A comprehensive guide to investing in Turkey for Saudis

With experts expecting the volume of investments between the Kingdom of Saudi Arabia and the Republic of Turkey to triple, many investors aspire to enter the Turkish market or increase their investments there.

Is investment in Turkey available for Saudis?

Of course, Saudi investors can invest in Turkey, taking into account certain laws and restrictions,

The two countries have a bilateral agreement that provides a framework for investment protection and promotion between them, under which Saudi businessmen have the right to invest in Turkey and vice versa for Turks in Saudi Arabia.

As for restrictions, there may be limitations on foreign ownership in certain sectors, such as defense, telecommunications, and energy. In addition, investors need to obtain specific licenses or permits before making investments in Turkey.

The best types of investment available in Turkey for Saudis

There are many types suitable for Saudi investors, but we have selected the most important fields for you:

1. Real estate investment

Real estate investment in Turkey is one of the most important and best options for several reasons.

1. Turkey has a growing economy and a strategic geographical location between Europe and Asia. These factors have contributed to a significant increase in property values in recent years.
2. Turkey has provided many incentives for foreign investors, including obtaining Turkish citizenship through real estate investment, making it an attractive destination for investors from all over the world.
3. Turkey boasts a rich cultural heritage and is home to some of the world's most beautiful beaches and tourist attractions. This has made it a popular tourist destination, leading to a thriving real estate market for both freehold and rental properties.

2. Commercial investment

Turkey is a popular destination for commercial investment, with many opportunities for Saudis interested in doing business in the country. Among the most important fields is importing goods from Turkey and exporting them to Saudi Arabia.

This presents a profitable opportunity for companies and investors looking to expand their trade and profits. Turkey's strategic location between Europe and Asia makes it a major hub for trade and transportation. Additionally, it has a growing economy and a diverse range of industries, including textiles, agriculture, automotive, electronics, and more, encouraging the shipping and export of goods to Saudi Arabia.

However, it is necessary to explore the Turkish market and familiarize oneself with customs regulations to speed up and ensure the success of the process. It is also essential for investors to consider shipping and transportation, as this is crucial in import and export trade, especially when dealing with perishable goods or shipments to ensure efficient and safe delivery.

Read more about: Commercial property prices in Turkey

3. Industrial investment

The industrial sector in Turkey offers a variety of investment opportunities, and in fact, there are many potential fields that Saudi investors can consider. Among them:

• Automotive: Turkey is known for its automotive industry and is a branch of many global car manufacturing companies. There are also opportunities to invest in manufacturing facilities, supply chain management, and logistics services.
• Textiles: Turkey is a major producer of textiles, with a long history and comprehensive, advanced infrastructure in this industry, including textile machinery and equipment.
• Chemicals: Turkey has a developed chemical industry, focusing on petrochemicals and plastics, which means opportunities in production, research and development, and distribution networks.
• Food processing: Turkey is known for its diverse agricultural sector, food manufacturing, packaging, and export.
• Machinery and equipment: The machinery and equipment industry is one of Turkey's most renowned sectors, including industrial machinery, construction equipment, and agricultural machines, which are in demand in many countries around the world.

4. Tourism investment

Turkey is a popular destination for tourism and investment, offering many opportunities for Saudis interested in investing in the country's tourism industry. Several important reasons make it an attractive destination for Saudis seeking to invest in tourism, including:

• Geographical location: It is relatively close to the Kingdom of Saudi Arabia, making it an easily accessible destination for Saudis. This proximity means it is easy for Saudis to monitor their investments in Turkey.
• Strong tourism sector: Turkey is known for its vibrant tourism sector, attracting millions of visitors every year, which means there are many opportunities for Saudis to invest in hotels, resorts, restaurants, and other related businesses.
• Thriving economy: The Turkish government has implemented several policies to encourage foreign investment in the country, and the economy has grown rapidly in recent years, making it a preferred destination for foreign investors.
• Favorable business environment, low tax rates, and easy restrictions on foreign ownership of companies, which in turn makes it easier for Saudis to invest in Turkey.

