Turkey’s robust economy has been a favorite choice of investors over the last decade and a half. Investors worldwide sought out safe havens that offered high yields and lower risks in the aftermath of the 2008 Global Financial Crisis. Turkey managed to become one of those countries that piqued the interest of global investors thanks to its impressive growth rates and financial reforms.
A young population with half under age 32, an entrepreneurial business ecosystem supported by reforms, and a strategic location to access regional markets stand out as attractive advantages for global companies looking to increase their commitments in Turkey and to grow their investments in the region using Turkey as a springboard.
Turkey has emerged as a strong regional player with global ambitions to be one of the top 10 economies in the world. Today it is ranked as the 13th largest economy (GDP at PPP), up from 18th in 2003, achieving an impressive annual growth rate of 5.6 percent over the past 16 years.
The economic growth in the last decade has paved the way for the emergence of a sizeable middle class with increasing purchasing power. The domestic market is further supported by emerging urban centers across Turkey, now reaching more than 20 such centers with populations of over 1 million.
Turkey’s investment environment is also favorable, offering a landscape that is comparatively easy to navigate. Turkey enacted a new Foreign Direct Investment Law in 2003, enshrining equal treatment for all investors, both foreign and domestic, and providing them with certain guarantees, such as international arbitration, guarantee of profit transfer and protection against expropriation. The bilateral investment treaties signed with more than 75 countries also protect foreign investments in Turkey. Turkey has also signed bilateral tax treaties with some 80 countries to prevent double taxation. The local accounting system is also mostly aligned with international accounting standards.