Does the Turkish Government Encourage Industry and Investment?

Does the Turkish Government Encourage Industry and Investment?

Table Of Contents

Industrial Sector in Turkey in Numbers

Turkey adopts many plans to achieve self-sufficiency in all sectors through deliberate steps and stages in the short, medium and long term, trying to be one of the major industrial countries in the world.

Turkey seeks to make its industrial sector one of the most important pillars of the Turkish economy, and one of the most important sources of gross national product.

Turkey has expanded its industrial infrastructure, working to be a major industrial investment destination for major international companies and multinational companies around the world.

Turkey has been one of the leading countries in hosting factories of world-leading brands in various industrial sectors, such as automobiles, electrical appliances, defence industries, food products and others.

Turkey's industrial sector is one of the most important sectors that raise the value of the country's total exports, with exports in 2020 reaching nearly $140 billion.

Turkey's chemical industries come on top of the most valuable products in the volume of exports of the Turkish industrial sector, while the garment industry comes in second place, and the steel, automotive and metal industry comes in third place.

Contribution of the Industrial Sector to the Turkish economy

The share of the industrial sector in Turkey is about 75% of the total volume of Turkish exports, and the industrial sector is one of the most important pillars of the economy in the country and constitutes the largest part of the gross national product.

The industrial sector in Turkey contributes to providing job opportunities and reducing unemployment rates, in addition to meeting the needs of the local market of basic consumables, while reducing the volume of imports, and raising the volume of exports, thus increasing foreign exchange reserves and supporting the Turkish economy in general.

الاستثمار الصناعي في تركيا

The Most Important Industrial Investment Laws in Turkey

The Turkish government has a strategic plan to raise the country's economic position by increasing production and raising the volume of exports in the country.

Therefore, the government has facilitated the conditions and laws imposed on industrial investment, to attract investors from different countries of the world to transfer and establish their factories and production lines in Turkey.

Does the Turkish Government Support Investment and Industry?

The Turkish government supports and encourages investment in the industrial sector, and accordingly provides a lot of exemptions and facilities to investors.

In addition, it provides the necessary infrastructure of roads, bridges, airports and ports that serve the logistics, shipping and distribution purposes of the industrial sector.

The most important laws that encourage and support industrial investment in Turkey are:

  • Exemption of the established industrial facility from real estate tax for a period of five years
  • Obtaining tax exemptions upon reaching a certain export limit.
  • Exemption from municipal taxes.
  • Reduce the costs of water, gas, electricity and the value of basic bills.

Does the Turkish Government Support Foreign Investors?

According to Turkish laws, the foreign investor in Turkey is dealt with following the laws that apply to the Turkish investor without distinction, and he can benefit from all the privileges, grants, facilities and tax exemptions that benefit the Turkish citizen.

The most important feature of the Turkish government's support for foreign investors is the possibility of obtaining Turkish citizenship and having the right of full Turkish citizenship, through several laws on granting Turkish citizenship to foreign investors, provided that the conditions of those laws are applied.

The most important investment methods through which Turkish citizenship can be obtained for a foreign investor are:

  • Investment in the industrial sector worth $500,000, or when employing 50 Turkish citizens and not laying them off from work for 3 years.
  • Investing in real estate, by buying a property or a group of properties in Turkey worth $400.000, and not selling that property for 3 years.
  • Bank deposit, by depositing $500.000 in a Turkish bank for 3 consecutive years.

What are the Best Areas of Industrial Investment in Turkey?

Turkey has a historical legacy in several industries such as textiles, clothing, cloth, food and agricultural products.

It has witnessed accelerated industrial activity in recent times in several different fields that have made it the focus of attention of many investors wishing to break into an emerging industrial field of competition and innovation.

Here is a list of top areas of investment in Turkey:

  • Robotics and Artificial Intelligence Sector
  • Semiconductor Sector
  • Automotive Industry Sector
  • Technological Industries and Industrial Equipment
  • Battery Industry
  • Chemical Industries

الصناعة في تركيا

How Can Tebadul Serve Investors in the Industrial Sector in Turkey?

Tebadul International Trade offers investors multifaceted options in case they want to invest in the industrial sector in Turkey, through full logistics services to equip factories and production lines. 

Tebadul is also working on finding ready-made Turkish production lines to manufacture products with special specifications and continuously for its customers wishing to import from Turkey.

 

Edited by Tebadul International Trade

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