Category: Business

  • Turkey’s arms manufacturers target the Middle East

    Turkey’s arms manufacturers target the Middle East

    Turkey’s bustling domestic arms industry has set its sights on the lucrative Middle Eastern export market. For now, arms exports to the region are limited, but Turkey’s private sector ambitions to become a major arms exporter may have larger geopolitical and strategic implications.

    ”]Turkey is developing an indigenous arms industry. [Reuters]The AKP made developing the country’s indigenous defence industry a national priority and initiated a policy to increase government investment in local research and development spending in 2004. The strategy appears to have paid off — Turkey exported nearly $1 billion worth of arms in 2010, up from $200 million in the early 2000s.

    Prime Minister Recep Tayyip Erdogan campaigned on transforming Ankara into a hub for the defence industry. The ambitious centerpiece of this policy is the AKP’s determination to produce high-tech military equipment — fighter aircraft, helicopters, and drones — which it could then market abroad.

    According to Birol Baskan, at Georgetown University’s Qatar campus, “Turkey has a thriving defence industry and it is now in a position to look for foreign markets. Turkey’s deepening military relations will not only help this industry expand further, but also increase Turkey’s soft power and influence in the region.”

    Ankara is actively seeking to deepen economic ties with neighbours across a host of areas such as tourism, agriculture, husbandry, manufacturing, construction, health and transportation. This is part of a wider belief that economic interdependence and regional stability will benefit Turkey’s economic and security situation.

    “Turkey made a true transition to an export-oriented economic growth model under the AKP,” says Baskan, adding that the Arab world and Iran are attractive markets for Turkey. “AKP’s conservative background helped in gaining access to these markets dominated by the US, European and the East Asian giants,” he says.

    Yet Turkey’s military relationship with the Middle East is still in its infancy and Turkish firms have encountered difficulties competing against major exporters like the United States and European countries. However, Baskan believes that “in the coming years Turkey will invest more in this relationship.”

    A primary motivation for deepening military co-operation with the Gulf States is a desire to expand Turkey’s “immediate and regional sphere of influence, in part to make itself as indispensable a player as possible to powers outside the region, such as the US but chiefly the EU”, argues Aram Nerguizian, a visiting fellow in strategy at the Center for Strategic and International Security.

    “If Turkey could consolidate its role and leadership in the Middle East, this could present the EU with a compelling reason to consider Turkey’s accession to the EU. Middle East countries, in turn, could consider a growing role for a new Sunni bulwark in the region, potentially against Shiite Iran,” he says.

    Baskan disagrees, arguing that “Turkey has its own reasons to engage the Middle East and it does not seem to care too much about how the US and the EU views Turkey’s deepening relations with the Middle East.”

    However, the turmoil engulfing the region could complicate Ankara’s efforts to penetrate the Middle Eastern market. Turkey’s rapprochement with Syria is unraveling and business interest by Turkish entrepreneurs appears to be faltering. Meanwhile, poor relations with Israel — a significant arms producer — have impacted the countries’ military co-operation.

    According to Nerguizian, events unfolding in the Middle East leave “many unanswered questions as to what Turkey’s role will look like at a time when the conservative Arab monarchies are so focused on internal stability and mutual survival”.

    This content was commissioned for SETimes.com.

  • Turkish E-Commerce Raises $26 Million From Kleiner Perkins

    Turkish E-Commerce Raises $26 Million From Kleiner Perkins

    Nope, it’s not China or India. It’s Turkey.

    Kleiner Perkins Caufield & Byers, best known for investing in Google, Amazon, Twitter and Zynga, has made a bet on Turkey as the next big market with its first major investment there.

    The receiving company — Trendyol.com, an e-commerce site based in Istanbul — is announcing today that it has raised $26 million from Kleiner Perkins and Tiger Global.

    Trendyol is similar to other flash sales sites in the U.S., such as Gilt Groupe, Rue La La, and Ideeli. The site sends out daily emails offering a heavily discounted selection of clothes. Consumers have a limited amount of time to purchase the items before the sale expires or quantities run out.

    The company was founded by Demet Mutlu, a 29-year-old dropout from Harvard Business School — she is now running the company with about 350 employees.

