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Turkish exporters optimistic about GCC |
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12/3/2008 10:51:25 AM |
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Construction material exporters from Turkey are optimistic that the GCC market continues to remain robust and absorb the country's excess production capacity.
Turkey's building material industry is facing a glut following a decline in exports to traditional markets in Europe and the United States.
Speaking to Emirates Business, Vural Cekinmez, Chief of Section at the Turkish Prime Ministry Under Secretariat of Foreign Trade, said the UAE and other GCC countries are a major market for Turkish steel and other construction materials.
"Many Turkish companies are keen to increase their exports to the GCC because their main export markets in Europe are already facing an economic slowdown and the construction activities in its main export markets, especially Germany, the UK and Spain, have come down substantially," said Cekinmez.
Turkey, a major exporter of steel, ceramics, sanitary ware, glass and other construction materials to the UAE and other Middle Eastern countries, says that the market GCC continues to remain stable. However, some traders fear a considerable decline in demand for Turkish exports in 2009.
"Middle East is a major market for Turkish exporters and the slowdown here will not be good for Turkey," said one trader.
The United States has also been a major market of Turkish construction materials, especially steel, ceramics and sanitary ware products. Turkey is also a major exporter of plastics, chemicals and metal products used in the construction industry.
Turkish exports grew by 25 per cent in 2007 and the growth continued in 2008.
According to Turkish Foreign Trade figures, Turkish export has been steadily growing over the last seven years from $25 billion (Dh91.7bn) in 2000 to $107.2bn in 2007.
Turkish manufacturers faced recessions in 1994 and in 1999 following a major earthquake and in 2001 due to a banking crisis.
The Turkish Government has already taken several measures to improve the economy. He said exporters are keenly watching the economic stimulus packages announced in various EU countries. "We are planning to become a member of the European Union and the new free trade agreement between the GCC countries and European Union may impact our trade with the region," said Cekinmez.
"More than 50 per cent of our exports go to the EU countries. The steep appreciation of euro has affected the Turkish exporters badly, but our exporters are feeling relieved now as the euro is now coming down and commodity prices are falling," he said.
Cekinmez said Turkish steel is in very high demand in the UAE and plays a crucial role in determining the price of reinforced bars used in the construction industry.
"Our exports to the UAE in value has gone up substantially over the years. Many more Turkish companies wanted to book space for the recent Big 5 exhibition in Dubai, but they could not get space. We had to turn down many Turkish companies request for presence in the Turkish pavilion," he said.
According to experts, Turkish steel exports may be affected by declining demand due to slowdown in construction and increasing domestic steel production.
"European clients have either cancelled some orders or postponed new orders. There is no payment default from European clients. We are observing the Middle East market movement," he said. Saudi Arabia, the UAE and Qatar are the other major markets for Turkish construction material exports and the impact of any slowdown is yet to be felt.
"The construction projects in Qatar and Saudi Arabia are progressing as normal," he added. More than 50 Turkish ceramic companies rely on the Turkish industry.
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Source: Business24-7.ae |
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