Dear Shareholders, Business Partners, and Valued Employees,
2023 has been a year marked by significant developments that deeply impacted the world, including our country. These global events have underscored the need for collaboration towards a more inclusive and sustainable future, emphasizing the importance of adopting a unified approach.
The year 2023 began with profound sorrow for our country. The devastating earthquakes that struck Türkiye in February have left an impact that will be felt for many years to come. In addition to affecting six of our provinces, the earthquakes also caused significant loss of life and property in our neighboring country, Syria. We extend our deepest condolences to the families of those who lost their lives in the earthquakes, both in Türkiye and Syria, and wish them strength and patience during this difficult time. Throughout this challenging period, Türkiye displayed extraordinary solidarity and resilience. As Nurol Holding, we did our part by actively participating in search and rescue operations and supporting relief efforts through our volunteers.
In recent years, several global crises have introduced new risks and uncertainties to the world economy. The year 2023 has been particularly challenging for both the business world and the global economy. As the Russia-Ukraine crisis persisted, the regional conflicts in Gaza during the autumn further destabilized the international order, profoundly affecting countries around the world.
Post-pandemic transformations, the escalating impacts of the climate crisis, geopolitical tensions fueled by wars, and political instability have led to significant global changes. These shifts have resulted in consequences that have affected the entire business world, such as rising inflation, slowing growth, and shrinking trade volumes. Moreover, factors like increasing energy costs, reduced use of Middle Eastern routes by transportation companies, longer distances, and higher fuel consumption have posed additional challenges to sustainability and the green transition.
The increase in conflicts and tensions between countries has led to a rise in protectionism, an expansion of international trade restrictions, and a shift away from the principles of free trade and fair competition. However, I believe that Türkiye will navigate this period to its greatest advantage.
The OECD initially projected global economic growth for 2023 at 2.2% but later revised this estimate to 2.7% by the end of the year. For 2024, the global economy is expected to grow by 2.9%. Similarly, the IMF has adjusted its 2024 global growth forecast from 3.0% to 2.9%. Despite recent pessimistic forecasts and challenges such as supply chain disruptions during the pandemic and subsequent monetary tightening, economic growth has remained stable, and a global recession has been avoided. However, it has also been noted that there are significant disparities in growth rates among countries with relatively strong economic performance. While the Turkish economy is forecasted to grow by 3.7% in 2024, we, as Nurol Holding, have a more optimistic outlook for Türkiye’s economic growth and are confident that these projections will be revised upward.
Advancements in artificial intelligence (AI) technology in 2023 have continued to secure its position in the spotlight. While AI adds significant value across various sectors, it also introduces the risk of misinformation and disinformation. As a business world, while harnessing the benefits of digitalization and technology, we must also strengthen our measures against cyberattacks. In an increasingly data-driven economy, it is crucial to evaluate both the opportunities and risks that AI presents. Preventive measures are becoming increasingly important. At Nurol Group, we are committed to accelerating our investments in digital transformation without slowing down.
At Nurol, both as a group and within society, we have placed sustainability at the core of our efforts to achieve economic, environmental, and social development goals. To mitigate the climate crisis and its risks, we are developing strategies in line with the Paris Agreement and the United Nations Sustainable Development Goals. We are investing in renewable energy to address the energy crisis, integrating our waste into recycling processes by segregating it, and prioritizing efforts to achieve zero waste and reduce our water and carbon footprints at our facilities.
With over half a century of history, a robust corporate structure, and a wealth of experience, we pursue innovation with the enthusiasm of a newly established company. We adopt modern practices such as environmental sustainability, recycling, renewable energy, energy efficiency, occupational health and safety, and gender equality, and we adapt quickly to change and innovations.
In 2023, we celebrated the 100th anniversary of our Republic with great enthusiasm. Founded in 1923 after years of war and the collapse of the Empire, the Republic started with a population of 13 million and a gross national product of USD 550 million (approximately USD 25 billion in today’s terms). A century later, Türkiye has emerged as a regional power, with a population of 85 million and a dynamic economy approaching USD 1.1 trillion. At Nurol, we exert every effort to drive Türkiye’s economic growth and social development to the highest level across the six sectors in which we operate.
The year 2023 has once again underscored the importance of Great Leader Atatürk’s principle, “Peace at Home, Peace in the World.” The disproportionate use of force in Gaza has highlighted the critical need for strong Armed Forces in our region to achieve “Peace in the World.” With this understanding, we enhanced the capabilities of our Navy—the unwavering guardian of our Blue Homeland—by equipping it with the ZAHA Armored Amphibious Assault Vehicle, developed by our group company FNSS, which provides superior amphibious operational capabilities. Globally recognized armored vehicles such as the PARS ALPHA 8x8 New Generation Armored Combat Vehicle, the latest example of FNSS’s leadership in ground systems, and the Ejder Yalçın 4x4, designed entirely by Turkish engineers and produced by Nurol Makina, have attracted considerable attention worldwide. The Yörük 4x4, known for its modular armor, payload capacity, agility, and speed, has also become a key asset in special operations. Additionally, our company Nurol Teknoloji leads both national and international markets with its advanced ballistic ceramic production, pioneering next-generation armor system solutions.
In recent years, interest and investment in Türkiye’s mining sector have grown significantly. The production of strategic minerals and critical metals such as gold, copper, and boron as end products has become a top priority. Through our group company TÜMAD, we have adopted advanced technologies in mining exploration and operations, enabling more efficient and environmentally friendly extraction processes. As a result, we have transformed our total investment of USD 460 million into USD 2.1 billion in revenue in just ten years. We have become one of the leading domestic companies contributing to the country’s gold production by bringing underground resources into the national economy. As Nurol Holding, we continue to make new investments in Türkiye through TÜMAD, while also striving to become one of the world’s leading mining companies with international investments, following the success of Nurol İnşaat, the first of our Group companies, which has established itself in international construction and contracting.
Celebrating its 57th anniversary in the 100th year of our Republic, Nurol İnşaat is the flagship company of Nurol Group, established as our first venture. With over USD 30 billion in total revenue and a project portfolio worth USD 2.5 billion, Nurol İnşaat creates substantial economic value both nationally and internationally. The company maintains a strong presence in the sector and continues to implement its sustainable growth strategy with a robust project pipeline of USD 2.5 billion.
As one of Türkiye’s leading investment and corporate banks, Nurol Investment Bank has been providing tailored financial solutions to meet the diverse needs of its clients for 25 years. By the end of 2023, the bank showcased its strong capital structure and expertise with a Capital Adequacy Ratio of 20.99%. With its innovative and dynamic service approach, Nurol Bank stands out as a strategic financial solution partner, supporting its clients at every step.
In 2023, the year we celebrated the 100th anniversary of our Republic, Nurol Group's consolidated revenue reached TRY 42.4 billion. This achievement, made possible by the invaluable contributions of our talented team and our innovative, continuous improvement-focused approach, strengthens Nurol Group’s confidence in the future and propels us toward new successes, with the support of our shareholders, partners, and stakeholders. I extend my deepest gratitude to our dedicated employees for their exceptional efforts and commitment.
Sincerely,
NURETTİN ÇARMIKLI
Chairman of the Board