What Does Turkish Market Offer to British Investors

There are hundreds of reasons for UK investors, importers, producers and exporters to turn their attention to Turkey which is one of the fastest growing economies in the world at last 20 years. Below you will find onlt 18 of them.

  • Turkey is determined to meet the EU regulatory standards with new initiatives and implementations and make the Turkish market a much more familiar environment for the UK and EU businesses.
  • Turkey has a hardworking qualified labour force that is growing steadily with the addition of nearly 700,000 graduates per year.
  • It is relatively easy to start a business in Turkey, which on average takes only about 6.5 days for company set ups.
  • And more importantly with the exception of food products, coal and steel, all exports to Turkey have zero rated customs duty in Turkey.
  • Geographically and culturally, Turkey is a gateway to the markets of Central Asia, south Caucasus and the Middle East.
  • British services and products are in high esteem in Turkey.
  • Bilateral trade between the UK and Turkey is regulated by the Customs Union. With three exceptions, namely Food products, Coal and Steel, there is no tariff nor customs duty, on any product traded between the two counties. When the UK leaves the EU, the two countries will evaluate if they can remove these exceptions to expand the current range of bilateral trade.
  • Also, the Turkish Foreign Direct Investment Law that has been in rule since 2003 has been very favourable for foreign companies doing businesses in Turkey.
  • Sectors that are particularly important for Turkish companies exporting to the UK are numerous. To name but a few: textile, machinery, food & beverage, electronics, white goods, vehicles, parts, articles of iron and steel. The volume of Turkish exports to the UK is expected to increase in the medium-term.
  • The Turkish Foreign Direct Investment Law has opened-up the Turkish market for foreign investors, putting in place freedom from Nationality discrimination to invest, measures against expropriation and nationalization, and improves international arbitration, employment of expats, free transfer of funds and access to real estate.
  • Turkey has been cited as the country to realise the fastest transparency to foreign investment among OECD members between 2003 and 2016.
  • The key features that make Turkey an attractive investment destination for British companies are strong economy, large and young population, hardworking and skilled labour force, liberal investment climate, progressive commercial code, strong infrastructure, geographical advantage, energy corridor, low taxes, numerous incentives, EU customs union, large domestic market and high regard of British services and products.
  • There are many infrastructure advancements; new and highly-developed technological infrastructure in transportation, telecommunications and energy, well-developed and low-cost sea transport facilities, railway transport advantage to Central and Eastern Europe, and well-established transportation routes, with direct delivery mechanism to most of the EU countries.
  • Corporate Income Tax has been reduced from 33 percent to 20 percent.
  • Tax benefits and incentives have been introduced in Technology Development Zones, Industrial Zones and Free Zones, including total or partial exemption from Corporate Income Tax, a grant on employer’s social security share, as well as land allocation. Further incentives relate to R&D and Innovation Support Law, as well as strategic investments, large-scale investments and regional investments.
  • Key sectors for the opportunities for UK companies in Turkey are Agriculture, ICT, Automotive, Infrastructure (Airports-Pots), Chemicals, Machinery, Energy, Real Estate, Environmental Technology, Defence & Security, Aerospace, Financial Services, Insurance, Tourism, Food & Beverage, Medical Technology, Healthcare and Transportation/Logistics. But these are not exhaustive.
  • Turkey is an important energy terminal and corridor in Europe, connecting the East and the West, located at a close proximity of more than 70 percent of the world’s proven primary energy reserves.