Burak Dağlıoğlu, President at the Investment Office of Republic of Turkey’s Presidency: “International accreditation organizations confirmed Turkey’s powerful position is facilitating the transfer of the companies. We are ready to assist the investors wishing to secure their supply chains in the world reshaping after the pandemic.” BARIŞ CABACI The world economy’s rules and functioning are being rewritten while the global supply chain is reshaped due to the pandemic. In this process, with its numerous advantages, Turkey forges ahead as an ideal center for the international companies. The Investment Office of the Republic of Turkey’s Presidency offers quite attractive incentives along with these advantages. Burak Dağlıoğlu, Office President, mentioned their activities regarding global investors to Istanbul Commerce: A BUSINESS-FRIENDLY INVESTMENT ENVIRONMENT What are the areas where Turkey is more competitive and attractive to foreign investors? One has to take a close look at the Turkish economy’s structure to understand the opportunities our country has to offer. Our economy is robust, resilient, but most importantly, it is diversified, providing opportunities in a various industries. Excluding Western European countries, Turkey is the only country in the region that produces everything from automotive to pharmaceuticals, from food and beverages to machinery, chemicals to aerospace and defense products. Moreover, these industries are bolstered by solid financials, logistics, and business services. All these industries have developed into global players and are well integrated into to the global value chain. As a result, our country is creating lucrative opportunities for international investors. Turkey’s primary assets include a geostrategic location, a qualified labor pool with a competitive cost advantage -this is also important- and a liberal and business-friendly investment environment, which has been constantly improved under the leadership of President Recep Tayyip Erdoğan, since 2003. THEY CHOSE TURKEY How did the pandemic affect international investor’s interest in Turkey? Despite the pandemic, foreign investors continue to make significant commitments in Turkey. In June, for instance, the Turkish game developer Peak Games was acquired by US-based global gaming giant Zynga, at a valuation of $1.8 billion, standing out as the first Turkish unicorn. Again, in August, Zynga acquired another Turkish mobile games developer, Rollic, for $180 million. French Imerys signed an agreement to acquire a majority stake at the Haznedar Group, one of Turkey’s leading refractory bricks manufacturers. Switzerland-based Firmenich acquired perfume producer MG International Fragrance Company. Regarding infrastructure -a key industry- Qatari terminal operator Q-Terminals acquired a commercial port in the Mediterranean province of Antalya. The list also includes the sales of stakes at IstinyePark, one of the top luxury shopping malls in Turkey, and stakes at Borsa Istanbul to the Qatar Investment Authority. The EBARA Group of Japan acquired the Turkish pump manufacturer Vansan. The good thing is that the recent investments have not been limited to mergers and acquisitions; greenfield and brownfield projects have also continued in Turkey. Turkey is a powerhouse, particularly for the automotive business. Hyundai Motor Company has recently commenced mass production of its i20 model in its Turkish factory to meet half of i20 model supplies globally. Meanwhile, Switzerland-based multinational food and drink processing conglomerate Nestlé broke ground for its fifth factory in Turkey, which will likewise be Turkey’s first medical nutrition plant. Regarding the pharma business, US-based biopharmaceutical company Gilead Sciences announced a new investment to produce HIV and Hepatitis drugs, together with a local partner in Turkey. Ford has recently announced another significant example in brownfield investments. Accordingly, Ford Otosan Gölcük Factory will manufacture the first fully electric version of Transit, the world’s most preferred commercial vehicle model, while also assuming the battery assembly. In short, we believe that the effect of Covid-19 on the Turkish economy has been limited and the investment ison the uptrend. SECTOR OPPORTUNITIES OF 