized for 36 years.
In addition, to the aforementioned future projects 10 logistics points in Halkali, Kësekkëe, Kayseri, Samsun, Eskisehir, Balykesyre, Jenidže, Erzurum, Mersin and Aydin will be constructed.
Turkey's defense industry
Turkey spends 3-4 billion dollars to procure weapons. Local production of defence products is 25%. In 2005, Turkey has occupied 4th place in the world as an importer of weapons and 28th place as an exporter.
Traditionally Turkey has taken steps to become independent in the field of defence. Since the second half of the 1970's, this feature was enhanced by some of the necessary investment, in particular in the electronic and aerospace defence sphere. In 1985, the State body was established by the Department of the defense industry and authorized to regulate and fund the development of the defence industry. From this moment the establishment was entrusted to a large number of projects in the defence industry, costing on the order of 30 billion dollars.
However, the imbalance between local and imported products had forced Turkey to seek to build a stable domestic defense infrastructure sector. In May 2004, it was decided to cancel the three main projects, including multibillion-dollar attack helicopter program and the tactical intelligence (attacks), and instead to introduce a new program to support the weak local industry. The primary goal is to increase the ratio of defense systems, domestically produced, imported systems from 25% to 50%. The next phase involves the growth of exports of Defense products and services to approximately 1 billion dollars in 2011 as compared to the current 200-300 million dollars each year.
Meanwhile, in accordance with the new regulation, adopted in February 2007, starter measures should start to develop to support local Turkish defense industry sector, as well as the export of roughly 50 percent of the contract value. Politics influenced the Turkish defence companies, whose number reaches approximately 67, including 15 military companies, raising turnover to 1.6 billion dollars.
Otokar company has developed and launched a full range of combat reconnaissance vehicles 4 x 4. Makina ve Kimya Endustrisi Kurumu (MKEK) is the main manufacturer of uniforms, small arms and other weapons and is also a general contractor of other Turkish defense companies. TLFC possesses ample opportunities not only in the modernization of AFV and artillery systems but also in parts of the production. The Organization has upgraded more than 4000 tanks and the Centre developed and launched the production of specialized units, including ambulances, command posts and engineering machinery squad. The main point of the naval shipbuilding and refining remains state-owned naval shipyard. The clearest accomplishment of the naval segment is the development and production of 12 MilGem patrol ships. Also, Yonca Onuk, a private company, has designed and built a large portion of fast patrol boats in the work with the coast guard.
In addition to Turkish companies, a large number of foreign organizations are working in the defense sector in Turkey. Among them, there are the maritime shipbuilding Imtech RMK, German Minehunter Consortium Abeking & Rasmussen, Shipbuilding and repair company Lurssen Werft and Dearsan. Naval shipyard of Golcuk has experience under license of the German shipyard Howaldtswerke (HDW) with the production of submarines.
Aerospace Defense sector in Turkey
The main operator of the aerospace segment of the defence sector in Turkey is TAI (TUSAS Aerospace Industries). This organization was a producer of the necessary planes and helicopters along with the Turkish air force.
Another Turkish Aselsan organization has established itself as the leader of the electronic systems in the country, as well as the principal supplier of radar and optical systems. Roketsan is one of the few companies in Europe capable of design, develop and produce the rocket artillery systems (ARS). FNSS Savunma Sistemleri-the largest manufacturer of tracked armoured personnel carriers (AFVs) in Turkey.
It is to be expected that the Turkish defense industry will continue to evolve in the future due to the geographic and strategic position of the country. At the same time, with new legislation and initiatives in terms of growth of local defense, import and export of the defence sector in the future will be more balanced.
Automotive industry in Turkey
Turkey is a 16th on account of a car manufacturer in the world, the largest producer of buses in Europe and 2nd manufacturer of light-duty trucks. Turkey's automotive sector includes the manufacture of trucks, buses, trailers, MIDI and mini-buses, and passenger cars with a capacity of 1.5 million engines. To the worsening of the global financial crisis in the last quarter of 2008, production figures showed a steady growth in recent years.
