Turkey is endowed with immense social and cultural wealth, and is a strategic crossing between Europe and Asia. In addition to being one of the main routes for transportation and energy lines, Turkey is also noteworthy with the opportunities and potential it offers. Lucky to have the dynamic population the business world needs, Turkey also offers the ideal conditions required for investments, thanks to its liberal economy. Moreover, Turkey has a Customs Union with the European Union, and is also on track with accession negotiations with the EU. AVERAGE GROWTH: 5 PERCENT Turkey, which has its leading export and import partners in Europe, achieved an average annual growth of 5 percent since 2002. Turkish economy is expected to become the fastest growing one among all OECD members, in the next 5 years as well. Turkey’s exports grew from 47 billion USD in 2003, to 152 billion USD by the end of 2013. The same period saw tourism revenues grew from 14 billion dollars to 32.3 billion. STRONG BANKING SYSTEM Once Turkey got out of the political and economic crisis it endured in 2001, it first secured political stability. Then, it proceeded to implement necessary reforms of its banking system, which was one of the hardest hit sections of the economy. Thanks to these reforms, Turkish banking system was able to evade the string of bankruptcies which hit financial institutions in the US and EU from 2008 on. Turkish banking system is praised as a model of confidence and profitability, from Western Europe to Middle East. ATTRACTED 135 BILLION DOLLARS In addition to the finance sector, which proved its mettle against the global economic crisis, Turkey has also drew attention with its strict financial discipline and stable economy policies, and attracted 135 billion US Dollars in foreign direct investments in the last decade. Thanks to this excellent performance achieved in such a short time frame, Turkey became an extraordinary "rising economy" in the global arena. In 2013, 2013 Turkey ranked 6th among EU member states, and 16th largest economy of the whole world, in terms of purchasing power parity figures for GDP. COMPETITIVE EDGE IN THE MARKET 1 Strong macroeconomic fundamentals 2 Substantial domestic market 3 Strong growth performance 4 Strong public and banking sectors 5 Dynamic and competitive private sector 6 Young and educated population 7 Rapid industrialization and urbanization 8 Rapid increase of purchasing power 9 Strategic geographical location 10 Developed infrastructure 11 Generous investment subsidies 12 State subsidies for SMEs, exports, and R&D 13 Customs Union with the European Union 14 Accession process for the European Union 15 Free Trade Agreements with more than 20 countries 16 Strong export performance 17 Substantial know-how in Med-Hi-tech industries 18 Major potential in services 19 Rapid increase in foreign direct investments 20 Strong positive expectations regarding medium-long term Source: Istanbul Chamber of Commerce, Competition Development Coordinator LAW FOR FOREIGN DIRECT INVESTMENTS Turkey implemented structural reforms to ensure better support for foreign investments, through the "Foreign Direct Investments Law". The most important change was the adoption of the tracking system rather than the screening regime, and the introduction of notification requirement instead of the preliminary permit requirement. Furthermore, Investment Consultation Council and coordination committees were set up. In this context, the following opportunities are offered to potential foreign direct investors: * Liberal economy and business environment * Free entry to and exit from the market * Ability to set up a company on an average of 6 days (OECD average: 11 days) * Equal treatment of all investors * Domestic investor treatment for foreign investors * Opportunity to set up firms with 100 percent foreign capital * Opportunity to set up a firm without obtaining any permit * State guarantees for foreign investments * Guarantee for the transfer of profits abroad * Opportunity to set up new firms, branches, or offices * Opportunity to employ foreign personnel in key positions * Equal treatment in all subsidies and support opportunities * Opportunity to purchase real estate, for foreign investors. MINIMUM WAGE IN TURKEY Gross: TRY 1,071 (USD 487) Net: TRY 846 (USD 385) Employer's share of Social Security Premium: 15.5% Employer's share of Employment Insurance Fund Premiums: 2% Total cost for the Employer: TRY 1,258.43 (USD 572) EMPLOYMENT AND CAPITAL SHARE For each foreigner for whom a work permit is to be obtained, at least 5 Turkish nationals should be employed. The capital share of foreign shareholders should be at least 20 percent, and TRY 40,000. The paid in capital of the enterprise should be at least TRY 100,000, whereas the gross sales should be at least TRY 800,000. In case of 'eligible' Foreign Direct Investments, the foreign shareholder and key personnel would be exempted from these requirements. ELIGIBLE INVESTMENTS In order to qualify for this group, the capital share held by foreign nationals should be at least TRY 1,062,691, whereas the company's turnover in the last year should be at least TRY 79.8 million. Provided that the abovementioned capital share requirement is met, the company's exports in the last year should be worth at least USD 1 million. The company should employ a staff of at least 250 registered with the Social Security Agency (SGK). In case of actual investments, the minimum fixed investment figure should be at least TRY 26.6 million. ORGANIZED INDUSTRY There are more than 180 Organized Industrial Zones (OSB) in Turkey. OSBs offer infrastructure in the form of roads, water, natural gas, electricity, communication, and waste treatment utilities. VAT exemption for land purchases in OSBs, and other advantages regarding water, natural gas and communication expenses are available. Relevant Agencies: Supreme Agency of Organized Industrial Zones (www.osbuk.org); Organized Industrial Zones Association (www.osbder.org). TECHNOLOGY DEVELOPMENT There are 34 active Technology Development Zones in Turkey. 5 of these special investment zones which aim to attract high-tech investments are located in Istanbul. The enterprises to invest in Technology Development Zones are offered VAT, employment premium, and operating advantages. Relevant Agencies: General Directorate of Science and Technology; Technology Development Zones Association. FREE ZONES Free zones are special investment zones which are kept outside the customs area of Turkey. There are 20 free zones in Turkey. These offer 100 percent exception for customs duties, as well as corporate income tax exemptions, VAT and special consumption tax exemptions for manufacturing firms, as well as income tax for employees. Relevant Agency: Ministry of Economy, General Directorate of Free Zones TURKEY IN 2014 GDP: USD 800 billion Per Capita: USD 10,822 Growth: 2.9% Inflation: 8.17%

