“Nearshoring will create a new incentive in the development of economic relations between Turkey and the Netherlands,” said Peter Wolters, vice president of the Dutch and Turkish Chamber of Commerce.
According to the data of the Ministry of Industry and Technology, the Netherlands is the country that made the most international direct investments in Turkey between 2002 and October 2020.
Wolters gave information to the AA correspondent about Dutch investors’ investments in Turkey and evaluated the economic relations of the two countries.
Stating that the Netherlands’ international direct investment in Turkey is still around $26 billion, Wolters said that this corresponds to 16% of the total foreign investment amount made in Turkey.
Wolters, pointing out that the realization of the commitments towards sustainable development goals is effective in increasing the number of Dutch investors in Turkey, said “Turkey’s GDP and greenhouse gas emissions should not increase at the same time as it should be in other countries. This can be achieved by increasing the share of renewable energy in electricity and investing in energy-efficient solutions.”
“We help SMEs to use financing”
Providing information about the details of Dutch investors’ investments in Turkey, Wolters stated that Dutch development banks have a strong history of working with Turkey leasing companies.
Wolters said that in this area they are helping SMEs to use financing to invest in efficient energy equipment, thus promoting renewable energy while reducing industrial operation costs.
Wolters stated that in December 2020, a Dutch development bank signed a loan agreement of $25 million with a Turkish leasing organization to finance renewable energy and energy efficiency projects, and added saying, “The investment is planned for loans given to solar energy projects. With the environmental impact of the investment, it is aimed to prevent 12 thousand tons of greenhouse gas emissions corresponding to approximately 3 thousand automobile emissions per year.”
“We also support rural SME activities”
Emphasizing that rural development is another focal point for Dutch investors, Wolters said that rural SME activities in Turkey are also supported.
Wolters reported that $50 million of bonds were issued for this in 2018, and 4,000 rural SMEs were reached with such initiatives.
Pointing out that SMEs constitute the backbone of Turkey, Wolters said that SMEs perfectly fit the Dutch Development Bank’s “sustainability and inclusive financing” strategy.
“Investments will focus on value-added, organically grown products”
Wolters stated that the most preferred areas of Dutch business people for investment in Turkey are “advanced agricultural techniques, organic agriculture products, health services, environment and waste management, chemicals, energy and renewable energy, logistics, port construction, and management”.
Stating that investors are looking for Turkish partners who produce in accordance with the European Union environmental and social export standards, as well as traditional and organic agriculture, Wolters said, “Future investments will focus more on value-added, organically grown nuts, legumes, grains, and oilseeds.”
Wolters stated that a development bank from the Netherlands allocated a long-term loan of $30 million to Turkish workers who process such agricultural products, emphasizing that investors prefer long-term and sustainable investments in Turkey, not large-scale projects.
Wolters said that agricultural land in a province in the north of Turkey was leased by a group of Dutch and Turkish investors from the government to build and operate new facilities, adding that interested Turkish investors can contact CNNT in Rotterdam or Istanbul.
“Nearshoring will offer a new incentive for the development of economic relations.”
Wolters stated that the European Commission said that the Covid-19 outbreak could offer strategic opportunities for business and trade, specifically emphasizing the digitalization of the economy, nearshoring, which means outsourcing, and information and communication technologies.
Stating that Covid-19 has increased the necessity of more robust, durable, and shorter supply chains as an alternative to China, Wolters stated that especially “nearshoring” will create a new incentive in the development of economic relations between Turkey and the Netherlands.
“We will create a pool of Turkish information technology experts”
Noting that Turkish talents and Dutch entrepreneurs are expected to be close in terms of human resources in 2021, Wolters said:
“CNNT will soon launch a new initiative to create a pool of talented Turkish information and communication technology experts for Dutch companies. ING Bank will provide consulting services through an information technology security expert. A well-established Turkish information and communications company will also be part of this nearshoring package. Interested Turkish stakeholders can contact our offices. “
Touching on Turkey investment incentives, Wolters said, “Turkish investment incentives gain value only if they are known and trusted by potential users. At the moment, perception of Turkey towards main investors is open to improvement.”
Wolters added that the biggest factor underlying sustainable trade is sustainable human relations and that communication should build mutual trust.
Source: AA / Translated by Irem Yildiz