Union of Chambers and Commodity Exchanges of Turkey

As global economy is being restructured, the change and transformation in the region during the last year has picked up speed, stated Hisarcıklıoğlu and went on, “The debt crisis which has the European countries in its grasp and political upheaval in our immediate vicinity threatens the stability of our region. Europe shudders on one side, and the rightful change and transformation demands are being voiced ever more loudly. We are on the cusp of change. At this time, the people of the Middle East must stand as the winners.”

TOBB President Hisarcıklıoğlu emphasized that the total cost of chronic conflicts and tension for the Middle East during the 20 years since the end of the Cold War era has added up to 12 trillion dollars and said, “This means that we could have had 12 trillion dollars’ worth of schools, hospitals, roads, infrastructure and energy plants. This money came out of the pockets of the region’s people. Unfortunately, while the whole world formed regional economic commerce areas and economic integration, our region was left behind.

An Arab proverb says, ‘he who wishes to do something finds a way; he who does not, finds an excuse’. We can’t miss the process of transformation this time around. We must read the change correctly. We must find the right way.”

- The treasure isn’t buried, it’s on the surface

Hisarcıklıoğlu, saying that the way to win is through trade and the way to prosper is through entrepreneurship, Hisarcıklıoğlu stated that throughout history, everyone has been able to see that the Middle East harbors an extraordinary treasure and that they plan the policies accordingly.

“I’m talking about a different treasure,” stated the TOBB President, “The treasure I allude to is not buried underground, it is on the surface! I’m talking about Arab entrepreneurs who, with all of their qualities, can sell goods to every part of the world! The Arab world, 73 million in 1950, has today reached 350 million. It is estimated that it will reach 600 million in 2050. This is awesome manpower; an awesome young population lives in this region.

If we encourage entrepreneurship, open the way for production, improve our democracy, the voices that cry out from Tahrir Square will prevail, the fires in Tunisia and Libya will die down. If steps are taken to establish a strong economy and realize a quality democracy, a region architecture based on trust and prosperity will take shape, not one of security and threat. In this case, everyone wins. You are the minds that will make these steps be taken. You must lead this process as the politicians and opinion leaders of the region.”

- Regional cooperation must increase

Stating that the era of global designs has come to an end all over the world and that regional actors determine their own futures, Hisarcıklıoğlu said, “We must determine our shared future ourselves. We must first increase regional cooperation. The path to regional cooperation is via the strengthening economic and commercial relations, diversification of cooperation areas and the increase of reciprocal investments.”

- We must first share our riches with our neighbors

TOBB President Hisarcıklıoğlu, urging that first we share our riches with our neighbors, “Oil unfortunately is not enough to make people prosper. In this age, the key to development is developing commerce. Commerce means prosperity. Commerce means security. Commerce means stability.

Our Prophet has stated, ‘Trade, for nine tenths of livelihood is found there.’ We must first increase trade between ourselves. On the other hand, most Arab capital that ventures overseas goes to Western countries as a portfolio investment. A small portion of it is made as an investment to services industry. It is not possible for Arab capital to be able to gain the know-how to create employment unless it invests in the real sector, the production sector.”

- “An entrepreneurial middle class cannot develop without freedoms of expression, religion-conscience and enterprise”

“We must use the same system as developed countries which we have integrated with our own values,” Hisarcıklıoğlu said, stating that they must instate the rule of law, modern democracy and competitive market economy with all their institutions and rules in transparency to our system.

Otherwise the development of an entrepreneurial middle class is impossible said Hisarcıklıoğlu and went on, “An entrepreneurial middle class is unable to develop without the freedoms of expression, religion-conscience and enterprise.”

Stating that there is a need to modernize transportation networks and customs gates according to the needs of the age as well as creating a strong banking network, Hisarcıklıoğlu stated that we would experience as much prosperity as these criteria were fulfilled.

Stating that Turkey’s success story was built on reforms, TOBB President went on, “Today, Turkey has the largest production capacity between Italy and China, the world’s 16 largest economy according to purchasing power parity and the 6th largest in Europe as well as being a member of G-20. It was Europe’s fastest growing country in 2010 with a rate of 8.9% in addition to being one of the 7 countries in the world which had its credit note increase in the 2009-2010 term. Turkey has become the growth champion with 10.2% growth in the first half of 2011. 80 billion dollars worth of global investments have been made to Turkey in the last 5 years. The investments of the Turkish private sector have reached 25 billion.