06 Ağustos 2015 Perşembe

- Built in 1461, the Grand Bazaar is like a giant maze comprising of 66 streets and 4000 stores on a total covered area of 40700 square meters and is a major tourist attraction. Grand Bazaar lies in the well-known triangle of Nuruosmaniye, Mercan and Beyazıt and covers a total indoor area of 45 thousand square meters. It is comprised of 64 streets, 2 smaller bazaars, 16 traditional Turkish Lodging facilities (Han Buildings), 22 gates and 3600 shops. Known as the oldest bank of the World and biggest bazaar of its kind, Grand Bazaar attracts 300thd-500thd visitors per day, predominantly made of tourists. Its earliest Stones were laid in 1461 by the order of Fatih Sultan Mehmed yet the main bazaar was actually build in wood during the reign of Suleiman the Magnificent. The core constitutes of the Inner Bazaar(Cevahir Bedesteni) and New Bazaar (Sandal Bedesteni). Withstanding many earthquakes and fires during its history, The Bazaar was reconstituted after 1894 earthquake to its current form and underwent its most recent renovation 1982. SPICE MARKET Spice Markets lives up to its glorious past as one of the oldest market places of Istanbul. It was built as a charitable foundation with the order of Safiye Sultan in an effort to raise funds to support the New Mosque’s construction costs. Its construction originally started in 1597 but it was in 1660 that the Market was completed and opened, thanks to the patronage of Hatice Turhan Sultan and the work of Architect Mustafa Aga. Originally named as Valide Market and later as New Market, its name was changed in 18th century to Egyptian Spice market in memory of the monetary contributions of Cairo province for its construction and in view of Egypt being the origin of the spices sold. Leather, textile, fabric, marble, silver and gold products, carpets and kilims, souvenirs, and bags are some of the goods on sale at he Bazaar. THE OLDEST BANK AND THE LARGEST BAZAAR Grand Bazaar is known to be the oldest bank in the World and the largest bazaar of its kind. Storeowners in the bazaar, highly trusted by the general public would also serve as safe keepers for precious stones or metals in return for small fees. Savings of the public would be taken on loan and put to good use to serve as further capital and enhance trade. A large part of state treasuries were also deposited here for safekeeping purposes. Egyptian Spice market is a large bazaar offering dried herbs, medicinal plants, various different foods and all types of spices. Today, in addition to spices and herbs, it has everything from jewelry to textiles and souvenirs on offer in the 100 stores inhabiting the Market.

