2/13/2013

Multinationals pick Turkey for managing regional markets

Dünya – Turkey with its key strategic location and having a quality talent pool that suits any managerial need is quickly becoming a hub for managing regional markets that large multinational companies do business in. As the world's economic center of gravity shifts from West to East, Turkey’s advantages as a regional management center, as well as being a top choice for investments, are increasingly apparent for companies seeking to expand into a fast growing economy with strategic trade links to neighboring markets.


A young population with a median age below 30 and logistic advantages provided by a unique geographical location are the main factors behind the reasoning of multinational companies that choose Turkey as a regional ‘operations base’ which covers diverse geographic areas such as Europe, the Middle East, Central Asia and North Africa.


The ratio of multinationals in Turkey that use their local office as a regional headquarters has reached 33 percent, according to a 2012 survey by the International Investors Association (YASED). Turkey’s financial capital Istanbul is the location of choice for a regional management center for foreign investors as a thriving trade hub. Furthermore, increasingly more Turkish nationals become employed by multinationals in their operations abroad.


On the growing list of companies that use their Turkey branch to manage their operations in surrounding countries are; Alstom, Axa, BASF, Benetton, BMS, Bosch, BP, BSH, Citibank, Coca-Cola, FMC Biopolymer, Coface, Diaverium, General Electric, Gefco, GlaxoSmithKline (GSK), Hafele, Hewlett-Packard (HP), Hugo Boss, Hyundai, Imperial Tobacco, Intel, İpragaz, ISI, JTI, LG, Lifung, Mapfre, Mercedes-Benz, Metro Group, Microsoft, Pepsi, Pirelli, Procter&Gamble (P&G), Samsung, Schott Orim, Siemens, TeliaSonera, Tetrapak, Unilever, Vaillant and Visa, according to YASED’s Secretary General Ozlem Ozyigit, noting that there were many other unlisted foreign companies who set up their regional headquarters in Turkey.


“A large domestic market with strong ties to surrounding countries is crucial in attracting foreign investors. All of logistical advantages, business-friendly investment environment and political stability play a part in Turkey’s success in becoming an investment destination. But the most important aspect is the superior labor force skills that multinational companies seek.” Ozyigit remarked on Turkey’s rise as a regional management hub.

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