Economy Cairo and Istanbul feel biggest cost of living squeeze Dubai has become the most expensive city in the Middle East for expatriate workers, while Cairo and Istanbul were among the cities that saw the biggest rise in the cost of living this year, as soaring inflation impacted wages. Dubai, the UAE’s largest city, saw rental prices rise by about a fifth in the last […] June 18, 2024
Real Estate Foreigners turning back on Turkish real estate Foreign buyers are increasingly shunning the Turkish property market, wary of high prices, the expensive cost of living and a less welcoming environment for overseas real estate investors. There were only 2,064 residential units sold to foreign buyers in May, 35 percent down on the same month last year, data issued by the state statistics […] June 16, 2024
Economy UAE to invest in Turkey’s economic sectors says minister The UAE is willing to invest across numerous sectors in Turkey, said Emirati energy and infrastructure minister Suhail Al Mazrouei. The Gulf state is exploring opportunities in the energy, agriculture, transportation, tourism and other sectors, state-run Anadolu Agency (AA) news agency reported, citing the minister on the sidelines of the St. Petersburg International Economic Forum. […] June 16, 2024
Employment Unemployment rate falls in Turkey but warnings persist Turkish unemployment levels fell to their lowest rate in more than 11 years in April, helped by strong first-quarter growth. However, troubling longer-term prospects could mean job queues lengthen again. Turkey’s headline unemployment rate, covering those aged 15 and over, fell to 8.5 percent in April, the lowest since November 2012 and down from 10 […] June 11, 2024
Oil & Gas Deal for Iraq oil via Turkish pipeline coming ‘soon’ A deal is expected soon for Iraq to resume oil exports via a pipeline to the Turkish port of Ceyhan on the Mediterranean coast. The Iraqi oil ministry, Kurdistan’s Ministry of Natural Resources and international oil companies met on Sunday in Baghdad to discuss resuming production and exports, said Iraq’s oil minister, Hayan Abdul Ghani. […] June 10, 2024
Finance Turkey hikes customs duty on Chinese vehicles by 40% Turkey will start imposing an additional 40 percent customs duty on vehicles imported from China next month, in an attempt to lower its current account deficit and protect domestic car manufacturers. The extra tariff will be set at a minimum of $7,000 per vehicle or 40 percent of the import value, whichever is higher, according to […] June 10, 2024
Economy Turkish court rules president cannot sack central bank chief A ruling by Turkey’s highest court striking down the president’s authority to dismiss the head of the central bank is being downplayed by Turkish officials. President Recep Tayyip Erdoğan has sacked the governor of the central bank five times in the past five years. Turkey’s justice minister has insisted the Constitutional Court’s decision did not invalidate […] June 6, 2024
Banking & Finance Stable lira and bonfire of red tape help Turkish banks Turkish banks are under less operational pressure thanks to a more stable lira, simpler rules and policymakers’ swing back towards economic orthodoxy, Fitch said on Wednesday. Analysts at the credit rating agency warned that rising funding costs would compress lenders’ net interest margins, however. Fitch has raised its long-term foreign-currency issuer default ratings for 18 […] June 6, 2024
Markets Turkey to tax crypto and stock market earnings Turkey is planning to tax income earned from cryptocurrency and stock market trades, as the government seeks new revenue streams to help shore up its public finances. The measures were part of a package unveiled by the finance minister Mehmet Şimşek at a gathering of senior officials of the ruling Justice and Development Party on […] June 5, 2024
Aviation Turkish Airlines says engine issues delaying Boeing order Turkish Airlines is in talks with US planemaker Boeing for a potential order of 225 jets, but any deal rests on engine pricing negotiations, chairman Ahmet Bolat has said. The potential order is for 150 737 Max narrowbody jets and 75 wide-body 787s, Reuters reported, quoting Bolat at the International Air Transport Association’s annual meeting […] June 5, 2024
Economy Slump in orders and exports cools Turkish PMI sentiment Turkish manufacturers are finding their operational environment increasingly difficult, a new survey has revealed. Tighter economic conditions led expectations to fall in May, although some relief came from the slight easing of inflationary pressures. The monthly Purchasing Managers’ Index (PMI) survey, conducted by the Istanbul Chamber of Commerce and S&P Global, fell further into negative […] June 3, 2024
