Dutch consul general: Turkey is an important country for the Netherlands

“The [NFIA's] step to Turkey shows that potential for Turkish investment in the Netherlands is big,” said Kervers in an interview with Sunday's Zaman. But why is Turkey such an important country for the Netherlands? “We consider Turkey an important economic partner for the Netherlands,” Kervers explains. “It is an emerging economy with 70 million people and a predominantly young population. So the potential for economic growth and cooperation with the Netherlands is huge.” He believes that the Turkish economy is in a better position to surmount the ongoing global economic crisis than it was during the 2001 crisis. The Turkish economy will start to rapidly grow again, he predicts, adding that this is why at present the Netherlands wants to discuss business opportunities with Turkey.

 “Our minister for foreign trade does not normally speak about the BRIC countries -- Brazil, Russia, India and China -- he talks about the TRIC countries --Turkey, Russia, India and China,” he says, referring to the Goldman Sachs argument that the economic potential of Brazil, Russia, India and China is such that they could become among the four most powerful economies by the year 2050.

As a sign of the huge potential Turkey has, he also points out that Turkish companies are becoming increasingly internationally oriented and adds that Turkish firms have been interested in investing in the Netherlands for a long time.

 In recent years, the Netherlands has been among the countries that have drawn the largest share of Turkish foreign investments. According to a report released by the Turkish Treasury in August, investment in the Netherlands by Turkish firms had already exceeded $4 billion as of 2008, accounting for about 30 percent of Turkey's total investment in foreign countries. The report puts the number of companies established by Turks in the Netherlands at 131.

 Kervers highlights the financial sector as receiving the greatest investment from Turkish firms. A number of large Turkish banks have opened branches in the Netherlands, including Garanti Bank, İşbank, Finans Bank and Yapı Kredi Bank. This year Anadolu Bank also began operating in the Netherlands. Aside from the financial sector, there are great investment opportunities in the petrochemical and electronics sectors, he adds.

As a trade-based economy, the Netherlands has attracted great amounts of foreign direct investment (FDI) from around the world, including Turkey. According to Kervers, the Netherlands has three major advantages for investors: the strategic location of the country, which enables investors to reach markets within Europe, the Middle East and Africa and the country's developed infrastructure not only in physical terms but also in electronic terms, the favorable business climate in the Netherlands -- as Kervers explains, international trade is an important part of the Dutch economy. “We have a very advantageous tax system. Our corporate tax is among the lowest in the world,” he says, noting that as of January 2007 the corporate tax rate has been lowered to 25.5 percent, which is well below the EU average -- and the high quality of life in the Netherlands, which eases the transition for investors.

Dutch investment accounts for large portion of Turkey’s overall FDI

In addition to Turkish investment in the Netherlands, Dutch investment in Turkey also remains high. According to data from the Turkish Treasury, the Netherlands, with 1,735 companies as of July, has the third-greatest number of multinational corporations operating in Turkey. Some of these are old timers such as Philips, Unilever, KLM and Shell, which is the oldest Dutch firm in Turkey, as its office opened in 1923. However, there are hundreds of newcomers each year; the acquisition of Oyak Bank by ING Bank and Garanti Sigorta by Euroka can be cited as the biggest recent investments in Turkey by Dutch companies. In that regard, Dutch companies' role in the recent upward trend of FDI in Turkey has been significant, with about $13.6 billion in the period from 2004 to July 2009. With this amount, the Netherlands has contributed approximately 21 percent of total FDI in Turkey in the last four and a half years. And between January and July of this year, the Netherlands has comprised the largest part of FDI in Turkey, $614 million, even though the amount has decreased by about 18 percent compared to the same period last year due to the ongoing global financial crisis.

“We are aiming at working together in the sectors where we are strong and where Turkey has high potential. For instance, in terms of renewable energy, there is high potential in Turkey, and in the Netherlands, there is high expertise,” Kervers notes, adding that the Dutch economic mission coming next week will predominantly include firms who specialize in renewable energy. “Also, up-and-coming fields like creative industries, urban planning, architecture, these are fields in which we have some experience and in which we detect willingness from the Turkish side to work with the Netherlands,” he adds.

In regards to the business climate for foreign investors in Turkey, Kervers says the government is working very actively to improve the conditions for foreign investment and trade with other countries. Pointing to recent amendments proposed in the commercial code, he asserts: “This is a very important sign that the Turkish government is taking international trade seriously and is consistently working to improve the climate for foreign tradesmen and foreign investors. And this code will certainly present even more of an opportunity for Dutch businesses that want to come to Turkey and do business.”