An update on BILATERAL ECONOMIC RELATIONS Prepared in March 2011 by the Consulate General of the Netherlands Commercial Section Mustafa Basaran, Senior Commercial Officer

Population – Turkey 72.5 mio (as of 2010) 82.2 mio (estim. for 2023) Population (Istanbul) 12.9 mio (as of 2010) 15.2 mio (estim. for 2023) Rate of Population Growth - Turkey 1.45 % ( ) Rate of Population Growth (Istanbul) 28.91% ( ) 50% ( ) Rate of Urbanization Growth 2.1% ( ) Source: World Bank, World Development Indicators on CD-ROM, Eurostat, Adult Literacy Rate 89% (as of 2008) Fixed telephone line subscription/population 24.1%(as of 2010) PC’s per 1000 inhabitants 72 (as of 2010) Internet Access – Households 41.6% (as of 2010) Internet Access – Population (Age 16-74) 52.6 % (as of 2010) SOCIAL INDICATORS: POPULATION & URBANIZATION RATES KEEP GROWING. Average age is 26.5 years as compared to the EU-15 average of 42. Global Competitiveness Index CountryRankScore Switzerland15.63 Netherlands85.33 China Hungary Turkey614.25

TURKEY: A LARGE AND RAPIDLY GROWING ECONOMY

MACROECONOMIC FUNDAMENTALS: The recovery has been quickly over Compared to the Netherlands Total exportsUSD 36 billionUSD 132 billionUSD 102 billionUSD billionUSD billion (2009) Total importsUSD 51 billionUSD billionUSD 140 billionUSD billionUSD billion (2009) Current Account DeficitUSD 1.5 billionUSD 49 billionUSD 4.1 billionUSD 7.5 billion GDPUSD 181 billionUSD 729USD 596 billionUSD 742 billion*Est. USD 770 billion (GDP) Est. 1.8% growth in 2010 GDP/Capita (PPP Adjusted)USD 8223USD 13123USD 12465USD 13392Est. USD (GDP/capita) Foreign exchange reservesUSD 26 billionUSD 63.8 billionUSD 70 billionUSD 75.4 billion Inflation29.7%10.4%6.5%8.57 % Unemployment10%13% 11% Number of global capital companies in Turkey Share from global capital inflows to emerging markets 0.5%4.1%(2007)2.46% (2008)1.6% (2009) Dutch government and private sector organizations classified Turkey as a ‘priority country’ together with Russia and India in

Source: World Bank, World Development Indicators on CD-ROM, Eurostat, epp.eurostat.ec.europa.eu/ TUIK,

Trade Figures: EU continues to be the major trade partner 46 percent of Turkish exports were destined to EU countries in percent of Turkish imports originated from EU countries in Source: US$ bn2010Change (%)2009Change (%)2008Change (%)2007Change (%) Total Imports Imports from EU ($) Imports from EU (%) Imports from NL ($) Imports from NL (%) Total Exports Exports to EU ($) Exports to EU(%) Exports to NL ($) Exports to NL (%) Trade Deficit

Major Import Markets of Turkey: US$, thousand Source: No.Name Share in TotalYear-to-Year Change, % 1 Russian Fed %11.03% 2 Germany %24.35% 3 China %35.52% 4 USA %43.64% 5 Italy %32.96% 6 France %15.29% 7 Iran %124.45% 8 Spain %28.15% 9 S. Korea %52.78% 10 UK %34.64% 11 Ukraine %21.34% 12 Romania %52.72% 13 India %79.22% 14 Japan %18.54% 15 Belgium %35.51% 16THE NETHERLANDS %24.10% 17 Switzerland %57.73% 18 Poland %44.24% 19 Kazakhstan %82.69% 20 Saudi Arabia %44.68%

Major Export Markets of Turkey: US$, thousand Source: No.Name Share in TotalYear-to-Year Change, % 1 Germany %16.95% 2 UK %21.60% 3 Italy %10.48% 4 Iraq %17.94% 5 France %-2.81% 6 Russian Federation %45.23% 7 USA %16.29% 8 Spain %26.43% 9 UAE %15.23% 10 Iran %50.30% 11 Romania %18.02% 12 THE NETHERLANDS %15.70% 13 Egypt %-13.02% 14 China %41.21% 15 Saudi Arabia %25.52% 16 Israel %36.82% 17 Switzerland %-47.72% 18 Belgium %9.18% 19 Libya %7.75% 20 Syria %30.08%

Source: US$1000, Turkish Exports to The Netherlands US$1000, Turkish Imports from The Netherlands

Bilateral Trade Between The Netherlands & Turkey (Million US$) (Million US$) (24.3% ↑ ) (15.8% ↑ ) Exports to Turkey Imports from Turkey

FDI to TURKEY Source: The Undersecretariat of Treasury, the General Directorate of Foreign Investment & own calculations Majority of the Netherlands origin investments are international companies registered in the Netherlands for tax reasons. As of January 2011, 1,866 Dutch origin companies are operating in Turkey. Some of these enterprises are old timers such as Philips, Unilever, Shell and DSM with decades long presence in this country. FDI Flows per country of origin Levels, US$ millionNumber of FDI Firms Established ( ) Source: Undersecretariat of Treasury, COUNTRY OF ORIGIN GERMANY THE NETHERLANDS UK FRANCE OTHER EU COUNTRIES USA TOTAL NL SHARE IN TOTAL, %20,38%13,04%10,7% COUNTRY OF ORIGIN TOTAL ( ) GERMANY THE NETHERLANDS UK OTHER EU COUNTRIES TOTAL NL SHARE IN TOTAL, % 8,36 % 7,05 % 8,30 % 5,01 %501%7,22%

Sectoral Breakdown of Dutch Origin Companies in Turkey, 2009 Source: The Undersecretariat of Treasury, the General Directorate of Foreign Investment & own calculations based on figures from March Wholesale & Retail Trade Machinery/Parts/Metal Working & Automative. ICT/Media/Publish/ Advertisem. Horeca & Tourism Real Estate/Constru ction/Infra & Engineering Textiles & clothing

Regional Breakdown of Dutch Origin Companies in Turkey, 2009 Source: The Undersecretariat of Treasury, the General Directorate of Foreign Investment & own calculations based on figures from March 2008.

Some Dutch Entrants STARSALE Sqills

ROLE OF THE EMBASSY in ANKARA & THE CONSULATE GENERAL in ISTANBUL - Trade & Investment Inquiries (both from Dutch and Turkish companies) Market Scans Trade Missions (matchmaking services for official ones) Networking / bridging with players in Turkey Market insight, market intelligence for policy makers in the Netherlands Business Cocktail every last Thursday of each month at Palais de Hollande Providing Legal Info (FDI, Imports, Taxes) Tenders / Projects / Privatization Conflict Mediation / Lobbying / Support Sectoral Reports (i.e. Energy, Transport, Chemicals) Special Reports (i.e. Macro-Economy, Banking) Special Events / PPP