Embassy of the Republic of Turkey to Romania: Turkey – Discover the potential

Discover the Potential The establishment of the Republic of Turkey is not only the rebirth of a noble nation but also a symbol of the rebellion and success of aggrieved nations in the world. By celebrating the 95th anniversary of Republic Day, Turkey gives a strong message including dedication to build a prosperous future which takes power from 2023 goals to global community. Homeland of History Turkey has the honor of being homeland of historical achievements which contribute to build today’s modern civilization. The world’s first city settlement (Çatalhöyük) and the first political entity in the world (The Hittite Empire) rose up on the lands of Anatolia. Also, civilizations in Anatolia created commercial instruments such as the first written commercial agreements (in ancient Kanesh), the first mall (Grand Bazaar), and the first peace treaty in the history. Country of Economic Transformation With the power of its deep-rooted experiences, Turkish economy was transformed from labor-oriented structure into industry-oriented form since 1923. Its unique geographic position as a bridge between East and West provided a wide ranged opportunity for business environment, and also its long history of relations with the European Union and continually updated reformation process have been contributed to Turkey’s significant economic development. After economic liberalization process dated 1980’s and Custom Union agreement with the EU in 1995, Turkish economy had a remarkable success story, and in 2017 Turkey ranks as the 17th largest economy in the World and 6th in Europe. Turkey’s GDP reached to 851,5 billion USD in 2017. Turkish economy has been raised on pillars of services (%53,4 of GDP) and industry (%20,6 of GDP). According to the figures of EuroStat Turkey is the 4th country of Europe region in terms of the volume of the production. By the end of 2017 in European region Turkey is the 5th largest automotive manufacturer, the 2nd largest producer of plastics, 5th largest paint producer, and the 10th most popular tourist destination in the world. Turkish economy expanded by 7.4% in 2017 and this makes Turkey the top country among OECD member countries. Since 2002, GDP per capita has nearly tripled from 3,581 USD to 10,597 USD in 2017, and in PPP terms, GDP per capita exceeded 27,078 USD in 2017. Turkey follows an export-led policy for its economic growth since 1980’s. Through the structural reforms and industrial capacity of Turkey, its’ share in global merchandise exports reached to %0,89 in 2017 while it was %0,74 in 2011. Turkey’s export increased to 157 billion USD and import reached to 234 billion USD. Considering that %46 of Turkey’s export was agricultural products in 1980’s, Turkey’s success in diversification of its export is obvious. In 2017 the share of agricultural products in Turkey’s export was %3, the share of manufacturing industries reached to %94 and Turkey’s main export sectors were automotive and spare parts, machinery, textile, readymade clothes and metal products. Turkey’s geographic position provides opportunities to reach both European and Asian markets. The main export destinations of Turkey in 2017 were EU countries (%49) and Asian countries (%50). Turkey has created Free Zones (FZ) which are special sites deemed outside the customs area, although they are physically located within the political borders of the country in order to boost the number of export-focused investments. FZs are strategically located at points that grant easy access to international trade routes via ports on the Mediterranean, Aegean Sea and the Black Sea. Today Turkey provides several advantages for companies which operate in 18 Free Trade Zones. Main advantages of operating in FZ are tax advantages for manufacturers, exemption from custom duties, market access to domestic and foreign markets and supply chain opportunities. In 2017, total trade volume of the FZ were 20,4 billion USD, increasing %7,1 annually. Country that Always Welcomes Addition to Turkey’s economic performance and its liberal investment environment, the opportunities such as skilled workforce with cost advantage, access to wide geography with its Free Trade Agreements and lucrative incentives have made Turkey as a regional manufacture and management hub for foreign investors. Despite global and regional challenges, in the 2003-2017 period Turkey attracted 193,2 billion USD foreign direct investments (FDI). Turkey has been conducted a comprehensive investment incentive program which includes 5 different schemes namely general investment, regional investment, priority investment, large scale investment and strategic investment incentive scheme since 2012. Within the framework of those schemes, investors can take advantage of several support measures with differentiated exemptions or deductions. Briefly, value added tax (VAT) exemption, customs duty exemption, tax deduction, social security premium support (employer’s share), income tax withholding exemption, social security premium support (employee’s share), interest rate support, land allocation and VAT refund are provided to investors by the government. In the period of 2001 and 2018 (Jan-June) 3.621 foreign investment projects with the value of  266 billion TL used the advantages of Turkey’s investment incentive programs. Turkey’s economic success is a result of the efforts of Turkish private sector which contributes to Turkey’s international competitiveness. In all over the world, Turkish entrepreneurs have legitimate reputation for risk taking and outcome-oriented attitude even in adverse circumstances. Obviously, creating a business-friendly environment and motivating policies for private sector encourage Turkish business circle to expand their worldwide networks. Turkish entrepreneurs’ direct investments abroad reached 39 billion USD from 2003 to 2017. Turkish overseas contracting services sector is among the most sophisticated service sectors of Turkey with having undertaken 8.772 projects in 110 different countries with the value of 329,1 billion US Dollars since 1972. According to the list showing the 250 largest construction companies of the world announced annually by the international construction sector’s leading magazine, Engineering News Record (ENR), based on the total value of projects undertaken in the previous year on international level, Turkish overseas contracting companies were in the 2nd place upon the number of national companies and in the 9th place upon the national overall revenue in the list. Due to the increase of risk perception for developing countries in global economy and effects of the FED’s monetary tightening program, international capital flows...