Investment Environment

-LOCATION

Turkey’s  location is one of its greatest assets from the business perspective. Turkey is located at the meeting point between Europe and Asia and the Middle East. Doing  business in Turkey means easy access through neighbouring countries of Greece and Bulgaria into  Eruopean market, and through  Iran, Georgia, Armania and Azebaijan to Central Asian market, and through  Iraq, Syria to Middle East Market, as well as rapidly growing its own domestic market.

Thus this location is a gateway to access Russia, Kazahistan  Turkmenistan, Uzbekistan and Azerbeyjan where your Turkish joint partner may have the further advantage of sharing same heritage and cultural affilation of Central Asian republics.

-SECURE INVESTMENT/BUSİNESS ENVIRONMENT

Turkey offers a secure environment by being part of bilateral and multilaterl agreements. Profits, royalties, capital investments are transferred without restrictions and both foreign  and domestic capial is treated equally . Turkey and US signed  Accord for the Reciprocal Promotion and Protection of Investments.

http://www.investinturkey.gov.tr/cms/index.php?c=14

http://www.investinturkey.gov.tr/cms/index.php?c=37

INFRASTRUCTURE

Communication:

Turkey has a relatively "young" telecommunications network with the latest technology, which can easily compete with the developed countries. There is one  telephone operator (recently privatized TURKTELEKOM) and 4 GSM operator. 19 million basic telephone, 20 million mobile phone and 6 million internet subscriber in Turkey.  3 stalite launched  in space launched by TURKTELEKOM provides  all kinds of national and international telecommunication services in Turkey.

Communication infrastructure  has  a line capacity of 18.253.00 of which 83% is digital.  Services include basic telephone, NMT mobile telephone, paging, VSAT, IBS, GMPCS, packet switched data, leased lines, video conference, cable TV, ISDN, Centrex, TTnet, Videotex, Directory and 118 Assistant Directory etc.

http://www.investinturkey.gov.tr/cms/index.php?a=39

You may visit for further and detailed information Ministry of Transport's web site:

http://www.ubak.gov.tr

TRANSPORTATION

Turkey, being at the crossroads of major trade routes between Europe and Asia has many transit roads. Investments to improve the highway system, and the railways incrased recent years which your goods can be transported easily.

Turkish Airlines has direct flights to  major US cities (New York and Chicago)  and connection flights to  most European, Asian, Middle Eastern, and Far Eastarn cities.  Turksih Airlens has sales offices in New York and Chicago.

http://www.thy.com.tr/en/index.htm

http://www.thy.com.tr/cgi-bin/tk_offices/ofis-list.cgi/of/en/

The Turkish Maritime Fleet also offers  services to the USA. Public and private companies operate both domestic and international cargo services.

For further information visit  Turkish Maritime web address.

http ://www.tdi.com.tr

For private maritime companies detailed information may be obtained  from :

SOCIAL FACTORS

Turkey is the only Moslem country in the world which is not an Islamic state but a democratic state and is ruled by a parliamentary  democracy.

Life in Turkey is similar to the most western countries

From a  US citizen  perspective who is Turkey wrote  about some misconception about Turkey.

You may access her essay at http://www.turkeycentral.com/country_of_turkey.html

ECONOMIC FACTORS

- The average growth rate of 5.4 % for the last 5 years is well above many OECD countries, implying a dynamic and growing economy. WTO outputs also state that Turkey is among the most dynamic 20 countries in the world trade.

-Turkey is declared in 1996 as “Emerging 10 Market by US Department of Trade.

-Liberal economy which is free market oriented

-Repatriation of investment

-Free movement of foreign exchange and capital

-Labor force. Young, educated work force offers relatively lower labor cost.

-Fuly committed to integrate European Union(EU) and seeking full membership.  Customs union with the EU has been fully operational since 1996. Thus goods move freely betweenTurkey and the European Union (EU).Turkey is a founding member of the World Trade Organization.

