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

2. 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 % (2000- 2009) Rate of Population Growth (Istanbul) 28.91% (2000-2010) 50% (2000-2023) Rate of Urbanization Growth 2.1% (2000-2008) Source: World Bank, World Development Indicators on CD-ROM, 2006. Eurostat, http://epp.eurostat.ec.europa.eu/ 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- 2010 CountryRankScore Switzerland15.63 Netherlands85.33 China274.84 Hungary524.33 Turkey614.25

3. TURKEY: A LARGE AND RAPIDLY GROWING ECONOMY

4. MACROECONOMIC FUNDAMENTALS: The recovery has been quickly over.. 2002200820092010Compared to the Netherlands Total exportsUSD 36 billionUSD 132 billionUSD 102 billionUSD 113.9 billionUSD 309.5 billion (2009) Total importsUSD 51 billionUSD 201.9 billionUSD 140 billionUSD 201.9 billionUSD 275.8 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 40500 (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 556021.07923.56525.837 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 2005...

5. Source: World Bank, World Development Indicators on CD-ROM, 2006. Eurostat, epp.eurostat.ec.europa.eu/ TUIK, www.tuik.gov.trwww.tuik.gov.tr

6. Trade Figures: EU continues to be the major trade partner 46 percent of Turkish exports were destined to EU countries in 2010. 38.9 percent of Turkish imports originated from EU countries in 2010. Source: www.tuik.gov.tr US$ bn2010Change (%)2009Change (%)2008Change (%)2007Change (%) Total Imports185.432.4140-30201.92417024 Imports from EU ($)72.228.956-25.174.89.368.627.5 Imports from EU (%)38.9 40 37.8 40.3 Imports from NL ($)3.124.32.5-16.6315.12.623 Imports from NL (%)1.6 1.7 1.4 1.5 Total Exports113.911.6102-22.713223107.225.9 Exports to EU ($)52.611.947-25.7563.34.360.337.3 Exports to EU(%)46 48 56.3 Exports to NL ($)2.414.22.1-32.23.14.1319 Exports to NL (%)2 2 2.3 2.8 Trade Deficit71.588.138-45.669.92162.821

7. Major Import Markets of Turkey: US$, thousand Source: www.dtm.gov.tr No.Name20102009Share in TotalYear-to-Year Change, % 1 Russian Fed. 21 596 035 19 450 086 11.64%11.03% 2 Germany 17 529 862 14 096 963 9.45%24.35% 3 China 17 179 842 12 676 573 9.26%35.52% 4 USA 12 318 408 8 575 737 6.64%43.64% 5 Italy 10 202 601 7 673 374 5.50%32.96% 6 France 8 176 366 7 091 795 4.41%15.29% 7 Iran 7 644 782 3 405 986 4.12%124.45% 8 Spain 4 839 933 3 776 917 2.61%28.15% 9 S. Korea 4 764 009 3 118 214 2.57%52.78% 10 UK 4 676 568 3 473 433 2.52%34.64% 11 Ukraine 3 830 187 3 156 659 2.06%21.34% 12 Romania 3 448 381 2 257 963 1.86%52.72% 13 India 3 409 804 1 902 607 1.84%79.22% 14 Japan 3 297 664 2 781 971 1.78%18.54% 15 Belgium 3 213 671 2 371 516 1.73%35.51% 16THE NETHERLANDS 3 155 961 2 543 073 1.70%24.10% 17 Switzerland 3 153 595 1 999 386 1.70%57.73% 18 Poland 2 620 928 1 817 093 1.41%44.24% 19 Kazakhstan 2 464 273 1 348 903 1.33%82.69% 20 Saudi Arabia 2 440 360 1 686 743 1.32%44.68%

8. Major Export Markets of Turkey: US$, thousand Source: www.dtm.gov.tr No.Name20102009Share in TotalYear-to-Year Change, % 1 Germany11 453 274 9 793 006 10.06%16.95% 2 UK7 220 731 5 937 997 6.34%21.60% 3 Italy6 505 965 5 888 958 5.71%10.48% 4 Iraq6 042 550 5 123 406 5.31%17.94% 5 France6 036 964 6 211 415 5.30%-2.81% 6 Russian Federation4 632 247 3 189 607 4.07%45.23% 7 USA3 768 352 3 240 597 3.31%16.29% 8 Spain3 563 526 2 818 470 3.13%26.43% 9 UAE3 337 656 2 896 572 2.93%15.23% 10 Iran3 042 969 2 024 546 2.67%50.30% 11 Romania2 598 693 2 201 936 2.28%18.02% 12 THE NETHERLANDS2 461 337 2 127 297 2.16%15.70% 13 Egypt2 260 711 2 599 030 1.98%-13.02% 14 China2 259 785 1 600 296 1.98%41.21% 15 Saudi Arabia2 219 541 1 768 216 1.95%25.52% 16 Israel2 082 974 1 522 436 1.83%36.82% 17 Switzerland2 057 177 3 935 122 1.81%-47.72% 18 Belgium1 960 562 1 795 682 1.72%9.18% 19 Libya1 934 158 1 795 117 1.70%7.75% 20 Syria1 849 232 1 421 637 1.62%30.08%

9. Source: www.tuik.gov.tr, www.cbs.nlwww.tuik.gov.trwww.cbs.nl US$1000, Turkish Exports to The Netherlands US$1000, Turkish Imports from The Netherlands

10. Bilateral Trade Between The Netherlands & Turkey (Million US$) (Million US$) 20001.584 874 20011.041 892 20021.311 1.056 20031.656 1.525 20041.908 2.138 20052.152 2.469 20062.137 2.536 20072.655 3.019 20083.056 3.143 2009 2.538 2.124 2010 3.156 (24.3% ↑ ) 2.461 (15.8% ↑ ) Exports to Turkey Imports from Turkey

11. 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 (1954-2010) Source: Undersecretariat of Treasury, www.treasury.gov.tr www.treasury.gov.tr COUNTRY OF ORIGIN2005-200820092010 GERMANY2913497498 THE NETHERLANDS12237718501 UK2833350233 FRANCE3592617589 OTHER EU COUNTRIES2012824312887 USA6011260318 TOTAL6004462506260 NL SHARE IN TOTAL, %20,38%13,04%10,7% COUNTRY OF ORIGIN20062007200820092010 TOTAL (1954-2010) GERMANY540557 5844924604315 THE NETHERLANDS2572492771471621866 UK4534362512021612237 OTHER EU COUNTRIES6767856584694324307 TOTAL3075353033372936323325837 NL SHARE IN TOTAL, % 8,36 % 7,05 % 8,30 % 5,01 %501%7,22%

12. 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 2008. Wholesale & Retail Trade Machinery/Parts/Metal Working & Automative. ICT/Media/Publish/ Advertisem. Horeca & Tourism Real Estate/Constru ction/Infra & Engineering Textiles & clothing

13. 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.

14. Some Dutch Entrants 2007-2009 STARSALE Sqills

15. ROLE OF THE EMBASSY in ANKARA & THE CONSULATE GENERAL in ISTANBUL (ank-ea@minbuza.nl - ist-ha@minbuza.nl) 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