| Turkish Economy | | | | investor focus beginning to target the |
| | | | southern Turkish coastline, which has a |
| Turkey's dynamic economy is a complex mix of | | | | hugely successful tourism industry already, |
| modern industry and commerce, along with a | | | | and all of this investment confidence and |
| traditional agriculture sector that still | | | | contribution is allowing for the creation of |
| accounts for more than 35 per cent of | | | | jobs, which means that local purchasing power |
| employment. It has a strong and rapidly | | | | is significantly improving. |
| growing private sector, yet the state still | | | | |
| plays a major role in basic industry, | | | | Tourism |
| banking, transport and communication. The | | | | |
| largest industrial sector is textiles and | | | | Steady growth - Turkish tourism can be |
| clothing, which accounts for one third of | | | | characterised by these two words. The year |
| industrial employment. It faces stiff | | | | 2005 was a turning point for tourism in |
| competition in international markets with the | | | | Turkey. In 2004, there was a 29 per cent |
| end of the global quota system. However, | | | | growth in the number of arrivals. In 2005, |
| other sectors, notably the automotive and | | | | the foreign visitor arrival growth rate was |
| electronics industries, are of rising | | | | 25 per cent. This indicates that Turkish |
| importance in Turkey's export mix. | | | | tourism has sustainable growth and stability. |
| | | | In 2005, incoming tourist receipts came to |
| | | | $11.9 billion (6.1 billion) compared to $10.6 |
| | | | billion (5.4 billion) in 2004. In 2005, the |
| Privatisation sales are currently approaching | | | | biggest change occurred in the number of |
| $21 billion (10.8 billion). Oil has been | | | | tourists coming from non-European countries. |
| flowing through the Baku-Tblisi-Ceyhan | | | | The USA, Iran, Denmark and Syria were the |
| pipeline since May 2006, marking a major | | | | countries which showed the highest growth |
| milestone that will bring up to 1 billion | | | | rate in the number of arrivals. |
| barrels per day from the Caspian to market. | | | | |
| Without a doubt, the commitment of the | | | | EU talks boost holidays in turkey. |
| government to economic reform, supported by | | | | |
| prudent macroeconomic and structural | | | | More and more people are taking holidays now |
| policies, has played a significant role in | | | | because of their increased purchasing power. |
| strengthening investor confidence in the | | | | With every step towards Turkey's EU |
| Turkish economy. | | | | membership, more people in Europe are |
| | | | considering the Turkish coast as an exotic |
| Foreign Direct Investment (FDI) | | | | option that is also close to their homeland. |
| | | | EU membership talks and the booming Turkish |
| FDI in Turkey is rapidly increasing as a | | | | economy have made Turkey a favourable |
| result of the Turkish government working | | | | nvestment haven. Reduced inflation and |
| consistently hard to make investment both | | | | interest rates have stabilised the economy |
| easier and more attractive. As a result of | | | | since 2003. |
| the government'sefforts, between January and | | | | |
| October in 2006 alone almost $16 billion (8.2 | | | | If Turkey can get the FDI it needs and attain |
| billion) was committed to Turkey in the form | | | | full EU membership, it will become one of the |
| of FDI. | | | | most important and influential countries in |
| | | | the world as it will, strategically and |
| Money is flowing into everything from banking | | | | politically, represent a bridge between the |
| tomanufacturing and one particular sector | | | | Middle East and Europe. The future prospects |
| where FDI has reached record levels is the | | | | for Turkey and its economy are, therefore, |
| real estate sector. A number of significant, | | | | very positive indeed over the medium to long- |
| international property companies such as | | | | term, making the country an exciting |
| Emaar Properties and ETA Star have committed | | | | investment opportunity for property buyers |
| millions to housing and commercial property | | | | seeking significant returns over the same |
| projects in Turkey, and, going in to 2007, | | | | term period. |
| bidding is taking place for a range of new | | | | |
| projects such as the biggest real estate | | | | As the Turkish economy continues to expand |
| project to date in Istanbul for the | | | | and the standard of living improves further, |
| construction of three skyscrapers and a | | | | the forthcoming membership of the European |
| yachtmarina. Donald Trump is said to be in | | | | Union will further lift what is already a |
| the bidding war for the development that will | | | | buoyant economy. the inventory of property |
| beconstructed in Zeytinburnu. | | | | bought and sold in turkey continues to grow |
| | | | because of ongoing government reforms and |
| But Istanbul isn't the only area to be | | | | partnerships with business and overseas |
| boosted by FDI; there is a great deal of | | | | investors. |