Turkey’s attitude toward foreign investment has become increasingly open and aggressive since the significant economic policy transition from import-substituting to export-led development in the early 1980s. The Turkish government saw foreign money as a major element in its quest to become one of the world’s top economic powers in the near future. As a result, multinational investors have become a more important part of the Turkish economy. The reformed foreign investment policy allows foreign involvement and investment in all fields available to the Turkish private sector, with no restrictions on the foreign shareholders’ equity participation percent. As a result, overall foreign investment grew from $97 million in 1980 to more than $8.6 billion by 1998. 114 of the 500 largest manufacturing companies are foreign companies with at least 10% foreign ownership. Through many bilateral and multilateral agreements, the government guarantees a secure and protected environment for foreign capital under the Foreign Investment Law.
The following are some of the benefits of investing in Turkey:
- Robust Economy: one of the world’s fastest growing economies, with an average annual GDP growth rate of 5.5 percent
- Large Domestic & Regional Markets: Sizeable domestic market, plus regional markets with FTAs allowing access to one billion customers
- Strategic Location: Regional HQ for multinationals with seamless global connectivity
- Favorable Demographics: Young & dynamic population with half under 32 years old
- Skilled & Competitive Labor Force: Well-Educated, competitive labor force with high productivity
- Continuous Reform Process: New-generation reforms owing to an open public-private dialogue
- Liberal Investment Climate: No of barriers for FDI, strong protection for investors
- Lucrative Incentives: Tailored and comprehensive incentive schemes
- Advantageous R&D ecosystem: Perfect support for technology development with generous supports
- Sectorial Opportunities: Diversified economy with lucrative opportunities in many sectors
Geographical location of Turkey:
Because it is located at the crossroads of two continents, Asia and Europe, Turkey has excellent access to a wide range of markets, including Western Europe, the Middle East, and the Gulf, the Commonwealth of Independent States, Central and Eastern European countries, the Mediterranean, the Black Sea region, and Central Asian Turkic-speaking republics. These nations have distinct cultural, historical, and economic relations with Turkey. Moreover, Turkey was instrumental in the formation of the Black Sea Economic Cooperation Organization. The organization is a formidable regional market with a population of over 400 million people from countries bordering or near the Black Sea. Furthermore, Turkey and the EU have several important trade agreements, including the Customs Union. Furthermore, Turkey’s application for full membership is being considered, and the country was added to the EU’s enlargement list in 1999. These developments encourage open and strong trade relations with the region’s most developed economies.