Read more about tourist properties in Turkey and their most important features

5. Agricultural investment

Turkey offers many opportunities in the agricultural sector for Saudis interested in investing in agriculture. Several factors make the country suitable for this type of investment, including:

• Favorable climate and soil conditions: Turkey has a climate and soil suitable for growing a wide variety of crops, including fruits, vegetables, and grains. It is also rich in natural resources, such as various water sources necessary for agricultural production.
• Government support: The Turkish government is committed to supporting the agricultural industry and has implemented many policies and programs to encourage investment and growth in this sector. This includes subsidies, tax incentives, and investment promotion schemes.
• Large local market and access to global markets: Turkey has a large domestic market for agricultural products and free trade agreements with many countries, including the European Union, providing investors with access to global markets and export opportunities.

Conditions for investing in Turkey for Saudis

Saudi investors seeking to invest in Turkey are subject to certain terms and conditions, including:

• Legal framework: When investing in Turkey, it is important for foreign investors to comply with the Turkish Commercial Code and other relevant laws. The Turkish government has enacted several laws over the years to create a more favorable environment for investors.
• The licensed company's capital for investment must not be less than 10,000 Turkish liras.
• Work permits: Foreign investors wishing to work in Turkey must obtain work permits for their employees. These permits are issued by the Ministry of Labor and Social Security and are subject to certain terms and restrictions.
• Intellectual property protection: Turkey has a well-established legal framework for intellectual property protection, including patents, trademarks, and copyrights.
• Taxes: Investors are required to obtain a tax number from the tax office to be subject to Turkish tax laws and regulations, including corporate income tax, value-added tax (VAT), and withholding tax.

It is worth noting that each type of investment has its own specific conditions and regulations that determine the nature of the work and how it is implemented.

Learn about the most important investment tips in Turkey with Imtilak Real Estate.

Advantages for Saudi investors in Turkey

There are many advantages that Saudi investors can benefit from in Turkey. The most important include:

• Strategic location: Turkey is located at the crossroads between Europe and Asia, making it an ideal location for companies looking to expand in these regions. The country offers access to major markets such as the European Union, Arab countries, and Central Asia.
• Large and growing market: Turkey has a large and growing consumer market, with a population of over 80 million, and a growing middle class, which means new opportunities for companies in various sectors.
• Skilled workforce: Turkey has an experienced and skilled workforce, with a large number of young workers proficient in various fields, making it an attractive destination for foreign investment companies.
• Investment incentives: The Turkish government offers a range of incentives to encourage investment in the country, including tax exemptions, subsidies, and low-interest loans. These incentives help reduce business costs and increase investment profits.
• Infrastructure: Turkey has made significant investments in infrastructure in recent years, including new airports, highways, high-speed railways, telecommunications, energy, and more.
• Easy and encouraging banking transactions: The country has a developed banking system and financial laws that attract foreign capital to operate in Turkey.
• Access to natural resources: Turkey has significant natural resources, including coal, natural gas, and minerals such as boron and copper. The country is also a major source of agricultural products such as wheat, cotton, and hazelnuts.

Imtilak Real Estate services in the field of real estate investment for Saudi investors

Imtilak Real Estate offers its integrated services to Saudi investors wishing to invest in real estate in Turkey, putting its experience of more than ten years in the Turkish real estate market at the disposal of its investor clients.

Imtilak Real Estate, through its offices and branches distributed across the most important provinces and cities in Turkey, provides the best real estate opportunities and special offers to suit the desires of investors and align with their goals and aspirations, in addition to offering integrated services covering everything needed in this field.

Among the most important services the company offers in this area are Turkish citizenship services and everything related to it up to its receipt, legal consultations, document services such as obtaining title deeds and residence permits, as well as after-sales services such as renting, investing, or reselling the property if the client wishes.

For more information or clarification, contact Imtilak Real Estate, the real estate experts in Turkey.

Edited by: Imtilak Real Estate©