Invest in Turkey

invest-turkey

The Turkish economy has shown remarkable performance with its steady growth over the last eight years. A sound macroeconomic strategy in combination with prudent fiscal policies and major structural reforms in effect since 2002 has integrated the Turkish economy into the globalized world, while transforming the country into one of the major recipients of FDI in its region.

The structural reforms, hastened by Turkey’s EU accession process, have paved the way for comprehensive changes in a number of areas. The main objectives of these efforts were to increase the role of the private sector in the Turkish economy, to enhance the efficiency and resiliency of the financial sector, and to place the social security system on a more solid foundation. As these reforms have strengthened the macroeconomic fundamentals of the country, the economy grew with an average annual real GDP growth rate of 5.2 percent over the past nine years between 2002 and 2011.

10 Reasons to Invest in Turkey

1. SUCCESSFUL ECONOMY

  • Booming economy; more than tripling its GDP, reaching USD 772 billion in 2011, up from USD 231 billion in 2002 (TurkStat)
  • Stable economic growth with an average annual real GDP growth rate of 5.2 percent over the last 9 years (TurkStat)
  • Promising economy with a bright future as it is expected to become the fastest growing economy among the OECD members during 2011-2017 with an annual average real GDP growth rate of 6.7 percent (OECD Economic Outlook No. 86)
  • 18th largest economy in the world and 7th largest economy compared with the EU in 2011 (GDP at current prices, IMF WEO)
  • Institutionalized economy fueled by USD 110 billion of FDI in the last 9 years and ranked as the 13th most attractive FDI destination in 2012 (A.T. Kearney FDI Confidence Index)
  • A dynamic and mature private sector with USD 135 billion worth of exports and an increase of 275 percent between 2002 and 2011 (TurkStat)

2. POPULATION

  • A population of 75 million (2011, TurkStat)
  • Largest youth population compared with the EU (Eurostat)
  • Half the population under the age 29.7 (TurkStat)
  • Young, dynamic, well-educated and multi-cultural population

3. QUALIFIED AND COMPETITIVE LABOR FORCE

  • Over 26 million young, well-educated and motivated professionals (TurkStat)
  • Increasing labor productivity
  • Approximately 500,000 students graduate annually from over 170 universities (2011, Student Selection and Placement Center-OSYM)
  • More than 700,000 high school graduates with around half from vocational and technical high schools (2011, Ministry of National Education)

4. LIBERAL AND REFORMIST INVESTMENT CLIMATE

  • The second biggest reformer among OECD countries in terms of its restrictions on FDI since 1997 (OECD FDI Regulatory Restrictiveness Index 1997-2010)
  • Business-friendly environment with average of 6 days to set up a company, while the average in OECD members is more than 12 days
  • Highly competitive investment conditions
  • Strong industrial and service culture
  • Equal treatment for all investors
  • Around 30,000 companies with international capital
  • 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

6. CENTRALLY LOCATED

  • 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 1.5 billion customers in Europe, Eurasia, the Middle East and North Africa
  • Access to multiple markets worth USD 25 trillion of GDP

7. ENERGY CORRIDOR AND TERMINAL OF EUROPE

  • An important energy terminal and corridor in Europe connecting the East and West
  • More than 70 percent of the world’s energy resources are located in the south and the east of Turkey, while the largest energy consumer, Europe, is located to the west of Turkey.

8. LOW TAXES & INCENTIVES

  • Corporate Income Tax reduced from 33 percent to 20 percent
  • Individual Income Tax varies from 15 percent to 35 percent
  • Tax benefits and incentives in Technology Development Zones, Industrial Zones and Free Zones could include 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 investment to decrease imports, for large-scale investments, as well as for regional investments

9. CUSTOMS UNION WITH THE EU SINCE 1996

  • Customs Union with the EU since 1996, and Free Trade Agreements (FTA) with 22 countries (19 in force, 3 pending ratification)
  • More FTAs underway
  • Accession negotiations with the EU

10. LARGE DOMESTIC MARKET

  • 50 million internet users in 2011, up from 4 million in 2002
  • 65 million mobile phone subscribers in 2011, up from 23 million in 2002
  • 51 million credit card users in 2011, up from 16 million in 2002
  • 118 million airline passengers in 2011, up from 33 million in 2002
  • 31.5 million international tourist arrivals in 2011, up from 13 million in 2002

Turkey, with an improved and friendly investment environment, achieved considerable success in both domestic and foreign investments over the decade, not only raised the bar a notch, but also is now on track to realize its real and deserved potential; to be home to investments that will contribute to new jobs, new technologies and new visions.

Certainly, the right place to be at the right time…

Turkey Chalo can provide you all type of services regarding your investment projects and we can organize factory visits, business meetings and appointments with the related people that you like. So if you want to invest in Turkey, we are ready to assist you upon arrival until departure.