Company Formation Turkey
Business Environment in Turkey
When we look up in the history of Turkey, it can be observed that investments have been gradually developed after 1980’s after the liberalization of markets and privatization of state enterprises, where government’s role in the economy has significantly decreased. As of the 2000’s, as a result of structural reforms, political stability and economic growth, the share of Turkey in the worldwide investments increased annually.
Turkey’s effort to be attuned to European Union rules and practices is an important factor attracting foreign investors to the country. We are also a member of various multilateral organizations such as G-20, OECD, ILO, WTO, IMF and party to several international contracts and tax treaties. The ongoing EU accession negotiations are a key factor for the development of business environment.
Turkey is rapidly emerging as a high-growth market in various sectors, as defined above. With its young workforce and geographical importance, it is an attractive destination for investment and already one of the largest economies in the world. According to the OECD, the country is expected to become the second fastest growing country in the world as of 2018. Turkey offers opportunities for potential investors in many sectors, some of which can be identified as below:
- One of the most rapidly booming businesses has emerged in the energy area. It is stated by the officials that more than US$100 billion investment is expected by the year 2020, to meet the rising demand of energy. Turkish government also supports investments in the renewable energy area, as the country has significant potential for solar, wind and geothermal energy.
- Real estate and construction sector is offering, especially in the recent years, great opportunities for investors. The entry of global actors in the scene and foreign property buyers has increased the competitiveness in the market. However, there are certain inadequacies in the construction of environmental and energy infrastructures, since these types of construction have been carried out only for the last 10 years, generally by sub-contractors without sufficient experience. So, entrepreneurs with qualified teams are welcomed in the sector.
- Automotive industry has carried Turkey to a unique position in the global scene. Many major global automotive companies have established factories here. Turkey now ranks among the biggest manufacturers in the world, in the production of motor vehicles and commercial vehicles. Another fact is that the general of Turkish population is a consumerist middle class which grows steadily, representing a serious potential for domestic consumption. However, the industry has needs in areas of qualified suppliers for all kind of parts.
- Tourism sector offers various opportunities for investors, as Turkey is one of the top-visited tourist destinations in the world with its seaside complexes, marinas, skiing centers, thermal springs and golf courses. The target of tourism sector is to be included among the top 5 in the world by 2023, in attracting the highest number of tourists and receiving the highest amount of revenues. Turkey also ranks among one of the top countries in convention tourism.
- Turkish government is in efforts for the implementation of "universal health care system" in the recent years. A strategic plan is carried out by the government, which includes the construction of fully-equipped hospital complexes. Since the required medical equipment is generally imported, health care and medical products is a growing sector in Turkey.
- Financial sector in Turkey has experienced a radical structural transformation since the 2001 financial crisis. Nowadays, Turkish banking and finance system is considerably stronger than the ones in Europe, which survived the recent financial crisis as a result of the said reform. There are opportunities for investors in the fields of asset management, private pension schemes and Islamic finance.
- Technology and IT sector appears to be a promising sector for investors in Turkey. As a result of the latest technology and the acceleration in telecommunication investments, consumer electronics sector is one of Turkey’s fastest growing sectors. Also, in an aspect of long-term visions and strategies for sustainable growth, "Vision 2023: Science and Technology Strategies" is announced by the Government, with an aim to create an innovative society until 2023, which marks the 100th anniversary of the foundation of the Turkish Republic.
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