2021 What are your priority sectors with regards to FDI in the post-pandemic era? The Investment Office’s priority sectors include e-mobility, energy storage, chemicals and petrochemicals, ICT, machinery, and advanced manufacturing technologies. Of course, life sciences, pharmaceuticals, medical devices, hospital services, and defense and aerospace are also important industries. Last but not least, we should mention agriculture and food. We focus on financial investments in all these sectors, namely private equity and venture capital investments. Turkey has proven itself as one of the fastest emerging markets for growth funds in the last two decades. In the past five years, we have accumulated success stories of venture capital investments and exits. We believe Turkish companies are robust and agile; they have the talent, yet we need more equity injection to those companies and startups. NO STOPPING AFTER THE PANDEMIC What are the Investment Office’s new approaches and perspectives for drawing investors to Turkey in the next years? The Investment Office has redefined its priorities and is prepping for the post-pandemic period. We will continue to promote Turkey with targeted sectors and investors. At the same time, we will ensure that existing investors receive effective facilitation services to retain and expand their investments in Turkey. We are continuing our work on an international investment strategy adapted to the pandemic era and beyond. We are currently working on a supplier development program to ensure that international investors secure the procurement of critical products in their supply chains. We invest more in digital communication platforms to deliver our content and messages to our target audience. Localization of content and mediums in each market is our priority. MICRO WEBSITES In addition to our ever-developing website invest.gov.tr, we run micro websites and local social media accounts in countries such as Japan, South Korea, China, Arabic speaking countries, and German-speaking countries. Our priorities also entail attracting investments that will take our country to the next level in global supply chains. Considering that the new structure will gather around the supply chains in the post-pandemic era, we are working in close cooperation with relevant institutions to arrive at a more central location for almost every sector in Turkey. “Turkey is an ideal place for investors” is the message we deliver to international investors who are willing to secure their supply chains and seek diversity, whether during the pandemic or the post-pandemic era. Our targets also involve having more multinational companies in Turkey with innovative facilities such as R&D and design centers. We aim to fortify Turkey’s position as a logistics hub and a regional headquarters for multinational companies. Finally, yet importantly, the brand with the utmost significance for us is Turkey itself. Our ultimate goal is to secure Turkey’s brand value at a well-deserved place with all our stakeholders. The Investment Office has an important message: Invest in Türkiye. ACKNOWLEDGED BY INTERNATIONAL ORGANIZATIONS How did the transformation in the Global Supply Chains (GVCs) accelerate with the pandemic? What are the effects of the GVCs transformation on Turkey’s investment climate? Global value chains had been undergoing a gradual transformation long before the outbreak of the pandemic.The pandemic has further accelerated this trend, immediately disrupting production and supply chains and creating supply and demand shocks. Faced with such an extraordinary challenge, companies have been rethinking their global supply networks to increase their resilience. The quest for stability forces multinational companies to reconsider their geographic and sectoral activities to diversify and secure their supply networks. Turkey’s strong position as an attractive destination for relocation has also been highlighted in several recent analyses by international experts and institutions. Considering Turkey’s comparative advantages in manufacturing, skilled labor force, strategic location, free trade agreements, logistics infrastructure, and many other capabilities, Turkey is ideal for multinational companies looking for diversification for their supply chains.

