Why investment in Turkey? The most important 8 factors
Imtilak Real Estate offers you a detailed answer, supported by facts and figures, by experts in the Turkish market, to the question: Why invest in Turkey in 2022?
Why investment in Turkey? The most important 8 factors
Table Of Contents
- Is investment in Turkey still attractive in 2022?
- Why investment in Turkey?
- 1. Government support for local and foreign investments
- 2. Infrastructure prepared for all types of investments
- 3. Diversity and distinctiveness of investment opportunities
- 4. Potential to achieve outstanding returns
- 5. Continuous economic growth
- 6. The increasing trend towards Turkey from all countries of the region
- 7. A stable environment in various fields
- 8. Promising government plans towards expansion in all fields of investment and economy
- Imtilak real estate tips for those wishing to invest in Turkey
- Why investment in Turkey?
Is investment in Turkey still attractive in 2022?
The investment incentives that Turkey possesses make an attractive point for investors, and we can talk about these investment incentives through the following points:
- The strength of the Turkish economy and its entry among the 20 most powerful economies in the world.
- The strategic location that Turkey occupies on two large continents, surrounded by 3 seas the Black Sea, the Mediterranean Sea, and the Aegean Sea from various sides. It also includes an internal sea, the Sea of Marmara, in addition to its long maritime borders with Africa.
- Government facilities are provided by the Turkish state to investors, with the aim of attracting them to invest in Turkey.
- The large geographical area that Turkey extends over provides many options for investments, and in a variety of fields.
- The multiplicity of tourist places that are available in Turkey, the diversity of its facilities, and its distribution in many states on Turkish geography, open up wider and more spacious investment areas.
Why investment in Turkey?
The fact that investment in Turkey is attractive due to several factors, Imtilak Real Estate Company will summarize for you the following eight factors to answer the question: Why invest in Turkey?
1. Government support for local and foreign investments
Turkey has boosted its position as a country that attracts foreign capital from various regions of the world, thanks to the possibilities and opportunities it offers to investors in the long run. Foreign direct investment laws in Turkey stipulate equal treatment between foreign investors and local investors.
In Turkey, there is also an incentive mechanism for investments, carried out in coordination with the Ministry of Industry and Technology, related to the place of investment, its value, and the sector in which the investment will be made.
In this context, the state provides investors with important incentives, such as the possibility of exemption from value-added tax, reductions in customs duties, the possibility of exemption from customs tax, in addition to allocating a place for investment, and other opportunities and capabilities.
To support investors and small earners, the Turkish government approved the investment program in 2021, which was signed by Turkish President Recep Tayyip Erdogan, and stipulated the allocation of 138.3 billion TL (the dollar exchange at that time was about 7.5 TL), to implement 3,091 projects, and then in At the beginning of 2022, the amount allocated for investment increased significantly, reaching 184.3 billion TL for investment in various economic sectors in Turkey.
2. Infrastructure prepared for all types of investments
One of the most important factors attracting investments to Turkey is the quantitative and qualitative development in the infrastructure in Turkey, which makes it a suitable environment for all types of investments.
Every while, observers monitor the completion of huge projects in Turkish infrastructure, such as airports, bridges, transportation, commercial malls, hospitals, universities, and ports.
We often follow Turkey's infrastructure as leading worldwide, such as Basaksehir Medical City - the largest hospital in Europe - Istanbul's leading airport in Europe and the world, the major industrial city in Istanbul ETOSPE, and other large and vital projects.
3. Diversity and distinctiveness of investment opportunities
In addition to the availability of a strong and integrated infrastructure, the investor in Turkey has many unique advantages that the country is full of, perhaps the most important of which is the abundance of investment options in various sectors.
Where the investment options with economic feasibility expand for those who wish to invest in Turkey, and we review the following as a mention of some of these options:
- Industrial investment in Turkey.
- Agricultural and food investment.
- Investments in the service sectors.
- Commercial investment.
- Real Estate Investment In Turkey.
- Communication and information
- Healthcare and medicine
- Financial services
4. Potential to achieve outstanding returns
One of the most important factors that make an investment in Turkey attractive is the possibility of achieving distinctive returns through investing in Turkey.
As the suitable environment for investment in Turkey, the laws encouraging it, the country’s strategic location and close to major markets on the three continents, and Turkey’s possession of a modern and advanced infrastructure network (seaports, air, highways, and internal and external train lines) that help in transporting and exporting various products quickly and easily. The diversity of investment fields, the availability of expert and strong manpower, and the appropriate and reasonable wages, all of the above are the factors of the strength of investment in Turkey, and the confirmation of its financial feasibility confirms that investing in Turkey is feasible and profitable.
