In Turkey, the influence of businesses independently impacting economic policies, promoting trade, and even influencing the society in general is extraordinary.
TUSIAD (The Turkish Industrialists' and Businessmen's Association), the most influential non-governmental, voluntary association comprised of some of the largest Turkish businesses, accounts for almost 50% of Turkey’s exports. It is the authoritative source of professional business research and training programs such as the TUSIAD-Sabanci University Competitiveness Forum (REF) and also serves as the most influential trade lobbying group with the US and European Union markets - having representative offices in Washington DC and Brussels.
Whereas TUSIAD focuses its international trade lobbying and business development on the US, EU and other markets such as India and Russia, another similar non-governmental organization MUSIAD (The Industrialists and Businessmen’s Association) is also working in support of the Turkish economy but with an added purpose of supporting Muslim business values and building strong trade ties with the Muslim world.
MUSIAD, who’s fast growing 8000 small to mid sized member companies are also known as the “Anatolian tigers”, represent a significant 10% of the Turkish gross national product.
Dr. Ömer Bolat
Chairman, MUSIAD |
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Although the organization shares the same economic values as TUSIAD - a stable government, strengthened economic ties with both Muslim world and the European Union, and an industrialized Turkey - it also seeks to maintain its Muslim values (members are known not to serve alcohol at official functions, follow an ethics code of fair and just business, and observe Muslim holidays).
The voice of MUSIAD today is its Chairman Dr. Ömer Bolat. A charismatic 43 year old who is also a member of the board and general manager of Albayrak Group of Companies, a Turkish enterprise in the sectors of construction, textiles, international transport and sea-port operation.
In an exclusive interview with Dinar Standard, Dr. Bolat discusses how businesses from OIC (Organization of the Islamic Conference) member states can collaborate with MUSIAD to invest in the emerging Turkish market, and leverage its experience and networks to expand into the European or Central-Asian markets.
In this spirit he discusses MUSIAD's specific role in hosting the IBF (International Business Forum), a mini World Economic Forum for the Muslim World, and MUSIAD’s Intra-OIC focused Annual Trade Fair.
MUSIAD’s Purpose
MUSIAD’s stated vision as an NGO and an independent business organization is, “to contribute in the effort to develop Turkey into a country that is, 1) internally united, regionally effective and respected world-wide, and 2) where human rights and the supremacy of the law, peace and security, justice and equal opportunity, public welfare and happiness, and an economic system based on free competition are established, and 3) where community and universal values adopted historically by the society will be protected.”
Member company Burkay Textiles'
Demor brand showroom
Member company ALTINBASAK
quality lab
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“As global competition intensifies, we are trying to learn together with our members how to compete, how to create dynamic competitive advantages and increase our productivity in a continuous manner.”
-- Dr. Bolat |
Images Courtesy: Burkay Textiles, Altinbasak respectively
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Founded in 1990, MUSIAD set its sight to the east and Turkey's Islamic neighbors. Since then, it has become a strong supporter of Turkey's EU bid with market relationships across the Americas and Europe, while still promoting improved economic ties with the Muslim world. This open strategy is reflective in its members’ business operations. Burkay Textiles, one of its leading members, based in Bursa, markets its woven, brode and readymade curtain goods under the brand name ‘Demor,’ to the US, Europe, Asia, and MENA countries. Meanwhile, ALTINBASAK, Denizli based manufacturer of all home textile products attributes half of its revenues to the domestic market and the other half to exports from the US, Europe, Saudi Arabia, Russia, Ukraine and Australia.
Given the socio-economic changes globally and in Turkey, MUSIAD is seeking to be a valuable lobbyist, guide and supporter to its members such as ALTINBASAK. Dr Bolat points out that, “there are many uncertainties and challenges as well as many opportunities in this new world which are unfamiliar to our members. Our mission, therefore, is to educate, train and wake up our members against the problems of the new era as well as to inform them on the benefits of coming opportunities.”
“As global competition intensifies, we are trying to learn together with our members how to compete, how to create dynamic competitive advantages and increase our productivity in a continuous manner.”
MUSIAD’s Growth Marred by Political Roadblocks
MUSIAD has frequently been under suspicion by the fiercely secular military and Turkish state establishment due to its ideology of protecting member rights to Muslim values even as they contribute to Turkeys’ progressive march.
MUSIAD’s dynamism, however, in championing democracy, modernization and industrialization, and its progressive competitive march challenges any such concerns and seems to provide a positive bridge across the Muslim-secular divide in the country.
In 1997, following the Turkish military's dismissal of the Welfare Party government, there were difficult times for MUSIAD and the like organizations. Today, though, Turkey is run by the socially conservative, Justice and Development Party (AKP), led by the current Prime Minister Recep Tayyip Erdogan. His support of the organization was reflected recently by his appearance as a guest of honor at a MUSIAD conference.
The International Business Forum (IBF) -
Muslim Buisness Leaders' Partnering Globally
MUSIAD has always been in support of increasing Intra-OIC trade and has been hosting an International Business Forum Congress regularly to identify and stimulate trade and mutual investment relationships among Muslim Business leaders throughout the world. In the last Congress that was held in Nov 2005 in Jeddah, Saudi Arabia, MUSIAD recommended a set of initiatives that OIC should take to increase intra-OIC trade from the current 13% to 25% by the year 2010.
IBF was initiated by the Pakistan Business Forum in September 1995 in Lahore, Pakistan, in which 600 business leaders from 23 Islamic countries took part. MUSIAD has since then chaired the events and now hosts the IBF headquarters. Its key objectives are:
- To coin and utilize Islamic ethical virtues among the conventional business life.
- To enhance commercial activities and to develop trade among the members and the member countries.