24 Mart 2021 Çarşamba

ADEM ORHUN The ‘Property Buying Guide: Istanbul’ to guide the global investors wishing to invest in real estate in Turkey has been published. Clarifying the investors’ questions on buying property, the guide at the same time directs the investors by their demands. Thus, the guide is regarded as a reference to facilitate foreign investors’ property buying process. Published in English, brochures in Arabic, French, Chinese, Russian and Persian have been added to the guide. POINTS INCLUDED IN THE GUIDE The chapters in the guide penned by the Istanbul Chamber of Commerce (ICOC) with the contributions of the Real Estate International Promotion Association (GIGDER) are as follows: Data on Turkey Owning property in Turkey and investment stages International banking processes Turkish citizenship by investment Investment and project opportunities in Turkey Sectors offering investment opportunities and significant projects ACCESS TO INFORMATION ICOC and GIGDER built the ‘Home Turkey Home’ project - a digital platform covering all relevant information and legal regulations. The guide was published as the first step to this end. Links to the guide can be found at social media platforms and access through numerous international websites will also be available. Guide’s PDF version can be downloaded from ICOC’s website with language options. https://ito.org.tr/en/property-buying-guide-istanbul TENS OF THOUSANDS PREFER TURKEY The real estate sales to foreigners used to be conducted in line with Turkey’s reciprocity principle. In 2012 the relevant legislation was changed and a smoother system was adopted. Nowadays, foreigners who do not have Turkish citizenship are quickly buying properties/real estate in Turkey. Thanks to the alteration in the system, the demands on purchasing property in Turkey increased. The number of housing sales in the last five years across Turkey reached nearly 7 million. The housing sales conducted to foreigners were recorded as 155 thousand. On the other hand, the total number of properties sold to foreign investors escalated to 378 thousand 225. As per a law enacted in 2018, buying a property of a minimum of US$250,000 worth will be sufficient for foreigners in acquiring Turkish citizenship. This new legislation increased foreigners’ demand for real estate. In 2019, foreigners bought around 70 thousand properties and their strong demand continued in 2020, despite the pandemic. In addition to its secure atmosphere, Turkey’s historical and natural beauties play a great role in this considerable interest. CITIZENSHIP BY INVESTMENT Under certain conditions, citizenship is granted to foreigners buying property or making investments in Turkey. Besides, foreigners are qualified for VAT exemption in these sales. The criteria to be fulfilled for acquiring Turkish citizenship are as follows: Buying minimum US$250,000 worth of real estate. Investing a minimum of US$500,000 fixed capital contribution. Depositing a minimum of US$500,000 into aTurkishbank account. Providing employment opportunities to 50 Turkish citizens. THE CHOICE OF EUROPEANS AND RUSSIANS Europeans and Russians were somewhat interested in smaller houses in the forms of 1+1, 2+1; demands on Middle East buyers were mostly toward villas or large homes with multiple rooms. In recent years, buyers are going for houses equipped with furniture and houses with smart technology enabling its inhabitants to control the heating-cooling, ventilation, and lighting processes from thousands of kilometers away. ADVANTAGES IN BUYING PROPERTY Easy payment, low expenditure Payment plans up to 12 months VAT reduction up to 18 percent Low property tax rates Affordable water, electricity, etc. costs

24 Mart 2021 Çarşamba

During this period, foreign investors mainly invested in services, retail, construction and machinery-automotive sectors. Middle Eastern and European companies engaged in the services sectors, African companies, on the other hand, preferred the retails. The number of companies established in Istanbul with foreign partners and the amount of capital achieved a ‘V-shaped recovery’ upon the launch of the normalization process on June 1. According to the ‘Report on the State of Periodic Foreign Investors in Pre-Pandemic and Post-Pandemic Periods’ prepared by the Statistics Unit of Istanbul Chamber of Commerce’s Economic and Social Researches Directorate, 2 thousand 779 foreign investors placed a total amount of TRY506 million 251 thousand 101 in Istanbul during the pre-pandemic period in January 1 - March 15, 2020. In parallel with the slowdown in the economic activities in the March 15-June 1 period when Covid-19 was identified asa pandemic, the rate of new foreign investments decreased. In this period, the assets of 573 foreign investors reachedTRY145 million 907 thousand 280. TRY647 MILLION INVESTED In June 1 – September 10, 2020, regarded as the beginning of the normalization process, the desire to make new investments returned to its pre-pandemic level and 2 thousand 678 foreign investors established new companies with a total capital of TRY647 million 407 thousand 168. The sectors to receive the highest amount of investments from foreign investors in this period have been the services, retails, construction and machinery-automotive sectors. RETAILS ON TOP OF THE LIST Retails and services sectors maintained their ranks as the sectors with the highest level of investment in the first nine months of 2020. Construction and textile followed these sectors in the pre-pandemic period. With the emergence of the pandemic, foreign investors started to focus on the healthcare and informatics sectors as the third and fourth sectors. Their focus returned to construction and machinery-automotive investments in the post-pandemic period rather than healthcare and informatics areas. 343 PERCENT INCREASE IN CAPITAL Compared with the pandemic period, 343 percent increase has been accomplished in capital value during the normalization period. With a 367.36 percent increase in the number of foreign investors, the figures of the pre-pandemic period have been achieved. In terms of the number of investors, Syria, Iran, Iraq, Jordan and Pakistan remained near the top in this period. Regarding capital value, Syria, Iran, Germany, Iraq and United Kingdom remained at the top five ranks of the list. MIDDLE EAST AND EU INVESTS IN SERVICES During the normalization period, countries of the Middle East and European Union mainly invested in Istanbul’s services sector. African countries invested mostly in the retails sector. 80% ARE LIMITED LIABILITY COMPANIES Foreign capital companies registering into the Istanbul Chamber of Commerce mostly prefer the limited liability company status. This data remained unchanged before the pandemic and post-pandemic periods. Eighty percent of the newly founded companies are in the limited liability company category.

