February 17, 2020
The Istanbul Investment Agency (IIA) project, which is among the prominent promises made by the mayor of Istanbul Metropolitan Municipality (IMM) Ekrem Imamoglu has been launched. Local and foreign investors showed a great deal of interest in the project introduced to the public with a launch organized at the Haliç Congress Center on February 17.
Making the opening speech of the project, IMM Mayor İmamoğlu explained the financial strength of Istanbul which has its roots in history with the following words:
“Istanbul has been a city that knows how to embrace foreign investors for centuries, work with them, gain mutually, provide a law that they can work with. Thus, the merchant and investor classes living in this international city, consisting of members of more than 50 nations, have contributed to Istanbul and the four empires that it was the capital city for 17 centuries.”
“They invested in Istanbul and engraved their names in history with golden letters.”
Acting on the principle of transparent management, IYA aims not only to attract domestic and foreign investors to Istanbul and give direction to the city with a view on the future but to Turkey as a whole. Well, what will this project that the Mayor of IMM İmamoğlu called “Those who are late, will regret it” achieve for Istanbul? We listened to the answer to this question and other issues of interest about the project from Nihat Narin, the CEO of IIA.
INVESTORS WILL MEET THE NEW VISION OF ISTANBUL
The change and transformation that take place in Istanbul in the new period is realized with “firsts” that make a difference. Mr.Narin and his team are not the only ones who experience this excitement. IIA has become an institution where local and foreigners have requested meetings from the first day of its establishment.
The primary aim of the IIA project is to attract foreign investors, lead the promotion of the city, facilitate the work of foreign investors and achieve sustainable development.
“IF RETURN OF FOREIGN INVESTMENT IS BUSINESS, THEN THE RETURN OF BUSINESS IS EMPLOYMENT.”
The previous management scheme of IMM did not include an institution looking for answers on ‘investor’ relations such as IIA. A more planned, more active, disciplined and ‘market oriented’ method will be implemented with the Investment Agency. Reminding that there are examples of investment agencies in cities such as London, Berlin, Tokyo, Singapore, Dublin, CEO Nihat Narin said, “We established the setup as two functions; strategic asset management and the promotion of Istanbul to potential international investors. Our aim is to promote Istanbul well and to establish it as a center of attraction. We want to introduce the new vision of both Mayor Imamoglu as well as IMM on international platforms. ”
“WE MUST DETERMINE OUR FOCUS WELL”
With a structure based on participatory, sharing and transparent values, IIA aims not only to add monetary, but also social value to the city.
IIA prepared a rich thinking environment for the participants with the “Stakeholder Consultation Workshop” that was organized to practice the testing of these values. Istanbul’s investment ecosystem was discussed by searching answers for questions such as “Which institutions should IIA act together with”, “How can it increase added value “, “The scope of work and what can be contributed to IBB’s projects” at 17 different tables with representatives from technology, IT, finance, universities, NGOs and diplomatic missions.
The emerging ideas were put into an information pool to be shared with the public later.
“Focusing on a sector that is saturated does not bring a beneficial result,”said Narin, emphasizing that they will act in accordance with the 5-year business plan of Mayor İmamoğlu and IMM. Narin also listed the investment areas they will focus on during these 5 years as follows: the metro, sea transportation, parking, recycling, common communication infrastructure, technology city and Istanbul card.
Underlining that they have never narrowed their investment areas, Narin explained that they are open to previously unheard of collaborations in investment areas that could be beneficial for Istanbul with the following example:
“We will bring people who have succeeded in an area in Singapore that we are not familiar with and ensure communication with the relevant units. However, we will take utmost careful that these areas are feasible for Istanbul.”
“WITH ITS POTENTIAL, ISTANBUL DESERVES THE TITLE ‘WORLD CAPITAL.”
AN IDEAL SETUP FOR YOUTH
Istanbul Investment Agency does not appeal only to investors with capital. The institution is also a great opportunity for young people. IIA will find suitable grounds for young people who want to realize their projects and have dreams, especially by providing opportunities to startups in the long term.
Narin heralded that they have encouraging projects for students in education, and said that they will introduce foreign young people who have never been in Istanbul to the city with “student exchange programs” and make it a center of attraction for them.
ISTANBUL WILL BE A MORE BEAUTIFUL CITY
Laura Citron, CEO of London & Partners, who was invited to the launch of IIA, made a statement to the Istanbul Bulletin saying, “I hope that IIA will offer investors a positive, appropriate Istanbul vision. Thus, a win-win environment will be established and Istanbul will be a better city for those who live here. ” Sharing the information that London & Partners has provided thousands of jobs together with 2 billion pounds to the London economy since its foundation (2011), Citron expressed her opinion by saying, “As Mayor Imamoglu says, Istanbul should have a priority focus on investments, and infrastructure investments such as transportation and recycling. ”
INVESTORS WANT A FORECASTABLE ENVIRONMENT
Today, Turkey’s share in direct investments made to developing countries is only 1.8 percent. Istanbul has enough power and experience to change this picture alone. Istanbul is as good as the dynamo of the country’s economy with a 30 percent share.
With features such as being the youngest city in Europe, the 3rd most visited destination, the 18th largest city in the world in terms of Gross National Product, Istanbul deserves to be the “world capital”. However, some values need to be established to reveal this potential of the city…
IIA also plays an important role in building a local democracy model in Istanbul. This project carries the features to be a model example for the development of democratic rules and institutions and in terms of Turkey’s intercontinental relations.
An investor wants long-term income and remains long-term. With the words that ‘an investor wants stable politics, a legal system, competent human resources and infrastructure’ and indicating that every investor expects ‘predictability’ from a country, Narin explains that the most important motivating reasons for foreigners is “the country’s young population and a geographical location that needs the most consumption”.
IIA’s CEO responded to the question about “a dream of Istanbul” with the following words:
“I imagine an Istanbul where successful structural reforms, sustainable development have a positive impact on the urbanites.”
IN 3 QUESTIONS WHAT IS IIA?
Is IIA a profit seeking organization? No, IIA is a non-profit organization. IIA was not established to make money. Its purpose is to bring together the right resources for demands and needs. For example; an entrepreneur from abroad wants to invest in ‘smart city’; but if he does not know the path to take, he can knock on the door of IIA. Will IIA only serve foreign investors? No, IIA is a door that local and foreign investors alike will knock. Is IIA only interested in projects related to IMM? No, IIA acts as a bridge between all stakeholders of Istanbul, including the private sector, and global capital. The agency aims to contribute to making Istanbul a city that is economically wealthy, increasing employment and a deserving center of attraction.
Istanbul Bulletin March 2020
