Business Services in Turkey. Turkey aspires to have compatible standards with the EU

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Turkey’s strategic location at the crossroads of Europe, the CIS, the Middle East, and North Africa, along with the country’s existing potential, increase in per capita income, and large, young and growing population have positively impacted the development of the business services sector in Turkey. Turkey has significant experience in a wide range of business service lines, such as engineering and architectural consulting, technical testing, and call centers. The country also boasts expertise in knowledge-based services, such as auditing and accounting, legal advisory, and consulting.

Engineering and Architectural Consulting

  • Engineering and architectural consulting companies in Turkey provide services related to engineering, architecture, design, technical drawing, urban planning, scientific and environmental services.
  • A skilled workforce, cost-effective service compared to international standards, expertise in diverse markets, and project types help move the sector forward in Turkey.
  • During the 2013-2014 academic year in Turkey, a total of 28,042 students graduated from the fields of engineering and engineering trades in universities, while 10,759 students received their degree in the fields of architecture and construction.

Technical Testing

  • The technical testing market offers a wide variety of business lines, such as composition and purity testing, technical inspection, and road transport.
  • The total annual turnover in these services has been showing an upward trend in the last decade, and as industries such as manufacturing, automotive, chemicals, and ICT continue to grow in Turkey the need for technical testing will increase accordingly.

Call Centers

  • The call center sector in Turkey has gained momentum since the inception of the country’s first call centers in the 1990s.
  • According to the Turkish Call Centers Association, the industry had a value of TRY 3.6 billion and employed 83,000 people in 1,214 call centers throughout the country in 2015, up from the 2013 figures of TRY 2.9 billion, 70,200 employees, and 1,124 call centers.
  • The call center sector has set an ambitious target of having a work force of 300,000 people by 2023.

Knowledge-based Services

  • Knowledge-based services such as auditing and accounting, legal advisory, and consulting also play a crucial role in Turkey’s economy.
  • Turkey’s vibrant economy and improved business environment have paved the way for a dramatic increase in the number of foreign companies in Turkey.
  • The number of companies in Turkey with foreign capital quadrupled in the last decade to reach 46,800 in 2015. This increase, together with the improved business environment, has resulted in the growth of knowledge-based services in Turkey.
  • As new regulations come into force and Turkey aspires to have compatible standards with the EU, the sector is set to for significant growth.

Automotive in Turkey, 15th largest automotive manufacturer in the world and 5th largest in Europe

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The foundations of Turkey’s automotive industry date back to the early 1960s, when the first efforts to develop and produce a Turkish-made passenger car were undertaken. During a period of rapid industrialization and progress, this key sector transformed itself from assembly-based partnerships to a full-fledged industry with design capability and massive production capacity. Between 2000 and 2014, original equipment manufacturers (OEM) invested more than USD 12 billion in their operations in Turkey. These investments significantly developed their manufacturing capabilities, which in turn led to Turkey becoming an important part of the global value chain of international OEMs. Meeting and exceeding international quality and safety standards, today’s Turkish automotive industry is highly efficient and competitive thanks to value-added production.
 

  • Using a competitive and highly-skilled workforce combined with a dynamic local market and favorable geographical location as leverage, the vehicle production of 13 global OEMs in Turkey increased from 374,000 in 2002 to over 1.3 million units in 2015. This represents a compound annual growth rate (CAGR) of around 10 percent during the same period.
  • Significant growth posted by Turkey’s automotive sector led to Turkey becoming 15th largest automotive manufacturer in the world and 5th largest in Europe by the end of 2015.
  • Turkey has already become a center of excellence, particularly with respect to the production of commercial vehicles. By the end of 2015, Turkey was the number one producer of light commercial vehicles (LCV) in Europe.
  • Proven as a production hub of excellence, the Turkish automotive industry is now aiming at improving its R&D, design, and branding capabilities. As of the end of 2015, 75 R&D centers belonging to automotive manufacturers/suppliers are operational in Turkey.
  • Notable examples of global brands with product development, design, and engineering activities in Turkey include Ford, Fiat, Daimler, AVL, and Segula. Ford Otosan’s R&D center is one of Ford’s three largest global R&D centers, while Fiat’s R&D center in Bursa is the Italian company’s only center serving the European market outside its home country. Meanwhile, Daimler’s R&D center in Istanbul complements the German company’s truck and bus manufacturing operations in Turkey.
  • Turkey offers a supportive environment on the supply chain side. There are around 1,100 component suppliers supporting the production of OEMs. With the parts going directly to the production lines of vehicle manufacturers, the localization rate of OEMs varies between 50 and 70 percent.
  • Turkey is home to many global suppliers. There are more than 250 global suppliers that use Turkey as a production base, with 28 of them ranking among the 50 largest global suppliers.
  • Auto manufacturers increasingly choose Turkey as a production base for their export sales. This is evidenced by the fact that around 75 percent of production in Turkey is destined for foreign markets. In 2015, more than 900,000 vehicles were exported from Turkey to foreign markets.
  • While Germany, France, Italy, the UK, and Spain are currently the major export customers of the Turkish automotive industry, there is a trend of diversification in export destinations with companies looking to break into nearby emerging countries where there is considerably more demand potential for new auto sales.
  • The rise of per capita income from USD 3,000 in the first few years of the 2000s to USD 10,000 in 2015 led to higher sales in the motor vehicles market. While the average annual sale figures in the market were around 360,000 in the early 2000s, the average sales increased to 870,000 by 2015.
  • Despite the strong growth in the market, the automobile penetration in Turkey — 165 cars per 1,000 people — is well behind the European average of 500. This indicates ample opportunities for carmakers in the domestic market. Increased purchasing power combined with a low automobile ownership rate should help drive automobile sales in the coming years.

