THE 4th TURKISHARAB ECONOMIC FORUM GLOBALIZATION TO REGIONAL COOPERATION

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THE 4th TURKISH-ARAB ECONOMIC FORUMGLOBALIZATION
TO REGIONAL COOPERATION

WALID R. ALAMEDDINE CHAIRMAN Lebanons Banking
Control Commission June 11-12, 2009 - Istanbul
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• TURKISH-ARAB ECONOMIC RELATIONSHIPS
• Overall Relationships
• Trade
• Capital Markets
• Banks

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• OVERALL RELATIONSHIPS
• (Excluding Trade Finance)
• Real Estate Investments
• Turkish Contractors
• Tourism
• Media Turkish Series
• Central Asian Republics, Turkey as Gateway
• Azerbaijan, Uzbekistan, Turkmenistan,
  Kazakhstan, Kyrgyzstan, Tajikistan ( 1Trillion
  combined economy by 2015)

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G20
GDP 2007 Trillion

85 of World GDP 48.7/57.3
IMF/PPP
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• TURKEYS CAPITAL MARKETS
• (a) Stock Market, (b) Bonds Bills Market
• More than 60 of free float market
  capitalization on
• Istanbul Stock exchange (ISE) is foreign.
• Foreign Investors capital gains are tax-exempt
• Free Repatriation of capital and proceeds
• Size is still smaller than banks, as banks have
  relatively significant interest rates

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• a) STOCK MARKET
• 317 companies listed
• Market Capitalization 120 BN
• Trading Value 260 BN
• Daily trading value above 1BN
• 22 companies more than 1BN (Market Capital)
• Financials 51 of total
• 1/3 of net FDIs (Foreign Direct Investments)
  came
• through the ISE (2006-2008)
• FDIs around 15 BN annually (2006 -2008)

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• (b) BONDS BILLS MARKET
• Active much larger in traded value than stock
  
• exchange
• Trading value 3,019 BN (2008)

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• TURKEYS TRADE 2008
• Exports 140.8 Billion
• Imports 193.9 Billion
• Trade Balance (-) 53.1 Billion

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• TURKISH-ARAB TRADE
• 2008 witnessed the fastest Growth of Turkish
  exports to the
• Middle East
• The largest increase was with the UAE (also
  Qatar Kuwait)
• Europe still accounts for more than 50 of
  Turkish
• Exports

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Turkeys Trade Partners Share of Total
Exports to UAE show readjustment in 2009 from
the very high rate of 2008
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Turkeys Trade Partners Share of Total
Saudi Arabia took over from Iraq as the main Oil
supplier to Turkey following the closure of the
pipeline in August 1990
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TURKISH ARAB TRADE SELECTED FINANCIAL VALUES
Millions
Annualized - as of 03-2009 Turkey
ranks as the 7th exporter to Lebanon
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• TURKEYS BANKING SYSTEM
• Independent Regulator Banking Regulation
• Supervision Agency (BRSA) BDDK
• - Total Banks Assets 481 Bn
• - Banks Assets / GDP 77
• Number of Banks 50
• Representative Offices of Foreign Banks 50
  

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TURKISH BANKS LARGE REGIONAL SIZE
Asset Size
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Majority-Owned Arab Banks in Turkey 5/50 Banks
Participation (Islamic) Banks