06 Ağustos 2015 Perşembe

Istanbul… The modern heir of ancient civilizations. A deep-rooted city with a bright future… Resembling an ever changing and evolving organism, Istanbul is also a global showcase of modern life. Its 14 million population larger than that of 140 countries; the City conducts half of Turkey’s foreign trade and generates nearly 1/3 of national income. With its young and dynamic nature, unique geographical position and rich history, Istanbul offers an economic market of great scale, acts as a crossroads for the civilizations of East and West and is a heritage of humanity. Now, this glorious city is at the brink of a new era. It is moving fast towards transforming itself as a modern metropolis, that integrates its future to the world. It constructs its future with a new vision, a new insight and new projects. LARGE SCALE PROJECTS Spatial expansion and population growth led to efforts to develop two new settlements. The Third Bridge and Northern Marmara Highway Project serve a logistics purpose as well as the goal of enabling proper use of the landscape. Marmaray and subway projects with segments currently under construction and already in use, revolutionise the transportation network of the city. The Eurasia Tunnel project will once again connect Asia and Europe, this time under the sea. The construction of the world’s largest airport is ongoing. Higher demand and the growth of infrastructure investments put Istanbul in the focus of foreign investors as well. Today Istanbul is the scene for more than 40 mega projects. Investments out of local government budget alone approach 30 billion dollars. A lively urban life with lots of activities in culture, arts and sports also support a globalizing Istanbul. Higher human mobility fosters tourism, whereas on the finance front Istanbul draws global attention as a centre of money. Urban transformation also helps the city to reinvent itself. TERM PRESIDENCY OF G20 On the other hand, as Turkey is to hold the term presidency of G20 in 2015, Istanbul’s global position and importance will become even more visible. Istanbul changes through development, and gets integrated with the world through change; it thus grows into a global brand. In this context, New Istanbul is taking steps towards the future, as the pioneer of a new Turkey and a new world. SUSTAINABLE DEVELOPMENT Change is good. Development is even better. But sustained development is the best of all. Accordingly, it is crucial to maintain the process of change and transformation of Istanbul, culminated in a vision of integrating the old with the new, the history with the future. This is how Istanbul will be able to avoid the danger of becoming yet another run-of-the-mill city, a risk which looms over all cities around the world. I believe that Istanbul, like each and every person, society, and nation that manage to change yet retain a unique character, will only become more of itself, and will reinforce its position in the global scene, through this distinctive character. This is a city which served as the capital of three civilizations throughout history; it will soon become the capital of global economy and money. *** PROMİSE FOR EASY START-UPS Comparing the investment environment in Turkey with the past, İbrahim Çağlar mentioned that doing business is now fast and easy. Investors in Turkey can complete most part of their bureaucratic procedures electronically. They can benefit from discounts and incentives in a wide range of areas including social security premiums and tax rates. Çağlar invited all potential investors and stated; “The doors of Istanbul Chamber of Commerce are wide open for all who want to invest in Istanbul. I, as the President of the Executive Board of Istanbul Chamber of Commerce, promise all potential investors coming to Istanbul, to help them complete registration procedures in the matter of a day so that they can go live hassle free.” ATTRACTION OF REAL ESTATE Underlining that an essential part of foreign investment in Turkey’s real estate sector -over 3 billion dollars- in 2013 was channelled to Istanbul, Çağlar said real estate presents great opportunities for Istanbul. President Çağlar expressed that 30 billion dollar investment has been realized by the local authority of Istanbul in the last decade, and added details as below:Approximately 40% of this amount pertains to transportation investments. Local authority’s total investment for subway is about 6 billion dollars. Studies show that these investments increase real estate values by some50% to 100%. LARGE SCALE PROJECTS Çağlar stressed the importance of Marmaray,linking two continents by an undersea tunnel and reputed as the “Project of the Century”: ‘It is planned to triple the rail system network in Istanbul in 5 short years. Istanbul will be the 2nd city with the largest subway network system in 2019. It won’t be wrong to say a new city is being built under Istanbul. 3rd Bosphorus bridge and 3rd Airport projects continue at full speed. Similarly Kanal (Canal) Istanbul, and the Eurasia Tunnel which will allow passenger vehicles pass across the continents under the Bosphorus are on the track. These investments will not only make Istanbul a more beautiful and accessible city; they will also lead to the emergence of wonderful opportunities in the real estate sector.’ 22,000 FOREIGN COMPANIES President Çağlar stated that Istanbul is a world city and a favourite among foreign investors - where approximately 22 thousand companies with foreign shareholding are operational. Çağlar said, in addition to its strong economy, Istanbul is the only city in the world which is divided by sea and emphasized, Istanbul is also a city showcasing historical and cultural heritages to global modern life. A dynamic city… Education, health, fashion, art… There is everything attracting and touching to human soul in this city. He quoted Napoleon’s famous words; “If the world were a country, Istanbul would be the capital”.HOW DID ISTANBUL LEAVE 17 EU COUNTRIES BEHIND? Çağlar stressed that with approximately 300 billion dollars income İstanbul has greater domestic revenue than 17 EU countries and with 207.5 billion dollars trade volume, it constitutes 52% of Turkey’s 400 billion dollars foreign trade volume.

