Turkey has always been favored thanks to its geopolitical location and hospitality. These features make it a significant hub for drawing local and global investors in a variety of sectors, including tourism and real estate, which have resulted in piqued investor interest.
According to the data released by the Central Bank of Turkey, Turkey’s economy has been one of the world’s fastest to recover following the pandemic. FDI inflows into Turkey were $14.1 billion in 2021, up 80.7 percent. Total FDI inflows into Turkey from 2003 to 2021 totaled $239 billion.
Even though there are many reasons to make an investment in this beautiful country, let’s take a look at some compelling reasons.
Why Invest In Turkey
Turkey plays its part as a natural bridge between Asia and Europe. Both continents also influence its eclectic culture. Istanbul is the key when it comes to offering strategic access to all the key markets within these areas. According to statistics, Turkey has access to 955 million consumers through FTAs and Customs Union. Istanbul is the 7th city within Europe, where most of the investments have been made.
11th Strong Economy in the World
The Turkish economy has witnessed record growth in recent years. While it was ranked 13th and climbed from 18th place to 11th globally from 2003 to 2020. Please refer to below graphics for further information.
Ranking of Economies by GDP at PPP (Purchasing Power Parity)
|1. USA||1. China||1. China|
|2. China||2. USA||2. USA|
|3. Japan||3. India||3. India|
|4. Germany||4. Japan||4. Japan|
|5. India||5. Germany||5. Germany|
|6. Russia||6. Russia||6. Russia|
|7. France||7. Indonesia||7. Indonesia|
|8. UK||8. Brazil||8. Brazil|
|9. Brazil||9. UK||9. France|
|10. Italy||10. France||10. UK|
|11. Mexico||11. Mexico||11. Turkey|
|12. Indonesia||12. Italy||12. Italy|
|13. Spain||13. Turkey||13. Mexico|
|14. Canada||14. South Korea||14. South Korea|
|15. South Korea||15. Spain||15. Canada|
|16. Saudi Arabia||16. Canada||16. Spain|
|17. Iran||17. Saudi Arabia||17. Saudi Arabia|
|18. Turkey||18. Iran||18. Australia|
Strong Entrepreneurial Community
Turkey, especially Istanbul, has a robust entrepreneurial community of startup co-founders and founders. This shows that there are countless opportunities for partnerships and networking.
Startups of all developments can easily participate in events, accelerator programs, conferences, co-working spaces, and hackathons entirely based on entrepreneurship.
Due to the hybrid or newly digitized model programs and events, entrepreneurs across the entire nation can quickly learn from each other, create something new together and come together.
The Incentives for the Foreign Investments
The Government of Turkey aims to encourage all foreign investments and wishes to build incentive-based various categories of assets that all professional investors will encounter. According to Turkey’s Investment Office, seven profiles of investors are defined by the quality FDI. Some of these profiles that all the investors will come across are:
- Investment Reducing Import Dependency
- R&D, Design and Innovation Center Investments
- Investment Providing Technology and Knowledge Transfer
- Investment Providing Incentives Employment
- Investment Supporting Digital Transformation
- Investment Providing High-Quality Employment
- Export-Oriented Investments
The Turkish Government has designed many investments for the 2021-2023 FDI investment strategy. They did so by analyzing all the investors’ latest expectations and requirements and suiting all the actions and plans accordingly.
Skilled and Competitive Workforce
Turkey’s young and well-educated population is a valuable asset, as investors face significant challenges elsewhere in Europe due to population aging and shrinkage.
With its rising, young, and vibrant population – the driving force behind a robust labor pool and a lucrative domestic market – Turkey provides significant chances.
In 2018, Turkey’s population was registered as 82 million people. According to the Turkish Statistical Institute, it is predicted to reach 86.9 million by 2023 and 100.3 million by 2040. The population is expected to continue to expand until 2069 when it will reach 107.6 million.
One of the most compelling reasons for foreign investors to invest anywhere is the availability of the necessary infrastructure and lower transportation costs. Turkey has undergone growth in basic infrastructures, such as transportation, communications, power, and technical infrastructure, making it a magnet for foreign investment.
How To Invest in Turkey
As a result of rapid population growth and city revitalization projects, the construction and real estate industries are booming. Investors continue to find the construction and real estate industries appealing and rewarding.
In many ways, purchasing real estate in Turkey is the safest investment you can make. As a result of rising tourism, Turkey’s real estate business has grown. Foreigners have also found Turkey to be a popular retirement location.
Turkish Citizenship by Investment
Turkey introduced citizenship by investment scheme in 2016. Either through real estate acquisition, capital transfer, or job creation, you might be eligible to get a Turkish passport.
Real estate acquisition has been the most popular route under Turkish citizenship by investment program. It’s also the cheapest option: When you buy the property for a minimum worth of $400,000 you and your family can get Turkish citizenship.
Turkey is a beautiful and unique country, which is filled with history, culture, and heritage. But that’s not the only thing for which this country is known. Turkey offers many investment opportunities for investors across the globe. You will surely come across many other benefits when you think of investing within Turkish soil. Apart from that, you must always check out the type of investment options available for you to choose the one that matches your requirements and needs.