In Antalya , June 27-30 2007, the first meeting of D-8 DGCA discussed some issues successfully on Civil Aviation cooperation among D-8 member states. Some activities and experiences of  D-8 DGCAs were presented and shared, as well as idea on the cooperation in Flight Safety and Security; Environment, Quality and Training.

Some understandings had been recorded as a basis in future cooperation among the D-8 DGCAs. This cooperation will be further established in a solid Terms of Reference (TOR); Work Plan and Actions Plan, and will be confirmed by each DGCA in the 2nd meeting in September 2007, in Teheran, the Islamic Republic of Iran.

The DGCA of Iran has confirmed its readiness to hold the 2nd meeting during September 8-10, 2007. Please click here to read more.

D-8 Secretary General, Dipo Alam with the Turkish President, Abdullah Gul

The former Foreign Minister Abdullah Gül was elected as the Turkey’s 11th President of the Republic of Turkey today (August 28th, 2007).

Gül was elected in the third round after receiving 339 votes out of 448 cast. Following his election Gül was sworn in at Parliament, thereby assuming the presidential post from the 10th president, Ahmet Necdet Sezer, who had been acting president since May 10.

Born and raised in the Anatolian town of Kayseri on October 29, 1950, Gül went on to study economics in Turkey and in Britain. After working as economist at the Islamic Development Bank within 1983-1991, in Jeddah, Saudi Arabia, he stepped into politics by being elected to parliament as a deputy for Kayseri. He then served as a minister of state in a coalition government led by Welfare Party leader Necmettin Erbakan. During his tenure he made his remarkable contribution to the birth of the D-8 Organisation, when he actively participated in think-tank group and organized a premiere success of the first D-8 Head of States meeting in Istanbul, June 1997.

The burly mustachioed politician speaks fluent English and earned a doctorate in economics after studying in Britain at universities in London and Exeter.

Gül has established himself as a respected diplomat since the AK Party was first elected in 2002, securing the launch of Turkey’s European Union entry talks. His election to the presidency will undoubtedly be welcomed in Europe as it will lead to further economic and political reforms needed for the country to move closer to the course of democratic development of Turkey. In his acceptance speech President Gül  stressed the need to trust the functioning of democracy. “The democratic system within which citizens elect their own representatives, is a structure based on the universal principles of law where ways of legal recourse are open and fundamental rights and liberties can be thoroughly enjoyed both individually and collectively,” he said.

Secretary General of D-8 Organization Dr Dipo Alam, on behalf of the Organization congratulates President Gül the 11th President of the Republic of Turkey. The Secretariat wired the congratulation letter right away, when Abdulah Gül sworn as President at the Parliament, on  August 28, 2007 at 6 PM.

Dr Alam met Dr Abdullah Gül in Ankara on March 1, 2007 during a courtesy call of the D-8 Secretariat to the Foreign Ministry of Turkey. Dr Alam believed and convinced that Gül is one of important leaders of democratic and modern Turkey in the future, who will lead the country, together with PM Recep Tayyip Erdoğan and other respected leaders, to a rapid economic and democratic progress for Turkish people. This role is crucial since Turkey is a dominant member state in the progression of economic cooperation of D-8.

To read full text of Congratulation Letter of D-8 Organization to the President of Turkey, please click here.

As economic growth has been well developing and investment increasing in D-8 countries, adequate infrastructure provision is a must to follow the needs of economic progress. When the Secretary General visited Jakarta, Karachi, and Dhaka, electricity supply is one of the infrastructure problems there.

Recent case worth to mention is Turkey, with its high increase of investment and dynamic economy that requires more power supply. Recently the public sector has decided to step in the electricity market again due to the problem in security of electricity supply and the delay in the investments of the private sector. Two power plants worth $750 million are on the agenda of the Energy Ministry of Turkey.

Electricity Producers Association (EÜD) Chairman Önder Karaduman warned that, should the public sector re-enter the market, there may be a return to the Turkey Electricity Authority (TEK) days. By preparing a draft bill that foresees an amendment to the Electricity Market Law, the Ministry of Energy and Natural Resources is paving the way for EÜAŞ to establish its production plants. Following the amendment, the Ministry will first establish two 1,000 MW natural gas plants to meet the electricity demands of İzmir and Antalya, which currently face the highest threat to the security of their electric supplies.

The discussion regarding the issue of public-private investment in power plants has been frequently raised and discussed by D-8 Working Group on Energy, such as in Jakarta last year. Similarly, this issue was also among the issues examined by the Secretary General D-8 and Egyptian Minister Petroleum and Minister Investment, along with the plan for Egypt to hold a Working Group or Business Forum on Energy, and Working Group on Investment very shortly to discuss the issue deeper among member states. As for the D-8 Working Group on Investment, Iran has already extended its readiness to be a hosting country, which will be held soon in Tehran.

