Turkey is a great place to make an investment with a wide range of opportunities. Doing business in Turkey will bring you one step further compared to other countries and you will learn why this is possible in this article.
You may have questions like “Is Turkey a good place to start business” and you will find an answer to these questions in this context.
In this article, you will be learning about the top 10 reasons why to invest in Turkey.
1. SUCCESSFUL ECONOMY
Turkey has a rapidly developing economy and the GDP, which was 231 billion USD in 2002, increased more than three times in 2017 to 851 billion USD.
With its stable economic growth, average annual real GDP increased by 5.8% between 2002 and 2017 (TURKSTAT)
It has a promising economy (OECD) that is expected to be one of the fastest-growing economies among OECD member countries in 2018-2019 with an average annual real GDP growth rate of 5.0%.
In 2017, the world’s 13th largest economy and the 5th largest economy compared to the EU region and it is expected to increase to the 12th place in 2023. (GDP according to Purchasing Power Parity, IMF WEO)
Its institutionalized economy has attracted the US $ 193 billion of FDI in the last 15 years
A dynamic and mature private sector with an export volume of USD 157 billion with an increase of 335% between 2002 and 2017 (TURKSTAT)
Turkey has had an 82 million population in 2018. It has the most crowded young population compared to the EU. Half the population is under the age of 31.7.
The population is expected to grow by 86,9 million until 2023. With its young, dynamic, educated, and multicultural population, Turkey is a great place for the investors.
3. QUALIFIED AND COMPETITIVE WORKFORCE
More than 31.6 million of the population comprises of young, educated, and motivated professionals. And this maintains the increased employee productivity.
Thanks to the increasing number of the universities established in all Turkey, there are more than 800,000 graduates per year from more than 183 universities (2017, YÖK).
Over 985,000 high school graduates, half of which are from vocational and technical high schools (2017, MEB)
4. A LIBERAL AND INNOVATIVE INVESTMENT ENVIRONMENT
Turkey is the second largest reformer among OECD member countries in terms of restrictions on foreign direct investment since 1997.
Its business-friendly environment offers company establishment on an average of 6.5 days. Turkey has
- Extremely competitive investment conditions
- A strong industry and service culture
- Equal treatment for all investors
- Approximately 58,400 foreign capital companies in 2017 (Ministry of Trade)
- International arbitration
- Transfer guarantee
In the last 10 years, Turkey has improved new and advanced technological infrastructure in the transportation, telecommunications, and energy sectors.
With its highly sophisticated, low-cost sea transport, Turkey has a very advantageous spot in terms of infrastructure.
There is a chance of transportation to Central and Eastern Europe by rail and well-structured transport facilities and direct shipping mechanism makes it easier to reach to most EU countries.
6. CENTRAL LOCATION
As an effective and cost-effective exit point to key markets, Turkey acts as a natural bridge between East-West and North-South. It has easy access to 1.7 billion customers in Europe, Eurasia, Middle East, and North Africa. Turkey has access to multiple markets with a total GDP of US $ 25 trillion.
7. ENERGY CORRIDOR AND TERMINAL OF EUROPE
Turkey has an important energy terminal and gateway connecting East and West
More than 70% of the world’s proven primary energy reserves, while in regions close to Turkey, Europe, the largest energy consumer, the key point in western Turkey taking place in the country in energy transfer in the region, has this to an energy terminal.
8. LOW TAXES AND INCENTIVES
Turkey offers a comprehensive program to support the acceleration of investment incentives to minimize the start-up cost and return on the investment for expansion investment projects. The corporate tax has decreased from 33% to 20% (22% for 2018, 2019 and, 2020)
In case the investors come to Turkey, they will have tax advantages for Technology Development Zones, Industrial Zones and Free Zones, as well as land allocation, such as full or partial exemption from Corporate Tax and support for employers’ social security share.
These incentives can also be adapted for projects in priority sectors classified as above. In addition to the support programs stated above, Turkey offers R&D and innovation projects and additional employment, and it also supports exporters through various grants, incentives, and loans.
9. CUSTOMS UNION WITH THE EU SINCE 1996
Turkey has a customs union with the EU since 1996 and Free Trade Agreement with 21 countries. Other than that, Turkey has signed Bilateral Investment Treaties with 98 countries. In this context, 81 of the 98 Bilateral Agreements in question have entered into force so far.
10. BIG DOMESTIC MARKET
Turkey’s economic development performance, while national per capita income in 2002 3.581 US dollars to 9632 US dollars level in 2018 has led to the rise. Turkey with its population is the 11th largest economy in terms of GDP per capita among countries with a population of over 50 million.