24 Mart 2021 Çarşamba

MÜGE BİBER While striving to minimize the pandemic’s effects, Turkey carries out its activities towards strengthening its image in tourism as a ‘reliable country.’ The tourism sector achieved US$34 billion 520 million 332 thousand in 2019 with 51 million 860 thousand visitors. 58 million tourists were aimed for 2020. Though coronavirus obstructed achieving such targets, the sector is quiteoptimistic about 2021. CERTIFIED FACILITIES The tourists prioritized affordable prices in the past years; however, hygiene and safety replaced affordable prices with the emergence of the pandemic. For 50 percent of the consumers, the importance attached to hygiene has been an identifying factor. The Safe Tourism Certification program led by the Ministry of Culture and Tourism played a major role in Turkey’s becoming a reliable country. Ministry of Health, Ministry of Transport and Infrastructure, Ministry of Interior and Ministry of Foreign Affairs contributed to the program launched in cooperation with all the sector shareholders. 18 INTERNATIONAL ACCREDITATION INSTITUTIONS Facilities deemed to fulfill the requirements based on 166 varied criteria in the inspections conducted in hygiene and health by 18 different international accreditation bodies are entitled to the ‘Safe Tourism Certificate.’ MEASURES FOR 2021’s TOURISM SEASON In 2020, accommodation facilities with 50 or more rooms were obliged to acquire the Safe Tourism Certificate. As for the accommodation facilities to be launched as of 1 January 2021, the limit was identified as 30 rooms. According to the data provided by Turkey Tourism Promotion and Development Agency (TGA); 1975 accommodation facilities across Turkey have been delivering services with the ‘Safe Tourism Certificate’ as of 24 November 2020. With 374 facilities, Antalya is at the top of the list of hotels with this certificate. Istanbul follows Antalya with 373 hotels. SHOPPING EXCURSIONS Turkey is among the countries that are preferred for shopping. Therefore, despite the pandemic, many tourists are visiting the country for shopping excursions. 143 thousand 269 Bulgarian tourists came to Turkey in November, and 127 thousand 116 visitors arrived in Turkey from Russia. 48 thousand 748 Iraqi tourists were hosted as well. In January - November period, the total number of tourists, including the Turkish workers living abroad reached 14 million 486 thousand 632. In this way, the goal of achieving 15 million tourists by the end of the year has already been attained as of December. ENJOYING HOT AIR BALLOONS AT CAPPADOCIA A UNESCO World Heritage Site, Cappadocia is known for its fairy chimneys, valleys covered with natural rock formations, historical, natural and cultural riches. The hot air balloon tours in the site were suspended due to the pandemic. With the new normal, 115 thousand domestic and foreign tourists enjoyed the bird’s eye view of this touristic region. MAIN TREATMENT AREAS Plastic surgery hair transplantation Heart surgery Orthopedics Oncology IVF treatment HEALTHCARE TOURISM’S GOAL: RANKING AMONG THE TOP THREE Achieving a substantial leap in healthcare tourism with its investments in recent years, Turkey hosted 1.5 million tourists visiting the country to be healed. In 2019, Turkey was the 4th country in the world ranking. India remaining at the top of the list was Turkey’s major competitor. Malaysia, followed by Thailand, is the second country on the list. Mexico ranking the 5th in the list follows Turkey. Turkey is aimed to enter the global top three in this area with its modern pandemic hospitals built at the Anatolian and European sides of Istanbul. The new hospitals’ featuring airports are regarded as a critical advantage.