Chief Adviser of Bangladesh, Dr Fakhruddin Ahmed said on Tuesday last week that Bangladesh is very enthusiastic to diversify cooperation with Egypt especially in the fields of agriculture, pharmaceutical, jute, and trade and investment for the benefit of the countries.

He made the remark when Egyptian Ambassador in Dhaka Ismail Abd-El Rahman Ghoneim made a farewell call on the Chief Adviser at his office.

The ambassador said Bangladeshi workers are working with good reputation in RMG sector in Egypt and they are in high demand by various companies in his country.

He requested the Chief Adviser to reactivate Bangladesh-Egypt Joint Commission to explore the potential of more bilateral cooperation between the two countries.

Responding to the diplomat, Dr Fakhruddin said he would look into the matter for holding the joint commission meeting.

He emphasised more exchange of visits at business, cultural and official levels for further strengthening the bond of friendship between the two countries.

Ambassador Ghoneim said ORASCOM, an Egyptian company, has made a big investment in telecommunication sector (Bangla Link) in Bangladesh during his tenure of four years.

Bangladesh in diversified sectors by availing the investment-friendly climate and incentives offered by the government for foreign investors. Egypt can import various goods, including jute, jute products, ceramics, leather and leather products and pharmaceuticals from Bangladesh, he added.

Commenting on the news, D-8 General Secretary, Dipo Alam, is assured of its expectation that volume of business can continue to grow in between these D-8 countries such as Bangladesh, Egypt and Indonesia, since these countries have been recording good performances on intra-trade up to this year. Alam also underlined that the role of D-8 Join Commission can be focused in a more solid way by inclusive participation of the private sectors in trade, industry and investment. General Director of Asia Pacific Indonesia, Primo A. Julianto, also echoed similar optimistic view during his visit to Bangladesh earlier this year.

As a part of the result of talks last May between D-8 Secretary General, Dr. Dipo Alam with HE Vice President of Islamic Republic of Iran, H.E Esfandiar Rahim Mashae, the Iran Tourism Development Corporation (ITDC) in cooperation with Iran Cultural Heritage, Handicraft and Tourism Organization (ICHTO) which is under the Office of Vice President of Culture and Tourism, supported by the Iranian Department of Foreign Affairs, investment organisations which are affiliating to the Ministry of Economic and Finance and Iran Trade Chamber of Commerce, held an event titled “Conference on Investment Opportunities on Tourism Industry in Iran” in Tehran, August 25-26, 2007.

The event seek to introduce Iranian investment opportunities to prospective domestic or foreign investors, as well as to provide comprehensive understanding prior to the full engagement of the investors activities in Iranian tourism and cultural industries. In conjunction to the conference, the event also host hotel construction fair, and cultural tourism events for foreign partners.

The participant to this event came from 40 countries, such as: Austria, Azerbaijan, Turkey, the United Arab Emirates, Germany, France, Switzerland, Bahrain, Qatar, Kuwait, India, China, Oman, Singapore, Japan, Russia, Pakistan, Italia, Thailand, Malaysia, etc.

The events was attented by important Iranian government figures who gave opening speeches, such as H.E President Mahmoud Ahmadinejad, H.E Foreign Affairs Minister Manouchehr Mottaki, H.E Vice Presidnet Esfandiar Rahim Mashae, H.E Finance Minister Danesh Jaffari, Secretary General of UNWTO, H.E Mr. Francisco Franjiali, Managing Director ITDC Mr. Mehdi Jahangiri, and Chief Judiciary Ayatollah Shahroudi.

For the Iranian government, this conference was an effective measure toward tourism promotion, as well as a concrete step to welcome the 20-year vision on tourism sector, where the Iranian govenment is targeting to reach 20 millions of tourists.

In the conference, the government of Iran is encouraging for foreign investment, to participate in at least 6 areas, which are: (1) Hotel site; (2) Road side welfare services complexes site; (3) Camping and hydrotherapy complexes site; (4) Pilot tourist zone site; (5) Historical & cultural site and places for tourism purposes site; and (6) Ecotourism and tourism targetted villages.

The government has identifited at least 133 locations which are considered as a ideal spot for hotel and all have been analysed with an economic visibility study. As for the infrastructure, at least 600 spots has been identified, which will need funding from investment and goverment amounted to 250 billion Rials, which mostly are expected to be covered by investment. Iran has also identified 145 spots to build camping area. It is estimated that there are more than 1,000 hot water fountain in Iran that can be modified into hydrotherapy sites, with 90 of them already finished the construction, and 40 of others are waiting for the visibility study.

