Erman Ilıcak: Protectionism is increasing, and supply chains are being reshaped. Energy and production are becoming localised. This transformation holds significant opportunities for countries like ours.
Organised by Capital, Ekonomist, and Start Up magazines, and sponsored by Rönesans Holding, the 14th International Economic Summit (UEZ 2025) brought together prominent political figures, business leaders, and academics from Türkiye and beyond.
Rönesans Holding also sponsored the summit's opening panel, "Preparing for Tomorrow: New Investments and Opportunities," which explored the evolving investment landscape and the future of investments in Türkiye.
In his speech, Dr. Erman Ilıcak, Rönesans Holding Honorary President, outlined value-generating national projects. He said: "Our story began with international contracting services. To date, we have undertaken projects worth a total of USD 50 billion. Seventy per cent of this, approximately USD 35 billion, was carried out abroad, and we have pioneered many firsts in the world in this field. We have worked on a wide range of projects, from Europe's longest tunnel to its tallest building, from the world's largest GTG facility to the building with the most seismic isolators. Following this, we became a large-scale investment holding company operating in real estate, social infrastructure, renewable energy, and more recently, industrial facilities. Over the past 15 years, with the significant contributions of stakeholders such as the World Bank's investment arm IFC and the EBRD, we have structured our business in line with sustainable development goals.”
Dr. Ilıcak emphasised that Rönesans Holding's business model is centred on partnering with the right stakeholders to deliver projects effectively and on time. He went on to say: "We have witnessed the success of this model through our collaborations with the Singaporean sovereign wealth fund GIC, the French infrastructure fund Meridiam, Japanese trading giant Sojitz, Samsung C&T, and TotalEnergies. In Türkiye, we have implemented investments worth USD 10 billion across various sectors in partnership with these institutions. These projects have paved the way for more substantial transformation. Building on these experiences and the stakeholders we have brought together, we are now focusing on projects aimed at reducing our foreign trade deficit in the coming period."
Industrial Investments Must Increase
Commenting on the significant shifts in today’s global economy Dr Ilıcak said: "Protectionism is increasing, and supply chains are being reshaped. Energy and production are becoming localised. This transformation holds significant opportunities for countries like ours. In particular, strategic heavy industry investments are needed to reduce the foreign trade deficit arising due to imports of industrial machinery, plastics and chemicals, as well as industrial and precious metals. Over the past 10 years, industrial investments totalling approximately USD 20 billion have been made in Türkiye, including projects worth over USD 500 million, primarily in the defence industry. But this is not enough."
He explained that a total of USD 60 billion – at least USD 12 billion annually – should be allocated to such projects over the next five years to reduce the foreign trade deficit in this field, Dr. Ilıcak said: "If an investment initiative of this scale is undertaken, we could see a USD 15 billion annual increase in GDP and a USD 10 billion reduction in the foreign trade deficit. At Rönesans Holding, we have secured international financing for our Ceyhan Polypropylene Production Facility and Terminal investments, totalling USD 2 billion, which serve this very purpose. The construction of this project, developed in collaboration with expert solution partners from 12 countries, is ongoing. Once operational, this investment will directly contribute USD 300 million annually to reducing Türkiye's current account deficit."
Pioneering Türkiye's Social Infrastructure Transformation
Dr. Erman Ilıcak noted that Rönesans began collaborating with the EBRD many years ago, gradually building a strong relationship. He said: "Perhaps the most challenging project we undertook with the EBRD was Türkiye's transformation in healthcare. The EBRD shared its expertise from around the world. As a result, Türkiye was able to attract USD 15 billion in financing from abroad and carry out its healthcare transformation. We also worked with the IFC for many years on project financing. In difficult conditions, IFC has always stood by our side. We have formed company partnerships with them. Most recently, we have been developing a PPP hospital in Kazakhstan together. In every project we have undertaken, the first question they asked was, 'What will be the social impact of this?' Profitability was always the last topic. Those are the reasons why I am grateful to both banks."Highlighting that Türkiye's global influence has grown significantly over the past 20 years, Dr. Ilıcak continued: "Our relations with Central Asian countries, in particular, have developed substantially. Then, our ties with African countries began to strengthen. Today, Türkiye has become a hub that serves a population ten times its own, meeting needs such as healthcare and education. We closely follow these developments and ensure that growing diplomatic relations are also reflected in trade. We are working to support the progress of Türkiye's industrialisation initiative. We secure financing from abroad to carry out our projects wherever possible instead of using our country's limited resources."
The EBRD Is Proud to Be a Long-Term Investor in Türkiye
In her remarks, EBRD Managing Director for Türkiye and the Caucasus, Elisabetta Falcetti, stated that the bank's investments in Türkiye reached a record EUR 2.6 billion in 2024, making Türkiye its top investment destination.Noting that over 93% of these investments involved projects in the real and private sectors, Falcetti said: "We take a long-term view of our presence in Türkiye, and I am pleased to say that despite the current uncertainties, we remain a long-term investor. We have never left Türkiye, and we know how to navigate crises. Our business partners here are extremely experienced, as this is not the first market fluctuation Türkiye has faced. In the future, we will continue to invest in and support various fields, particularly the green economy, renewable energy, circular economy, reducing industry carbon emissions, SME transformation, and trade finance.”
Providing Long-Term Financing to Support Competitiveness
Wiebke Schloemer, IFC Regional Director for Türkiye and Central Asia, noted that Türkiye ranks third for the IFC after Brazil and India. She expanded: "It has been a crucial year in terms of managing uncertainties. I have always been impressed by the resilience and agility of the Turkish private sector. There is a strong capacity to adapt to unexpected situations and crises. Our goal is to ensure the Turkish private sector's competitiveness, create value chains, and support the transition to higher value-added products. That is why we provide long-term financing, as this is not something easily accessible. It is a matter that can extend over 10 to 15 years, depending on cash flow. We are working to strengthen capital markets and diversify funding sources. Capital markets and bonds are crucial for an economy like Türkiye. Supporting and increasing the number of public offerings is also extremely important."İbrahim Halil Öztop, CEO of the Development and Investment Bank of Türkiye, and panel moderator, stated that both the EBRD and IFC have made noteworthy contributions to Türkiye. He said: "The principles established by these institutions form the foundation of international financing standards. We are very pleased to collaborate with them. Especially when it comes to the targets set out in the Sustainable Development Goals, the standards they establish open new opportunities for us in financing.”