Why Invest in Turkey in 10 Reasons
1. ROBUST ECONOMY
Turkey stands out as the 13th largest economy in the world according to 2016 GDP at purchasing power parity. The Turkish economy has been growing robustly, with an impressive performance of approximately 6% annual growth over the past 14 years, thus making Turkey the fastest growing economy in Europe and one of the fastest growing economies in the world. In the third quarter of 2017, Turkey posted a growth rate of 11.1%. This remarkable growth performance is set to continue over the coming years, hence offering more opportunities in the future.
2. LIBERAL INVESTMENT CLIMATE
While having natural assets such as young population and geographic location is an important factor to attract investment, without a business-friendly investment climate, it would be impossible to attract foreign direct investment. Turkey has tremendously improved its investment climate through reforms, offering investors protection and equal treatment as well as making it easy for investors to do cross-border business. Business-friendly environment with an average of 6.5 days to set up a company (World Bank Doing Business Report 2017)
3. FAVORABLE DEMOGRAPHICS
With half of its population under 32 years old, Turkey stands out as the country with the largest youth population in Europe. Working age population of Turkey continues to increase and dependency ratio is stable. Turkey will continue to maintain its demographic advantages over the next two decades.
4. SKILLED WORKFORCE WITH COST ADVANTAGE
Along with the young population, another reason to invest in Turkey is the availability of a skilled labor force with an industrious working culture and cost-competitive edge. Today there are many successful Turkish executives managing global companies. Be it senior managers or qualified engineers, Turkey offers world-class quality professionals. Coupled with a competitive labor cost, such a workforce has made Turkey more attractive to foreign investors.
5. DOMESTIC MARKET
+ EU Turkey’s strong domestic market has been further strengthened by the emergence of a sizeable middle class with increasing income per capita and purchasing power that has become the backbone of the economy. Among countries with populations over 50 million, there are only 8 countries with income per capita over USD 10,000 and Turkey is the only developing country in that list. The domestic market is further supported by emerging urban centers across Turkey, now reaching more than 20 such centers with populations of over 1 million. Customs Union with the EU since 1996 and Free Trade Agreements (FTA) with 27 countries (Ministry of Economy)
Turkey’s geo-strategic location provides investors easy access to lucrative markets around Turkey, with combined populations of around 1.6 billion people and USD 25 trillion GDP. Around half of global trade is taking place within a 4-hour flight radius of Turkey. Investors in Turkey can also follow and cover markets in 16 times zones from New York to Tokyo.
7. FINANCIAL SERVICES SECTOR
The Turkish financial sector proved resilient during the global financial turmoil in 2009 as well as the ensuing economic crisis thanks to the regulatory reforms and structural overhaul that the government implemented in the wake of the country’s own financial meltdown in the early 2000’s. In fact, the reforms in the sector boosted investors confidence so much that financial services has become the preferred sector for FDI, attracting more than USD 50 billion during the past 15 years.
8. MEGA PROJECTS
International investors are keeping mega projects under close watch. Almost 30% of Turkey’s infrastructure investment need till 2023 is expected to be made through public-private partnership model mega projects. For example, Grand Istanbul Tunnel and Canal Istanbul are planned to be built in near future.
9. URBAN TRANSFORMATION
There has been impressive growth in both housing and commercial properties in Turkey. Approximately, 7.5 million old buildings will be replaced with high-quality new ones under the urban transformation project.
Turkey offers abundant opportunities in a variety of sectors ranging from automotive to metals, from electrical machinery to energy. Turkey has already developed a competitive edge in some sectors, such as automotive, in which Turkey is a global player. Producing around 1.5 million vehicles per year, Turkey is the 14th largest auto producer in the world and 2nd largest vehicle source to the EU. On the other hand, some other sectors are growing so fast, domestic production capacity is unable to meet the demand. These sectors need further investment, especially from foreign investors. In the energy sector, Turkey has ambitious targets to reach by 2023. More than USD 100 billion investment is required in the energy sector over the next decade to satisfy the increasing energy needs.