With its strategic location connecting Asia and Europe, Turkey has become an increasingly popular destination for foreign investors in recent years. The country’s economic growth, large domestic market, young population, business-friendly policies, and political stability make it highly attractive. This article provides an overview of the advantages of investing in Turkey as well as the investment environment.
High economic growth and large market potential
Turkey has one of the fastest growing economies in the world, with an average annual GDP growth rate exceeding 5% over the past 15 years. It has a large population of over 80 million people, making it an expansive domestic consumer market. Additionally, Turkey’s customs union agreement with the EU provides tariff-free access to European markets for Turkish manufacturers.
Favorable policies and incentives for investors
The Turkish government offers a range of incentives such as tax breaks, cash grants, and subsidized infrastructure to encourage foreign investment. Investors are treated equally under Turkish law and 100% foreign ownership is permitted in most sectors. There is also free movement of capital allowing easy repatriation of profits and investment returns.
Young, educated workforce
Around half of Turkey’s population is under the age of 32. This means there is an abundant supply of young, skilled workers available at competitive labor costs to staff new investments and ventures. Turkey also has a growing number of university graduates to tap into for professional, managerial and technical roles.
Strategic location and access
Turkey links Europe and Central Asia, opening vast markets with its free trade agreements and customs union membership. Its position provides excellent transportation, logistics and distribution advantages for regional operations. Turkey’s ports and airports also provide multimodal access to wide regions spanning the Mediterranean, Black Sea and the Middle East.
Political stability
Over the past 20 years, Turkey has undergone significant political reforms and liberalization measures as part of its effort to join the EU. Its transition to a functioning liberal democracy has provided more transparency, accountability and stability for businesses and investors after decades of instability.
With steady economic momentum, pro-business environment and policies, favorable demographics, rising prosperity and strategic access, Turkey stands out as having outstanding potential among emerging markets for returns on investment across sectors like manufacturing, technology, real estate and more.