24 Mart 2021 Çarşamba

ADEM ORHUN Istanbul, the city that connects Asia and Europe, hosted the Formula 1 Grand Prix after nine years. Mercedes’ pilot Lewis Hamilton won the Turkish Grand Prix held on 13-15 November 2020. In doing so, Hamilton claimed a historic record-equaling seventh world championship in Istanbul and drew level with Michael Schumacher. The race began in the rain on a wet and slippery track the unsettled weather has severely challenged the pilots. Eventually, Hamilton, who managed to combine his driving skills with the best strategies for the varying weather and road conditions his strategies superbly lifted the cup. ‘Technology’ has been the hidden player of the organization that was much admired for points ranging from the renewed asphalt over the tracks to the gorgeous championship cup. After all, the cutting-edge technology has also modified the Formula 1 in its various components such as the engines and the sensors. THE ELECTRIC AGE The V12 engines that drew significant interest in the 1940s with the fascinating sounds they make are quite outdated now. Since 2014, V6 turbo engines are being employed in the cars. The V6 hybrid engine with a fuel volume of 1.6 litres at the AMG Petronas F1 W05 car launched by Mercedes in 2014 gained a place on the list of the most popular vehicles at the age of ‘electric cars.’ The same year, Porsche’s CEO claimed, “The winner of Le Mans and World Endurance Championship will be efficiency rather than speed.” This goal of achieving efficiency strengthened the electric engines and advanced sensors’ position in these cars. Subsystems assisting the pilot and the technology enabled the race team to remotely monitor the car launched right after the new engines started to outpace the speed. The electrical support in the motors, digital sensors, wireless connection, tens of screens monitored by the control team, numerous server units transformed F1 into a technology game. Such developments are regarded as the steps towards autonomous cars. NOW FASTER THAN EVER WITH THE ARTIFICIAL INTELLIGENCE Chairman of Intercity, the Istanbul Park circuit operator, Vural Ak noted that the race cars employing ever-advancing technologic equipment could be much faster thanks to artificial intelligence. Underlining the existence of ‘human beings’ at the tracks and tribune, Ak added, “I was hoping for a rain since the day the race returned to Istanbul for the use of technology would be limited when it rains and the capabilities of the pilot would stand out. Our prayers have been answered.” PIT-STOP OVER TWO CONTINENTS The first inter-continental ‘pit-stop’ of the world has been made at the Turkish Grand Prix 2020. The historical city witnessed a spectacular show before the race returning to Istanbul after 9 years. Red Bull Racing pilot Alexander Albon and AphaTauri’s racer Pierre Gasly drove around Istanbul’s historical landmarks; the Topkapi Palace, Galata Bridge and Sultanahmet Square with their F1 cars. As they went along the Anatolian shores of the Bosphorus Strait, the pilots enjoyed the legendary Maiden’s Tower’s scenary. Taking different routes, the two pilots frequently asked each other their locations during their Istanbul tour. At one stage, when Pierre Gasly asked the Red Bull Racing pilot where he was, receiving the answer, “Under the water.” In fact at that moment, Alexander Albon was passing the Eurasia Tunnel that connects Europe and Asia under the water. Following Albon’s impressive track that passed 106 meters under the surface, the two pilots ran into each other 64 meters above the sea. After this meeting at the July 15 Martyrs Bridge – one of the three points connecting the two continents, Pierre Gasly made a loop and headed towards the Asian side with Alexander Albon. Both pilots talked about their experience after the photo shootings. Pierre Gasly, “Driving a Formula 1 car in Istanbul, especially passing from one continent to another over the strait, was wonderful. Being a part of such a significant event is indeed quite cool.” Alexander Albon said, “Driving on the streets of Istanbul has certainly been an amazing experience. My moments over the strait are unforgettable.” A stimulating introduction film can be viewed from the link below: https://youtu.be/puFzVRPO9dw

24 Mart 2021 Çarşamba