The government policy of Turkey on foreign investment and the role of the Investment Office have been critical in attracting and facilitating foreign investments in the country. Recent significant investments, such as Hyundai's electric vehicle production expansion, Amazon Web Services' infrastructure region, and the Enerjisa Enerji and Siemens Gamesa joint venture, demonstrate the success of these policies and the Investment Office's efforts. By continuously prioritizing key sectors, offering attractive incentives, simplifying regulations, and developing infrastructure, Turkey is poised to remain an attractive destination for foreign investors. The ongoing efforts of the Investment Office in promoting and facilitating investments will ensure that Turkey capitalizes on its strategic location, vibrant economy, and growth potential, ultimately benefiting both the nation and the global business community.
Government Policy on Foreign Investment
The government of Turkey has adopted numerous policies aimed at attracting foreign investment and creating a favorable investment climate. Key aspects of these policies include:
- Investment Incentives: Turkey offers various investment incentives, such as tax breaks, reduced bureaucracy, and employment support, to attract foreign investment in targeted sectors like automotive, renewable energy, information technology, and tourism.
- Special Investment Zones: The government has established several Organized Industrial Zones (OIZs) and Free Zones throughout the country, providing additional incentives and a simplified regulatory environment to attract foreign investment in manufacturing, logistics, and other industries.
- Regulatory Reforms: Turkey has implemented regulatory reforms to enhance the ease of doing business, including simplifying company registration processes, reducing bureaucratic hurdles, and promoting transparency in its regulatory framework.
- Infrastructure Development: The government is committed to investing in infrastructure development, such as transportation, energy, and digital connectivity, to support the growth of foreign investment.
The Role of the Investment Office
The Investment Office, operating under the Presidency of the Republic of Turkey, is the official government agency responsible for promoting and facilitating foreign investment in the country. Key functions of the Investment Office include:
- Providing information and support to potential investors: The Investment Office serves as a liaison between foreign investors and the Turkish government, offering relevant information about investment opportunities, incentives, and the overall investment climate.
- Facilitating investment procedures: The Investment Office assists investors in obtaining the necessary permits, licenses, and approvals required to establish a business in Turkey. It also helps navigate administrative processes and provides support throughout the investment lifecycle.
- Advocating for policy improvements: The Investment Office engages with stakeholders, including investors, government agencies, and business associations, to identify areas for improvement and advocate for policy reforms that enhance the investment climate.
Recent Investments of Importance
Turkey has attracted significant FDI in recent years, with several substantial investments contributing to the country's economic growth. Some noteworthy investments include:
- Investments in the Automotive Sector: In 2021, Hyundai announced plans to invest $150 million to expand its electric vehicle production capacity in Turkey, highlighting the nation's growing prominence in the automotive sector.
- Investments in the Technology Sector: In 2020, Amazon Web Services (AWS) announced its plan to open an infrastructure region in Istanbul, Turkey, by 2022, indicating a strong investment commitment to the country's rapidly developing technology sector.
- Investments in the Renewable Energy Sector: In 2021, Enerjisa Enerji, a Turkish energy company, and Siemens Gamesa signed an agreement to install and operate a 235 MW wind farm in Turkey, representing an investment of approximately $300 million.