World leaders answer Why invest in Turkey? Why invest in Borsa İstanbul?
As part of the World Economic Forum's 45th annual meetings held in Davos, Switzerland, Borsa İstanbul organized a meeting entitled "Why invest in Turkey? Why invest in Borsa İstanbul?" in cooperation with İstanbul Financial Center Initiative.
EBRD First Vice-President and COO Philip Bennett, Nasdaq CEO Robert Greifeld and Silver Lake Co-founder Glenn H. Hutchins talked about why investment should flow to Turkey.
Prime Minister Ahmet Davutoğlu, Deputy Prime Minister for the Economy Ali Babacan, European Union Minister and Chief Negotiator Volkan Bozkır and Minister of Finance Mehmet Şimşek participated in the meeting, where Turkey's economic power and potential was discussed. Borsa İstanbul marches toward the vision of becoming a globally effective exchange with its product diversity and efficient market structure, and the leading representatives of the global business and investment circles were informed about Borsa İstanbul's efforts towards this purpose.
The meeting entitled "Why invest in Turkey?" Why invest in Borsa İstanbul?" organized by Borsa İstanbul as part of the 45th annual meeting of the World Economic Forum was held in Davos, Switzerland.
The meeting discussed Turkey's economic power and potential, and the leading representatives of the global business and investment circles were informed about Borsa İstanbul's efforts toward the vision of becoming a more effective exchange globally with its extended product diversity and efficient market structure. The meeting was participated by world-known investors as well as Prime Minister Ahmet Davutoğlu, Deputy Prime Minister for the Economy Ali Babacan, European Union Minister and Chief Negotiator Volkan Bozkır and Minister of Finance Mehmet Şimşek. Justice and Development Party Vice President and Spokesperson Beşir Atalay was also present at the meeting.
PRIME MINISTER DAVUTOĞLU SETS NEW TARGET FOR BORSA İSTANBUL PROFESSIONALS
In his speech at the meeting, Prime Minister Ahmet Davutoğlu said that Borsa İstanbul climbed 30 ranks in the global financial centers index in the previous three years, adding, "I have a mandate for Borsa İstanbul professionals: I want İstanbul to become one of the 10 leading financial centers since we have provided the required infrastructure". Prime Minister went on to say, "If investors have any difficulty in their investments, both my government and I will offer every help to them. If you face any impediments, even small ones, please advise us. As a strong government, we will do everything to facilitate investments".
A SPECIAL SPEECH BY DEPUTY PRIME MINISTER ALI BABACAN
Deputy Prime Minister Ali Babacan said that Turkey is undergoing a significant transformation politically, economically and socially, and added that very important improvements have been achieved in terms of democracy and human rights. Emphasizing that political reforms will continue as part of Turkey's efforts for EU accession, Babacan said, "Turkey acts in accordance with the EU criteria".
Pointing out to the fact that in line with the acceleration in the Turkish economy, İstanbul's function as a regional base gets more important, Babacan said that numerous countries and companies choose İstanbul as their base.
SUCCESS IN FINANCIAL DISCIPLINE
Borsa İstanbul Chairman & CEO Dr. İbrahim M. Turhan reminded the audience that Turkey faced important problems dues to instability from end-1980's to early 2000.
Turhan said, "As the Justice and Development Party took power following the 2001 crisis, financial discipline was achieved. Within this framework, a great success was registered. The budget deficit was merely TL 22 billion last year, which is less than 1% of the GDP".
Pointing out that great reforms were successfully implemented in the banking sector, İbrahim Turhan said, "These reforms were so successful that in the latest crisis, Turkish companies salvaged European banks".
BORSA İSTANBUL HAS BECOME AN INTERNATIONAL SUPERMARKET IN FINANCIAL SERVICES
İbrahim Turhan said that the capital markets was restructured in 2012, a new Capital Markets Law envisaging international standards was enacted, and told about the four main elements of Borsa İstanbul's strategy as follows:
"The first of these elements envisaged that İstanbul Gold Exchange, İstanbul Menkul Kıymetler Borsası and the Turkish Derivatives Exchange were merged under the roof of Borsa İstanbul. The second element was horizontal and vertical integration. Now, I am proud to share with you that Borsa İstanbul has become an international supermarket in international financial services. That is, the Walmart of the Turkish capital markets.... What does that mean? You can find anything you need. In our product range are equities, fixed income securities, derivatives including sukuk, commodities, gold, precious metals, diamond, and soon, energy contracts. Particularly in consideration of the fact that Turkey has become an energy base, Borsa İstanbul will offer derivative products on energy.
