- Posted September 1, 2013 by
Turkey: Good Investment
I saw many countries and from them most 16 countries are list in my global consulting destination, but i never saw such stable country with strong economical indicators as Turkey with strong political and economical system where economy works and gives benefits to their people. Turkey this is not a only place where europe meets asia, as it's a place where you can generate and develop your business and earn capital in every minute, according from it's big population. This is a country with huge investment opportunities and best place for business if we comparing it with some Asian and European countries. I think it's fastest growing economy gives more chance in future to become one of the most important business player in Eurasian market. As International consultant i want to express my strong arguments for all business companies or individual investors who are interested to invest in turkey or just trying to find some of handcuff to be sure that this investment will be profitable. In my report is full information for all why investment in turkey is very good investment.
Key Investment Facts about Turkey:
- Turkey’s credit rating has recently been increased by three financial institutions, including Moody’s (Bloomberg).
- 15th largest economy in the world. Forecasted to be top economy in Europe by 2050.
- Turkey’s expected to become a full member of the EU in the next 10 years.
- 31.5 million tourists in 2011, a 9.8% increase from previous year.
- Third highest search as a country on internet for property (Global Edge).
- Turkey was the 3rd highest GDP worldwide for 2010 at around 10% and is forecasting 8% for the next 5 years (OECD).
- According to Brookings institute Turkey was the fastest growing city in the world in 2010 (Nuwire).
- Number one city in Europe for capital growth. Capital growth 15% to 25% per annum.
- Turkish government forecasts the need for 2.5 million new homes by 2015.
- High rental yield with returns from 7% – 10%, long term local tenants.
- Regional HQ for blue chip companies Including Sony Ericsson, Microsoft and Coca Cola.
- Located at the junction of Europe and Asia.
- Istanbul was the European Capital of Culture 2010.
- Low cost of living.
- Superb climate with long hot summers and short, mild winters.
- 324 Blue Flag beaches and 17 marinas (4th highest).
- Mortgages now available to EU buyers and other foreigners.
- Expected to become a full EU member by 2020.
- Booming investment country.
- Turkey is in the 10 top investment locations in the world Financial Times.
For further understand i want to show ten reasons to invest in Turkey:
1) Successful Economy:
- Booming economy; more than tripling its GDP, reaching USD 786 billion in 2012, up from USD 231 billion in 2002 (TurkStat)
- Stable economic growth with an average annual real GDP growth rate of 5 percent over the past decade (TurkStat)
- Promising economy with a bright future as it is expected to become the fastest growing economy among the OECD members during 2012-2017 with an average annual real GDP growth rate of 5.2 percent (OECD Economic Outlook No. 91)
- 16th largest economy in the world and 6th largest economy compared with the EU in 2012 (GDP at PPP, IMF WEO)
- Institutionalized economy fueled by USD 123 billion of FDI in the last decade and ranked as the 13th most attractive FDI destination in 2012 (A.T. Kearney FDI Confidence Index)
- A dynamic and mature private sector with USD 153 billion worth of exports and an increase of 325 percent between 2002 and 2012 (TurkStat)
- A population of 76 million (2012, TurkStat
- Largest youth population compared with the EU (Eurostat)
- Half the population under the age 30.1 (TurkStat)
Young, dynamic, well-educated and multi-cultural population
3) Competitive Labor
- Over 27 million young, well-educated and motivated professionals (TurkStat)
- Increasing labor productivity
- Approximately 600,000 students graduate anually from over 170 universities (2012, Student Selection and Placement Center-OSYM)
- More than 700,000 high school graduates with around half from vocational and technical high schools (2012, Ministry of National Education)
4) Liberal and reformist investment climate
- The second biggest reformer among OECD countries in terms of its restrictions on FDI since 1997 (OECD FDI - Regulatory Restrictiveness Index 1997-2012)
- Business-friendly environment with average of 6 days to set up a company, while the average in OECD members is more than 12 days
- Highly competitive investment conditions
- Strong industrial and service culture
- Equal treatment for all investors
- More than 33,000 companies with international capital
- International arbitration
- Guarantee of transfers
- New and highly developed technological infrastructure in transportation, telecommunications and energy
- Well-developed and low-cost sea transport facilities
Railway transport advantage to Central and Eastern Europe
- Well-established transportation routes and direct delivery mechanism to most of the EU countries
6) Centrally located
- A natural bridge between both East-West and North-South axes, thus creating an efficient and cost effective outlet to major markets
- Easy access to 1.5 billion customers in Europe, Eurasia, the Middle East and North Africa
- Access to multiple markets worth USD 25 trillion of GDP
7. ENERGY CORRIDOR AND TERMINAL OF EUROPE
- An important energy terminal and corridor in Europe connecting the East and the West
- Located at a close proximity of more than 70 percent of the world’s proven primary energy reserves, while the largest energy consumer, which is Europe, is located right to the west of Turkey, thus making the country a linchpin in energy transit and an energy terminal in the region
8. LOW TAXES & INCENTIVES
- Corporate Income Tax reduced from 33 percent to 20 percent
- Tax benefits and incentives in Technology Development Zones, Industrial Zones and Free Zones could include total or partial exemption from Corporate Income Tax, a grant on employer’s social security share, as well as land allocation
- R&D and Innovation Support Law
- Incentives for strategic investment to decrease imports, for large-scale investments, as well as for regional investments
9. CUSTOMS UNION WITH THE EU SINCE 1996
- Customs Union with the EU since 1996, and Free Trade Agreements (FTA) with 22 countries
- More FTAs underway
- Accession negotiations with the EU
10. LARGE DOMESTIC MARKET
20 million broadband internet subscribers in 2012, up from 0.1 million in 2002
68 million mobile phone subscribers in 2012, up from 23 million in 2002
54 million credit card users in 2012, up from 16 million in 2002
131 million airline passengers in 2012, up from 33 million in 2002
31.8 million international tourist arrivals in 2012, up from 13 million in 2002
And yes, this is a place where Europe meets Asia in business too.
By Irakli Berdzenadze
Chairman & CEO of I.B. Capital Management, Inc
International Financial and Investment Consultant
Global Partner of Bauhaus Capital Partners in MENA
Global Financial Partner of River Green Funds