Key Advantages of Doing Business with Turkey

Growing Economy

Having the highest growth rate among OECD countries for the past six years, Turkey is a rising star of the global economy. The GDP of Turkey in purchasing power parity reached $942 billion in 2008 establishing it as the 15th largest economy in the world and 6th in the EU. Turkey has attracted more than 18,000 foreign capital establishments and its continuous growth rate has it on track to become a $1 trillion dollar economy in 2010.

Strategic Location

Known as the place where East and West come together, Turkey’s location places it as the crossroad of continents. It is centrally located in the landscape known as “Afro-Eurasia” serving as a gateway to Europe, Central Asia, the Middle East and the Pan Euro-Mediterranean region. This gives businesses access to over 1 billion consumers explaining why companies including Microsoft, Coca-Cola, GE, Proctor & Gamble and HP have chosen Turkey as their regional operational headquarters.

Large Consumer Base and Workforce

Turkey’s young, dynamic, and well educated inhabitants provide companies with a growing consumer base. With 65% of the population under 34 and an average age of 28, Turkey’s young population has a strong appetite to adopt new technologies and ideas. With the number of college graduates increasing, Turkey provides companies with an educated, highly motivated workforce of over 24 million people. Turkish professionals are among the most qualified executives in the world.

First Rate, Cost Effective Manufacturing

Turkish manufacturing industries are moving up the value chain and accelerating the production of value-added goods with cost effective means. Businesses in Turkey have begun to allocate a larger portion of their budgets to R&D spending and focus on developing technology-intensive goods and services. Turkey is the largest supplier of TV sets to the EU and the third largest light commercial vehicle manufacturer with 17 companies manufacturing motor vehicles. In 2008, Turkey was ranked the 6th largest automotive producer in Europe. Manufacturing goods make up more than 80% of Turkey’s exports and their high quality is proven from winning the European Award in several categories.

Liberal Business Climate

Turkey’s corporate tax rate is a flat 20%, one of the most competitive tax rates in the world. The average tariff for industrial goods is only 4.2%, lower than many emerging countries. Because of Turkey’s Customs Union agreement with the EU, Turkey’s trade regulations are compatible with those of the EU. Furthermore, the Turkish government has been implementing structural reforms in public and private sectors to make the trading and investment climate more business friendly. It has also been pursuing prudent fiscal and monetary policies during the past six years.

Ease in Setting up Business

Turkey’s regulatory climate is quite business-friendly. Turkey ranks ahead of competitors and OECD countries in terms of average business startup time. Anyone can establish a business in Turkey, irrespective of nationality or place of residence. Registration and establishment of a company can be completed in a single day.

Rising Tourism

Turkey has taken huge leaps forward in increasing tourism numbers and revenues. In 2008, Turkey was ranked the 8th most popular tourism destination in the world with 25 million international arrivals. Turkey’s diverse geography, rich natural, cultural and historical resources allow it to offer a variety of tourism pursuits year round. With the high growth of international arrivals during the last decade, Turkey is set to become one of the top five most visited countries within five years.

Energy Corridor

Turkey is a vital energy and trade hub for the European Union and world. Multiple gas and oil pipeline projects are underway to bring Russian, Caucasian, Iranian, Iraqi and Egyptian gas and oil to Turkey. Besides its ability to provide reliable connection between energy resource and user countries, Turkey has become a significant Eurasian Energy Corridor and Terminal between the East and West. With the completion of the Nabucco pipeline, one of the most ambitious pipeline projects of the century, Turkey is expected to transport 10% global oil and gas supplies from its soil. In order to meet growing demand of energy, Turkey has been undertaking large scale projects in the energy field.

Entrepreneurship

Small and medium sized companies account for the majority of Turkish firms. Turkish people are very entrepreneurial because of prevailing business cultures, historical heritage and Turkey’s strategic location at the crossroad of trade routes. The private sector is the main driving force of economic growth. The number of companies involved in foreign trade increased by threefold during the last five years. Turkey is a major industrial product supplier and leading foreign direct investor in the Caucasian and Central Asian Turkic Republics. Increasing number of participation from Turkish entrepreneurs to international trade shows is remarkable in indicating the appetite to do business overseas.