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Emirates Nbd In Turkey Case Analysis

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Description of host country
Background
New Turkey was established in 1923 by Mustafa Kemal and under his presidency wide ranging legal, social and political reforms were adopted. The government has spent tremendous efforts to attract foreign investment and to transform Istanbul into a financial HUB that can compete with London, Hong Kong and New York. In 2001 Turkey faced financial crisis and Ankara adopted financial reforms which strengthened the country 's economic growth. Its well regulated banking system made it survive the global financial crisis in 2008.
Economic Overview
"Turkey has made considerable advances in competitiveness over the past decade, moving ahead 16 spots to number 43 in the World Economic Forum’s Global Competitiveness …show more content…

Advantages:
Following are some advantages that Emirates NBD can benefit by expanding in Turkey.
1. Access to new market and Opportunity to make profit: Emirates NBD can grow its business by selling its products in Turkey 's market which is considered as large and emerging market in the region.
2. Business growth: Turkey faced many economic and political challenges in the recent years but it overcame all challenges and now enjoying steady and strong economic growth which can have a positive effect on Emirates NBD’s operations.
3. Need to follow the competition: All GCC banks are entering new markets to diversify their risk geographically; hence Emirates NBD need to follow their footsteps to stay in the competition.
4. Host country specific advantages:
• Political and economic stability in Turkey can help Emirates NBD to establish its business with minimum challenges also the firm can benefit from the supportive government …show more content…

• Technological development and advanced telecommunications
Challenges:
Emirates NBD could face the following challenges that can impact negatively on its operations in the host country
1. Political instability in the neighboring countries like Syria and Iraq.
2. Global financial crisis which can affect buyer ability to spend.
3. Corruption including embezzlement, bribery and fraud can slowdown country 's economic growth. According to transparency international agency in 2013; Turkey ranked 53 out of 177 countries based on how corrupt its public sector is.
4. Turkish central bank’s monetary policy which can affect interest rate, exchange rate and the Lira price.
5. Turkey’s raising inflation rate and its weak currency can affect the firm profits.
6. Eurozone’s debt crisis can affect Turkey’s financial sector due to Turkey’s financial ties to Europe.
Recommendations
Entering new geography can be very risky. The following recommendations are proposed to minimize the risk of expanding in Turkey.
1. Emirates NBD need to invest in market research to understand local taste and market condition to overcome entry

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