For updated economic policies can be obtained from Department of Treasury.

http://www.investinturkey.gov.tr/cms/index.php?c=14

INCENTIVES

Turkey offers many advantages to potential investors. Investment incentives for certain industries may include customs exemption for machinery and equipment, raw materials, corparate tax breaks, and allocation of land.

http://www.investinturkey.gov.tr/cms/index.php?c=40

MINIMUM CAPITAL REQUIREMENT:

In order to establish corporations or become parners in existing companies and opening branch offices real and legal foreign entities  should invest minimum $ 50,000. There is no limitation in participation ratios of local and foreign parners.  A business may own 100 % by foreign entity.

http://www.investinturkey.gov.tr/cms/index.php?a=121

FREE TRADE ZONES

They are considered outside of Turkish customs, thus you may be able to produce at a lower cost for the targeted market.

It may offer reduced paperwork, no custom formalities, no corporate or income taxes .

There are 21 Free Zones throughout in the country. Operation licenses and further information can be obtained from the Directorate General of Free Zones.

http://www.investinturkey.gov.tr/cms/index.php?a=207

http://www.foreigntrade.gov.tr/sb/english/freezone1.htm

TYPES OF INVESTMENT

You may choose either partnering with a Turkish company, direct investing ,  franchaising/licensing, operating in free trade zones, liaison/branch office, or portfolio investment.

www.investinginturkey.gov.tr

FOREIGN DIRECT INVESTMENT

Turkey offers stabilty to the US investor. “The Big 3” (Ford, Chrysler and GM) have been  in Turkey since 1950.  One can find other familar nanes such as Toyota, Honda, P and G, Philip Morris, Renaul, Cement Francaise, Bosch, Mercedes, Siement, Pirell, Fiat and so on.  

LICENCING AND FRANCASING

US companies are already established and in operation under lincensing or francising methods. A few examples are McDonald, Pizza Hut, Wendy and Subway.

http://www.investinginturkey.gov.tr

PORTFOLIO INVESTMENT

Further information can be obtained from both “Capital Markets Board of Turkey” and “Istanbul Stock Exchange.

http://www.spk.gov.tr

http://www.ise.org/

http://www.investinginturkey.gov.tr/

PRIVATIZATION

http://www.investinginturkey.gov.tr

Further information can be obtained from Privatization Administraion.

www.oib.gov.tr

GAP Project (Southern Anatolia Project)

GAP project is largest investment for regional development of Turkey.  The projects not only offer investment opportunities in the field of energy and irrigation , which was originally started, but also in the fields of  agriculture,, animal husbandry,  construction, and chemical sector.

http://www.investinginturkey.gov.tr/gap.html

Further information can be obtained from Southestern Anatolian Poject Regional Development Administration

www.gap.gov.tr

MONETARY AND FISCAL POLICIES

Recent structural economic reform program’s aim is to insulate economy from political influence.  Monetary and financial systems are insulated from political pressure concequently Central Bank has greater authonomy in the monetary policies. Chronic high level of inflation is under control which this may also offers oportunities for institutional investors.

For public expenditure and monetary policies updated information can be obtained by visiting

Maliye Bakanlığı Ministry of Finance

http://www.gelirler.gov.tr/gelir2.nsf/MainEng?OpenFrameset

Central Bank of Republic of Turkey

http://www.tcmb.gov.tr/new/eng/index.html

MEDIA IN ENGLISH

You can follow up daily development by reading Turkish dailies published in English.

http://www.turkishdailynews.com

http://www.ntv.com.tr/news/ENGLISH_Front.asp

http://turkey.newstrove.com

TURKISH PARTNER SEARCH

There are many sources for your search; apart from Turkish missions abroad, potential partners  can be reached by chamber of commerces  and association of Turkey.

Those Turkish small and medium companies seeking or interested in   US partnership will be informed by  these institutions as they  will disseminate your intention among  its members, so that interested Turkish companies may contact you directly. You may also obtain company profile of potential Turkish business partners  from the Chambers of Commerce free of charge.

Here are the links for  major chambers of commerce and business institutions web sites which you may contact directly.

-Union of Chambers of Commerce, Industry, Maritime, Commerce and Commodity Ewchanges of Turkey

http://www.tobb.org.tr

-Istanbul Chamber of Commerce

www.tr-ito.com

-İzmir Chamber of Commerce

www.izto.org.tr

-Adana Ticaret Odası

www.adana-to.org.tr

-Ankara Chamber of Commerce

www.atonet.com

-Kayseri Ticaret Odası

www.kayserito.org.tr

Small and Medium Industry Development Organization (KOSGEB)-

Association for Foreign Capital Coordination

http://www.kosgeb.gov.tr/