The automotive sector in Turkey started in 1967 in terms of national production. For many years, the industry imported foreign models and performed them for the national market under conditions of high tariff protection. After the establishment of the Customs Union in 1996, tariff protectionism for the industry ended. Since then many global brands, such as Honda, Toyota, Hyundai joined the already eligible brands in the automotive sector in Turkey, such as Renault, Ford, Fiat. Today, Turkey has 18 producers and 900 suppliers. Before the crisis, they have provided jobs for more than 230 000 people.
Turkey's automotive sector produces 80% of all production for export to Europe. In 2008, Turkey exported the engines for cars at 18.3 billion dollars in a price equivalent.
As the effects of the global financial crisis had an impact on international trade, exports and imports of cars and parts produced in Turkey in 2009 fell.
The financial sector in Turkey
By the end of 2007, the banking sector funds accounted for 88% of the total financial sector. Major reforms were carried out in financial and banking since 1999 to 2002. In May 2001, a "restructuring programme of the banking sector" with a view to making the banking sector into a fully fledged and competitive structure that ensures stable growth begun. Banking legislation was placed under international regulations, recommendations of the Bank for international settlements and Bank norms of the European Union. Also in accordance with the same principles and Oversight Committee over the banks and audit BASEL, in 2005, with a view to regulating the sector in Turkey, it was issued by the banking law. The new structure of the banking system and improvements in the economy, the banking sector in Turkey had shown a significant increase, affecting the banks' balance sheets and restructuring.
By the end of 2008 Turkey's banking system, included 49 banks, branches and 9 304 182 667 employees. Total assets of the banking sector amounted to 434 billion dollars that amounted to 75% of Turkey's GDP. By the end of 2007, total assets amounted to 485 billion dollars. And while traced the drop in total assets in dollar terms during 2008, in Turkish Lira occurred 30 percent growth (due to the worsening financial crisis in the last quarter of 2008 the dollar rose towards the Turkish Lira).
In 2008, the number of branches of Turkish banks increased to 1 180 (15%), the number of employees increased by 14 904 (9%). Even in the last quarter of 2008, as the worsening global financial crisis and reduce a large number of European and American banks, 268 new branches of Turkish banks were opened and 1 140 new employees.
By the end of 2008, the total volume of loans amounted to 218 billion. dollars (368 billion TL)-half of all funds. Loans in 2008 increased by 29% (TL). 44% loans - loans for agencies and commercial organizations, 32%-private loans and 24%-loans to small and medium-sized enterprises.
Although the global financial crisis affected the Turkish banking sector, it has some advantages compared with other countries.
Advantages of banking sector in Turkey
- Turkish traditional banking sector, widespread, for the most part, formed deposits and has an extensive client network
- the share of private loans to GDP is small,
- Turkish banking sector has launched a system of mortgage lending very late, and interest rates are fixed,
- the banking sector in Turkey has experience in crisis.
Main indicators of the Turkish banking sector and national income in billions of dollars
The consumer sector in Turkey
Agriculture in Turkey
Turkey is a major producer of agricultural crops and products of the food industry in the Eastern European region and one of the world's largest producers and exporters of fruits and vegetables. In 2007-2008, production reached about 37 million tons, which amounted to about 60% of all EU countries.
In addition, Turkey is a major supplier of nuts in the world, this is mainly hazelnuts (the world's largest exporter). Turkey has high competitiveness in terms of price-quality relationship due to climatic conditions and the low cost of labour. For other crops, Turkey is also a competitive player, for example in the production of legumes such as chickpeas and lentils, cotton and some types of sugar, tobacco and olive oil.
With regard to the livestock and livestock products, Turkey has a protected market, including import restrictions. Per capita meat consumption is about 1/5 parts of EU lamb consumption higher than across the EU as a whole. The consumption of cow's milk and eggs is about half and about ¾ EU level respectively.
Agriculture and food industry of Turkey towards the EU
Turkey has the highest surplus in international trade with EU countries (1.5 billion EUR in 2008), mainly due to exports of edible fruits and nuts, fruit and vegetable products, as well as tobacco and tobacco products. Turkey also has important trade relations and trade surplus with the countries of the Mediterranean basin and the Gulf countries.
Bilateral trade liberalization in agriculture is asymmetric: the EU gave Turkey the preferential market access in the framework of the Customs Union while Turkey has provided relatively less preferential customs duties for agricultural products exported from the EU. Besides, Turkey maintains a ban on the import of most animals and animal products, that has become a major obstacle in bilateral relations.
