10 Reasons to Invest in Turkey
Turkey is among the countries of the world that is famous with her love for guests and her geopolitical location which has made her an important center to attract local and foreign investors in various sectors during the last years, especially the tourism sector and (Turkey’s Real Estate) sector that has received a considerable interest from investors. Thus, the stunning beauty of nature, her location on the crossroads of Asia and Europe, and the high percentage of the youth population there, are of the main reasons that prompted investors to prefer Turkey for the establishment of their investments, especially the ethics that characterize Turkey have made them the focus of interest among foreign investors in general, and turned it into an open-doors country for the investors and the foreign capitals.
Every investor before he does his investment somewhere, he wonders why he should invest in that place, so we have identified 10 important reasons which can serve as an answer to the investors who wish to invest in Turkey, whether a local or foreign investors, these reasons are:
- Perfective and advanced economy: Turkey entered the new millennium almost with its broken economy, but since 2002 the country’s economy started to improve rapidly. During this period, gross domestic product which is the most important measure of the country’s economy has jumped from $ 231 billion to $ 820 billion, according to the official data we noticed that the Turkish economy has seen a steady growth during the period between 2002–2015, recorded an annual rise in GDP by 5.1%. Furthermore, according to the data of Development and Economic Cooperation Organization, it is expected that Turkey will be one of the most countries in the Organization speed of economic growth during the years 2012–2017, and according to the data of the International Monetary Fund in 2013, Turkey has become the sixth largest European economy and 16 at the global level, as well as the country attracts more than $ 135 billion of international capitals (FDI) during the last ten years, and during this period the exports volume has increased of more than %245.
- The high proportion of young people: When you want invest in one of the places the presence of qualified young and skilled manpower to run is required, the proportion of the young people in Turkey is very big compared to European countries. Thus, Turkey is considered among European countries overcrowded in terms of census youth population, and more than half of those young people is at an age below 30, this means that any investor who has inaugurated a project in Turkey will not suffer from the operating and manpower problem.
- The skilled and competitive hands: Turkey has 29 million young man according to the data of the Turkish Statistical Institution, including skilled and qualified workers, about 200 universities annually graduate 600 thousand young people, and about 700 thousand graduate from secondary schools, colleges and vocational schools, where these qualified young people compete with each other for work, which creates a competitive atmosphere pushes workers towards creativity and mastery of work.
- Investing amid a renewed and liberal economy: As It is known that in many countries, there are barriers to determine the foreign investment, but Turkey the member in the Economic Cooperation and Development Organization began to raise such existing barriers to foreign investors starting in 1997. Today Turkey has reached a stage where there is a company establishment in every six days, and it deals with all investors equally which create a competitive atmosphere among them, and according to data from the Ministry of economy today there are in Turkey more than 37 thousand company with foreign capital, Turkey also offers the possibility visiting the courts and the international tribunals to solve intractable problems the foreign investors face, and this has also increased the attractiveness of Turkey for foreign investors.
- Infrastructure: One of the most important reasons that pushed foreign investors to invest somewhere is the availability of necessary infrastructure for the establishment of investment, and the cheap costs of the necessary means of transportation to invest, if we look at the basic components of the infrastructure, such as transport and communications, energy and technology infrastructure, we can see that Turkey has seen a boom in recent years in these components, and this is what made Turkey the center of attraction for foreign investors, also the three seas surrounding Turkey, provided a very cheap naval transportation, in addition to its connection with Central and Eastern Europe in a network of railway lines has made Turkey an important center.
- Central Location: The central location of Turkey that links between Asia and Europe, made Turkey throughout history as a natural bridge linking the two continents, and because of its location Turkey has embraced many trade routes that links between the East and the West. Today Turkey has a strategic location to reach more than 1.5 billion people in all of Asia, Europe and Africa, as Turkey constitute the cheapest crossing point in the trade relations.
- The biggest station and energy passage in Europe: Turkey plays a major active role in the field of power transfer between Asia and Europe, she contributes to the transfer of power from the East to the West on the one hand, and the transfer of funds from west to east on the other hand, as it is known that %70 of the power sources in the world spread in Turkey and the surrounding countries, she constitutes an important center for the transfer of power to Europe, which is one of the most important power consumption in the world.
- Low taxes and potential motivation: to motivate investors to invest in Turkey, the institutions’ gains tax applied that is on foreign investors has been reduced by %33 to %20, also in some cases foreigners are exempted from this tax fully or partly. Furthermore, investors in some areas allocated by the State are motivated by different policies, such as land allocation and other various stimulus policies.
- Membership in the European Customs Union: The European Customs Union which aims to increase the activities and the economic tender, and in which Turkey is a member in this Union since 1996, there are free trade agreements between the parties of this Union (20 countries), and these trade relations are in increase day by day through signing new agreements.
- Large internal markets: The Turkish Statistics Institution’s data showed that since 2002 to the present day, the number of Internet users has increased from 100 thousand to 33 million subscribers, and the number of mobile phone users increased from 23 million to 70 million subscribers, and the number of borrowers increased from 16 million to 58 million borrowers, in addition to the high numbers of airline users for relocation purposes also increased from 33 million to 131 million relocators and the high number of foreign tourists coming to Turkey increased from 13 million to 40 million tourists a year. Consequently, these signs show that Turkey has a large internal market.
These ten articles are one of the important reasons why the investors should invest in Turkey. In addition to these reasons, there are a lot of advantages and characteristics peculiar to Turkey, which turned it into an important attracting center of local and foreign investors are generally, especially in recent years, we noticed that Turkey aims to raise the foreign investment by issuing many laws, public policies and holding multiple agreements, that will motivate foreign investors to rush to invest in Turkey. These stimulus policies pursued by Turkey was fruitful in a short period of time, today Turkey is one of the most attractive countries for foreign investment especially in the real estate in Istanbul in the world.