TURKISH COMPANIES STRENGTHEN IN GLOBAL MARKETS

Digitalization, sustainability, and expansion into new markets help Turkish companies gain a stronger position in global competition

As the dynamics of global trade are changing rapidly, Turkish companies are developing new strategies to keep pace with this transformation. Digitalization, sustainability, and the transformation of supply chains create opportunities and challenges for exporters. As Turkish companies’ investments abroad increase, their impact on exports is increasingly felt. We discussed all these issues with Kübra Orakçıoğlu Kazan, Chairperson of DEİK/Outbound Investments Business Council. Kazan evaluated the latest developments in global trade, Türkiye’s export potential, and strategies for expanding into new markets.

WHAT MAJOR CHANGES HAVE TAKEN PLACE IN GLOBAL TRADE IN RECENT YEARS? WHAT OPPORTUNITIES AND RISKS HAVE THESE CHANGES CREATED FOR EXPORTERS?

As economic, political, and cultural structures change, so does trade. Issues such as rebuilding the world, investing in people, and climate change are at the forefront of Davos’ 2025 agenda. Exports are also gaining a new dimension in parallel with these changes. More than 60 percent of Türkiye’s exports go to Europe and Europe is one of the regions that care most about sustainability. For this reason, exporter companies will need to prepare comprehensive reports and documents on sustainability in the coming period. We can say that global trends are changing in this direction.

HOW DOES THE TRANSFORMATION IN THE GLOBAL SUPPLY CHAIN AFFECT TÜRKIYE? WHAT DO TURKISH COMPANIES NEED TO DO TO ADAPT TO THIS NEW ORDER?

Changing dynamics in global trade cause the export markets to differentiate. While exports to countries with geographical proximity came to the fore during the pandemic, today, companies are turning to markets that they feel close to commercially. Türkiye’s advantage is that it can export to different regions thanks to its strategic location. However, Turkish companies need to focus more on issues such as sustainability and digitalization. Because the countries we export to also have certain obligations and if we do not comply with these rules, we may lose our competitiveness. According to a survey by the Istanbul Chamber of Industry, 60 percent of our exporters have prepared the necessary reports on sustainability. This rate is around 80 percent in developed countries. The Ministry of Trade offers special support programs for companies that export a minimum of 300 thousand dollars in compliance with the Green Deal. With these supports, companies are enabled to complete their sustainability efforts faster.

ARE TURKISH COMPANIES’ INVESTMENTS ABROAD INCREASING? HOW DO YOU SEE THE IMPACT OF THESE INVESTMENTS ON OUR EXPORTS?

Turkish companies’ investments abroad are increasing every year. There has been a continuous upward trend in this area in the last 10 years. In 2023, 2,146 companies invested abroad and Türkiye’s foreign capital position reached USD 57.9 billion. Turkish companies are active in 130 countries and these investments have employed approximately 190 thousand people. In 2022, this number was around 170 thousand, so there is a steady increase. Investments also directly support our exports.

In 2023, the Netherlands had the highest number of investments, accounting for a quarter of total investments. Investments in the Middle East and Central Asia increased by 15 percent, while investments in North America grew by 5 percent. The most invested sector is the finance sector. In addition, there are significant investments in industries such as mining, construction, transportation, infrastructure, wholesale and retail trade.

WHAT KIND OF ACTIVITIES WILL BE IN PLACE TO SUPPORT TURKISH EXPORTERS’ EXPANSION INTO NEW MARKETS?

In addition to the traditional export supports provided by the Ministry of Trade, Green Deal Compliance Supports have been introduced. Supports such as rent, store, and promotion are already available. In addition, e-export supports are quite new, and serious incentives are provided to companies in this field. The Trademark and Turquality Support, one of the biggest export supports, supports the growth of brands on a global scale. The Ministry announces target countries every year and provides an additional 20 percent support to companies that want to export to these countries.

WHAT ARE THE MOST IMPORTANT PROJECTS YOU CARRY OUT AS DEİK/ INVESTMENTS ABROAD BUSINESS COUNCIL TO SUPPORT EXPORTERS AND INVESTORS?

As the DEİK/Overseas Investments Business Council, we carry out projects with Turkish investors, the Ministry of Trade, and our stakeholders abroad, regardless of sector and country. In 2024, we organized a delegation with DEİK/Türkiye – T.R.N.C. Business Council and brought Cypriot and Turkish businesspeople together. We also held an informative meeting with the DEİK/Türkiye – Paraguay Business Council on the textile sector in Latin America. In this meeting, the commercial importance of Latin America and opportunities in the textile sector were discussed.

Turkish companies operating in the region guide companies from Turkey that want to expand to Latin America. In every country we visit, we communicate with ambassadors, consulates, and trade counselors to learn the commercial dynamics of the country directly. By sharing this information with our DEİK members, we ensure that our companies act more consciously. We also organized informative programs for our members by inviting officials from the Ministry of Trade about e-commerce and e-export support. Recently, we have been in contact with Bahrain.

Bahrain, which shows great interest in Turkish culture and TV series, offers important opportunities in terms of investment, even though it is considered a small market by many companies. Türkiye is the third country with the highest number of diplomatic representatives in the world. This means that we have strong connections in almost every country. In 2024, we will continue our commercial contacts with many countries, especially Bahrain, Bulgaria, Latin American countries, Saudi Arabia, and the United Arab Emirates.