Turkey's central location linking Asia and Europe has historically made it a natural bridge connecting the two continents. Turkey has, through its location, embraced many commercial routes linking the East and the West. Today, Turkey enjoys a sensitive strategic location to reach more than 1.5 billion people in each Asia, Europe, and Africa, and it is the most reliable transit point in trade relations.
Turkey has a long history, cultural heritage and vibrant social life which makes it attractive for every type of people. Seas encircle it on three sides: the Aegean Sea is to the west, the Black Sea to the north, and the Mediterranean Sea to the south, Makes it easy to access about 1.6 billion customers in Europe, Eurasia, the Middle East and North Africa. Istanbul is the only City that lies on two continents (Asia and Europe ) and is a hub from where you can reach anywhere. Istanbul is also one of the fastest growing metropolis’ in the world, with still reasonable prices when compared with other big cities around the globe. Also, Turkey is one of the most stable countries in the region, offering a peaceful environment and welcoming people of all origins.
Turkey plays an active role in energy transfer between Asia and Europe. It contributes to the transfer of energy from east to west and the transfer of funds from the west to the east. On the other hand, 70% of the world's energy sources are spread in Turkey and surrounding countries is an important center for the transfer of energy to Europe, which is one of the most important stations of energy consumption in the world. In the following we will present to you 10 reasons why you should take Turkey into high consideration for investment.
With exports increasing 7.1% from 157.0 billion dollars to 168.1 billion dollars just in the years 2017-2018, with a 4.6% decrease in imports in the same timeframe from 233.8 billion dollars to 223.1 billion dollars. The revenues from international tourism and FDI flows increased 12% and 14% respectively. In the last 15 years the average volatility of inflation has been 4%, and even though there is an inflation crisis nowadays, the government is planning to cut below the 10% next year.
The Turkish economy has more than tripled over the past 15 years and is promising more growth in the future, as the GDP in 2002 was 236 Billion dollars in 2017 it is 851 billion dollars. And it is one among the top 10 countries with high GDP per capita in countries with population over 50 million. The middle class in Turkey has increased to 40 million in 2016 when it was 17.8 million in 2002. Today, Turkey is a member in the EU’s Customs Union which allows direct access to the EU market that is free access to over 945 million consumers.
Turkey is in proximity to major markets; 1.5 billion people and 24 trillion dollars in DGP in Europe, MENA and Central Asia at 4 hour flight-distance. It is considered a manufacturing & exporting hub for multinational companies such as TOYOTA which exports 85% of its productions from Turkey as well as Ford which exports 77% of its productions, as well as a management hub for multinational companies like Intel, GE Healthcare, B/S/H/, Knauf, Thyssenkrupp Verifone and gsk! Turkey is a natural bridge between both the East-West and the North-South axes, thus creating an efficient and cost-effective hub to major markets. • Close proximity to major markets Turkey offers easy access to 1.5 billion people and a combined market worth of USD 24 trillion GDP in Europe, MENA, and Central Asia within a 4-hour flight radius. • Same day reachability of key markets Turkey’s strategic location enables easy reach to markets across 16 different time zones, from Tokyo to New York. • Global connectivity Turkish Airlines connects 255 destinations in 122 countries • Hub for multinationals Multinationals are increasingly choosing Turkey as a preferred hub for manufacturing, exports, as well as management.
Turkey enjoys with its population being overwhelmed by young and dynamic people ready for work. It is expected that in in the coming few years, the working age population of Turkey will increase from 100% to 110% while that same group in Europe will decrease to 90% from 100%. The young and well-educated population of Turkey is a great asset as investors are facing considerable challenges elsewhere in Europe with ageing and shrinking populations. Turkey offers excellent opportunities with its growing, young, and dynamic population – the driving force behind a strong labor pool and a lucrative domestic market. Turkey’s population was registered as 82 million in 2018. It is expected to reach 86.9 million by 2023, and 100.3 million by 2040, according to the Turkish Statistical Institute (TurkStat). The population is projected to maintain its growth momentum until 2069, when it will peak at 107.6 million. Turkey, with half of its population under the age of 32 in 2018, has the largest youth population among the EU member countries.
Turkey's overall labor force is around 32.7 million people, which makes the country the 3rd largest labor force in Europe. Turkey’s young population is an important contributor to labor force growth and has boosted the country’s rank over peer countries. Turkey has posted the largest labor force growth among the EU countries.
