How is Turkey Rising after its Decline?

How is Turkey Rising after its Decline?

In what way does Turkey’s growing economy and geographical position advantageous for its commercial growth?

Turkey’s geographical position provides many advantages as it is almost literally on the centre of the world, positioned as a bridge between Europe and Asia, right on the historical trade routes. This position would enable any producer with the ability to easily distribute its products anywhere in the world. Therefore, against all negative economic developments in the recent years, I do believe Turkey will attract more foreign investors in the upcoming years, shaking off the slowdown in its economic growth, as it will be always an advantageous hub for investors, thanks to its geographical position.

In addition, Turkey’s growing economy naturally encourages foreign investors. In this respect, the state grants provided to the new and growing businesses are worth mentioning as well as the incentive systems for foreign investors which provides important advantages such as exemption from certain taxes or land allocation opportunities.

 

US-Turkish trade peaked at nearly $20 billion in 2011, but has decreased in recent years, falling to $17.3 billion in 2016; how has this been reflected with what you have seen in terms of M&A activity in Turkey?

It is obvious that recent political and diplomatic tensions do not help in enhancing the commercial relationship between US and Turkey. However, 2016 was a challenging year for most countries throughout the world. Both Brexit and US presidential elections affected the world economy, raising concerns. Along with the political and economic risks and uncertainty in the Middle East, Turkish M&A market has naturally affected negatively.

According to the reports, the volume of M&A transactions, including foreign investors, dropped by 67% in 2016, making it the lowest year after 2009 financial crisis. Moreover, the number of M&A deals between Turkish and North American companies, declined to 17 in 2016, dropping from 28 in 2015.

 

Moreover, how are you hoping this will change in the upcoming year?

Even though the negativity of recent conjuncture cannot be denied, the Turkish Government aims to provide effective solutions and precautions to remedy the risks for the investors and boost the developing Turkish economy. In addition, as Turkey has a young and dynamic workforce, and is rich with resources under and above ground, it has a lot to provide for investors. Thus, I see the rise in investment and economy is inevitable in the near future.

With regards to M&A activity, some markets were eye-catching in 2016, such as information and mobile services, energy and finance. Thus, it would be rational to expect that there will be significant transactions in those sectors in the upcoming years.

Moreover, Turkey’s positive approach to privatisation and extensive privatisation portfolio also provides important investment opportunities in businesses such as hydroelectric plants, mining and energy businesses. Therefore, privatisation will continue to have an in important place in the upcoming years as well.

 

Are there any regulations to which you deem as outdated in Turkey, which upon amendments, may help progress economic growth throughout the country?

The most relevant general regulations (Turkish Commercial Code, Code of Obligations, and Code of Civil Procedure) with regards to commerce and commercial litigation are amended in 2011. Therefore, main regulations related to commerce are considerably current. However, the lengthy trials are one of the biggest issues we face in commercial litigation. As I believe that a trusted, effective, and fast legal system will inevitably benefit economic growth, an extensive reform to improve the litigation system and decrease the workload of the courts is necessary.

 

You are currently working towards your PhD in Private Law – how are you hoping this research will set you out from the rest in legal practice?

As a legal practitioner, I do find continuing higher education following the law school significantly important and beneficial. Besides gaining a deeper knowledge and understanding of law, higher education provides you with abilities to analyse the legal matters you face from different and deeper perspectives. This, I believe, furnishes a lawyer with the ability to develop unprecedented and creative legal solutions, or arguments which are essential in resolving complex legal matters. Through this, a lawyer also undertakes a mission of creating law in addition to enforcing the law.

Moreover, the synthesis of theoretical information with our experience in practice provides excellent results, enabling us to analyse the possible outcomes of a dispute or transaction much more clearly. In return, with such ability, we take pride in being able to protect the rights of our clients much more effectively and gain the best possible results for our clients in dispute resolution.

 

Göktuğ Can Burul, LL.M, Esq.
BKA Attorneys at Law
Address: Nish Istanbul Residence B Blok K: 5 D: 58 Bahcelievler Istanbul
Office Phone: +90 212 806 43 69
Mobile: +90 533 717 20 61
E-mail: goktugburul@bka-law.com
Web-Site: www.bka-law.com

 

Goktug Can Burul is one of the founding partners of BKA Attorneys at Law. He holds two LL.M. degrees in International Trade and Economy Law, one of which is from Georgetown University Law Center. He is admitted to New York State Bar along with Istanbul Bar. His practice mainly focuses on commercial and real estate law and he has an extensive experience in complex litigation matters. Goktug has been involved and represented his clients in various projects in different sectors from construction to agriculture. He also represented Istanbul Bar in 2016 in Contracts Negotiation Competition held by European Bars Federation where he was ranked in top three among ten teams.

BKA Attorneys at Law, is a boutique law firm located in Istanbul, Turkey and provides extensive and exceptional legal services in various areas of law including commercial, real estate, customs, labour law, mining, and energy. The firm’s clientele includes leading Turkish and international corporations. In our work, we combine experience and dynamism thanks to our team profile.

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