Why should I invest in Turkey?
At the crossroads of Europe and the Middle East, Turkey presents promising immediate and long-term opportunities for the investors. Turkey’s growing economy, advantageous geographical position, expanding the middle class, youthful population (average age of 31), and dynamic entrepreneurial class has made this country a growing market for all Investors.
So If you were thinking of Turkey to start to invest in turkey or expanding your current business, you had already chosen the right decision. There are a lot of business opportunities in Turkey.
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.
Anyway, let us shed light on the critical points that lead you to choose Turkey as fertile land for investment.
HISTORY AND LOCATION
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 has a population of 79.51 million (2016, Turkstat), its a largest youth population compared with the TU (Eurostat), and half of the population under the age of 31, The median age in Turkey is 30.2 years (worldometer).
Its dynamic, well-educated and multi-cultural population.
The Turkish economy is ranked 13th among the world’s largest economies, and 5th largest economy compared with the European Union in 2016 (GDP at PPP, IMF WEO).
An institutionalized economy fueled by USD 144 billion of FDI in the last decade (CBRT) and Attracts about USD 15 billion annually as foreign investment in Turkey. Also, Turkey has an
Stable economic growth with an average annual real GDP (Gross Domestic Product) growth rate of 5.6 percent between 2002 and 2016.
A promising economy with a bright future as it is expected to become one of the fastest growing economies among the OECD members during 2017-2020 with an average annual real GDP growth rate of 5.4 percent (OECD).
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.
LOW TAXES & INCENTIVES
- Corporate Income Tax has reduced to 20% from 30%
- Tax benefits and incentives in Industrial Zones, Technology Development Zones, and Free Zones, including partial or total exemption from Corporate Income Tax. In addition to facilitating and providing incentives for strategic investments, large-scale investments, and local investments.
LIBERAL AND REFORMIST INVESTMENT CLIMATE
- A business-friendly environment with an average of 4 days to set up a company and establish a business.
- Around 53,000 companies with international capital in 2016 (Ministry of Economy)
Turkey has a competitive commercial infrastructure, the government faces a continual challenge to meet the demands of a rapidly growing economy, and gives exceptional priority to major infrastructure projects, particularly in the transportation, telecommunications and energy sectors.
Also, Turkey has a well-developed and low-cost sea transport facilities, and Shipping plays a major role in the Turkish economy. No surprise, over 70 percent of Turkey’s boundaries consist of 4 seas: the Marmara in the northwest, the Black Sea in the north, the Aegean in the west, and the Mediterranean in the south-southwest.
-Railway transport advantage that’s running between its western and eastern borders.
LARGE DOMESTIC MARKET
-62.2 million broadband internet subscribers in 2016, up from 0.1 million in 2002 (ICTA, TurkStat)
-75.1 million mobile phone subscribers in 2016, up from 23 million in 2002 (TurkStat)
-58.8 million credit card users in 2016, up from 16 million in 2002 (The Interbank Card Center of Turkey)
-181 million airline passengers in 2015, up from 33 million in 2002 (TurkStat)
-25.3 million international tourist arrivals in 2016, up from 13 million in 2002 (TurkStat)
Additionally, over 1,400 American firms, across virtually all industry sectors, are active in Turkey including 60 U.S. companies that have established regional headquarters. However, like many middle-income developing markets, Turkey presents a range of challenges to doing business.