10 Reasons to Invest in Turkey

10 reasons to invest in Turkey: 

  1. Successful economy
  2. Qualified and competitive labor force
  3. Infrastructure
  4. Energy corridor and terminal of Europe
  5. Customs Unions with EU since 1996
  6. Population 
  7. Liberal and reformist investment climate
  8. Centrally located 
  9. Low taxes and incentives 
  10. Large domestic market 

1. Successful 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. Qualified and Competitive Labor Force 

  • Over 32.3 million young, well-educated and motivated professionals (2018, TurkStat)
  • Increasing labor productivity • More than 800,000 students graduate annually from over 183 universities (2018, CoHE)
  • More than 985,000 high school graduates with around half from vocational and technical high schools (2018, Ministry of National Education)

3. 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

4. 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

5. Custom Union with EU Since 1996

  • Customs Union with the EU since 1996 and Free Trade Agreements (FTA) with 22 countries (Ministry of Trade)
  • More FTAs underway
  • Accession negotiations with the EU

6. Population 

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

7. Liberal and Reformist Investment Climate 

  • 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

8. 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 1.7 billion customers in Europe, Eurasia, the Middle East and North Africa
  • Access to multiple markets worth USD 27 trillion of GDP

9. Low Taxes and 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

10. Large Domestic Market

  • 72 million broadband internet subscribers in 2018, up from 0.1 million in 2002 (ICTA, TurkStat)
  • 80.6 million mobile phone subscribers in 2018, up from 23 million in 2002 (TurkStat)
  • 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)

Source: Presidency of The Republic of Turkey Investment Office