Ready for next level in transformation

A resilient, fast-growing economy, Türkiye offers business-friendly policies, agile talent pool and global market access at the nexus of Europe, Asia and Africa to attract sustainable FDI

Published: Fri 11 Feb 2022, 12:00 AM

Türkiye has been one of the fastest recovering economies in the world in the aftermath of the Covid-19 outbreak, swiftly adapting itself to the challenges and transformations in the global economy and emerging as a post-pandemic supply hub in the global value chain (GVC). The Turkish economy expanded 7.4 per cent y-o-y in Q3 of 2021, with double-digit growth expected by year's end.

Türkiye’s resilient economy has been a perfect magnet for investments during the pandemic, as it has been for the preceding 18 years. The country remained attractive for greenfield and brownfield investments, as well as mergers and acquisitions (M&As) in a wide range of sectors, and has seen a substantial rise in financial investments, successful startup funding, and lucrative exits. In the past year, the Turkish startup ecosystem saw five unicorns, including an IPO in NASDAQ that set the pace for the Turkish tech industry.

As the Turkish economy recovers from the pandemic, the quality of its economic growth also improves, with significant contributions from net exports to the Eurozone as external demand strengthens. Türkiye has established strong and diverse export capabilities, allowing Turkish products to access a wider and more diverse range of international markets in terms of volume and variety. Other parts of the world, the United States, Middle East and African countries in particular, are now among Türkiye’s top export destinations in addition to the traditional markets of the European Union, which continue to play a major role. Despite global supply chain interruptions and serious manufacturing disruptions in 2020, Türkiye’s yearly exports reached $225.4 billion in 2021, the highest level in the Republic's history.

That being said, why do multinationals opt for Türkiye as a robust GVC link?

Strong and diverse manufacturing capabilities

Buoyed up by strong state support, Türkiye’s manufacturing base is quite diverse and robust, and has evolved up the value chain, having moved from limited to advanced manufacturing according to the World Bank. The industry alone has attracted more than $40 billion of investment over the past 18 years.

Sophisticated logistics infrastructure

As logistics play a pivotal role in GVCs, Türkiye has invested massively in its transport infrastructure over the past decade and a half to create domestic and international transport links.

Proximity to source and destination markets

With its favourable geostrategic location, multinational companies have already made Türkiye their home to run their business in the region, leveraging its location as a manufacturing, exports, R&D and management hub. Türkiye is poised to offer more companies easy access to multiple markets in its immediate vicinity on top of additional market advantages.

Qualified labour force

Türkiye's overall labour force is around 33.3 million people, which makes the country the third largest labour force in Europe and also one of the most dynamic in the region. Furthermore, the country offers a productive pool of qualified engineers and competent senior managers with international experience, which altogether boost the country’s rank over peer countries.

Liberal investment climate with an extensive international trade networks

Having a customs union with the European Union and free trade agreements with over 28 countries, Türkiye has a vast commercial network. Businesses with operations in Türkiye have access to approximately one billion potential customers with no customs restrictions or tariffs.


Applicable both for greenfield and brownfield projects, Türkiye offers a comprehensive incentives programme with a wide range of instruments that helps to minimise upfront costs and expedite returns on investments. These incentives have also been one of the main tools in the Turkish economy’s shift toward higher value-added services. Türkiye’s incentives system is mainly based on tax discounts and exemptions, and tailored for projects in priority sectors classified as key areas for the transfer of technology and economic development, such as investments in freight and/or passenger transportation by sea, airway or railway, energy efficiency, LNG storage, waste recycling, nuclear energy plants and touristic accommodation. Furthermore, medium high-tech and high-tech investments, including products listed by the OECD, receive one of the most generous incentives regardless of the investment’s location. The main components of the incentives in Türkiye include VAT exemption, customs duty exemption, corporate tax reduction, social security premium support, interest rate support on credits, and land allocation.


Türkiye’s robust economy has been a preferred asset for investors over the last 18 years, as has been the case when investors worldwide sought safe havens with high yields and lower risks in the aftermath of the 2008 Global Financial Crisis. Thanks to its impressive growth rates and financial reforms, Türkiye has become one of those countries that has aroused the interest of global investors.

A diversified economy, a young population with half under the age of 32.7, and an entrepreneurial business ecosystem supported by ever-improving reforms stand out as unrivaled advantages for international companies looking to increase their commitments in Türkiye and grow their investments in the region using Türkiye as a springboard.

Türkiye has emerged as a prominent regional player with global ambitions to become one of the top 10 economies in the world. According to IMF, Türkiye posted the second highest growth among G20 members in 2020, becoming the world's 11th largest economy in terms of purchasing power parity. In the same period, Türkiye stood among G20 members with the highest increase in industrial production.


His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, paid an official visit to Türkiye on November 24, 2021, upon the invitation of President Recep Tayyip Erdoğan. This visit is of great importance both for the diplomacy of the countries in the region and the economic ties between the two countries.

During the visit, a series of significant investment agreements and MoUs that will enhance cooperation in the fields of trade, energy and environment were signed between the two countries.

The list of agreements signed between the UAE’s sovereign investment fund ADQ and the Türkiye Wealth Fund (TWF) includes a general cooperation agreement, an MoU to establish a ‘Technology-driven Venture Capital Fund’ to invest in Turkish tech companies, and a cooperation agreement related to Abu Dhabi Ports’ port and logistics investments in Türkiye. Meanwhile, a cooperation agreement was also inked between the Abu Dhabi Stock Exchange — also owned by ADQ — and TWF’s Borsa Istanbul.

In addition, ADQ signed a strategic cooperation agreement with the Investment Office, entailing direct investments and cooperation with Türkiye in the fields of petrochemicals, technology, transportation, infrastructure, healthcare, financial services, agrofood, and energy, including the existing and new projects for renewables of up to 3 GW in Türkiye.

President Recep Tayyip Erdoğan is expected to pay a follow-up visit in February 2022, while a free trade agreement between the two countries is also likely to take place in the upcoming period, resulting in an increase in bilateral trade volumes over the existing Double Taxation Prevention Treaty.

UAE companies and funds have been increasingly expanding their investments in Türkiye — a trend that is projected to continue. Some of the notable examples include DP World’s establishment of a modern port facility in Yarımca-Kocaeli and Emirates NBD’s acquisition of Denizbank from Russia's Sberbank. ADQ and Mubadala have recently invested in Getir, Türkiye’s on-demand rapid delivery pioneer, and Trendyol, the country’s largest e-commerce company. Meanwhile, the Abu Dhabi Investment Authority has long been the owner of the Çırağan Kempinski Hotel, while Emaar has developed the Emaar Square Mall in Istanbul. The group previously developed the Toskana Valley Project. Apart from these investments by state-backed companies, private sector companies in the UAE are also active in Türkiye, with tech-driven venture capital companies showing an increased appetite.


The Investment Office of the Presidency of the Republic of Türkiye promotes Türkiye's investment opportunities to the global business community and provides assistance to investors before, during, and after their entry into Türkiye. Directly reporting to the President of Türkiye, the Investment Office is in charge of encouraging investments that further enhance the economic development of Türkiye. To this end, the Investment Office supports high-tech, value-added, and employment-generating investments with its facilitation and follow-up services during whole processes of relevant investments.

Active on a global scale, the Investment Office operates with a network of local consultants based in a number of locations including the UAE, China, Germany, Italy, Japan, Malaysia, Qatar, Saudi Arabia, Singapore, South Korea, Spain, and USA. The Investment Office offers an extensive range of services to investors through a one-stop-shop approach, ensuring that they obtain optimal results from their investments in Türkiye.

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