In relation to exports of agricultural products of Turkey into the EU countries, the situation is very different. Approximately 70% of total exports of the Turkish agricultural production comes to the EU duty-free.
Export of furniture from Turkey
Increasing demand in other countries for furniture produced in Turkey due to the fact that Turkish furniture is constantly investing in research and development and have modern equipment for the production of furniture. In combination with cheap work hard this allows the Turkish furniture industry to conquer the furniture markets of other countries. Turkish furniture quality and relatively cheap.
Turkish furniture industry needs
Wood furniture manufacturers in Turkey are constantly in need of supplies of valuable breeds of the tree, as a private wood, growing in Turkey is not of high quality. Turkish furniture industry consumes as solid wood (ash, beech, oak, Basswood, mahogany, walnut and pine, of course), and pressed Board and plywood (mahogany, walnut, beech, oak, pine, spruce).
Cosmetic products sector in Turkey
The number of producers or persons registered in the Ministry of health exceeds 1 370 units, and it is known that at least 340 of them are exclusively manufacture of Eau de Cologne.
Depending on the economic development in Turkey, and the production and consumption of cosmetics and personal care products is also growing rapidly. Hair care products take the largest share of production, and shampoos are approximately 59% of this share. Other positions included in the rating of production by sector, products for shaving, depilatories, shower products, soaps, cosmetics for eye and lip makeup, deodorants and antiperspirants, perfumes, colognes, skincare products and means of child hygiene.
Cosmetic companies in Turkey produce
1. personal care cosmetics Products:
- Soaps and detergents
- Hair care products and coating
- Food oral care
- Sanitary pads
- Baby care products tools
- Male hygiene tools
2. products for makeup and nail care
- Makeup products and makeup remover
- Products for eye care and eye makeup
- Nail care products
3. Cosmetic skin care
- Skin care products
- Products for tanning and the sun protection
4. Perfume in Turkey
- Perfume and antiperspirants
- Industrial oils
- Air fresheners
The export of precious metals and jewellery in Turkey
Jewelry industry of gold started in Turkey in the last decade to pay attention to the export of its products. And although, gold jewelry is a fairly new article export Turkey, its impact is quite high and the export value rose strongly lately. Namely, the export amounted to 842.6 million. dollars in 2004, whereas in 1992 it was only 2.8 million. dollars. According to official figures, exports of gold jewelry was about 105 tons in 2004. Taking into account tourist and informal sales, total exports stood at approximately 150 tons jewelry made of precious metals.
Jewelry produced with the intensive use of information and technology, and the concept of the decorative designs was exported to 130 countries. In 2004, United States became our main export partner, with a turnover of 323 million. dollars. Second-place United Arab Emirates stood with a turnover of 96.9 million. dollars. The third United States-Switzerland with a turnover of 50 million. dollars. Germany took the fourth place with a turnover of 43.9 million. dollars. Russian Federation, Italy, Libya and Israel stand among other important countries for the export of our jewelry.
Jewelry sector at the moment Turkey has export potential at about 5 billion. United States dollars and consists of 15 huge firms, 000000 300 retail stores and approximately 2 500 small and medium-sized manufacturers that use high technology. Jewelry companies in Turkey have taken serious steps in respect of design and branding, created strong teams, improved the quality of its workforce and began to build a global market, thanks to the strong steps taken in the 1980 's.
Of course, internal and external challenges of the jewelry industry sector development Turkey is not yet fully resolved. During combat, the negative trends in world trade, customs tariffs and non-tariff barriers, the jewellery industry in Turkey has experienced rampant gold price fluctuations. But she has overcome imbalance prices for gold Istanbul Mercantile Exchange caused by this situation, as a result of cooperation with the Central Bank. In addition, measures have been undertaken aimed at changing interaction understanding of taxation, which is at odds with the realities of the sector.
In General, Turkey's jewelry industry has a lot of serious work on branding, design and value creation in order to preserve the positions of the sector in second place after Italy and bring it to the first place in the world. All of the above work and all the steps required by the jewelry industry of Turkey to be more open to the outside world and engage in rational dialogue with civil society organisations.
