Trade In Turkey

Why is it interesting to do business with Turkey?

Turkey is close to Europe (just a two to three hour flight to major European destinations), the Middle East, and the Caucasus. As a bridge between Europe and Asia, Turkey benefits from its location. It also acts as an energy corridor, connecting these two continents.

Turkey is a large and rapidly growing economy, which consists mainly of small and medium businesses. Many products are manufactured in Turkey such as clothing, leather goods, cosmetics, furniture and find their way to customers especially in the European Union. The country’s economic heart, Istanbul, remains the highest-exporting city in Turkey followed by Bursa, Kocaeli, Izmir and Gaziantep.

Turkey entered a customs union with the EU in 1996 and has been an EU accession candidate since 2005. This resulted in the expansion of trade relations with Europe, which now account for around 40{594bfae6f6d62375907af2c0c5499331dd6b82c3546c4accb38b693d646abdc1} of Turkey’s trade.

Turkey offers an accessible, skilled, and cost-effective workforce, providing the fourth largest labour force amongst EU members and accession countries. It boasts a large population of over 74 million people, 47{594bfae6f6d62375907af2c0c5499331dd6b82c3546c4accb38b693d646abdc1} of which are younger than 30 years old.

The Turkish government provides various tax and non-tax incentives to foreign investors, in line with those provided to domestic companies. These include customs and VAT exemptions on various imported or locally delivered goods, including machinery and equipment, as well as priority regions which offer incentives such as free land and energy support. Investors can also benefit from R&D support with the aim of encouraging exports and increasing the competitiveness of firms in international markets.

The Turkish government also introduced flexible exchange rate policies and liberal import regulations in order to promote and sustain foreign investment.

In recent years, Turkish banks took on an increasingly larger role in financing project deals, which benefit from increasingly liquid balance sheets in many cases.

The Turkish legal framework offers a level playing field to domestic companies. Foreign ownership is unrestricted, with no pre-entry screening requirements.

​Region: Europe & Central Asia
Income Category: Upper middle income
Population: : 78,665,830
GNI Per Capital: (US$)9,950
City covered: Istanbul​