Agriculture and Food in Turkey. By 2023 Turkey aims to be among the top five overall producers globally

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Home to the headwaters of the Tigris and Euphrates Rivers, Turkey’s agricultural sector today is echoing the prosperity of ancient Mesopotamia. With its favorable geographical conditions and climate, large arable lands, and abundant water supplies, Turkey is considered to be one of the leading countries in the world in the field of agriculture and food.

The restructuring efforts that began in the early 1980s resulted in a domestic market that is an integral part of the world economy today. Turkey has a robust agriculture and food industry that employs over a quarter of the country’s working population and that accounts for 7.1 percent of the country’s GDP. The sector’s financial contribution to the overall GDP increased 43 percent from 2002 to 2014, reaching USD 57.2 billion in 2014.

The strengths of the industry include the size of the market in relation to the country’s young population, a dynamic private sector economy, substantial tourism income and a favorable climate.

Turkey is the world’s 7th largest agricultural producer overall, and is the world leader in the production of dried figs, hazelnuts, sultanas/raisins, and dried apricots. The country is also one of the leading honey producers in the world. Turkey boasted production of 18.6 million tons of milk in 2015, making it the leading milk and dairy producer in its region. The country also saw production totals of 38.6 million tons of cereal crops, 28.5 million tons of vegetables, 17.5 million tons of fruit, 2 million tons of poultry, and 1.1 million tons of red meat. In addition, Turkey has an estimated total of 11,000 plant species, whereas the total number of species in Europe is 11,500.

This bountiful production allows Turkey to maintain a significantly positive trade balance thanks to its position as one of the largest exporters of agricultural products in the Eastern Europe, Middle East, and North Africa (EMENA) region. Globally, Turkey exported 1,781 kinds of agricultural products to 190 countries in 2015, accounting for an export volume of USD 16.8 billion.

Dairy products including milk, yoghurt, cheese, kefir, and ayran (a drink made of yoghurt and water) form an integral part of the traditional Turkish diet. Traditionally, artisan, unpackaged products have dominated the Turkish dairy market, meaning there is vast potential for investors looking to break into Turkey and the greater region with a mass market approach.

This potential is not limited to only the dairy sector. Turkey is looking to position itself as the preferred option for being the regional headquarters and supply center of top global players in the agricultural sector. To encourage investment in the sector, Turkey offers a set of incentives for potential agribusiness investors. The Turkish government’s support mechanisms include favorable regulations, an extremely competitive tax structure, a qualified labor force, and numerous investment incentives.

According to McKinsey and Co., Turkey offers significant investment opportunities in agribusiness subsectors such as fruit and vegetable processing, animal feed, livestock, poultry, dairy, functional food, fisheries, and enablers (in particular cold chain distribution, greenhouses, irrigation, and fertilizer).

 

As part of its targets set for the agriculture sector by 2023 Turkey aims to be among the top five overall producers globally. Turkey’s vision for its centenary in 2023 includes other ambitious goals, such as:

  • USD 150 billion gross agricultural domestic product
  • USD 40 billion agricultural exports
  • 8.5 million hectare irrigable area (from 5.4 million)
  • Ranking number one in fisheries as compared with the EU

Chemicals in Turkey. Coming years chemical industry extraordinary growth to reach USD 50 billion

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The chemicals industry has a unique position in the manufacturing sector as it not only produces end-products such as plastics, cosmetics, and pharmaceuticals, but also supplies intermediate products for countless other industries.