Iran also planning to focus on the ecotourism, as a part of D-8 Cooperation framework. This topic will be discussed further in ecotourism meeting held by D-8 organisation in the D-8 Expert Meeting on Ecotourism Cooperation.

Another good news for D-8 cooperation and their member states’ intra-trade will happen soon between Iran and Turkey. The cooperation is not only in big projects such as energy and power plants cooperation, but now is also manufactured products in the automotive sector. Iran will export for the first time their cars to Turkey next week.

The first shipment of Iranian-made Samand automobiles will arrive in Turkey next week on semi-trailers. The cars, which are produced by the Khodro Company (IKCO), are being imported and distributed by MYS Otomotiv.

Şükrü Seskır, the chairman of MYS Otomotiv, said the new cars should have been available to the Turkish market in March 2006, according to the Anatolia news agency. “But we were unable to secure some of the certifications required and could not access the market at that time,” he said The Turkish and Iranian governments negotiated for a year in order to allow the vehicles to be imported into Turkey. “After long negotiations, the necessary permits from the Undersecretariat for Foreign Trade were granted,” Seskır said. He added that the problems which had prevented earlier sale of the cars had been resolved. Seskir said his company had ordered 3,000 cars and that the 300 that are arriving in Turkey next week are merely the first shipment.

D-8 Secretariat would record this cars export transaction, between Iran and Turkey, in next Working Group on Industry as a good model of industrial cooperation and trade. Same transaction also made by Indonesian Kijang and Malaysian Proton cars have the potential to be promoted within D-8 countries. The Secretariat will also encourages D-8 Chambers of Commerce to take opportunity in their automotive businesses.

D-8 Organization impressed with Malaysian efforts to continuously promote and progress Islamic Finance policy and programs which allows some products of Banks, such as sukuk, takaful, etc, will benefiting trade, investment and economy in general.

Soon, Malaysia will ease its rules to allow all banks to do Islamic banking business in foreign currencies, the Central Bank (Bank Negara) said recently, further cementing the country’s role in Sharia financing. Non-Islamic commercial bank and investment banks licensed by the government will now be allowed to do Islamic banking business as the country aims to position itself as a global hub for the sector, Central Bank Governor Zeti Akhtar Aziz said in a statement.

“We want and aim to develop Malaysia into a centre for the origination, distribution and trading of sukuks (Islamic bonds) to provide further impetus to the development of an increasingly vibrant and progressive bond market in Malaysia as well as in the Asian region,” Zeti said.

However, according to Islamic finance strict rules, interest payments and profits earned from alcohol, pornography, pork or gambling are still banned. Muslim-dominated Malaysia has the world’s largest Islamic bond market, accounting for about 47 billion dollars or two-thirds of total Islamic bonds outstanding worldwide.

Malaysia Islamic finance industry is worth 38 billion dollars in assets ranging from stocks and insurance to home loans and pawn-broking. Islamic banking assets also make up over 12 percent of total bank assets, the central bank said.

In remarks at an Islamic banking forum Monday, Zeti said Islamic bonds are increasingly becoming more important in channeling funds into emerging market economies.” This is particularly the case for the Middle East and Asia, which are among the fastest growing regions in the global economy,” Zeti said.

“This includes financial needs of the private sector following the privatization and implementation of infrastructure projects. The Islamic bond market was growing by an average of 40 percent yearly, and demands for bonds “significantly exceeds supply” the Chief of Bank Negara said.

Since Malaysia’s first issuance of sovereign global Islamic bonds in 2002, there have been a series of other issuance by countries such as a United Arab Emirates, Qatar, Bahrain and Pakistan. Multilateral lending agencies have also made issues to finance development projects, with Islamic bonds now catching on as an attractive instrument of financing, the Central Bank Governor said.

The role of Malaysia to promote Islamic Finance was discussed last May in Jakarta, at the 23rd D-8 Commissioners Meeting that scheduled Malaysia hosts a meeting on D-8 Working Group on Islamic Finance.

To read related news, please click here.

In Antalya , June 27-30 2007, the first meeting of D-8 DGCA discussed some issues successfully on Civil Aviation cooperation among D-8 member states. Some activities and experiences of  D-8 DGCAs were presented and shared, as well as idea on the cooperation in Flight Safety and Security; Environment, Quality and Training.

Some understandings had been recorded as a basis in future cooperation among the D-8 DGCAs. This cooperation will be further established in a solid Terms of Reference (TOR); Work Plan and Actions Plan, and will be confirmed by each DGCA in the 2nd meeting in September 2007, in Teheran, the Islamic Republic of Iran.

The DGCA of Iran has confirmed its readiness to hold the 2nd meeting during September 8-10, 2007.  To read the letter please click below:

- Letter of DGCA Iran
- Letter from D-8 Secretariat to all D-8 commissioners and DGCA’s.