The third step was strategic partnership. We came together with Nasdaq in 2013. Nasdaq is one of the leaders of the sector with its most advanced technology. This partnership is far beyond technology acquisition; it is a very comprehensive information technology transformation. We do hope that we will put this partnership to life on September 21, 2015. This is a very important development not for Turkey only, but also for the whole region. We also have the re-sell rights for this technology. We will serve 25 countries of the region from İstanbul.
And finally, we aim to strengthen our connections with the regional capital markets. We signed a Memorandum of Understanding with the European Bank for Reconstruction and Development in the General Assembly meeting in İstanbul in 2012. I can confidently say that EBRD and Borsa İstanbul have decided to act in cooperation in the region".
"CAPITAL MARKETS WILL PROVIDE THE SECOND WING TO MAKE THE TURKISH ECONOMY REACH ITS 2023 TARGETS"
İbrahim Turhan said that some projects were realized in cooperation with the Sarajevo Stock Exchange in addition to the efforts in collaboration with Montenegro, Albania, Croatia, and Slovenia. Emphasizing that Borsa İstanbul works in cooperation with Azerbaijan and Kyrgyzstan in the Middle East, Turhan said that they are improving their relations with Kazakhstan.
Turhan said that they are aware of the fact that capital markets is indispensible for a healthy and stable economy, adding, "Currently, 75% of the commercial procedures are realized by commercial banks. Certainly, it is great to see the power of Turkish banks, but no bird flies with a single wing. In order to fly, we need two wings. The capital markets will offer this second wing for the Turkish economy".
"WHY INVEST IN TURKEY? WHY INVEST IN BORSA İSTANBUL?" PANEL
The panelists of the panel entitled "Why invest in Turkey? Why invest in Borsa İstanbul?" were EBRD First Vice-President and COO Philip Bennett, Nasdaq CEO Robert Greifeld and NASDAQ Board member and Silver Lake Co-founder Glenn H. Hutchins. The moderator of the panel was Borsa İstanbul Chairman & CEO Dr. İbrahim M. Turhan.
TURKEY WAS THE LARGEST SINGLE RECIPIENT OF EBRD FINANCING
Philip Bennet, First Vice-President and COO of EBRD said that EBRD has a strong track record of investment in Turkey.
"While the Bank has only been active in the country for five years, in 2014 Turkey was the largest single recipient of EBRD financing", said Bennet, adding,
"We invested ?1.4 billion in the country last year. Turkey needs capital as well as innovation to take its production to the next level and move toward being a high-income country. FDI will be one of the most efficient source of capital for that purpose and Government policy recognizes that. The EBRD is in particular looking into deepening capital and local currency markets in Turkey. Istanbul has the ambition to be a regional financial center and Borsa Istanbul is actively working to become a financial hub for the broader region spanning through Central Asia, South Eastern Europe to North Africa. The bourse's strategy is to attract both local and regional companies by improving efficiency and liquidity and setting up a network of exchanges and the EBRD will support these goals through investments, technical assistance and policy dialogue".
WE PARTICIPATE WITH ENTHUSIASM AS TURKEY CONTINUES ITS UPWARD TRAJECTORY
"Turkey's economic star continues to shine," said Bob Greifeld, CEO of Nasdaq. "What we've witnessed in international growth and economic progress only furthers its investment opportunities. Nasdaq supports the dynamism of Turkey's capital markets through a strategic partnership with Borsa Istanbul, and we watch with anticipation and participate with enthusiasm as Turkey continues its upward trajectory."
BORSA İSTANBUL'S IMPLEMENTATION OF A WORLD-CLASS TECHNOLOGY PLATFORM BUILDS CONFIDENCE IN THE COUNTRY'S CAPITAL MARKETS INFRASTRUCTURE
"Turkey is taking thoughtful measures to enhance what I believe is already an attractive opportunity set for international investors. For example, Borsa İstanbul's implementation of a world-class technology platform builds confidence in the country's capital markets infrastructure for years to come," said Glenn Hutchins, a board director of NASDAQ OMX, the strategic technology partner of Borsa İstanbul.
Mr. Hutchins co-founded Silver Lake, the global technology investment firm, and serves on the boards of a number of institutions including AT&T, the Federal Reserve Bank of New York and the Harvard Management Company.?