Bora Can Yıldız, the Board Member of EID Construction
evaluated the market conditions in Middle East:
Turkey is in the big brother position
in the region.
Iraq is a growing market and Turkey gets significant shares from this market. Although it is a high-risk region, our proximity to the market and our cultural similarities determine the local people’s approach to us, our talented businessmen’ ability to solve problems ensure a sustainable and steady development which is free from political improvements.
Having been investing for many years in the market in which Koç Holding has entered recently, EID Construction is breaking grounds with the primary projects such as hospital projects deemed necessary by the Iraqi people. Highlighting that Iraq is the fastest growing markets of the world, Bora Can Yıldız, the Board Member of the company, shared his important experiences he gained in the region with our readers.
Your experiences on the market conditions of Iraq are really important for the businessmen who are interested in that region. Could you make a brief evaluation about the market?
There is a great need for infrastructure in Iraq. Considering that the war between Iran and Iraq started in 1979-1980, nothing has been done for the country’s sake for 8-9 years during the ongoing war. Thereafter, the country was completely destroyed at the end of the Gulf War. The southern Iraq was the region affected by the most. An embargo was imposed in the post-war era, which took approximately 10 years. Following the embargo, the Second Gulf War and American invasion as well as withdrawal of the military forces and abolishment of the national administration took place. Thereafter, the region suffered from the instability and sectarian tensions. The needs of the country were not met during this period of 30 years. Leaving the high level of needs in the market aside, we have to say that the market conditions are extremely challenging as well. When we started our operation in the region three years ago, ENKA was the only company there, beside us. There was only one plane to Basra in that period. However, THY has 7, Iraq Airlines has 3 planes flying to that direction now. Emirates has 7 flights as well. The number of flights was increased from 1 to 17 per week. We were there when both needs and risks were high. Especially safety was an important problem. However, we passed these hard phases.
Being a businessman carrying out operations in the southern region, how would you compare the Northern and Southern Iraq?
The northern Iraq is steadier than southern region. The northern region is way safer; however when we make a comparison between Baghdad and southern Iraq, I can say that southern region is safer.
The situation in Baghdad is very complicated; however, the southern population is completely shiite, there are no domestic turbulences. Yet, when we first got there, there were uncertainties as well. The reason why THY did not have any flights to that region was the safety problems.
There is a general opinion stating that it has been in a better shape than the northern part for the last two years.
It is not better than the northern region, however, better than Baghdad. For Turkey, the northern Iraq is way safer. There are local policemen and soldiers. You can easily go out there. When the ministers in Baghdad have me over, they do not let me go out after 10 o’clock even if they have their bodyguards escort me. Due to the risk of being kidnapped, you cannot hang out in suits. However, if you take the necessary precautions, it is an untouched and important market.
Did the political problems you have been going through recently affect the operations?
Yes, they slightly affected us. There is nothing official; however, I can say that there is a resistance against the Turkish companies.
Do you think this problem will be resolved?
Of course, it will. I think it will be resolved in the following years. The reason why we are loved there is that we have good relations with the people, because these people are our relatives in a way. I mean, the Turkish people, Iraqi people, Syrian people and Algerian people have lived together for many years. We have the same religion, same culture. We greet the same way while saying hello and good bye. The stand Turkey took during the wartime has created a great sympathy. For this reason, people love us so much. What I can say for the Southern Iraq is that I have witnessed the greatest hospitality there which I have never seen anywhere in the Arabia. Once the political tension is overcome, everything will be okay. Even if the politics change, the friendship remains. I think that the relationship between Turkey and Iraq will get worse, even if this situation continues for a few years. I cannot make any comments on politics; however the politicians change after a while. I am sure that the other politicians are not so hard on Turkey either. I think there is a tension between the present politicians. This will change one way or another. After all, the politicians have a limited period of office and political life according to the laws. I do not think these tensions will suddenly disappear right after the changes. There is an important question: Who is going to work there? There are some certain needs such as installation of a sewer system, construction of hospitals and schools. The electrical problems must be solved. People are dying because of high temperatures, lack of electricity. The Spanish, English, French or Italian people cannot carry out these operations. They cannot stand there. Chinese people cannot do it alone either. There is already a resistance against them as well. Even if it is a German or French company, it requires people to go out there, right to the site; and these people are Turkish people.
