Industry Investment Guide in Turkey

What is Industrial Investment?

It is one of the investments that specialize in manufacturing and manufacturing by establishing, purchasing or operating plants and production lines in various fields.

Investors set up new factories or invest in existing factories and production lines, such as buying shares in successful factories, to generate fixed annual profits.

Is Turkey a Fertile Environment for Industrial Investment?

Turkey is one of the prime destinations of choice for industrial and manufacturing investors based on several factors, as the Turkish government utilizes its strategic location at a key point to the global supply chain.

The government has also encouraged international investors and has become the focus of many international companies relocating factories and production lines to the country.

Turkey's strong and well-developed infrastructure also plays an important role in making it a fertile environment for industrial investment, as the country has railways, land routes, airports, and many modern and advanced seaports, in addition to industrial cities spread across the country.

Benefits of Turkish Industrial Investment

The advantages of industrial investment in Turkey can be summarized in the following different elements:

• Transportation and Shipping (Logistics)

This is one of the main advantages of industrial investment in Turkey, as the country has a strategic geographical location and modern developed dry and sea ports that allow goods to be transported and exported globally at low cost.

• Manpower

Manpower is one of the most important advantages of industrial investment in Turkey as Turkey has a skilled workforce and acceptable wages. Turkey is one of the countries where many young people can enter the labor market.

• Cost of production

Turkey's vast territory and numerous raw materials for manufacturing make it much cheaper to produce and flexibly market and promote products abroad.

• Infrastructure and Equipped Places

Some of the important features that attract investors to invest in Turkey's industrial sector are that the industrial zone is equipped with advanced and full-service equipment, as well as transportation and shipping operations and storage facilities.

• Taxes and Government Subsidies

The Turkish government aims to increase domestic production and increase the country's exports as leverage for the local economy. Therefore, the Turkish government encourages both internal and external investment in the manufacturing and industrial sectors by providing state support packages and lower taxes for the manufacturing and industrial sectors.

Conditions of industrial investment in Turkey

The conditions for foreign citizens to make industrial investments in Turkey are as follows:

• The investor needs to obtain an official residence permit in Turkey to proceed with the remaining steps so that he can start investing and operate the business normally.
• The value of investments in the industrial sector must not fall below the minimum value established by law.
• Extraction of a tax ID number on behalf of the company and official registration in the state file.
• Open an official bank account in the name of the factory.

It is important to note that foreign investors are treated the same as Turkish investors and meet the same conditions when making industrial investments in Turkey.

Fields and Opportunities for Turkish Industrial Investment

1. Food Industry

It is one of the most important industries in which Turkey has a significant share of the world market. Turkey is one of the major agricultural countries and sits on the throne of the country producing many important crops such as hazelnuts, apricots, etc.

2. Chemical Industry

Chemical industries such as detergents and paints are the main products Turkey manufactures and exports worldwide. The chemical industry is one of the most important sectors offering real investment opportunities.

3. Apparel and Textile Industry

The first markets for the Turkish clothing and textile industry are the European Union, the United States and the United Kingdom, which is one of the main pillars of production and production thanks to its quality and strong competition with the best European brands. Turkey's industrial sector.

4. Furniture and Furnishing Industry

Turkey has industrial cities that manufacture furniture and household goods, and the Turkish furniture and household goods industry has a unique influence in the world market.

Turkey has production lines for the most famous international brands in furniture manufacturing, such as IKEA's factories, as well as Turkish brands that are known globally after local transmission.

5. Household Materials Industries

It is one of the most important industries offering real investment opportunities. The sector is divided into two parts: plastic household materials and household appliances and kitchen utensils, which is a huge sector in Turkey.

6. Building materials industry

It has many different types, such as iron, steel, cement, precast concrete, interior and exterior cladding materials, marble, construction machinery and many other building materials industry products.

Does the Turkish Government Support Industrial Investment?

As part of the Turkish government's facilities to increase production and increase export value, the Turkish government is working to provide a number of packages to support Turkey's industrial investment sector, including:

• Investors are exempted from property tax for 5 years when establishing an industrial city in Turkey
• Commercial businesses exempt from council tax
• Reduce production costs for plant water and natural gas consumption
• Additional Waivers and Reductions in Certain Circumstances

Why Do International Companies Open Factories in Turkey?

Over the past two decades, Turkey has developed into a country of strategic importance on several different levels, the most important of which are its unique geographical location and advanced industrial infrastructure, in addition to its global presence in the field of transportation Leading position and logistical support provided by air, sea and land.

Skilled personnel have been the main attraction for many international companies around the world to relocate their production lines and factories to Turkey.

For example, Turkey is one of the most important countries in the world for the production of Ford and Renault vehicles, in addition to electrical appliances, petrochemical industries and various food industries.