05 Ağustos 2015 Çarşamba

DOĞAN ERDOĞAN / ISTANBUL COMMERCE - CANNES Istanbul Tent covering an area of 300 square meters at the entrance to the Fair Grounds of MIPIM 2015, received 4500 investors from 93 countries, welcomed those who wished to see the huge model of the city and learn about the projects. Istanbul took part in MIPIM with some breathtaking projects. MIPIM the largest real estatefair of the world and was held on 10-13 March, 2015 at Cannes, France. The 'Living Istanbul Model is commissioned by Istanbul Chamber of Commerce and is the largest design model to date. It was put on display in the Istanbul Tent placed at the entrance to the fair grounds. Putting on display 24 hours of Istanbul's life through audio-visual effects, the 96 square meter large model showcased the projects in the city, urban transformation zones, and the 'rising' districts. The Tent drew particular attention to Istanbul's mega projects, namely the Istanbul Finance Center in Ataşehir, Ataköy's shoreline, and large scale projects in Beyoğlu. Real estate and urban transformation projects were presented on the international arena through the MIPIM fair, which is of utmost importance for the sector as it brings contracting firms, international investors, city planners, architects, hotel chains, municipal and government agencies together. WE PROMOTED THE OPPORTUNITIES President of the Istanbul Chamber of Commerce, İbrahim Çağlar said "At MIPIM 2015, we achieved a first by promoting the famous historical sites as well as real estate and infrastructure projects of Istanbul through a 3D model of the city. We promoted the strength of Turkish construction industry, which ranks second in the global scale, and executes billions of dollars worth of business abroad. We also promoted the opportunities presented by Istanbul." Noting the presence of substantial elements of convenience through administrative and regulatory arrangements, President Çağlar added "In Turkey, one fifth of all residential unit sales and 30 percent of sales to foreigners, took place in Istanbul. Foreign investors’ demand for real estate in Istanbul grew significantly. 19 thousand residential units were sold to foreigners. In 2014, sale of residential units to foreigners grew by 55 percent, to reach 19 thousand." 100 BILLION DOLLARS President Çağlar said “the dynamic structure and growth of the sector all over Turkey will continue. This is not mere wishful thinking, but a clear economic fact obvious to local and foreign investors. In 2015, investment figures in construction will approach to 100 billion." MORE THAN 40 MEGA PROJECTS ARE IN PROGRESS The President of Istanbul Chamber of Commerce, Ibrahim Çağlar noted that foreigners who fell in love with Istanbul do not hesitate for a moment before investing in Istanbul, and said "There are more than 40 mega projects in Istanbul. Investments out of the local government's resources reach 30 billion dollars. Kanal Istanbul project, the Third Airport, the Third Bridge, Marmaray, Eurasian Tunnel Project, and Finance Center represent global steps taken by Turkey. These huge projects bring extraordinary pace to the real estate market in Istanbul." BEYOĞLU, A CENTER OF ATTRACTION The Beyoglu Investors Group (BIG) founded under the leadership of Ahmet Misbah Demircan, the Mayor of Beyoğlu, exhibited many projects at ITO's Istanbul Tent. Mayor Demircan said "Beyoğlu's active investment value will hit TRY 40.8 billion in two years, thanks to new projects such as Okmeydanı, Haliçport, and Galataport. We are proud to arrive in Cannes having reached many of our goals. SUBSTANTIAL INTEREST FROM ARABS AND RUSSIANS Officials of Abraaj Capital of Dubai visited Istanbul Tent and discussed the projects with the members of Beyoglu Investors Group (BIG). Moreover, Russian Minister of Construction, Housing and Public Services, Mikhail Men noted his admiration for the projects, and invited the mayor of Beyoğlu and the members of BIG to Russia.

04 Ağustos 2015 Salı