2InterGest THE ART OF BEING LOCAL WORLDWIDE YOU ARE ALWAYS WELCOME IN TURKEY
3InterGest TurkeyIstanbul Dunya Ticaret MerkeziEGS Business Park Carsi BlokKat:1, No:7734149 Yesilkoy – IstanbulTurkeyPhone :Fax:
4Why to Invest in Turkey ? 10 Reasons to Invest in Turkey Successful economyYoung populationLarge domestic marketInfrastructureCentrally locatedQualified and competetive labor forceLiberal and reformist investment climateEnergy corridor and terminal of europeLow taxes and incentivesCustoms union with the EU since 1996
5Successful EconomyBooming economy; reaching USD 772 billion in 2011, up from USD 231 billion in 2002 (TurkStat)Stable economic growth with an average annual real GDP growth rate of 5.2 % over the last 9 years (TurkStat)Promising economy with a bright future as it is expected to become the fastest growing economy among the OECD members during with an annual average real GDP growth rate of 6.7 % (OECD Economic Outlook No. 86)18th largest economy in the world and 7th largest economy compared with the EU in 2011 (GDP at current prices, IMF WEO)Institutionalized economy fueled by USD 110 billion of FDI in the last 9 years 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 135 billion worth of exports and an increase of 275 percent between 2002 and 2011 (TurkStat)
6Population A population of 75 million (2011, TurkStat) Largest youth population compared with the EU (Eurostat)Half the population under the age 29.7 (TurkStat)Young, dynamic, well-educated and multi-cultural population Large domestic market50 million internet users in 2011, up from 4 million in 200265 million mobile phone subscribers in 2011,up from 23 million in 200251 million credit card users in 2011, up from 16 million in 2002118 million airline passengers in 2011, up from 33 million in 200231.5 million international tourist arrivals in 2011, up from million in 2002
7Infrastructure Centrally located New and highly developed technological infrastructure in transportation,telecommunications and energyWell-developed and low-cost sea transport facilitiesRailway transport advantage to Central and Eastern EuropeWell-established transportation routes and direct delivery mechanism to most of the EU countriesCentrally locatedA natural bridge between both East-West and North-South axes,thus creating an efficient and cost effective outlet to major marketsEasy access to 1.5 billion customers in Europe, Eurasia,the Middle East and North AfricaAccess to multiple markets worth USD 25 trillion of GDP
8Qualified and competitive labor force Over 26 million young, well-educated and motivated professionals (TurkStat)Increasing labor productivityThe longest working hours, and the lowest sick day leaves per employee in Europe with 52.9 hours worked per week (2011, Eurostat) and annual average of 4.6 sick days per employee (2008, Mercer)Approximately 500,000 students graduate annually from over 170 universities (2011, Student Selection and Placement Center-OSYM)More than 700,000 high school graduates with around half from vocational and technical high schools (2011, Ministry of National Education)
9Liberal 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 )Business-friendly environment with average of 6 days to set up a company, while the average in OECD membersis more than 12 daysHighly competitive investment conditionsStrong industrial and service cultureEqual treatment for all investorsAround 30,000 companies with international capitalInternational arbitrationGuarantee of transfers
10Taxes & Customs Union Low taxes & incentives Corporate Income Tax reduced from 33 percent to 20 percentIndividual Income Tax varies from 15 percent to 35 percentTax 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 LawIncentives for strategic investment to decrease imports, for large-scale investments, as well as for regional investmentsCustoms Union with the EU since 1996and Free Trade Agreements (FTA) with 22 countriesMore FTAs underwayAccession negotiations with the EU
11Energy corridor and terminal of Europe Turkey is an important energy terminal and corridor in Europe connecting the East and WestMore than 70 percent of the energy resources are located in the south and the east of Turkey, while the largest energy consumer, Europe, is located west of Turkey.
12Number of Companies in Turkey with International Capital As of the end of 2011, around 30,000 companies with foreign capital operatein Turkey.
13Foreign Direct Investment (FDI) in Turkey Turkey ranks as the world’s 13th most attractive destination for Foreign Direct Investment (FDI) in 2012, according to the A.T. Kearney FDI Confidence IndexFDI Inflow to Turkey (USD billion)
14Foreign Trade Statistics US $ million2005200620072008200920102011Exports (FOB)73,47685,535107,272132,002102,143113,883134,969Imports(CIF)116,774139,576170,063201,961140,929185,544240,838Trade Volume190,251225,111277,334333,963243,072299,428375,807Trade Balance-43,298-54,041-62,791-69,959-38,786-71,661-105,869
15Top 10 Export Product Groups in 2011 Product Groups US $ Share inbillion total exports (%)Vehicle other than railway or tramway rolling stock ,7Boilers, machinery and mechanical appliances ,6Iron and steel ,3Electrical machinery and equipment ,6Knitted and crocheted goods ,2Mineral fuels / oils and products of their distillation 6.5 4,8Articles of iron and steel ,3Non knitted and crocheted goods ,8Plastic and articles thereof ,4Edible fruit and nuts: peel of melons or citrus fruits 3.9 2,9
16Technology Development Zones - Technoparks Technology Development Zones (TDZ’s) are areas designed to support R&D activities and attract investments in high technology fields. There are 39 TDZ's of which 27 are operational and 12 have been approved and are currently under construction Ankara has six TDZ’s, Istanbul has five, Kocaeli has three while the other provinces listed in the pop-up table below have one each.
17Very Important….Technology Free Zones AdvantagesCorporate Income Tax IncentivesPersonnel Income Tax ReliefSocial Security Tax IncentivesVAT advantages on importsEnergy utilization subsidiesCustoms Tax Relief on import of capital equipment andraw material to name a few
18Yavuz Selim Şen Certified Public Accountant & Partner Phone :Fax:InterGest TurkeyIstanbul Dunya Ticaret MerkeziEGS Business Park Carsi BlokKat:1, No:7734149 Yesilkoy – IstanbulTurkeyNaci Demirkilic Sales & Business DevelopmentPhone: Fax: InterGest TurkeyIstanbul Dunya Ticaret MerkeziEGS Business Park Carsi BlokKat:1, No:7734149 Yesilkoy – IstanbulTurkey