The Reasons for Choosing Turkey for Investment
Foreign investors’ interest in Turkey is visibly increasing in recent years. In particular, increased demand for business, real estate, and tourism areas in Turkey’s improved. Compared to previous years, 2020 has become an important year in the sales of housing to foreign investors. We can say the power of foreign investment determines the financial power of a country. Turkey’s success story on foreign investments in the last years should be observed well.
Foreign investors enter the export market both by introducing the goods produced in the host country from the domestic market to the international markets and through new initiatives that take advantage of the host country’s existing advantages. They contribute to growth by providing a change towards the technologically advanced products in the structure of exports. Imports made through marketing and production partnerships are also an important resource for access to intermediate and capital goods. If countries want these investments to expand, they will ensure coordination between them and export goods to international markets. They should develop policies that will ensure their move and implement these policies in a way that encourages competition between both domestic and foreign entrepreneurs. Turkey’s success is based on this dynamic and incentive financial structure on foreign direct investments.
Strategic Location: Key Factor
The geopolitical location of a country plays an important role while drawing the road map of a country under today’s globalizing world conditions. Because many international companies make trading activities in many countries, so they need to pass the borders easily. So, they always demand accessible locations for their international operations.
Turkey is an attractive and cost–effective center for major markets with being the feature of East–West and North-South connection. For the modern world, and also with the effect of globalization, the countries who play a bridge role have become so important in the last years. The key factor of Turkey is providing access to 1.5 billion population in Asia, Europe, and North Africa. Turkey’s strategic location, from Tokyo to New York offers easy access to markets in 16 different time zones.
In terms of environment, foreign investors tend to be more mobile and more cautious than the local firms in terms of location. They are also more prone to assuming a leadership role in environmental protection, given that they are financially, administratively, and technologically strong. In addition, the increasing share of the investors’ services sector causes the environmental impact of foreign direct investments to decrease. It is also environmentally important that they have more access to clean technology than local companies. Investors’ environmental and current effects in the host country, and hence on sustainable growth its effects increase the responsibilities of governments and the number of policies implemented by countries in this direction.
Global Connection Network and Turkish Airlines
Thanks to the globalization factors of the world, the concept of global connection networks gained so much importance recently. The connection of a country to others is so determinant on international trading activities. Turkish Airlines flies to 360 destinations in 217 countries. Turkish Airlines, which is the airline flying to most countries of the world today, proudly carried our flag, started in 1933 with a fleet of 5 aircraft with a total capacity of 23 seats. Turkish Airlines today has a modern fleet of 360 aircraft and a flight network covering 127 countries.
Contrary to the pause and decline experienced in the global aviation sector, THY entered an important growth period in the first period of the 2000s with new investments, opened lines, and expanding fleet. The flag carrier has not only remained a passenger-carrying company in this change process but has also become a brand that provides services to other airlines in the areas of aircraft maintenance, cargo transportation, ground handling, in-flight seat and kitchen production, aviation, and flight training. Carrying over 74 million passengers in 2019, THY celebrates its 87th anniversary on the ground. Today, the existence of Turkish Airlines is one of the biggest factors of taking foreign investments to Turkey.
Young Population
Unlike Europe’s aging population, Turkey has a young population with an extremely dynamic workforce. Of course, well-education is also so important for foreign investors. Turkey, a strong labor market and young form the basis of the strong domestic market, offers unique opportunities with a dynamic and growing population. Turkey stands in the leader position for the concept of a younger population between EU – member countries. Also, Turkey has more than 200 universities that provide European standards education.
Incentives for Investors
Turkey offers a comprehensive incentive program to support the acceleration of investment to minimize start-up costs and return on investment for expansion investment projects. These incentives can also be adapted for projects in priority sectors classified as important areas for technology transfer and economic development. The Republic of Turkey to investors; In addition to its support programs for R&D and innovation projects and additional employment, it also supports exporters through various grants, incentives, and loans.
Turkey offers important opportunities for foreign investments. There are many government incentives for these investors in the country. Thanks to these incentives, investors can operate more efficiently and profitably. The most popular incentives are VAT exemption, tax discount, income tax and interest support, customs tax support, and others.
Energy Corridor
Without a doubt, Turkey is an important energy corridor between East and West. Thanks to the feature, many foreign investors from different countries prefer Turkey for important investments. Especially, leader automotive producers, important energy investors, and industry firms prefer Turkey to reach energy lines easily. As you know, the Baku-Tbilisi-Ceyhan Crude Oil Pipeline project, which is shown as one of the most important energy projects of the 21st century, is one of the cornerstones of this east-west energy corridor formation. Also, TANAP and MAVİ AKIM Projects are important international natural gas transfer projects connected to Turkey. In addition, in line with the completion of the East-West Energy Corridor, Turkmen gas will be supplied to European and World markets by connecting Turkmenistan to the Şah Deniz Project, and the transportation of energy resources of Caspian countries, which are producers, to foreign markets will be much more opened.
As a final word, Turkey has a lot of important features to attract the interest of foreign investors from many countries of the world.
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