ISTANBUL – Turkey is one of the fastest growing emerging markets in the world with impressive economic growth rates, expanding by 8.5 percent in 2011 – ahead of IMF expectations of 7.5 percent. Over the last decade, its GDP per capital tripled, reaching $772 billion in 2011, up from $231 billion in 2002. As part of its Vision for 2023, the country aims to be one of the top 10 economies in the world, to achieve a gross domestic product of $2 trillion, increase annual Turkish exports to $500 billion and achieve a foreign trade volume of $1 trillion. “Turkey is aiming high, but its goals are obtainable. The country's geographical location makes it a natural bridge between the East to West and North to South axes, providing easy - cost efficient access to businesses around the world. Its young, dynamic and growing workforce also continues to be a key contributor which, according to the 2009 World Bank numbers, is the 5th largest among the European countries. And more recently, the World Bank stamped its belief in the Vision by awarding the country with $6.5 billion of financial support," said Tim Reid, Regional Head of Commercial Banking for HSBC UAE and North Africa (MENA) during his welcome address at the HSBC MENA / Turkey Forum recently. Resulting actions have strongly attracted foreign trade to its already large domestic market. Foreign direct investment totaled $15.9 billion in 2011, up from $9 billion the year before. The MENA region now accounts for 18 percent of this. Vice versa, Turkey's exports reached $135 billion by the end of 2011 of which the MENA region now accounts for approximately a fourth. Key sectors of interest for MENA investors include tourism and energy. Turkey is currently the 6th most popular destination to visit in the world with the UAE's Jumeirah Group, the Rotana Hotels and Viceroy, as well as Saudi Arabia's My Tuana have already announced investments. Through the liberalization of its market and geographical location, Turkey is also strongly positioned as an energy transit hub. With MENA accounting for two thirds of the world's discovered crude oil reserves, Turkey is on a clear path to anchor its partnership with the region. Construction and contracting is also one of Turkey's strongest international sectors – consistently exceeded annual targets over the last decade. In the MENA region, several of the large Turkish contracting companies already have extensive involvement in Libya. Aside from the UAE market, we continue to see widespread interest and activity through bids for lead positions on projects in Qatar, Saudi Arabia, Kuwait and Oman. “Turkey has an extremely strong long-term story," said Reid. “The combination of strong fundamentals and good demographics should see Turkey maintain a very respectable pace of growth throughout the forecast horizon". Gathering business leaders, the Forum is the third leg of its series, held as part of its Global Connections campaign. Trade flows between MENA and the emerging markets is a key theme of HSBC's Global Connections story in the region. According to the HSBC Global Research “World in 2050" report, economies we currently call “emerging" are going to power global growth over the next four decades. As a result, in October 2011 HSBC held its first forum on discussing international trade between UAE and India. Speaking about Turkey's economic growth, Ambassador of the Republic of Turkey to the United Arab Emirates Vural Altay said “I would like to encourage Emirati and Arab brothers and investors to further boost their engagement in the highly lucrative Turkish market. Turkey offers rich opportunities for MENA companies in the areas of agriculture and food, energy, tourism, real estate, finance, healthcare and many others." “My message to the MENA business community, in particular to the UAE business community is to utilize the vast opportunities that the Turkish economy offers needless to say to the benefit of both sides. And if we can do that I am sure that our relationship and togetherness will reach higher levels," he added. – SG
