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Istanbul’s place in the world economy will rise: HSBC Group

HSBC City Reports present big cities that are the centres of global growth; these reports are analysed within the scope of the “Our City Has a Future” series by HSBC Group.

According to the report, cities play a strategic role in nurturing economies by becoming globally competitive centres for activities in finance, commerce, industry and many other sectors.

Large cities need to support new trade flows, prioritize sustainable innovation and strengthen human capital in order to increase their importance in the global economy after the Covid-19 pandemic.

Reports examining Istanbul, Dubai, Abu Dhabi, Cairo and Riyadh point out that the epidemic is a great opportunity to redefine priorities and think out of the box, while the crisis is seen as a catalyst for sectoral diversity, digitalization and sustainability.

In the series, it is stated that the pandemic has increased awareness about climate change, and the need for sustainable economies and infrastructures is emphasized. It is also pointed that major cities in the transition to a sustainable economy will help them catch up with new opportunities in international trade, supply chains and digitalization, become the global centers of the future and become the driving force of growth.

Istanbul is a natural international trade centre

According to the Istanbul report prepared as part of HSBC City Reports, the city’s place in the world economy will rise. Istanbul will come to a more important position in the global economy with its large-scale infrastructure investments, strategic vision aiming at a more value-added, more innovative and more creative economic structure.

The city’s location as a bridge between Asia and Europe will contribute to its transformation into a major intercontinental trade, retail and logistics centre. International trade accounts for 15 percent of the city’s gross domestic product.

 A survey conducted by QIMA, Hong Kong-based inspection company, with 200 of the world’s leading brands shows that the proportion of suppliers who prefer rose 4 percent to 9 percent. The increase in Turkey’s share stems largely from EU-based companies. In 2019, the question of “Which are the top 3 countries you supply the most?” was responded as ‘’Turkey.’’ by  14 percent of EU-based companies while in 2020 this ratio rise to 30 percent.

Focus on sectoral diversity strengthens global connections

According to the report, Istanbul acts as an important corridor between east and west in terms of trade, finance, investment and tourism.

Istanbul ranks among the 35 leading cities worldwide in terms of global companies, capital markets and flow of goods and services. The city’s focus on sectoral diversity for international competitiveness will enable the city to further strengthen its global connections.

The Istanbul economy has been among the fastest growing economies in the OECD since the mid-1990s. The trend reflects the structural transition towards the service economy, with finance, professional services, engineering, science and IT, which are the sectors with significant growth.

Istanbul is among the top 50 cities of the world in terms of technology-focused companies

According to start-up Genome’s Global Start-up Ecosystem 2020 Report, Istanbul ranks 16th among the top 100 innovation ecosystems with its performance in access to finance, venture capital activities and market access.

With approximately 2,500 advanced technology companies operating in it, Istanbul is one of the top 50 cities globally in terms of the number of technology-focused companies.

“Istanbul is one of the world’s largest, most powerful and versatile economies.”

Selim Kervanci, the General Manager of HSBC Turkey stated that Istanbul is not only Turkey’s but also the world’s one of the most powerful and versatile economies. Noting that these characteristics of Istanbul, which act as the driving force of growth together with companies that play a role in the sustainable global economy, bring many opportunities, Kervanci made the following statements:

“We, as Turkey’s ambassador to investment, explain the potential of Istanbul on international platforms. We are also working as a promotional ambassador for Istanbul. We are bringing different financing models to our country that can be used in investments planned to be implemented in Istanbul. We continue to add value to the economy of Turkey. “

Stating that they aim to support Istanbul to become the centre of economic growth with its unique location and focus on sustainable development, Kervanci made the following evaluations:

“As HSBC Group, we will be with our customers in the transition to zero carbon emissions by providing $1 trillion of financing and investment resources until 2030.  We will support new trade opportunities and sustainable business and infrastructure models that drive the development to our cities which have supply chains, trade corridors and are the hearts of production in their journey towards a sustainable global economy. “

source: AA / translated by Melisa Karayusufoglu

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