The goal is to create a global claim to face the Turkish Jewelry sector in the global market through support for historical and cultural Jewelry sector. Harmonize tradition in accordance with the requirements of modernity.
The majority of brands such as Tiffany, Roberto Bravo, Chanel, etc. placed and continue to place their production of jewellery in Turkey.
Some Swiss watch factory placed in Turkey their production on a contractual basis. Therefore, some watch brands in Turkey can be purchased at 10-30% cheaper than in Switzerland.
Energy and energy resources of Turkey
Turkey sells 90% of imported oil from three countries-Iran, Russia and Saudi Arabia.
Natural gas and gas transportation in Turkey
Natural gas is supplied to Turkey after two Russian-Turkish gas pipeline (West and the Black Sea), the Azerbaijan-Turkey gas pipeline (Baku-Tbilisi-Erzurum) and one Iranian-Turkish gas pipeline. These pipelines ensure transportation of 32.2 billion. cube. cm. natural gas. An additional 5.6 billion. cube. cm. natural gas is imported in liquefied form from Algeria and Nigeria.
Turkey imports 90% of natural gas from three countries-Iran, Russia and Algeria.
From the point of view of energy transportation, already a quarter of Azerbaijani natural gas goes to Greece. Nabucco gas pipeline was planned to supply natural gas from Central Asia to Central Europe via Turkey. Turkey also builds the pipeline segment "Egypt-Jordan-Syria-Lebanon. The segment will be attached to the Turkish gas pipeline network. Another underwater gas pipeline is to be built between Ceyhan and Israel. Gas from the pipeline will be transported from the Red Sea to India by the courts. Market surveillance agency energy (EPDK) is an independent body that monitors standards for electricity, natural gas, oil and liquefied natural gas to Turkey.
The production and consumption of electricity in Turkey
Turkey's demand for electricity is growing the fastest in the world after China. From 2002 to 2007, the average annual demand grew by 8%. However, in 2008, 2012. the consequences of the global crisis, this figure dropped to 3.5%. By slowing the production of iron, steel, cement and textiles decreased energy consumption for the needs of commercial production.
In Turkey at the moment 40 835 MW of installed capacity. The commercial and industrial sector consumes 62%, 24% of them accounted for by domestic consumers. The State owns 57% of the installed capacity in Turkey previously belonged-98%. Turkish electricity distribution company (TEDAŞ) is an agency of the State and it provides and sells electricity in the 21 regions for 29.4 million consumers.
To attract foreign investment and increase productivity in the production and distribution of energy, the Government continues to privatize industry and redistribute power. It sold Başkent electricity distribution Corporation (BEDAŞ) and Sakarya electricity distribution Company (SEDAŞ) to private companies. In recent years, the Government changed laws and regulations for the energy sector. The model was built in accordance with the rules and structure of the sector in the European Union.
Renewable energy in Turkey
Under the Kyoto agreement signed in Turkey in 2008, it needs to increase renewable energy production in the coming years. With the changes of control measures, the Government also guarantees higher procurement prices. As a result of this innovation many international and local companies began to invest in the industry. Among them are such companies as General Electric, BP and Spanish Iberdrola. It is also planned to build a network of power lines between Turkey, Syria, Egypt, Iraq, Jordan, Lebanon and Libya.
Health and pharmacy in Turkey
In Turkey, the production capacity of 43, 14 of which are foreign companies. German Bayer, GlaxoSmithKline, British American Aventis Pharmaceuticals Inc. and Pfizer, Baxter, Swiss Roche and Novartis, French Sanofi have production in Turkey. EIS Eczacibası, Abdi Ibrahim, Fako, Ilsan Iltas, Mustafa Nevzat, Ibrahim Ethem and Bilim-leading pharmaceutical manufacturers in Turkey.
Construction and real estate in Turkey
Construction market in Turkey
Construction is an important industry in Turkey with their share in the GDP of 5.5% to 6.5% over the past 5 years. Also, the sector of construction materials such as cement, iron, steel, glass, ceramics, etc. developed very well and is strongly associated with the construction industry. Turkish construction companies work not only within the country, many of them involved in various international projects, particularly in the Middle East, Central Asia, the Balkans and North Africa. According to the magazine "Engineering New,s" 23 Turkish firms were included in the list of leading 225 international contractors.
