Why Invest in Turkey

Why Invest in Turkey

1. BOOMING ECONOMY

  • Booming economy; more than tripling its GDP, reaching USD 784 billion in 2018, up from USD 231 billion in 2002 (TurkStat)
  • Stable economic growth with an average annual real GDP growth rate of 5.5 percent between 2002 and 2018 (TurkStat)
  • Promising economy with a bright future as it is expected to become one of the fastest growing economies among the OECD members during 2019-2024 with an average annual real GDP growth rate of 5.5 percent (OECD)
  • 13th largest economy in the world and 5th largest economy compared with the EU in 2018 (GDP at PPP, IMF WEO)
  • Institutionalized economy fueled by USD 209 billion of FDI in the last 16 years (CBRT)
  • A dynamic and mature private sector with USD 168 billion worth of exports and an increase of 366 percent between 2002 and 2018 (TurkStat)

2. FAVORABLE DEMOGRAPHICS

  • Young, dynamic, well-educated and multi-cultural population of 82 million (2018, TurkStat)
  • Largest youth population compared with the EU (Eurostat)
  • Half the population under the age of 32 (2018, TurkStat)

3. QUALIFIED AND COMPETITIVE LABOR FORCE WITH COST ADVANTAGE

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

  • The 2nd biggest reformer among OECD countries in terms of its restrictions on FDI since 1997 (OECD FDI Regulatory Restrictiveness Index 1997-2017)
  • Business-friendly environment with an average of 6.5 days to set up a company (World Bank Doing Business Report 2018)
  • Highly competitive investment conditions
  • Strong industrial and service culture
  • Equal treatment for all investors
  • Around 65,500 companies with international capital in 2018 (Ministry of Trade)
  • International arbitration
  • Guarantee of transfers

5. INFRASTRUCTURE

  • New and highly-developed technological infrastructure in transportation, telecommunications and energy
  • Well-developed and low-cost sea transport facilities
  • Railway transport advantage to Central and Eastern Europe
  • Well-established transportation routes and direct delivery mechanism to most of the EU countries

 

Why Invest in Turkey

6. STRATEGIC LOCATION

  • A natural bridge between both East-West and North-South axes, thus creating an efficient and cost-effective outlet to major markets
  • Easy access to 1.7 billion customers in Europe, Eurasia, the Middle East and North Africa
  • Access to multiple markets worth USD 27 trillion of GDP

7. ENERGY CORRIDOR AND TERMINAL OF EUROPE

  • An important energy terminal and corridor in Europe connecting the East and the West
  • Located at a close proximity of more than 70 percent of the world’s proven primary energy reserves, while the largest energy consumer, which is Europe, is located right to the west of Turkey, thus making the country a linchpin in energy transit and an energy terminal in the region

8. LOW TAXES & INCENTIVES

  • Corporate Income Tax reduced from 33 percent to 20 percent (22 percent for 2018, 2019 and 2020)
  • Tax benefits and incentives in Technology Development Zones, Industrial Zones and Free Zones, including total or partial exemption from Corporate Income Tax, a grant on employer’s social security share, as well as land allocation
  • R&D and Innovation Support Law
  • Incentives for strategic investments, large-scale investments and regional investments

9. LARGE DOMESTIC MARKET

  • 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.
  • 66.3 million credit card users in 2018, up from 16 million in 2002 (The Interbank Card Center of Turkey)
  • 211 million airline passengers in 2018, up from 33 million in 2002 (General Directorate of State Airports Authority)
  • 45.6 million international tourist arrivals in 2018, up from 13 million in 2002 (TurkStat) terminal in the region

10. 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

11. OPPORTUNITIES

  • 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.
  • 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.