Croatia today hosts a strong Turkish delegation and organizes the Croatian-Turkish Business Forum, attended by the highest political officials and representatives of very strong Turkish companies eager for new contacts and business opportunities in Croatia. The Turkish delegation is led by none other than Turkish President Recep Tayyip Erdoğan, who, along with seven of his ministers (foreign affairs, trade, internal affairs, defense, industry and technology, agriculture, transport and infrastructure), will participate in the forum, as well as Croatian President Zoran Milanović with his delegation.
As many as 87 representatives from 62 Turkish companies are expected, and in organizing this event, which last took place six years ago, the Office of the President is involved, along with the Business Weekly Lider, specifically the Lider Exporters Club. On the occasion of the forum, we spoke with the representative of the first Turkish investor in Croatia, Burak Baykan, regional director of Doğus Group, which has been present in Croatian tourism for 12 years. It has built a chain of marinas and hotels so far, however, it has sold those projects in the meantime and is currently developing the most demanding and valuable project, the reconstruction of the Maraska Hotel in Zadar.
The hotel will operate under the Hyatt brand and is the first facility under this luxury brand in Croatia. Baykan has been leading Doğus Group’s projects in Croatia from the very beginning, is very well acquainted with the local market, was the president of the Turkish-Croatian Business Council, and has been a long-time member of the management team of the Association of Foreign Investors in Croatia. Baykan is actually the largest business link between the two countries and in an exclusive interview for Lider, he explained what opportunities the Turks are seeking in Croatia and what future projects Doğus Group is targeting.
The last Turkish-Croatian Business Forum was held six years ago. Many things, both globally and locally, have changed in the meantime. What do you think are the biggest changes that both countries have undergone in recent years?
Croatia attracted the attention of investors after joining the European Union in 2013, but in the last two years, the interest of foreign investors has significantly increased due to the announcements of Croatia’s entry into the eurozone and the Schengen area. Corporations have started to explore opportunities more and inquire about Croatia. It is a pity that this period coincided with COVID, the economic crisis, and the war in Ukraine. These challenges cause numerous undesirable situations for investors and imply an unpredictable period in the next three to five years. However, despite this, Croatia has a lot of potential in the new era due to these two major steps.
And Turkey?
Turkey is facing turbulent times due to the currency crisis. However, this also creates a great opportunity for Turkish exporters, and many Turkish companies are now seeking many more opportunities outside their borders.
More and more Turkish investors are looking for business opportunities in Croatia, but not so much in sectors like tourism and the textile industry anymore. Which sectors are Turkish companies targeting?
This region is culturally connected to Turkey, and companies are more interested in Croatia than before and more compared to the region itself, especially in the construction sector. Turkish companies are already present in the construction sector in Croatia, and they are additionally attracted by the possibility of participating in tenders financed by EU funds. I am pleased that several serious contractors are starting work in Croatia, for example, Cengiz Holding is working on infrastructure projects for railway construction. I would not mention others at this moment as they are in the contract signing phase, but some Turkish contractors have won several renovation projects after the earthquake in Zagreb. I have also heard that some Turkish companies are obtaining infrastructure projects in other parts of Croatia and the region, such as Zadar and Slavonia. Energy is also an attractive sector for them, especially solar energy. Six years ago, demand in the same sectors was much lower than it is today. Back then, the Croatian market was being tested, and today investments are being made.