Today 26,000 foreign-capital companies are operating in Turkey. 50,000 Turkish exporters are active in global commerce. As the Turkish private sector, we are exporting over 20,000 kinds of goods to over 200 countries. Almost all of our exports are industrial goods. We are exporting more than half of our industrial exports to developed western markets. A quarter of the home appliance demand in Europe as well as a third of the TV demand is supplied by production in Turkey.

In the field of logistics, we own the second largest overland transportation fleet after the USA. We are one of the 7 most preferred tourist destinations in the world. We are the second largest construction business in the world, having successfully completed almost 6,000 projects in 81 countries worth a total of 200 billion dollars.

As the Turkish business world we put special importance on the Arab World that encompasses everything from the Atlantic to the Persian Gulf. As the Turkish business world, we believe that we must integrate more with our Arab brothers for the sake of our shared future, for the prosperity of our region, stability and welfare.

- “Arab capital and Arab investment funds have become the most dynamic investment funds in the world in the last 10 years”

Stating that the economic relations between Turkey and Arab countries has taken a positive turn in the last 10 years, Hisarcıklıoğlu said, “It is evident that the open trade agreements and the lifting of visas between our countries has contributed to economic relations between Arab countries and Turkey. Our total trade volume with Arab countries was 6.5 billion dollars in 2000, whereas at the end of 2010 this figure reached 33.4 billion dollars. (2011 Jan. Oct. 28.5) Not only trade but investment, tourism and construction figures reflect the good relations between Turkish and Arab business worlds.

Turkey has received 6.7 billion dollars of Arab investment between 2002-2010. The number of Arab tourists visiting Turkey has increased from 348,000 in 2000 to 1.8 million in 2010. Turkish construction companies have completed around 2,000 projects worth 84 billion dollars in Arab countries.

Arab capital and Arab investment funds have become the most dynamic investment funds in the world in the last 10 years. Despite this, unfortunately, the Arab investment coming into our country are not up to the desired level. We want Arab capital and Arab investment funds in our country to increase.”

- Projects regarding Arab countries

Stating that TOBB and Foreign Economic Relations Council put great importance on working with the Arab business world, the TOBB President said that DEİK has business councils with 19 of 22 Arab countries and in this regard have conducted over 200 meetings during the last 5 years.

Relating that they have also realized many successful works with the Arab business world as TOBB, Hisarcıklıoğlu said, We have been working to establish an organized industry zone in Palestine and provide employment for 10,000 people. We signed a memorandum of agreement in 2010 with the Gulf Cooperation Council Chambers Federation to institutionalize our close relations with the Arab business world of the gulf. In this regard, in January of the next year, we plan to hold the Business Forum with the Gulf Cooperation Council Chambers Federation in Istanbul. I would like to emphasize that we would be gratified to see you all there as well.
One of the most important platforms we share with the Arab countries is the Islamic Chamber of Commerce and Industry. We will be hosting the Plenary Session of the Islamic Chamber of Commerce and Industry in April 2012 in Istanbul.

We are providing training and sharing our experiences with Islam countries in cooperation with the Islamic Development Bank. We will be providing a course on commodity exchanges this month. We will be hosting a Chambers Academy next year. We are also cooperating closely with the Arab Chambers Union. We are pairing off Turkish Chambers with 22 Arab Chambers under the leadership of my dear friend Adnan Kassar.

I would like to express that we stand ready to share what knowledge and experience we have in the establishment of the institutions and rules of a market economy.”

- “Let us re-establish the order of region”

Stating that they are indebted to future generations, TOBB President Hisarcıklıoğlu said, “As history writes a new chapter, we cannot remain ignorant of the calls for change and transformation. Come; let us re-establish the order of region with a wide vision and encompassing integration projects. Our hearts have always beaten in tune with that of our Arab brothers and will continue to do so. Our joy, happiness and sadness has always been shared will continue to do so.”
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