Throughout its journey as a EU membership candidate, Turkey has implemented sweeping reforms in many areas and still continues to introduce new reforms. The Turkish government has always prioritized reforms for a qualified workforce, innovative production, sustainable growth, a sustainable environment, and international cooperation for development. A sweeping reform process was started back in the early 2000s and is continuing even today. Thanks to the extensive reforms made over the past 16 years, today Turkey is well below the OECD average in terms of the number of restrictions imposed on foreign investors.
Turkey’s investment legislation is simple and complies with international standards while offering equal treatment for all investors. The fundamental parts of the overall investment legislation include the Encouragement of Investments and Employment Law No. 5084, Foreign Direct Investment Law No. 4875, the Regulation on the Implementation of the Foreign Direct Investment Law, multilateral and bilateral investment treaties, and various laws and related sub-regulations on the promotion of sectorial investments. Foreign Direct Investment Law The aim of the Foreign Direct Investment (FDI) Law No. 4875 is as follows: • to encourage FDI in the country • to protect the rights of investors • to align the definitions of an investor and investment with international standards • to establish a notification-based system rather than an approval-based one for FDI • to increase the volume of FDI through streamlined policies and procedures The FDI Law provides a definition of foreign investors and foreign direct investments. In addition, it explains important principles of FDI, such as freedom to invest, national treatment, expropriation and nationalization, freedom of transfer, national and international arbitration and alternative dispute settlement methods, valuation of non-cash capital, employment of foreign personnel, and liaison offices. The Regulation on the Implementation of the FDI Law consists of specifying the procedures and principles set forth in the FDI Law. The aim of the FDI Law with regard to the work permits for foreigners is: • to regulate the work carried out by foreigners • to stipulate the provisions and rules on work permits given to foreigners Double Taxation Prevention Treaties Turkey has signed Double Taxation Prevention Treaties with 85 countries. This enables tax paid in one of two countries to be offset against tax payable in the other, thus preventing double taxation. Turkey is continuing to expand the area covered by the Double Taxation Prevention Treaty by adding more countries on an ongoing basis Social Security Agreements Turkey has signed Social Security Agreements with 30 countries. These agreements make it easier for expatriates to move between countries. The number of these countries will increase in line with the increased sources of FDI. Turkey’s investment climate has been significantly improved in recent years, reducing tax burden with an internationally-competitive tax system. Total Tax and Contribution Rate* – 2018 (% of profit)
Applicable both for greenfield and brownfield projects, Turkey offers a comprehensive investment incentives program with a wide range of instruments that helps to minimize the upfront cost burden and accelerate the returns on investments. These incentives may also be tailored for projects in priority sectors classified as key areas for the transfer of technology and economic development. In addition, the Turkish government provides generous support programs for R&D and innovation projects, employee training initiatives, and for exporters through various grants, incentives, and loans.
The Turkish government has set the target of increasing the share of R&D investments within the overall public budget to 2%. As of 2018, this figure has already increased above 1 percent – with the expectation to reach 2 percent over the next several years. Extensive R&D incentives in Turkey are further supported by well-educated and highly qualified labor force, competitive cost advantages, and several global companies that are active in the market. All together these form a dynamic ecosystem in Turkey.
These ten factors are important reasons for investors to invest in Turkey, in addition to these reasons there are many advantages and characteristics that characterize Turkey, which turned it into an important center of attracting domestic and foreign investors in general, especially in recent years, we note that Turkey aims to raise foreign investments coming to it, through the issuance of several laws and the adoption of public policies and the establishment of multiple agreements, which will stimulate foreign investors to go to invest in Turkey. These motivational policies of Turkey have been fruitful in a short period of time. Today, they are among the most attractive countries for foreign investments among the countries of the world Such as the Istanbul Third Airport Project, located in the Arnavutkoy district north of Istanbul, with an area of 7,500 hectares, accommodates 200 million passengers annually and reaches 350 world points. With the harmony of the people and authority, the country enters the era of stability one day after another and draws the hearts of investors. Why should I invest in Turkey? If you were thinking of Turkey to start investing or expanding your current business, you had already chosen the right decision. You are here now because you want to know more about investing in Turkey and what are the advantages that will motivate you to establish or develop your business in Turkey. Turkey is one of the most growing economies in the world From its geographical location, diversified economy and ease of investment compared to many other countries. Turkey comes after Germany and Italy as the third largest exporter of textiles in the world, its also one of the world’s biggest producers of agricultural products, Clothing, chemical, motor vehicles, ships and other transportation equipment, food, construction materials, consumer electronics and home appliances.