D-8 Cotton Exporters Need to Fulfill Turkey’s High Demand

D-8 Chambers of Commerce are summoned to fill the high need of Turkish textile factories that need more cotton imports. Secretary General Dipo Alam asked and assigned Communication Staff on Thursday to send information to all Chambers of Commerce in D-8 countries to take opportunities for more cotton exports to Turkey.

Turkey’s cotton imports, which totaled over 610,000 tons last year, have reached record levels with 720,000 tons in the first seven months of 2007 as the price of cotton continues to rise on the commodities exchanges.

Fethi Çoşkuntuncel, a member of the Turkish Union of Chambers and Commodities Exchanges (TOBB) board and chairman of the Adana Chamber of Commerce, told the Anatolia news agency on Tuesday that increasing cotton prices are straining the Turkish textile industry. He said the price changes are the result of major cotton producer the US announcing a reduction in Cotton Belt production starting next season. Explaining that cotton is sold at between $1.55 and $1.60 per kilogram in world markets, Turkish textile companies import it for YTL 2.90 per kilogram.

A majority of international investors currently operating in Turkey are heading to make new investments in the coming years, according to the International Investors Association’s (YASED) “Barometer Survey,” the results of which were announced by YASED Chairman Tahir Uysal earlier this month.

The survey determined evaluations being made by YASED members — foreign-based companies that have active operations in Turkey — about recent political and economic developments, their turnover, exports and profit goals and economic expectations. According to the survey results, economic expectations of foreign investors were generally positive, and 64% of of them are positive for the plan to expand in Turkey.

YASED members met their targets in the first half of 2007 when it came to profitability, exports and sales, and a significant number of them exceeded their goals. The majority of YASED members agreed that the economy will continue its growth at the current or an increasing rate, and most thought economic conditions for foreign investors can only get better.

According to a recent report issued by Deloitte, a leading global consulting firm, merger and acquisition transactions in Turkey in the first half of 2007 totaled $10.5 billion, and 41 major transactions worth $9.6 billion were realized by foreigners. It was also noted that European investors realized 31 transactions whose total volume was $6 billion.

Deloitte Turkey made an assessment on these transactions in a recent report which said Turkish companies continued to attract foreign capital despite the presidential election crisis and the general elections. The total value of the 66 transactions realized in the first six months of the year, taking into account the estimated value of some transactions whose values were not disclosed, reached $10.5 billion. This figure was $11 billion during the first half of 2006. According to Deloitte, the total volume of merger and purchase transactions in Turkey will reach $18 billion by the end of 2007.

In an assessment of the report, Basak Vardar, Deloitte Turkey ’s Institutional Finance partner, remarked that 80 percent of the investors who made transactions in Turkey in the last three years were happy with their decisions. “The interest of foreign investors in Turkey also grew in the first half of this year. Turkey continues [to be] assessed as a market where making beneficial investments is possible due to its chief qualities like low inflation, rapid growth and economic stability secured by EU and IMF measures,” the report said.

The purchase of Oyak Bank by the Dutch ING at $2.67 billion topped the list of transactions of 2007’s first half, while the second biggest was the purchase of the Izmir Harbor at $1.28 billion, and the third is Eczacibasi Health Services, purchased at $602 million. It was emphasized by the report that the most significant 10 transactions in the sectors of finance, energy, infrastructure, communication and real property comprised over 70 percent of all transactions.

According to a release made by the Foreign Economic Relations Council (DEIK), it has received 27 positive replies to proposals for joint meetings between Turkish and foreign business councils. DEIK Chairman Rona Yircali said foreigners have wanted to see stability in Turkey for a long time and their wish has come true. He said DEIK had organized a record 341 events in 2006 and with Turkey ’s accelerating stabilization and reform process, with the general elections out of the way, they were aiming to exceed this number in 2008. They have received many replies from the past four days from such groups as the Turkish-Korean Business Council, Japan and Pakistan business forums, the Turkish-Finnish Business Council and the Turkish-Russian Business Council.

D-8 Secretary General Dr Dipo Alam is enthusiastic with the survey result and underlined that as a member state of D-8, Turkey possess incredible economic potential, and member states of this organisation could use this potency to make tremendous growth by collaborating their own potentials with Turkey.

D-8 Secretariat made a number of meetings with Chambers of Commerce from the D-8 member state countries last June to discuss opportunities and challenges to expand public-private projects and cooperation in the D-8 activities. “Now we are very much looking forward to complete our preparation of the Preferential Trade Agreement, the expansion of intra-trade, industry colaboration, investments, energy, banking, tourism, and civil aviation to encourage a more active role of private sectors in economic partnerships and trade among D-8 member states,” said Dr. Alam yesterday at his office.