With the cooperation of the two countries, it can create a large and new market for the economies of scale, both in raw materials and in finished products, instead of protectionism walls.

Turkey has achieved great success in the production of plastic products. Last year, the sector operating 6.7 million tons of plastics became the largest producer in Europe after Germany and Italy. The biggest obstacle in front of the sector is the dependence on raw materials, which is dependent on imports at a high rate of 87 percent.…

To reduce dependence on imports, either the domestic producer will increase the capacity of PETKIM, or the new petrochemical investments will be made. Petrochemical investment is certainly not that easy. For long-term investments, serious capital and favorable conditions for investment are required.

The rapidly growing plastic processing sector in Turkey is closely watched not only in Europe but also in Gulf countries, particularly Saudi Arabia.  Another characteristic of Saudi Arabia is that the Turkish plastic product manufacturer is the number one country in raw material imports. S. with rich oil reserves, petrochemical production There is a lack of Arabia, which is in Turkey... that is, it is a fast, dynamic, productive sector.

Turkey brings additional taxes on raw materials imports, increasing the burden on the manufacturer's shoulders, Saudi Arabia is trying to attract the Turkish manufacturer. What incentives? Free land, cheap raw material, tax exception, investment contribution as well as numerous opportunities such as S. There is no income tax in Arabia, no VAT, no withholding, no property tax. With the new amendments, foreigners are given 100 percent ownership right.

Profit, capital transfer free. Jubail and Yanbu are very cheap, all-around Organized Industrial Zones. The Gulf countries and the extended Arab Free Trade Zone also offer free export of customs duties. Money transfer, foreign exchange transactions are free; foreign workers are legally employed, and the Saudi state pays a significant portion of the salaries of Saudi employees. During the investment, the Saudi Development Fund also uses cheap loans. Special discounts are being applied to priority regions in development.

Electricity price is one third of Turkey, fuel is 20 times cheaper. In 2010, Saudi Arabia attracted 28 billion dollars, while Turkey's foreign direct investment is limited to 6.3 billion dollars. 2012 Saudi Arabia 12 in the Ease of Doing Business Index. Turkey is 71. ranked.  Looking closely at the incentives and investment environment, you can see no reason not to invest in Saudi Arabia.

I think the competition between Turkey and Saudi Arabia will not benefit both countries. The two countries can become a global player of both the region and the world plastic production by cooperating.  

Turkey and S.Why should Arabia cooperate? 

Turkey is the third largest producer in Europe and Saudi Arabia is one of the world's largest producers in petrochemicals. Most of the raw materials are the first and some are the second largest producer. Turkey is deficient in petrochemical, Saudi Arabia is insufficient in plastic processing and therefore has to export more than 90 percent of petrochemical products.  
Turkey is the key point to all of these and there is an obvious demand.:

EITHER COUNTRY WILL LOSE.

Turkey, S.It will impose taxes on raw materials from Arabia, and Saudi Arabia will attract Turkish plastic producers to its country with attractive offers. Turkey's dynamic, fast-moving and know-how owner will transfer the Turks to his country. In this case, both countries will lose because Turkey imports most from petrochemical Saudi Arabia. This could be a major market loss for Saudi Arabia.  The loss of Turkey is not limited to losing its tax and employment producer to this country, but also to the petrochemical sector in which it keeps up with taxes.

OR BOTH COUNTRIES WILL WIN... 

Turkey gives priority to raw materials from Saudi Arabia and to Saudi investors in petrochemical investments in Turkey. Saudi Plastic Processing enables investors to make production in Turkish Free Trade Zones by collaborating with Turkish plastic manufacturers and developing joint projects. For example, Gaziantep could be the world's largest production base.

Saudi Arabia provides tax-free access to Turkish plastic products to its own market and to the Gulf Cooperation Countries market. Turkish plastic manufacturers carry success stories to New Horizons in the rich markets they will reach without tax. This is a more profitable and rational solution for both countries. It gives clues that there will be a synergy over what the two countries can accomplish separately.

The world's largest petrochemical and integrated Plastics Industry is formed by Saudi Arabia-Turkey partnership. All over the world, finished plastic products, this partnership provides. In raw materials and finished products, a large and new market suitable for scale economy is formed instead of protectionism walls.

Yavuz Eroğlu 
NÜANS

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