After Turkey experienced a severe financial crisis in 2001, the government initiated a series of reforms which strengthened the country's economic fundamentals and ushered in an era of strong growth. Reforms included an aggressive privatisation program to reduce state involvement in basic industry, banking, transport, and telecommunications, which has led to an emerging cadre of middle-class entrepreneurs who add dynamism to the economy.
New Zealand’s exports to Turkey totalled US$48.63 million in the year ended December 2010 and main exports included butter, antibiotics, wool and sheepskins.
Opportunities
- Agritech: New Zealand is a market leader in animal health, fencing, genetics, pasture cultivars and pasture management. New Zealand’s expertise and technology offers much to Turkey as it seeks to reform its agricultural sector.
- Construction: The Turkish construction sector is one of the largest services export industries. The sector grew by 15.1 percent in 2010 and is expected to grow by another 10 percent in 2011. New Zealand companies that offer design services, roofing tiles, wood technology and other building materials could be of interest to Turkish contractors, particularly those leading projects in Asia.
- Defence: There are opportunities for New Zealand suppliers that are able to deliver niche solutions to the Turkish defence industry. Turkey is the eighth largest importer of defence equipment in the world, and Turkish defence equipment expenditure is approximately US$4 billion per year. The country has made considerable strides towards its goal of modernising its armed forces and indigenous defence industry, which includes multibillion dollar projects. The Turkish Government has encouraged foreign investment, and there are a number of very significant co-production deals between Turkish and foreign companies involving important transfers of advanced technology to Turkey.
- Earthquake engineering: Both New Zealand and Turkey are prone to earthquakes. New Zealand has developed considerable expertise and technology to mitigate the human and financial costs of earthquakes.
- Energy: There is growing demand for new energy generation in Turkey. The Turkish government is currently undergoing a programme of privatisation for energy generation, transmission and distribution. Around half of the generation capacity has been privatised. This provides an ideal situation for new entrants and opportunities for New Zealand companies and consultants in the energy sector.
