| Ughh! Turkish Investment Copes With The Global Crisis |
| 19 September 2008 |
With nothing good to talk about these days on the global front, the question needs to be asked, "Who are going to be the last ones standing?" Lehman bankrupt, Merrill Lynch helped out by Bank of America, Morgan Stanley and WAMU looking for buyers, the US bailouts of Freddie Mac, Fannie Mae and now AIG - these past weeks have left everyone in awe of the historical proportions. Historic in the sense that the government is stepping in and stewarding companies - historic in the sense that the government has put a hold on all short selling - historic in the sense that people are drawing comparisons and even mentioning the Great Depression! You have to ask yourself, when was the last time any of this happened before? Next we need to ask, "Who is to blame?" Is it the simple prudent investor who couldn't pay his morgage? Is it the lender who kept adding the tightly-wound-up deals to the portfolio? Is it the leveraging of that risk to others that maintained the confidence? Somewhere the fundamentals told us to take an extra step and put an extra risk-free card on this house of cards.
So I figured I would revert this post to somewhat of a newsletter format to let the reader browse and drill down through the applicable and relevant news regarding Turkey. News is provided courtesy of the Turkish Daily News. Here goes:
Turkish economic growth slumps to slowest in six years
Turkey's economy grew at the slowest pace since the country emerged from a recession six years ago as higher interest rates and the threat of political instability hurt consumer spending. Gross domestic product growth slowed to 1.9 percent from a revised 6.7 percent in the previous quarter, the state statistics office in Ankara said yesterday. The pace of growth in the European Union membership candidate slowed as the global credit squeeze damped demand in export markets and the Central Bank added to the cost of borrowing.
Corio cancels $1 billion-worth of investment in Turkey
Corio NV, the largest Dutch developer, will drop plans to develop $1 billion-worth of shopping malls in central and eastern Turkey, and focus instead on the country's biggest cities.
R&D spending puts Turkey on the map
Turkey ranks 25th out of the world's 41 highest-spending countries on research and development, a recent report revealed.
Urla to have its Silicon Valley
İzmir's Urla district is about to become a leading spot for Turkey's technological developments, as a French firm, CICOM, which supports technology zones in different countries, signs a contract with the Institute of High Technology to make 4 billion worth investment.
Tekfen sells 50 percent share to Palmali-Socar
The partnership between the Azerbaijani Palmali Company and Azerbaijan's State Oil Company, or Socar, has bought 50 percent of the construction arm of Tekfen Holding A.Ş., a Turkish builder and power generator, for $520 million.
Turkish businesses on alert over global crisis
The United States credit crisis, which is having an increasing impact upon the global financial community with each day, has recently become a top priority on the Turkish business world's agenda. As the U.S.-born crisis spreads through Europe, officials are also keeping a close eye on the Istanbul Stock Exchange, which has lost approximately 15 percent of its value in the last five days.
Labels: CICOM, Corio, R and D, Technology Parks, Tekfen
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| Abraaj Capital Acquires Luxury Yacht Maker - Numarine; Summary of Gulf Nations Investment in Turkey |
| 04 September 2008 |
Istanbul, August 27 2008: Dubai-based private equity firm Abraaj Capital has acquired a 50 per cent stake in Turkish luxury-yacht manufacturer Numarine, as global demand grows in the US$ 25 billion market for recreational boats.
Abraaj, the largest private equity firm in the Middle East and North Africa, will partner Numarine Chief Executive Officer Omer Malaz, who founded the company in 2002.
The investment is Abraaj’s second in Turkey and third in the marine business. Last year, it bought part of Acibadem, the only healthcare provider listed on the Istanbul exchange. Abraaj also owns stakes in Dubai-based luxury-yacht distributor ART Marine, and Gulf Marine Maintenance & Offshore Company.
"We are delighted to partner with Omer and Numarine, and believe that the company is extremely well positioned to benefit from growing demand for high quality, excellent value motor yachts," said Abraaj Managing Director Mustafa Abdel-Wadood.
Global demand for recreational boats, which grew 11.4 per cent per year between 2000 and 2006, is expected to rise further, with Turkey’s market share expanding as it matches or exceeds comparable international makers in technology and style at more competitive prices.
Demand for yachts in the Middle East, for instance, has soared in the last few years, with the region now accounting for 8 per cent of global owners, compared with almost zero a decade ago, according to the Global Order Book 2008 survey.
 Numarine targets an income more than 30 million Euros by the end of 2008 and more than 40 million Euros in 2009.
Numarine will use the capital injection to expand its production facilities, as well as boost research and development, and product design.
To read more, visit Numarine's press release.
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In other news the TDN posted a rather summarized update (Turkey the winner in Gulf's investment hunt) of the latest acquisitions in Turkey from the Gulf region, as Gulf-based capital investment volume has reached $30 billion. I should warn you that some of these deals go as far back as 2006, but I felt it was interesting so I am posting the highlights as well as added links for you to drill down :
- National Bank of Kuwait expands in Turkey with the Conclusion of a 40% Acquisition of Turkish Bank
- Kuwait Investment Authority has acquired Cevahir Business Center.
- Emaar Properties, owned by the Sheikh of Dubai El Maktoum, is planning a $5 billion-worth investment in Turkey by 2010, focusing on healthcare, shopping malls, hotel and real estate areas.
- Abraaj Capital, an investment firm specializing in private equity investments in the Middle East, North Africa and South Asia, partnered with the Acıbadem Hospital (press release - pdf) and then the Numarine yacht company.
- Dubai Islamic Bank opened a representative office in Turkey.
- The International Investor, a Kuwaiti investment group, acquired 75 percent of the share of Docar, a Turkish car rental company, for $24 million. The company is planning to found a consumer financing company as well as looking into second-hand vehicle sales, financing and participant banking.
- The Arab Banking Corporation opened a representative office in Turkey. The firm may yet acquire a Turkish Bank.
- Oger Telecom acquired Türk Telekom for $6.5 billion.
- Kuwaiti Alshaya Group, which brought prominent global brands such as Starbucks Coffee, The Body Shop, Topman and Topshop, is planning a $100 million-worth investment in Turkey in three years.
- Kuwaiti International Leasing Investment founded Haliç Leasing with $5 million capital. The group is looking to operate as an investment bank in Turkey.
- Dubai Islamic Bank acquired MNG Bank.
- Dubai Multi Commodities Center, or DMCC, plans to enter Turkey's gold and tea markets.
- The National Commercial Bank, or NCB, the biggest bank of Saudi Arabia, acquired Türkiye Finans.
- Kuwaiti investment group The International Investor acquired Adabank.
Labels: Abraaj Capital, acquisitions, Numarine, Yacht Industry
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Publisher: Jon H. Black
