Why should I invest in Turkey?
Turkey is located at the crossroads of Europe and the Middle East, which makes it a promising market for both immediate and long-term investment opportunities. Its growing economy, advantageous geographical position, expanding middle class, youthful population (with an average age of 31), and dynamic entrepreneurial class make it an attractive destination for investors looking to expand their businesses.
If you are considering investing in Turkey or expanding your current business, you have already made a wise decision. Turkey offers numerous business opportunities, and its growing economy and ease of investment make it an attractive market for investors worldwide.
In this article, we will explore the advantages of investing in Turkey and shed light on the critical points that will motivate you to establish or develop your business in this fertile land. Turkey is one of the fastest-growing economies in the world, thanks to its diversified economy and ease of investment compared to many other countries.
History and Location
Turkey boasts a rich cultural heritage and a dynamic social life, making it an attractive destination for people from all walks of life. Bordered by three seas – the Aegean to the west, the Black Sea to the north, and the Mediterranean to the south – Turkey offers easy access to approximately 1.6 billion customers across Europe, Eurasia, the Middle East, and North Africa. Istanbul, the only city that straddles two continents – Asia and Europe – serves as a hub from which one can reach anywhere.
Furthermore, Istanbul is one of the fastest-growing metropolises in the world, with prices that remain reasonable when compared to other major cities across the globe. Additionally, Turkey stands out as one of the most stable countries in the region, offering a peaceful environment and welcoming people of all backgrounds.
Turkey has a population of 79.51 million (2016, Turkstat), it has the largest youth population compared with the EU (Eurostat), and half of the population is under the age of 31. The median age in Turkey is 30.2 years (Worldometer).
Additionally, I suggest adding a comma after “multi-cultural population” for better readability. So the revised sentence would be:
It’s a dynamic, well-educated, and multi-cultural population.
Turkey has a population of approximately 84.3 million people as of 2022 (TurkStat). It is a young and dynamic population with a median age of 32.7 years (World Bank).
The Turkish economy is the 20th largest in the world in terms of nominal GDP and the 13th largest in terms of purchasing power parity (PPP), with a GDP of $754 billion in 2021 (IMF). Despite the COVID-19 pandemic and other economic challenges, the Turkish economy grew by 9% in the second quarter of 2021, making it the fastest-growing economy among the G20 countries (TurkStat).
Foreign direct investment (FDI) in Turkey has been on the rise in recent years. In 2020, Turkey attracted $13.2 billion in FDI, a 15% increase from the previous year (UNCTAD).
Turkey is a major producer and exporter of various goods, including textiles, automotive parts, electronics, food, and chemicals. The country’s largest trading partners are Germany, the United Kingdom, and the United States.
Overall, Turkey remains a strategically important country due to its location at the crossroads of Europe and Asia, its vibrant economy, and its young and growing population.
LOW TAXES & INCENTIVES
Turkey offers attractive tax incentives to both domestic and foreign investors. Corporate Income Tax has been reduced from 30% to 20% in recent years, making it one of the lowest in Europe. There are also tax benefits and incentives available in designated areas such as Industrial Zones, Technology Development Zones, and Free Zones, which can provide partial or total exemption from Corporate Income Tax.
In addition to these tax incentives, the Turkish government also provides support for strategic investments, large-scale investments, and local investments through various programs and initiatives. The Investment Incentive Program offers a wide range of incentives to investors, including VAT exemption, customs duty exemption, land allocation, and interest rate support.
Furthermore, Turkey’s strategic location at the crossroads of Europe, Asia, and the Middle East makes it an ideal location for businesses looking to expand their reach. The country’s customs union with the EU also provides access to a market of over 500 million consumers.
Overall, Turkey’s low taxes and incentives, combined with its strategic location and growing economy, make it an attractive destination for investors looking to establish or expand their operations in the region.
LIBERAL AND REFORMIST INVESTMENT CLIMATE
Turkey offers a business-friendly environment with an average of only 4 days to set up a company and establish a business. There were around 53,000 companies with international capital in 2016, according to the Ministry of Economy.
The country also has low taxes and incentives for businesses. The Corporate Income Tax has been reduced from 30% to 20%, and there are tax benefits and incentives available in Industrial Zones, Technology Development Zones, and Free Zones, including partial or total exemption from Corporate Income Tax. Additionally, Turkey offers incentives for strategic investments, large-scale investments, and local investments.
In terms of the economy, Turkey is ranked as the 20th largest economy in the world with a GDP of $761.4 billion in 2021 (World Bank). It is also one of the fastest-growing economies among the OECD members, with an average annual real GDP growth rate of 5.6% between 2002 and 2016, and an expected average annual real GDP growth rate of 3.3% between 2021 and 2023 (OECD).
Turkey’s population is estimated to be around 84.3 million in 2022, with a median age of 32.8 years (Worldometer). The country has a dynamic, well-educated, and multicultural population, with the largest youth population compared to the EU, and half of the population under the age of 31.
Furthermore, Turkey’s strategic location offers easy access to about 1.7 billion customers in Europe, Eurasia, the Middle East, and North Africa. The country’s largest city, Istanbul, lies on two continents (Asia and Europe) and is a hub from where you can reach anywhere.
Overall, Turkey offers a stable economic growth, promising economy with a bright future, and a favorable environment for businesses to establish and flourish.
The telecommunications sector in Turkey is also well-developed, with a high level of mobile phone and internet penetration. The country is investing in upgrading its internet infrastructure and expanding access to high-speed internet throughout the country.
Turkey is also strategically located between Europe, Asia, and the Middle East, making it a key transit point for energy pipelines and transport routes. The country is investing in expanding its energy infrastructure, including the construction of new pipelines, power plants, and renewable energy projects.
Overall, Turkey’s competitive infrastructure and strategic location make it an attractive destination for businesses and investors looking to establish a presence in the region.
LARGE DOMESTIC MARKET
As of 2022, Turkey has a population of approximately 84.3 million (TurkStat).
Turkey has a high mobile phone penetration rate, with over 81.9 million mobile phone subscribers as of 2021 (TurkStat).
There were over 89.6 million internet users in Turkey in 2021, with 81.4 million using mobile devices to access the internet (TurkStat).
The number of credit card users has increased to over 73.4 million in 2021 (Interbank Card Center of Turkey).
Turkey’s aviation industry has grown significantly, with over 239 million airline passengers in 2019 (Statista).
In 2019, Turkey welcomed over 45 million international tourists, making it the 6th most visited country in the world (Turkish Ministry of Culture and Tourism).
Turkey also boasts a large domestic market with a growing middle class, providing opportunities for businesses to expand and reach a large customer base.
Furthermore, Turkey’s strategic location at the crossroads of Europe and Asia, along with its access to major transportation routes, makes it an attractive hub for businesses looking to expand their reach in these regions.