Business

Business profile
Although Ankara is the official capital, Istanbul has always been the center of the country’s economic life, due to its location at an international junction of land and sea trading routes. As a result, 36% of Turkey’s total exports and 40% of total imports are transported via Istanbul. Nearly half the nation’s wealth is located in the metropolis, however, the gap between rich and poor is the worst in Eurasia. Land values have skyrocketed in recent years and coupled with high inflation, nearly 40% of the city’s wealth goes to renters, largely untaxed, and the growth of shanty towns is unchecked – one of the causes of the high death toll in the 1999 earthquake. Rural migrants, however, continue to stream into the city for very good reasons, even though the risk of unemployment is currently higher than ever. Istanbul is by far Turkey’s industrial leader, with 24% of all related jobs in the country and 44% of medium- to large-scale workshops (those with 25 employees or more).

Half of the top 500 industrial enterprises in Turkey have their factories and business centers in Istanbul and so it has attracted the highest percentage of qualified workers in the country. Food processing, textile production, oil products, rubber, metal ware, leather, chemicals, electronics, glass, machinery, automobiles, paper and paper products, tobacco and alcoholic drinks are among the major industrial products. Along with industry, the insurance and banking companies and major corporations in the city steer the nation’s economic life.

The largest company in Turkey in terms of value is mobile telephone giant, Turkcell. This company, with over seven million subscribers, went public in 2000 and was the first Turkish company to be listed on the New York Stock Exchange. Its capital value began at US$18 billion, and despite massive losses in 2001 it is still considered a thriving concern.

Other major companies have built their gleaming office towers along the road from Mecidiyekoy through the suburbs of Levent and Maslak, for example home to the Istanbul Stock Exchange (IMKB), news channel NTV, Goodyear, Bosch and more. The major media groups (Hurriyet, Milliyet, Sabah, Ihlas etc) have moved to high-tech complexes at the edge of town in Ikitelli. As business tends to center on major transport routes, the ring road or TEM, the Trans European Motorway, serves as the magnet for growth on the Asian side, running across the new Fatih Sultan Mehmet Bridge over the Bosphorus. Many foreign businesses have their main offices on this side, including Henkel and Ford Motor.

The main draw for foreign business is a high disposable income for the 20% of the city’s population that have most of it and a culture that thrives on conspicuous consumption. Evidence of this is more and more apparent – the Bosphorus has been earmarked for luxury villa projects and huge commercial and shopping centers are springing up. Construction standards have risen since the 1999 earthquake and with new satellite cities touting total safety springing up and many buildings (even those in luxury areas) being rebuilt, the construction industry is faring reasonably. But Turkey’s shadow economy remains constant and is expected to worsen still if unemployment rates continue to grow. Istanbul has a huge black economy but it is estimated that the current rate of unemployment is 6%, compared to the national rate of 10%. Registered tax payers at the lowest end of the scale carry the can for the vast numbers of unregistered earners and corruption remains Istanbul’s primary obstacle to economic democracy.

Business etiquette
It is customary to address new acquaintances by their first names followed by ‘Bey’ (sir) or ‘Hanim’ (lady). Ottoman society was extremely hierarchical and this system still remains entrenched in Turkish business practice, however modern your hosts (many of them women) may appear. The boss will invariably have a vast, luxurious office in which to entertain, while employees just outside the door are squashed into cramped spaces and have virtually no authority delegated to them. Secretaries are rarely empowered to take important messages or even know the boss’s schedule, so when telephoning, it is usual to be told to ring back ‘one hour later’ or fax your queries. Once you have made the appropriate contacts, however, you may be treated to a personal touch almost as surprising.

Relations between business equals can be lavishly generous and although one is expected to make at least a gesture of resisting, the boss will almost always insist on taking visitors to the most expensive places in town and footing the entire bill. Turkish people do, however, adore having their photos taken with visiting dignitaries, even more so if it appears in print somewhere, so visitors should bring a camera. When visiting people’s homes, flowers or sweets are more appropriate than alcohol as the host may not drink. If they do drink, however, good whisky is a sure-fire hit.

Business dress is the same as in Europe or North America, although women are advised to wear business suits with long skirts (below the knee), to avoid any misunderstandings. Many Turkish companies in the past have employed flashy young women in miniskirts as sales reps and publicity agents, thinking to impress foreigners, but this practice is fading as managers learn that competence in employees is considered more important than looks. Visiting businesswomen will usually be treated with the same respect as male colleagues. However, they should resist any after-dinner invitations to accompany the men to a revue bar or belly-dancing club. These are basically upmarket brothels and a woman’s company will be resented no matter how much she may be pressed to join them.

Business hours are technically 0900-1700, Monday to Friday, although most employees are still expected to put in a ten-hour working day.