5. Continuous economic growth
One of the advantages of investing in Turkey is that it has a promising economy. The Turkish economy has led the indicators of global economic growth, as Turkey’s economy ranked second after Britain in economic growth indicators among the most developed countries of the Organization for Economic Cooperation and Development during the second quarter of 2021, with a growth rate of 21.7%.
Besides, Turkey's exports for the year 2021 achieved a record amount of 225 billion dollars, so the total exports of that year increased by 32.9% compared to the previous year, reaching 225 billion and 368 million dollars. It is worth noting that Turkey aims to raise the value of its exports to 250 billion dollars by 2022.
In addition, the volume of Turkey's foreign trade increased from $87.6 billion only in 2002 to $496.7 billion in 2021.
All these indicators of the strength of the Turkish economy raise the benefits and importance of investment of all kinds in Turkey.
6. The increasing trend towards Turkey from all countries of the region
The increase in orientation towards Turkey from all countries in the region is within the context of the factors attracting investment to Turkey, especially since the recent turmoil in the supply chains has led to a shift in the paths of the global economic giants towards Turkey, and the availability of factors such as strategic location, investment environment, infrastructure, and manpower, and other factors that we have already referred to. This creates a favorable ground for attracting multinational companies to Turkey.
But what has increased Turkey’s distinction is its attraction to major European investors, due to the recent rise in global shipping prices. The huge increase in transportation costs, and the spread of the Coronavirus, have transformed Turkey into an investment attraction center, through the location and cost advantages it provides for many global companies.
Several global companies, based in Europe and operating in sectors, such as furniture, pharmaceuticals, textiles, and packaging; announced their new investment plans in Turkey, which has an advanced infrastructure, and huge logistical potential.
In its latest analysis, the international credit rating agency, Fitch, confirmed that Turkey is the country that will benefit the most from the shifts in supply chains in Europe.
The amended Turkish laws provide remarkable facilities for foreign investors, as newly established companies in Turkey are given an opportunity that extends from 6 months to a full year to arrange their trade before being presented to tax accounting and before achieving the formula of “five Turkish employees for every foreign employee.”
Among the most prominent titles of Turkish attraction to Arab capital is the amendment of the law on granting Turkish citizenship through investment, which reduced the value of the foreign investment in Turkish real estate from $1 million to $250,000 in exchange for obtaining Turkish citizenship in exchange for real estate.
The amendment of the Naturalization Law also provides for the possibility of granting Turkish citizenship to those who deposit sums in the Turkish treasury of about $500,000, or by employing about 50 Turkish workers in an investment owned by a foreigner in Turkey.
7. A stable environment in various fields
Since its political stability to a large extent, and its adoption of the free economy approach for years, trade and economic openness with all countries of the world, in addition to the diversity of its investment fields. Turkey provides international companies with a suitable environment to access the global value chain through its strategic location, free trade network, advanced logistical infrastructure, diversification of production sources, tax incentives, and skilled manpower.
Therefore, Turkey's strategic location has become a magnet for many multinational companies as a center of production, export, and management, enabling them to participate more effectively in the global value chain.
8. Promising government plans towards expansion in all fields of investment and economy
Turkey is adopting a new economic approach, based on supporting investments, creating an environment conducive to employment growth, sustainability, imposing low-interest rates, balancing the demand for foreign exchange by reducing imports, increasing exports, benefiting from the competitive exchange rate, and increasing investments in order to form an economic structure capable of Resist external shocks by attracting foreign direct investment to Turkey instead of hot money.
Turkey has raised the share of government investments in the 2021 budget, which economists consider justified in its efforts to implement the 2023 dream projects.
Besides, Turkish Finance Minister Nureddin Nebati had confirmed in his statements that 2022 will be the year of the highest gains for his country, adding that Turkey will witness during 2022 the breaking of records, the implementation of the new economic model, and the achievement of the highest gains on the economic level.
These statements confirm the government's promising plans to expand in all fields of investment and the economy, which enhances the feasibility of investment opportunities in Turkey.
Imtilak real estate tips for those wishing to invest in Turkey
When investing in Turkey, the determinants of investment there, the conditions of investment in Turkey, and the existing custom prevailing in the country must be taken into account, and that is by asking reliable experts. The goal of investment should be determined before making a decision to start investing, and then determining the budget then following a set of important steps that we referred to in a previous article, giving us the most important tips for investors in Turkey.
Due to its experience for many years in the field of investments in Turkey, Imtilak Real Estate Company provides you with the tips and recommendations you need to help you choose the most effective and appropriate investment for you when you contact us at Imtilak Real Estate.
Edited by Imtilak Real Estate©
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