In this blog post, we will answer questions such as Why should I invest in Turkey or what are the advantages of investing in Turkey? As Zaren Invest, we provide our clients with the best investment opportunities. So far, many ınvestor grow their capital with our consultation. Let’s look at why to invest in Turkey.
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Why Should You Invest in Turkey?
Turkey, as the most developing country in the world, offers unique opportunities to investors. In the last decade, Turkey has become a profitable investment center for investors because of the exchange market. Also, the government provides investors to invest in Turkey with great convenience. Furthermore, an investor to invest in Turkey, or establish a company employing at least 50 people can obtain a Turkish Citizenship. If you want to get more information about Turkish citizenship, you can look at our related article. If you wish, let’s answer “Why to invest in Turkey”, the most attractive country in the world for, investors.
Turkey Has a Stable and Strong Economy
Economic stability is of paramount importance for anyone considering the advantages of investing in Turkey. With an average annual GDP growth rate of 5.5%, the Turkish economy is one of the fastest-growing in the world. Between 2003 and 2018, the Turkish economy recorded record growth: From the 18th largest economy in the world in 2003 to the 13th in 2018. Turkey aims to be among the world’s top 10 largest economies by 2050.
Turkey has Young and Dynamic Population
Another issue that will give you an investment advantage in Turkey is the demographic structure. Half of Turkey’s population consists of young people under the age of 32, which is very high compared to European countries. With a young, dynamic, educated and highly cultured population, Turkey provides good investment opportunities for investors. In other words, you will never have a problem finding young and qualified employees for any company you will establish with an investment in Turkey.
According to the Turkish Statistical Institute, Turkey has a highly productive, well-educated and competitive labor force, with the proportion of highly skilled workers increasing day by day and more than 800,000 people graduating from various faculties of universities every year.
Turkey has a Free Market Economy
With its free market economy, Turkey offers investment advantages. Providing an ideal business environment for foreign investors, Turkey offers highly competitive investment conditions to investors by observing the principle of equal treatment of all investors. There are no barriers for foreign direct investors and laws are in place to protect investors. Law No. 4875 on Foreign Direct Investment (FDI) has the following main objectives
Encouraging foreign direct investment in the country
Protection of investors’ rights
Harmonization of investor and investment definitions with international standards
Establish a notification-based system for foreign direct investments instead of an approval-based system
Increasing the volume of FDI through established policies and procedures,
Turkey has Versatile Market Opportunities
Turkey has a large domestic market with a growing population, developing technology infrastructure and rising GDP per capita. This is critical for increasing the advantage of investing in Turkey. In parallel with its growing economy, a market with increasing purchasing power has emerged and internet and credit card shopping has become widespread in Turkey. In addition to its large domestic market, Turkey offers investors the opportunity of a regional market with access to 1 billion consumers through Free Trade Agreements.
Opportunity to Find Customers
With free access to 510 million consumers thanks to the Customs Union with the European Union and 355 million consumers thanks to Free Trade Agreements with 27 countries, Turkey offers new opportunities to its investors. Bilateral trade agreements continue to be signed.
Advantageous Incentive Opportunities for Investors in Turkey
To gain an investment advantage in Turkey, you must first have equal opportunities. Turkey treats both domestic and foreign investors equally and without discrimination. Turkey has a comprehensive investment support program that supports minimizing start-up costs and accelerating returns on investment for both greenfield and expansion investment projects. In addition, the Republic of Turkey supports investors with various grants, incentives and loans. In addition, corporate tax on foreigners has been reduced from 33% to 20%. Turkey supports investors with project-specific and comprehensive incentive programs.
Energy Corridor and Terminal of the Asian Continent to Europe
Due to its geopolitical position, Turkey serves as an important energy terminal and corridor for European countries connecting East and West. This increases the advantage of investing in Turkey. Turkey, which is close to more than 70% of the world’s primary reserves, has a great importance in transferring these reserves to Europe, one of the most important energy consumption centers in the world.
Turkey Has Advanced Infrastructure Systems
Turkey has a good and strong infrastructure in the transportation, telecommunications and energy sectors, and the key sectors required for investment advantage are well developed. Key sectors for investment advantage are well-developed, low-cost sectors that make it easier for you to invest in Turkey and connect you to potential customers. Turkey has a good command of well-developed and low-cost maritime transportation facilities. It also offers a number of advantages such as rail access to Central and Eastern Europe and well-established land transportation routes and a direct distribution mechanism.
Has an Important Strategic Location
An efficient and cost-effective hub for key markets, Turkey is a natural bridge between East and West, North and South axes. Turkey offers same-day access to key markets in many countries. Turkish Airlines, one of the world’s leading airlines, provides access to 255 destinations in 122 countries. Many multinational companies around the world choose Turkey as their production, export and management base. This makes it more advantageous to invest in Turkey.
Continuous Innovation Process for Investors
Prioritizing reforms for innovative production, sustainable growth, environment and development, qualified workforce and international cooperation, the Government of the Republic of Turkey continues the comprehensive transformation process it started in the early 2000s. These changes include the reduction of the time to establish a company from 38 days to an average of 6.5 days.
Advantageous R&D Incentives for Foreigners
The R&D incentives provided to investors by the Turkish Government, which exceeded 1% in 2018, are intended to be increased to 2% in the coming years. Currently, more than 100 companies benefit from competitive R&D incentives provided by the Turkish Government.
A Wide Range of Sectors to Invest in
Turkey has a wide range of sectors where investments can be made with competitive advantage. There are investment opportunities in many sectors such as logistics, energy, agriculture and food, health, infrastructure, finance, tourism, automotive, machinery, defense and aviation. Especially tourism, health, logistics and real estate sectors offer profitable investment opportunities.
Istanbul is undoubtedly the best location for investment in Turkey. As Turkey’s gateway to the world, Istanbul provides investors with the most profitable investment opportunities with all kinds of transportation networks, advanced technology and crowded population. As Zaren Invest, a member of Zaren Group, we serve you especially in the real estate investment process. Do not miss your profitable investment opportunities by contacting Zaren Invest.