We Must Analyze Both Opportunities and Risks

Amid global uncertainties, Turkish business is discovering new opportunities; strategies are being reshaped and markets are diversifying

As DEİK, the Polaris of our business world, we have been operating for 40 years with our 153 Business Councils spread across the globe, working to increase international investment and trade without using public funds, guided by our motto of “Business Diplomacy.” As the window of the Turkish private sector to the outside world, we continue our work on a voluntary basis with our Business Councils, Counterpart Organizations Corporate Members, and colleagues.

In 2020, we have all witnessed an increase in global risks due to the pandemic, the wars in our neighboring regions, disruptions in global supply chains, climate change, technology wars, and, most recently, the tariff wars led by the US. While risks are increasing, we are also witnessing the emergence of new concepts and shifts in the meanings of concepts we have used in the past. We have started to use concepts such as “near-shoring” (sourcing from nearby countries) and “friend-shoring” (sourcing from friendly countries) more frequently. Disruptions in supply chains are forcing some countries to produce critical raw materials domestically. The tariff wars led by the US at the beginning of this year continue to threaten global trade. Although the unreasonable tariff rates we experienced in April seem to be a thing of the past and more reasonable rates are being negotiated, the deadline given by the US on July 9 has passed, and the tariffs they will apply to each country have begun to be communicated to the parties concerned through letters sent to the countries. Additionally, the letters stated that if these rates are reciprocally applied, the rates communicated could be increased by up to twice the original amount.

Considering all these developments together, we have decided to focus this issue on “The Turkish Business World in an Environment of Global Uncertainty: New Markets, New Strategies.” Although the events of this period pose risks for global trade, we believe that there are also opportunities to be seized. In the business world, we believe that these risks and opportunities must be analyzed carefully and simultaneously.

Our country’s geopolitical location, which provides access to a population of 1.3 billion within a 4-hour flight, a global trade volume of over $10 trillion, and an economic size of $32 trillion, the logistical advantage gained through infrastructure investments made over the past 20-25 years, and access to over 1 billion people through free trade agreements with 28 countries, along with a developing industrial sector and a trade volume of 800 billion dollars including services, provide a significant advantage in becoming a regional production and logistics hub.

In this issue, Albaraka Türk Participation Bank Deputy General Manager Dr. Ömer Emeç shares his views on financial risk management and strategies developed against currency fluctuations, while Economic Development Foundation Secretary General Assoc. Prof. Dr. Çiğdem Nas contributes to our magazine with a comprehensive article discussing the importance of investment diplomacy today. KOMTAŞ Marketing Deputy General Manager Melike Bayraktaroğlu also features in this issue with an article examining why human-centered companies are gaining prominence in the global competitive environment. In addition to special interviews about the Türkiye Culture Route Festival and the General Directorate of Cinema, we also share with you rich content about our culture and arts world through the tradition of meşk, a method of learning and transmission in our music.

Enjoy your reading.