The Reasons to Invest in Turkey
If you have a new business idea, or would like to expand your current business, and you are looking for a place where you can ensure safety environment and growing profits to run your own business, we invite you to consider Turkey as a unique opportunity to offer a very appropriate environment for you.
Turkey has several advantages over other countries, starting from its mounting economic growth, growing population, well-established infrastructure, and large domestic market until investment incentives and many other features which make Turkey highly competitive choice.
In this article, we will shed light on the most important reasons which encourage both local and international investors to start their businesses in Turkey rather than other countries.
- High economic growth
Turkish economy is one of the most promising economies among the developing countries. It is also a founding member of the OECD and the G-20 major economies, so it becomes one of the world’s largest economies.
Since more than 15 years ago, Turkey has experienced a highly remarkable economic performance represented by a high and stable economic growth and low poverty rate. According to the recent data published by the Central Bank of the Republic of Turkey, the Turkish economic growth rate has reached 7.4%, with the gross domestic product (GDP) of 851 billion dollar, while the national poverty line has decreased significantly to 1.6% in 2015, comparing to 13.3% in 2006.
In terms of the net international direct investment, Turkey has witnessed a huge achievement over the recent years, thanks to the regulations and helpful investment law which play an important role in promoting the investment climate, and attracting foreign investors from all around the world. In 2017, Turkey received international investments with value of approximately $11 billion, in addition to over 5700 new foreign companies have been established in the country.
- Growing population
The current population of Turkey has been estimated at 82.96 million with an increase of 7.5 million in 2017 comparing to the population in 2013. The population continues to rise at steady rate which is approximately 1.29% per year, with 49.1% males and 50.9% females.
Istanbul, Ankara and Izmir are considered the most populated cities in Turkey with population of 14.8, 3.5, and 2.5 million respectively. Additionally, the Turkish society has EU’s youngest population, in which it hold a high percentage of young people which is estimated at 25% in 2016, while the life expectancy in Turkey is around 75 years of age.
- Public infrastructure and services
The Public infrastructure and services have been developed impressively in Turkey since the recent two decades. The Turkish government has made a huge effort to improve the public institutions and infrastructure for the sake of the Turkish citizen’s well-being, and a more attractive investment climate.
Starting from the transportation, Turkey has a very advanced transportation system, which has several unique advantages over other systems in many European countries. There are 57 airports all around the country, which contribute in saving peoples’ time and efforts greatly. In addition, Turkey equipped with a massive railway network which connects between the major cities, along with the Metro system that founded in the main cities, not to mention the Tram system which covers most of the towns inside the city.
Moreover, recently, the Turkish education system has witnessed a rapid development in all the educational levels, starting from the primary schools, until the high education. Over 200 public and private universities are equipped with high quality education system in terms of facilities and teaching staffs, spreading all around the country.
The health system under the Turkish government meets all the international standards of high quality. Since 2000, the healthcare system has subjected to big reforms, in which it offers the Turkish citizens and residents a high quality medical services throughout registering in the Social Security Institution (SGK).
Finally, the public utility such as, water, electricity, and gas also has developed dramatically, in which the government takes a real action to provide an easy access to all public utility services.
- Large domestic market
In the light of the high rate of population in Turkish society, and the recent remarkable economic performance which boosts the well-being of Turkish people, Turkey has a very large domestic market, in which whose size has been ranked 13th out 137 countries with an increase of 5.44 % in 2017, according to the data published by the world bank.
One of the direct drivers of the surge in the domestic demand is the increasing in the minimum wage rate which has been developed significantly in the recent two decades. Finally, the recent high growth in both industry and services sector, also plays a major role in generating a higher domestic demand and supply.
- Regulations and investment incentives
Turkey has adopted several regulations which help encouraging investors to enter the Turkish market without difficulty, and facilitating all the relative investment procedures which could hamper running the promising investment projects.
In terms of the investment incentives, recently, the corporate income tax has been reduced remarkably from 33% in 2000 to 22% in 2018, together with the other incentives such as, tax cuts, land allocation and a governmental support for employer’s social security share, which coupled with Technology development zones and industrial and free zones. Equally important, the supportive law for R&D and innovation also contributes in promoting the investment climate to attract more high technology companies.
- Qualified labor force
The Turkish market is full of qualified labor force, which plays a crucial role in increasing the productivity in Turkey. The Turkish labor force participation rate exceeds 53% in 2018, around 8 million persons who have higher education, 3.5 million persons who attend vocational high school and 16.7 million persons whose education less than high school, according to the data published by Turkish statistic institute (Turkstat).
For Turkey, there are several influential factors which affect strongly both the size of the labor force and its quality. Beginning with the population rate, generally speaking, one percent rise in population leads to 0.74% increase in labor size. In the case of Turkey, the population rate exceed 1.5% in 2017, so the labor force growth is around 1.1% which considered high enough to promote the Turkish economy.
Additionally, the developed Turkish education system is also another positive point which leads to improve not only the size of labor force, but also its quality, in which the higher quality of education the society receives, the more skilled and qualified labor force participate in the Turkish labor market.
Moreover, the high income, the mounting economic growth and supportive investment law and incentives are other factors that have a real effect on the Turkish labor market.
- Geographic location
The unique location, which connects the two continents, Asia and Europe, is one of the major factors that makes Turkey a very attractive environment for both foreign and local investors. This natural bridge between the two continents allow to an easy access to more than 1.7 billion customers from all around the world, which make the Turkish market one of the largest international market in the whole world.
In addition, the very attractive beauty, together with the ancient and historical places which surrounded the country, Turkey becomes one of the most attractive country for tourists from all around the world.