Turkey is increasingly becoming a hotspot for entrepreneurs and investors worldwide. Known for its strategic location, dynamic economy, and vibrant business environment, Turkey offers numerous opportunities for those looking to start or expand their business.
In this article, we’ll explore why business in Turkey is thriving, the key sectors driving growth, and the best cities to establish your enterprise.
5 Reasons to Do Business in Turkey
“Turkey is an emerging market economy and often classified as a newly industrialized country.”
From its strategic location to its supportive government policies, Turkey offers unique benefits that can propel your business to new heights. Here are five compelling reasons to consider starting or expanding your business in Turkey.
1. Strategic Location
Turkey’s strategic position as a bridge between Europe and Asia makes it a prime location for business. It serves as a central hub for trade and commerce, providing easy access to multiple markets.
The country’s proximity to Europe, the Middle East, and North Africa allows businesses to operate efficiently across continents, facilitating international trade and investment.
2. Growing Economy
Turkey boasts a rapidly growing economy, with a significant rise in GDP over the past decade. Key sectors contributing to this growth include manufacturing, tourism, and technology.
The country is also diversifying its economy, making it resilient and attractive for investors. This economic stability provides a solid foundation for businesses looking to grow and thrive.
3. Government Incentives
The Turkish government offers various incentives to attract foreign investors. These include tax benefits, grants, and support programs designed to ease the process of starting and running a business.
The investment incentive system in Turkey aims to:
- Boost the production of goods and products that have a high import dependence, thereby reducing the current account deficit.
- Encourage high and medium-high-tech investments to drive technological transformation.
- Support clustering activities to enhance synergy and efficiency among related industries.
- Enhance the effectiveness of support measures and incentives.
- Minimize regional development disparities.
- Provide increased investment support to the least developed regions.
Additionally, the government has implemented reforms to improve the business environment, making it more transparent and investor-friendly.
4. Developed Infrastructure
Turkey has invested heavily in developing its infrastructure. The country boasts advanced transportation networks, including new airports, highways, and logistic centers, which facilitate efficient movement of goods and services.
Moreover, Turkey’s communication and energy infrastructure supports modern business operations, ensuring reliability and efficiency.
5. Access to Markets
Turkey’s free trade agreements and customs union with the European Union provide businesses with access to a market of over 1.5 billion people.
This vast market potential spans Europe, the Middle East, and North Africa, offering immense opportunities for trade and investment.
Key Industries for Business in Turkey
Understanding the key industries is crucial for anyone interested in business in Turkey. The country boasts a diverse and dynamic economic landscape, with several sectors standing out for their robust growth and investment potential.
From textiles and automotive to tourism and technology, Turkey offers a wealth of opportunities for entrepreneurs and investors. Let’s delve into the main industries driving the success of business in Turkey.
Textiles and Apparel
“Turkey is the 7th largest textile products exporter and 4th largest clothing exporter in the world.”
Turkey is renowned as a leading exporter of textiles and garments. The country’s textile industry is one of the oldest and most successful in the world, with major brands sourcing their products from Turkey.
In 2023 alone, the textile and apparel industry generated billions in exports, highlighting its importance to the economy.
Automotive Industry
The automotive industry in Turkey is robust, with significant contributions to manufacturing and exports. Turkey is home to major automotive companies such as Ford, Toyota, and Renault, which have established manufacturing plants in the country.
This industry not only supports domestic production but also exports vehicles and components worldwide.
Tourism and Hospitality
Turkey’s tourism industry is a major economic driver, attracting millions of visitors each year. Iconic destinations such as Istanbul, Antalya, and Cappadocia are world-renowned, offering rich cultural experiences and business opportunities in hospitality, real estate, and related services.
The tourism sector’s contribution to the economy is substantial, providing numerous investment opportunities.
Technology and Startups
Turkey’s tech scene is growing rapidly, with a burgeoning startup ecosystem. Cities like Istanbul and Ankara are becoming tech hubs, fostering innovation and entrepreneurship.
Successful startups such as Trendyol and Getir have put Turkey on the global map, showcasing the potential for tech investments in the country.
Agriculture and Food Processing
Turkey is a leading exporter of agricultural products and food processing goods. The country produces a wide range of crops, including hazelnuts, apricots, and olives, and exports processed food items to markets worldwide.
The agricultural sector remains a vital part of Turkey’s economy, offering diverse opportunities for investment.
Best Places for Business in Turkey
When considering business in Turkey, it’s essential to choose the right location to maximize your success. Turkey offers several prime cities that are ideal for various industries, each providing unique advantages for entrepreneurs and investors.
Let’s explore the best places for business in Turkey, highlighting what makes each city a top choice for establishing and growing your enterprise.
Istanbul
Istanbul is the financial and commercial hub of Turkey, hosting numerous international companies and financial institutions.
Its strategic location, advanced infrastructure, and vibrant business environment make it an ideal place for entrepreneurs. Key industries in Istanbul include finance, manufacturing, technology, and tourism.
Ankara
As the capital city, Ankara serves as the political and administrative center of Turkey. It is home to key sectors such as defense, aerospace, and government-related businesses.
Ankara’s well-developed infrastructure and government incentives make it an attractive location for business ventures.
Izmir
“With its 4.28 million inhabitants, ancient cities, and natural beauties, it is the focus of many foreign investors.”
Izmir, with its strategic port, plays a crucial role in trade and logistics. The city is known for its agricultural, manufacturing, and tourism industries.
Izmir’s business-friendly environment and strategic location make it a prime choice for entrepreneurs looking to tap into these sectors.
Bursa
Bursa is a significant player in the automotive and textile industries. The city’s industrial zones and favorable business climate support a thriving manufacturing sector.
Entrepreneurs in these industries will find Bursa to be an advantageous location for business.
“About 700 foreign investors from almost 70 countries are making investments in Bursa.”
Antalya
Antalya is renowned for its tourism and hospitality sector. The city offers investment opportunities in real estate, resorts, and related services, thanks to its booming tourism industry.
Entrepreneurs looking to invest in hospitality will find Antalya’s vibrant market highly attractive.
Conclusion
Turkey offers a compelling environment for business in Turkey, with its strategic location, growing economy, and supportive government policies.
Whether you are looking to start a business in textiles, automotive, tourism, technology, or agriculture, business in Turkey provides numerous opportunities for success.
Consider Turkey as your next business destination and begin your journey to success today.