    Kleiner partner Aileen Lee said a combination of a hardworking executive team, the company’s phenomenal growth, and Turkey’s increasingly attractive market opportunity led to the investment. Plus, it doesn’t hurt to introduce e-commerce to a market that doesn’t have a strong brick-and-mortar environment.

    Check out some of these facts:

    * Turkey has 35 million Internet users, representing the third largest Web market in Europe.

    * Turkey is a socially engaged country, ranking fifth-highest for Facebook usage globally; eighth for Twitter and first for FriendFeed.

    * Turkey has a high credit card penetration rate of about 60 percent with 46 million credit cards.

    * In the past 16 months, Trendyol has signed up four million members, translating into one out of every nine Turkish Internet users.

    “When you go there and walk around the company, it looks like any other hypergrowth Silicon Valley start-up,” Lee said. “Trendyol has an incredible dedication to customer service and is driven by metrics and analytics. It has a good sense for what to outsource and what to keep in-house, and is building the brand.”

    She said Trendyol has also been good at leveraging social media, including a store inside Facebook that allows users to make purchases without leaving the site.

    The funding will be used for new initiatives, such as building out the company’s customer service team, increasing its membership, and potentially moving into new geographies. Trendyol.com has secured more than $50 million in total financing since the site launched in March 2010.

    via Turkish E-Commerce Raises $26 Million From Kleiner Perkins – Tricia Duryee – Commerce – AllThingsD.

  • Taxi of Tomorrow Blahs

    Taxi of Tomorrow Blahs

    The spatial identity of a city is not limited to its buildings. Urban architecture is often complemented by or competes with majestic feats of engineering or lush, elegant landscaping– universally recognizable bridges and parks (such as Golden Gate Bridge in San Francisco or Millennium Park in Chicago) often become the defining landmark of a city.

    In New York, the competing, ubiquitous icon is the bright yellow cab. With a supporting (if not starring) role in many New York photographs and movies, the taxi is embedded in the identity and culture of New York. In expansive lobbies and through large windows, fine design is admired by looking out onto the surrounding streets. From the tallest, most famous buildings, sightseers peer over the railings to admire the tiny taxi cabs on the avenues below. The architecture of New York is embedded in its street life, of which taxis are often the stars.

    After the jump: the new taxi is a missed opportunity.

    A year ago, big news broke that the New York City Taxi and Limousine Commission (TLC) had begun soliciting new designs for the yellow cab. Any search to revamp an icon is challenging; there are the nostalgists, the stalwarts, the radicals—when even small projects take place, there is often immediate outcry and disproportional protest. But the RFP for a new taxi design seemed to have everyone singing a different tune.

    The New York Times exuberantly called it ““an opportunity to shape the urban landscape.” Once they had selected three finalists, the TLC (yes, like the 1990s girl group) asked the public to vote for its favorite design on a friendly interactive website. Iconic reinvention at its best!

    Quickly, a model by the Turkish company Karsan became the popular frontrunner, gaining the support of politicians and the public alike. The Karsan cab (or Kab, as they called it) featured a skylight roof, kick seats, and wheelchair ramps. And in a major boost to New York’s sagging manufacturing industry, Karsan said the cars would be produced locally, in Brooklyn. Cabs for New York, made in New York. The proposal seemed perfect!

    Yesterday, the TLC put an end to any hopes that the new yellow cab will become an icon. Despite overwhelming public support for the Karsan design, they have instead chosen a bland Ford model as the “Taxi of Tomorrow.” The Ford Connect is already in use Boston, Chicago and Philadelphia, and its design is boxy and unremarkable

    The chosen Taxi of Tomorrow is a bland Ford Connect. Image: Gothamist.

    Sad as the outcome it for New York, this episode frames much larger issue: As cities across the globe continue to grow, they look for ways to make their features universally recognizable. Within this rethinking of urban form and identity, there is much opportunity to transform existing urban elements into icons.

    via Architizer Blog » Blog Archive » Taxi of Tomorrow Blahs.

  • Hainan Airlines to invest in Turkish cargo carrier ACT

    Hainan Airlines to invest in Turkish cargo carrier ACT

    Hainan Airlines 737-800. Photo: By Rob Finlayson.
    Hainan Airlines 737-800. Photo: By Rob Finlayson.

    Haikou-based Hainan Airlines Group sealed a deal to invest in Istanbul-based cargo carrier ACT Airlines. HNA, which has made clear that it wants to invest abroad (ATW Daily News, July 19), didn’t reveal how much money it will put into ACT or how large its holding will be.