- To provide the optimal use of the potentials which will be of complimentary nature in member countries.
- To support the co-operation among the members vis-à-vis technology transfer, technical assistance, consultancy, education and transfer of the experience and know-how.
The next session is being planned in conjunction with teh MUSAID International Trade show from Nov 23-26, 2006 in Istanbul.
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Mr. Erol Yarar, President of the International Business Forum leading a session of the 9th IBF Congress in Jeddah, Saudi Arabia. (Photo Courtesy: MUSIAD)
At the conclusion of the last IBF Congress that was held in Nov 2005 in Jeddah, Saudi Arabia, MUSIAD issued the following recommendations for the OIC to consider:
• Develop a “Monetary Fund” similar to IMF
• Eliminate the visa issue for businesses within OIC countries
• Develop a common stock market
• Business-Science partnership in terms of R&D projects be sponsored
• Increase trade from current 13% to 25% by the year 2010
• Mentor Support network of underdeveloped Islamic countries
• Sponsor University Accreditation/Student Exchange programs
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Dr. Bolat has previously commented that over the past three years Turkey's trade with its Muslim neighbors has more than doubled, to 11 percent from 5 percent of total trade, a trend that he expects will continue. He points to the nature of these opportunities saying that, “As a result of our years of research and continuous contacts with the OIC, we have realized that there are many complementarities among those countries.”
“For instance, in terms of high technology manufacturing products and in terms of many agricultural products Turkey can successfully satisfy her Islamic brothers. But, on the other hand, Turkey lacks oil and capital which are crucial to undertake globally competitive entrepreneurial activities.”
“Also, some of the Islamic countries are poor in terms of finance; some of them are rich in terms of capital. This excess capital could be effectively channeled towards other OIC countries where it could be transformed into more productive and efficient outcomes. Personally, I can note that Turkey has become such a promising country, where entrepreneurs from different OIC countries could safely transfer their money and get benefit of local profit chances by taking the least possible risk by the help of local partners, especially those of MUSIAD members.”
MUSIAD International Trade Fair -
“Global Business Networking Among Muslim Nations”
For many businesses in the Muslim world ready to expand their operations, Turkey provides an attractive investment destination not only as a fast growing emerging economy itself, but as a means for expanding into the European or Central Asian markets.
“The members of MUSIAD have many social as well as business experiences both in Europe and Central Asia. With Central Asia for example, we share strong religious, cultural and ethnic elements, and therefore a strong sense of penetration within these markets. Taking advantage of those objective factors, we are ready to collaborate with any serious candidates for trade and investment in those regions,” says Dr. Bolat.
One of the foremost forums that MUSIAD offers for such trade opportunities is the annual MÜSİAD International Trade Fair.
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22-26 November 2006, Istanbul, Turkey
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SECTOR FOCUS:
MUMAC 2006: Machinery, Computers, Automation, Automotive, Spare Parts and Electrical Goods
MUTEX 2006: Textiles, Garments, Leather and Carpets
MUSCON 2006: Construction, Furniture and Building Materials
MUFOPACK 2006: Food, Beverages, Packaging and Service Sectors
Attend
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In the last session, the MUSIAD International Trade Fair had more than 160,000 visitors along with exhibitors & visitors from 54 different countries. The event was held concurrently with the 8th International Business Forum (IBF) Congress, which was also organized by MUSIAD.
Dr. Bolat points to the success of the Forum saying, “On the trade side, the 2004 session generated millions of dollars of trade agreements among businessmen. Participants to the fair have utilized Business Networking Service (BNS), sector-based workshops, along with enjoying socio-cultural activities and performances.”
The 11th MÜSİAD International Trade Fair & the 10th International Business Forum (IBF) Congress is being planned for November of this year with support by the OIC-Organization of Islamic Conference, IDB-Islamic Development Bank, DTM-Undersecretariat of the Turkish Prime Minister for Foreign Trade, KOSGEB-Small and Medium Industry Development Organization of Turkey, ITO-Istanbul Chamber of Commerce, IBB-Istanbul Metropolitan Municipality, and THY-Turkish Air Lines.
Both events will be organized under the auspices of H.E. Recep Tayyip Erdoğan, Prime Minister of Turkey.
MUSIAD - Start One in Your Country
Given MUSIAD's success and impact, Dr. Bolat offers help in organizing similar organization's elsewhere. "MUSIAD has already accumulated significant institutional experience and knowledge to be shared with other brother organizations and with those leaders who want to run some organizations with a similar mission to MUSIAD," says Dr. Bolat.
He contends that MUSIAD is not only an efficient and competitive social organization, but also a lobbying power and organizational capacity, "two important aspects that most Muslims lack today."
He adds, "We must learn how to lobby for the benefits of our communities, for our civilization, for the economic interests of our members as well as the whole community." "Also we must learn how to bring our resources together effectively and cultivate possible maximum benefit from our richness as well as scarce resources." Role of Muslim values in Modern Corporate World
Dr. Bolat also sees a strong role of Muslim values benefiting the modern corporate environment. He points to the fact that despite an emphasis towards transparency in corporate management, especially in regard to preserving stakeholder interest, cases of corrupt practices within global or regional firms are still rampant.
"Muslims once again can prove that economic activity is something that goes beyond the pure profit maximization efforts. We are here on the world not only for profit at the expense of exhausting natural environment and exploiting human richness, but to preserve environment, resources, the right of the next generation as well as other creatures all over the world." Dr. Bolat Adds.
MUSIAD is certainly a values driven organization representing the interest of a large segment of the Turkish corporate sector. It is still however in its infancy compared to other similar organizations. Regardless, given its focus, it is certainly well positioned to benefit from the economic boom in much of the Oil rich and emerging economies of the Muslim world. |
