With its geostrategic location, resilient and fast-growing economy, manufacturing capabilities, young and dynamic population, and developed logistics infrastructure, Türkiye has become a regional powerhouse where manufacturing activities of multinationals are supported by R&D centres, design teams, procurement offices, logistics hubs, and regional management centres. As of today, almost 80,000 international companies operate in Türkiye. Cumulative FDI inflows to Türkiye have exceeded USD 250 billion since 2003, up from USD 15 billion in the previous three decades until 2002. Since 2003, the top four sectors in FDI inflows have been financial services, manufacturing industries, energy, and information & communication technologies (ICT). The Spanish companies’ investment in Türkiye reached to 11.3 billion $ in the last 20 years with a total of 724 companies with Spanish capital operating in Türkiye. Türkiye offers an excellent and cost-efficient manufacturing platform for Spanish companies and also not only counts with a domestic market of 85 million people but also easy access to a wide variety of countries from Türkiye.
Thanks to many successful international and domestic investors, Türkiye today is seamlessly integrated with global supply chains (GVCs). As “Invest in Türkiye”, our goal is to attract value-added and technology-intensive investments that will cement and force Türkiye’s position in GVCs. Among the priority sectors we support we can name e-mobility, life sciences, energy storage, chemicals, ICT, machinery, advanced manufacturing, defense & aerospace, and agrofood.
Over the last decade and particularly post-pandemic, Türkiye has proven to be a resilient player in GVCs, with multinational corporations shoring up their presence in the country in line with their nearshoring, regionalization, and diversification strategies. Given its strategic location that connects three continents, Türkiye has become a regional powerhouse where manufacturing activities of multinationals are supported by R&D centres. The multinationals that choose Türkiye also benefits from one of the most competitive investment incentives regimes among the emerging markets with tailored and complete packages for both greenfield and brownfield projects in manufacturing, services, and R&D activities.
Furthermore, Türkiye offers abundant opportunities in a wide variety of sectors where it has a competitive edge. To name a few sectors, Türkiye is the 14th largest automotive manufacturer globally with 1.5 million units/year; largest TV & white goods producer in Europe; important energy hub with untapped opportunities in the renewables; infrastructure opportunities in energy, healthcare, transportation, among others.
A further attractive investment opportunity lately in Türkiye is the investments in start-ups. Fuelled by an entrepreneurial business culture, young and tech-savvy population, and a skilled engineer pool, Turkish startups raised USD 1.6 billion in funding in 2022. Türkiye claimed a spot among the top ten investment recipients in Europe. More to that point, Türkiye’s ecosystem has raised three unicorns and two decacorns in grocery delivery, gaming, and SaaS verticals since 2020. Istanbul ranked 6th among European cities in terms of early-stage investments in 2022, and 2nd city in the gaming vertical in Europe. We invite Spanish financial investors to participate in the next success stories and yield high returns by investing in Turkish tech startups, directly or through venture capital (VC) funds.
Türkiye has become a regional powerhouse where manufacturing activities of multinationals are supported by R&D centres, design teams, procurement offices, logistics hubs, and regional management centres
In line with the growing economy, Türkiye has redefined its economic development policy to align with the UN’s Sustainable Development Goals (SDGs) and is actively engaged with the international community to achieve these objectives. Türkiye is committed to the Paris Climate Agreement, aiming to reach net zero emissions by 2053. To this end, policies that promote innovation in areas such as electric vehicles, energy storage, and digital technologies will be critical in the coming years. We, as Invest in Türkiye, prioritize and substantially support investments that contribute to specific SDGs.
To be able to help the investors get the best results from their investments in Türkiye, The Investment Office of the Presidency of the Republic of Türkiye is established. The Investment Office is the official organization for promoting Türkiye’s investment opportunities to the global business community and for helping investors before, during, and after their entry into Türkiye. Directly reporting to the President of Türkiye, the Investment Office oversees 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. The Investment Office is present in Spain since 2009. From the Investment Office, we offer an extensive range of services to investors through a one-stop-shop approach, ensuring that they obtain optimal results from their investments in Türkiye.
Driven by its strengthened organizational structure and lean business processes, Invest in Türkiye will continue to reinforce its strategic partnership with investors and collaboration with stakeholders. As the global economy undergoes a radical transition and global economic hubs shift, we are mindful that we must work persistently to meet our targets for 2023, the centennial of the Republic of Türkiye. To this end, we will all continue to work with diligence and renewed vitality for a vibrant start and enhanced resilience in Türkiye’s new century.
Yasemen Korukçu is senior advisor for the Investment Office of the Presidency of Turkey, covering Spain, Portugal, Mexico and Holland, and one of the founders and Vice President of the Spanish-Turkish Chamber of Commerce and Industry.