    ACT was launched in 2004 and operates a fleet of four Airbus A300-B4 freighters. Its fleet is expected to expand to 10 aircraft in the next two years, aided in part by the HNA investment.

    In October 2010, HNA invested in the Turkish MRO company myTECHNIC and has said it plans to increase its stake. It has been negotiating to invest in financially troubled Malev Hungarian Airlines and has expressed interest in a stake in Germany’s Hochtief Airport.

    via Hainan Airlines to invest in Turkish cargo carrier ACT | ATWOnline.

  • Goldman to Acquire Aksa Stake in Turkey for $450 Million

    Goldman to Acquire Aksa Stake in Turkey for $450 Million

    Goldman SachsGoldman Sachs Group Inc. agreed to buy 26.5 percent of Aksa Enerji Uretim AS, one of Turkey’s two biggest power producers, for about $450 million, driving a record gain in the utility’s shares.

    Goldman Sachs will pay 5.05 liras ($2.94) a share to Aksa’s parent company, Kazanci Holding AS, which will invest the proceeds in power generation, Aksa Chairman Cemil Kazanci said today by telephone. “The price isn’t certain and could change at the closing of the transaction,” he said.

    Turkey’s energy industry is luring international companies as electricity demand is set to grow by an average 6.3 percent over the next 20 years, Hasan Koktas, head of the energy-market regulator, said June 15. Italy’s Ansaldo STS SpA won a 640 million-euro ($919 million) order for an 865-megawatt plant this month. Austria’s Verbund AG and OMV AG, Germany’s RWE AG and U.S.-based AES Corp. have also bought power assets in Turkey.

    Goldman Sachs loaned Kazanci Holding $192 million as part of the transaction, Kazanci said. The holding company pledged 43 percent of Aksa shares as collateral for the loan, which has a maturity of a year and one week, he said.

    Goldman Sachs’s offer represents a 22 percent premium to Aksa’s volume-weighted average share price over the 20 days through July 22, according to data compiled by Bloomberg. Aksa rose 33 kurus, or 8.7 percent, to 4.14 liras at the 5:30 p.m. close in Istanbul, the biggest one-day gain since the stock started trading in May 2010.

    Debt Payments

    Aksa expects the deal to close in September. Kazanci Holding will use a “large part” of the proceeds to pay its debts to Aksa, Zeynep Karaman, an analyst at BGC Partners Istanbul, said by telephone.

    In April, Kazanci Holding applied to the Istanbul Stock Exchange to sell 68.9 million shares in Aksa, or an 11.9 percent stake, on the bourse. The stock slumped 13 percent in the following three months.

    “I don’t think Kazanci has given up on its plan for a secondary share sale at Aksa, but this plan has put pressure on the stock price,” according to Karaman, who recommends buying Aksa shares. “Now that overhang seems to be going away.”

    Aksa, based in Istanbul, has power-generation capacity in excess of 1,500 megawatts, Kazanci said, adding that it will “soon” rise to 2,000 megawatts. Competitor Enerjisa, a venture owned by Verbund and Turkey’s Haci Omer Sabanci Holding AS, has a capacity of 1,557 megawatts, according to its website.

    Bloomberg

     

  • Turkey is doing much better as against 10 years ago

    Turkey is doing much better as against 10 years ago

    Robert Zoellick
    Robert Zoellick

    World Bank President Robert Zoellick said Turkish economy is in a better shape when compared to 10 years ago.

    World Bank Chief Robert Zoellick held a news conference in Istanbul to evaluate the items on his agenda, after having received by President Abdullah Gul and Prime Minister Recep Tayyip Erdogan.

    Expressing condolences to the families of terror victims, World Bank director Zoellick said Turkey is doing much better as against 10 years ago.

    “If I were in Turkey 10 years ago, we would have been talking about Turkey’s relations with the European Union. But today, we are discussing its economic relations with Central Asia and Africa. Turkey has established a broad-based and international network. It has a stronger and more durable domestic economy,” he said.

    Turkey is a developing country, therefore its current account deficit is understandable, Zoellick said, adding that as the World Bank they support the government’s efforts in this regard.

    via News.Az – Turkey is doing much better as against 10 years ago – WB chief.