The construction sector had steady growth from 1980 to 1988, with economic liberalization and rising interest rates, the cost of investment is increased after 1988 as a result of the increased value of the investments and low demand, investment and State activity in the financial sector were low, and growth in the sector was low. The construction sector grew by 22.4% in 1993 to 2003 with, this figure was lower than the rate of growth of the Turkish economy in General-26.13%.
By 2004, the percentage of growth in the industry was again on the rise. In the first half of 2005, the number of building licences increased by 40% compared to the same period of the previous year. In 2006, growth continued. In 2008, the growth of the construction market of Turkey started to slow down, because the entire economy in Turkey and in the world has fallen into decay.
Turkish construction companies in the international market
The business volume of the Turkish construction firms abroad, in 68 different countries reached 130 billion. United States dollars by the end of 2008, 225 list major international contractors ", compiled by the magazine" Engineering News "in 2005, included 14 Turkish companies. To 2007, their number grew to 22 in 2008-up to 23.
Construction materials in Turkey
The construction materials sector in Turkey is the third magnitude in Turkey and is 13.1% in total exports. The sector produces building materials not only for Turkey but also for neighbouring countries. Turkey is the largest supplier of cement in Europe and the third in the world. Turkey also stands at 11 in the world for exporting steel with average growth in the past five years-11%. However, Turkey is the largest importer of iron ore and scrap, as has a permanent need for raw materials for steelmaking.
The Turkish real estate market
The real estate market in Turkey has experienced the same decline, as the construction sector of Turkey. After 2001, real estate sector has been an important factor in economic growth. 10.6% of GDP in 2007 g. accounted for real estate owners, where rent and real estate services accounted for 4% of the sphere as a whole. Although residential property stands at 72%, more than half of Turkey's population under 29 years. Thus, the demand for housing in the domestic Turkish market should grow.
Also, in accordance with the rating guide to the international journal "property Turkey" was the first among the countries with the highest potential in the sphere of real estate in 2007, according to the magazine in the future will be valued prices below European and, in particular, real estate in big cities and the coasts.
TOKI-Office of residential real estate construction sector development Turkey
The Office for the development of residential real estate construction sector of Turkey (TOKI) is a public organization that provides housing for people with low and middle incomes. It is the largest player in the sector of residential real estate in Turkey. TOKI carries out its activities based on specially adopted laws. From 2003 to 2007, the Organization has provided more loans. million housing units and built a 000000 250 housing units. TOKI was to build 500 housing units to 000000, 2011.
Technology, communications and telecommunications in Turkey
Development and prospect of The Internet in Turkey
The number of Internet users has increased after the introduction, with effect from March 1, 2009, reduced rate Special communication tax for Internet connections from 15% to 5%. There is also a new law for companies engaged in research and development, special economic zones used as incubators for companies specializing in new technologies, for which the protection of property rights remains problematic.
Media and TV in Turkey
The 2006 г. in Turkey there were 4843 print media and 85 channels. Turkey also stands on the 11-highest Internet users. In the same year, the number of publications was equivalent to approximately 42 thousand. Magazines accounted for 57.1% of all media. The newspaper is the most influential MEDIA in Turkey. DOĞAN Media Group (the largest media group in Turkey) and the Group of companies Turkuvaz are the biggest media holding Ami in Turkey. Kanal D, ATV and Show TV, Star TV owns more tv. The largest newspaper editions-Posta, Hurriyet, Sabah and Zaman. Currently, AGB Nielsen Media Research is the only MEDIA monitoring company in Turkey, negotiations on the establishment of the second is ongoing.
Foreign investment in tourism in Turkey
Tourism is one of the most preferred sectors for foreign investment, as the Turkish Government aims to expand tourism sector by providing several enabling factors for investors in the industry. Turkey, one of the leading countries in a part of the geothermal resource, is trying to develop health tourism through the creation of new health facilities and thermal tourism, SPA-Wellness resources and tourism for the elderly and disabled. The Turkish Government also aims to develop winter tourism, establishing new regions for winter sports agencies.
In addition, the programme has several projects in the area of sports tourism, one of the most important tourist centers in Antalya were recently specially designed golf courses.