There are two ways to operate in the country. You can either take the project and do it yourself, or take it and have some other company do it; the latter applies to us. The local companies are not capable enough to carry out these operations. For this reason, one way or another, the Turkish people are needed on site. When I explain this situation to the people there, they acknowledge me to be right, because they are aware of the fact that we have been there for the last three years, we have provided bread for them, helped out the poor families, sent children to school, taken care of everything, done our job accurately, and therefore we have gained their sympathy despite of their formation in central units. We have always kept our promises. They see that we are right. They need job, and all these operations must be carried out. The businessmen must be exempted from politics no matter what has happened between the countries. You cannot tell a mother of a sick child that you could not build a hospital there because of the political tension. That hospital must be built. We are building four hospitals there now, and these constructions must be completed. Sometimes we experience some difficulties both geographically and in terms of safety.
Are we politically in the right place to dominate in this region and to conduct business?
I cannot say anything about the governmental policies of Turkey. Politics and business are two different things. If you represent your country in the political arena, you have to make some sacrifices. They may not consider business at this point. I have nothing to say about it. The PM has a stand. They may not think like that there is a construction; it may have a negative influence on the customer. Turkey has leadership culture in the region. It is not a vision created only by our PM or minister of foreign affairs. It is the reality based on the historical grounds. When you are there, everyone says that they want to be in Istanbul, everyone watches Turkish TV shows, and everyone wants to be like Turkish people. Everyone asks why we have abandoned them, why we have not protected and supported them. It is the general idea in the country. After Turkey had withdrawn from the region, there was only blood and tears as they say. After Turkey’s withdrawal from the regions including a considerable Turkish population, there has been nothing but tons of blood in Algeria, Syria, Iran, and Iraq. The geography we are talking about has 60% of the total petroleum reserves in the world, and has 40% of the total gas reserves as well. There are great mines under the ground. However, there is an unbelievable misery above the ground. There are so many interruptions. There are quite conflicts there. They say it is the heart of the Middle East. However, people are under fire there. What happens in the past should stay in the past. They may have stabbed us in the back, however we have to leave the past behind and be friends with those countries. Otherwise, we will be all alone. However, Turkey is really like a big brother for that region. Whoever I talk to and say that I am Turk, they ask me about the Turkish TV shows first, and then they say that they have Turkish relatives. When I attended to the World Economical Forum I said that luckily they did not admit us into the European Union. Thus, we got together with our relatives. We remember our own culture with them. We conduct business with them. Europe that did not let us in the Union is now trying to conduct business in those regions. How they are going to have the work done, even if they took the project? We were together with the CEO of a really important German company. The CEO of the Germany’s Central Bank had said: “Sirs, Turkey will be the financial center of the Europe for the next 10 years”. He told people to make their plans accordingly. The CEO of this company asked me what the source of Turkey’s power was. I told him that we were headed to Basra Desert then. You asked me that question with a young Turkish businessman next to you. We would go across Iraq and I could show you at least 100-200 more Turkish businessmen. You did not see any French or Italian businessman conducting such a business here. If you happened to visit Algeria, Libya, Turkmenistan and Kazakhstan, you would see Turkish businessmen all around. I explained him that the Turkish people are where the other people cannot go or walk in, and of course this bravery must be rewarded, as long as they do a decent job.
Do you have any other employees apart from those in Iraq?
We have projects in some other countries such as Kuwait and Qatar now. We signed an agreement with Libya. We established a joint company with the government. We worked with the government for a project worth $ 500 million. We made a deal, however, we could not finalize it because of the outbreak of war. However, we are negotiating again. We may revive the operations slowly.
Is it hard for you to conduct business in Northern Iraq?
We are focused on the southern region.
Do you really have to make a choice between them?
Well, the current situation requires you to choose. I was together with the president of an important petroleum company. They said they had $ 3 billion worth investments in Northern Iraq, and they said that they wanted to invest in the southern region as well. They even proposed me to partner up. However, they stated that they were having hesitations since the laws were not steady yet. I mean, there is a possibility that we may be involved in the petroleum commitment business in the northern region; however, we are more focused on the southern Iraq for now.
What is your business volume there?
Our total volume is around $ 200 million. However, we aim at reaching $ 400 million in a few years.