Banking & Finance Turkey’s Koç ends talks to sell Yapi Kredi stake Turkey’s Koç Holding has confirmed that initial talks over the sale of a stake in Yapi Kredi Bank, the country’s fourth largest private bank in terms of assets, have been terminated. Yapı Kredi’s parent corporation, Koç, said last month it was in talks with the UAE’s First Abu Dhabi Bank (FAB) over the sale of a majority […] June 3, 2024
Agriculture Turkey and World Bank unite to combat wildfires Turkey has launched a $400 million project with the World Bank to protect the country from wildfires. The Turkey Climate Resilient Forests Project will strengthen the country’s ability to protect people and property from the fires. Almost 230,000 hectares of Turkey’s forests were damaged or destroyed completely between 2012 and 2021, with more than 61 […] May 31, 2024
Lifestyle Russians rush from Turkey as costs and restrictions bite Rising costs, increased difficulties in obtaining residency permits and tighter enforcement of restrictions on the number of foreign nationals who can live in popular regions are prompting an exodus of Russian citizens from Turkey. The number of Russian nationals holding Turkish residence permits has plunged to just over 96,000 as of May 16, down from […] May 24, 2024
Economy Turkey tightens monetary policy but holds rate steady Turkey will continue to maintain a tight monetary stance until a “significant and sustained” decline in monthly inflation is seen, the country’s central bank said. The bank’s monetary policy committee kept the key policy rate steady at 50 percent, adding it remains “highly attentive to inflation risks”. The central bank raised interest rates by 500 […] May 24, 2024
Aviation Turkish Airlines revenue rises 10% to nearly $5bn Revenue at Turkey’s national carrier Turkish Airlines rose 10 percent year on year in the first quarter of 2024 to $4.8 billion, driven by growing passenger numbers. Turkish Airlines flew 18.5 million passengers from January to March, up 8.4 percent annually, it said in its latest investor presentation. Passenger revenue climbed 5 percent year on year […] May 23, 2024
Tourism Egypt to host more Turkish tourists as relations improve Egypt will likely host 250,000 Turkish tourists this year as relations between the two nations improve. Cairo hosted around 80,000 Turkish tourists in the first four months of 2024, Amr El-Kady, CEO of the Egyptian Tourism Authority, told the state-run Anadolu Agency. The Egyptian government is working on several initiatives to boost tourism, with a […] May 22, 2024
Banking & Finance First Abu Dhabi Bank targets Turkish lender One of Turkey’s largest corporations has confirmed it is in talks with First Abu Dhabi Bank (FAB) over the sale of a majority holding in the Istanbul-headquartered lender Yapı Kredi, the country’s fourth largest private bank in terms of assets. A report by Reuters on May 21 said sources told it FAB was offering around […] May 21, 2024
Renewable Energy Turkey’s renewables scheme given $1bn by World Bank The World Bank has signed a $1 billion programme with Turkey to fast-track the nation’s renewable energy expansion initiatives. The financing comprises €600 million ($657 million) in loans from the International Bank of Reconstruction and Development, $30 million from the clean technology fund, and $3 million in grant funding from the World Bank’s energy sector management assistance […] May 17, 2024
Economy EBRD lowers Turkey’s 2024 growth rate The European Bank for Reconstruction and Development (EBRD) has lowered Turkey’s economic growth forecast to 2.7 percent from 3 percent for 2024, due to rising inflation. However, a recovery is anticipated next year, with growth projected at 3 percent, driven by potential monetary and fiscal policy tightening aimed at curbing high inflation. Turkish economic policy has tightened, […] May 15, 2024
Tourism Spain’s Barceló expands reach in Middle East and Turkey Spain’s Barceló Hotel Group is intensifying its focus on the Middle East, Africa and Turkey this year with plans to invest more than $400 million as part of its global expansion strategy. The move includes opening hotels in the UAE, Saudi Arabia, Bahrain, Oman, Qatar and Turkey. The company will expand its portfolio in the Middle East by […] May 13, 2024
Media & Advertising Turkey fines Facebook owner Meta over customer data sharing The social media giant Meta has been found guilty by Turkey’s competition agency of trying to shut out rivals from the local market and dominate advertising penetration. The $230 billion Californian company operates Facebook, Instagram, WhatsApp, and Threads. On May 9 the Turkish Competition Authority announced it had levied fines totalling $37.2 million on Meta […] May 10, 2024
