Turkey

Plans to consolidate Turkey’s position as an energy transit bridge appear to have suffered a setback, with a major project to connect the Black Sea and the Eastern Mediterranean put on hold by both the Turkish government and one of the scheme’s key investors, though for different reasons.

A new deal between local telecommunications firms and the Turkish government is expected to see the introduction of a new 4G network in Turkey by 2016. This move has been hotly anticipated by telecoms operators, as they will be able to expand their services and offer new products that take advantage of the improved network speeds.

Sentiment in the Turkish construction sector is rising, with contractors seeming confident that some of the momentum lost over the past 12 months will be regained as the government moves to open up several large-scale developments for tender.

A strong performance from Turkey’s banks last year produced a significant rise in total assets and an increase in equity capital, generating impressive growth across the industry. Turkish banks also continued to strengthen their position on the international stage by further diversifying their services, with a number of financial institutions extending their reach into the growing Islamic financial services segment.

A drive to restructure Turkey’s agricultural sector that includes ambitious plans to expand fruit and vegetable production is set to open the door for foreign investors looking to meet growing demand back home. Plans to drill new geothermal wells this year to help boost greenhouse production should further increase exports. However, the expansion is also prompting concerns that the introduction of new technology could lead to job losses.

Next year, 2014, marks the beginning of a cycle of anniversaries set to last until the end of 2018, as countries across Europe, North America and beyond commemorate the centenary of the First World War. Turkey is looking to combine the expected spike in interest in historic events with a concerted drive to boost tourism revenue.