- Largest textile producer;
- Largest producer of fertilizers, televisions and buses
- 2nd largest steel and iron producer
- 4th largest communications market
- 4th largest producer of cars and accessories

GROWING SECTORS

CAR SECTOR (16th in the world)

- Because of its proximity to Europe and Asia, Turkey is one of the most important car producer;
- Turkey is the largest commercial vehicles producer and exporter in Europe;
- 17 main national and foreign companies, 4.000 secondary companies, 300.000 qualified employers;
- Lower labour costs compared to Europe, qualified labour force;
- Three families out of four do not own a car, therefore there are great market growth opportunities;
- The forecasted increase of the GDP per capita will boost the consumers purchasing power;
- Increasing opportunities in car parts industry.

TRANSPORTS AND INFRASTRUCTURES

REAL PROPERTY AND CONSTRUCTIONS

FINANCIAL SECTOR

ENERGY

- Turkey is one of the fastest-growing energy markets in the world;
- It has been forecasted an annual 6% increase in electricity demand from 2009 to 2023;
- The total investments amount forecasted until 2023 is 130 billion dollar;
- Renewable energies will increase by 30%;
- Well structured and organised legal framework in the energy field;
- The authority for energy market regulation (EPDK) works as an independent market regulator;
- “Feed-in tariff” to incentive investments in renewable energies.

HEALTHCARE SECTOR

- The biggest and fast-growing medical equipments sector, in the region;
- Healthcare transformation plan in order to improve the healthcare system quality and efficiency;
- Pharmaceutical market income was around 9.2 billion dollars in 2010;
- There are significant growth possibilities, because of the increasing population and a low consumption rate;
- Recently it has been created a new R&D law, in order to boost investments;
- Healthcare sector reforms such as centralised healthcare insurance, will increase and improve the access to healthcare services.

ICT

- New initiatives and R&D law to increase investments;
- Turkish ICT sector in 2011 has passed 30 billion dollars;
- Increasing demand for high-tech telecommunication services;
- There is an enormous growth potential, taking into into consideration the young population compared with west countries;
- Increasing budget allocated by the government for ICT public investments;
- High education for young qualified computer engineers and software developers;

MACHINERY

- 20% growth from 1990
- Small and medium enterprises are competitive and versatile;
- Machinery imports volume (21.3 billion dollars in 2010) is bigger than exports (9.4 billion dollars), this underlines an increasing machinery demand.

FOOD AND BEVERAGES

- Turkish families had a high consumption rate, 27% in 2010;
- Constant growth during last years. Turkish consumers are guided by large retail sector;
- Food and beverages consumption is increasing because of the young and numerous population;
- Turkey food industry has important export opportunities thanks to different agricultural products available in the country;
- Turkey is becoming one of the largest baking products market;
- In the last 10 years this sector has attracted over 4 billion dollars;
- There are many opportunities for new emerging products in Turkey.

FORECAST

2023 GOAL:

- GDP: 2.000 billion $
- GDP per capita: 25.000 $
- Export: 500 billion $
- 10th world economy

FOREIGN DIRECT INVESTMENT

DOING BUSINESS, EASY BUSINESS

- To start a new business in Turkey you need 6 days, and one day to create a society;
- We will help you starting a new equality-based business with local investors, according to the new Turkish Commercial Code;
- Every type of business entity is allowed;
- There are many costs and time advantages compared with other countries of this region.

GOVERNMENT GOALS

Boost foreign direct investments, safeguard foreign investors, create an investment “registration” instead of the earlier “approval”;
- Fundamental principals of the law 4875;
- Fair treatment;
- No pre-accession and pre-founding monitoring;
- No obligation imposed on action property;
- No obligation imposed on types of business entity;

TYPES OF BUSINESS ENTITY

There are different kinds of direct investments, for example a Joint Venture association or commercial Joint Venture. They are individual entities with variable legal independence (low for a representation office, high for legal persons i.e. limited companies). Most common societies for foreign direct investments in Turkey are: representative office, branch, limited liability companies, joint-stock companies.

REPRESENTATION OFFICE

It is the cheapest legal form investors, indeed it is not legally independent form its parent company. It represents a legal entity in Turkey, its role is to “explore the market”.

- The main subsidies promoted by the Government are:

- No custom taxes: total exemption from the payment of custom taxes on machineries coming from non-european countries;

- No VAT: total exemption from the payment of vat on machineries imported or bought and used for investments, provided by the “investment incentive certificate”;

- Reduction of corporate tax: reduction from 50% to 90% according to the investment value and the geographical area that covers;

- Reduction of employers social security contributions: subsidies for employers that have to pay social security contributions to their employees. These subsidies can be provided for 2 to 10 years;

- Public concession: The Ministry of Finance can allow the use of a land, for 49 years;

- Subsidies to help paying interests on loans: The government can pay interests on loans used for investments, only when are subsidies are expected.

- VAT refund: It is used only for investments on a prearranged area.