With robust market growth fueled by downstream industries, Turkey is an attractive investment location for chemical companies. The sustainability of growth in customer industries in Turkey is unquestionably a source of strength. The following factors also make Turkey an attractive investment destination:

  • Advanced transportation infrastructure provides flexibility, convenience and additional cost savings for manufacturers.
  • Turkey’s plastics sector is the 2nd largest producer in Europe and 7th largest in the world; Turkey aims to become the top producer in Europe by 2016.
  • Turkey is the 2nd largest net importer of petrochemicals in the world.
  • Turkey is the 17th largest automotive producer in the world.
  • In the construction sector, 42 of the top 250 international contractors are Turkish.
  • Turkey is the 4th largest paint producer in Europe.
  • As a strong manufacturing and conversion hub, Turkey is one of the largest European consumers for textile and construction chemicals.
  • Turkey has the 7th largest agricultural production in the world, while its demand for fertilizer is the 10th highest in the world.
  • Turkey is located close to large and growing trade markets.

Over the coming years, Turkey’s chemical industry is poised for extraordinary growth with exports projected to reach USD 50 billion by 2023.

Turkey has six strategic goals as part of the government’s Vision 2023. These include manufacturing high value-added products, transforming facilities to enable high value-added production, structuring R&D policies, educating a high-skilled work force, developing and ensuring an environment of cooperation, and increasing demand for locally manufactured products.

Energy and Renewables in Turkey. Ambitious vision for 2023 include: Raising total installed power capacity to 120 GW

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Turkey has become one of the fastest growing energy markets in the world, paralleling its economic growth over the last ten years. Following the successfully implemented privatization program in the said period – power distribution is now completely in private sector hands, while the privatization of power generation assets is set to be completed within the next few years – has given the country’s energy sector a highly competitive structure and new horizons for growth.

Economic expansion, rising per capita income, positive demographic trends and the rapid pace of urbanization have been the main drivers of energy demand, which is estimated to increase by around 6 percent per annum until 2023. The current 74 GW installed electricity capacity is expected to reach 120 GW by 2023 to satisfy the increasing demand in the country, with further investments to be commissioned by the private sector. As part of its efforts to offer sustainable and reliable energy to consumers, Turkey offers investors favorable incentives, such as feed-in-tariffs, purchase guarantees, connection priorities, license exemptions, etc., depending on the type and capacity of the energy generation facility.

In the last decade, the Turkish government has made significant reforms in the provision of energy, moving forward the participation of private entities, and thus creating a more competitive energy market. The privatization of energy generation assets, coupled with a strategy to clear the way for more private investments, has resulted in an increased share of private entities in the electricity generation sector, from 32 percent in 2002 to 75 percent in 2015. Another step taken by the Turkish government towards a more competitive energy sector is the establishment of an energy stock exchange. Once operational, the exchange will not only enhance the liberalization of the market, but will also ensure transparency and help maintain a healthy balance between supply and demand.

In addition to having a huge domestic market, Turkey is in a strategic location between a number of major energy consumers and suppliers, and so serves as a regional energy hub. The existing and planned oil/gas pipelines, the critical Turkish straits and promising finds of hydrocarbon reserves within the country itself give Turkey increased leverage over energy prices and reinforce its gateway status.

Opportunities for renewable forms of energy production – hydro, wind, solar, geothermal and others – are abundant in Turkey, and encouraging policies backed by favorable feed-in tariffs are expected to increase their share in the national grid in the coming years. The Turkish government has made it a priority to increase the share of renewable sources in the country’s total installed power to a remarkable 30 percent by 2023, while taking on board the energy efficiency concept by enacting laws that set principles for saving energy, at both individual and corporate levels, as well as by providing incentives to energy efficiency investments.

 

As important as the renewables are for Turkey’s energy strategy in the coming years, technologies in such fields as waste processing and greenhouse gas reduction are also often cited together with this new form of power generation as critically important supplementary practices. Sustaining the environment by resorting to renewable resources is accompanied by a number of measures and regulations that are either currently in effect, or will soon be in effect, including lowering carbon emissions, increasing generation/transmission efficiency and promoting the use of waste management technologies.

The sum of these factors has had a profound effect on Turkey’s energy sector, and turned it into one of the most attractive investment destinations in the world. In line with the implementation of investor-friendly regulations and the high increase in demand, the Turkish energy sector is becoming more vibrant and competitive, attracting the attention of more investors for each component of the value chain in all energy sub-sectors.

The total investments required to meet Turkey’s expected energy demand in 2023 is estimated to be around USD 110 billion, more than double the total amount invested in the last decade.

 

Turkey’s ambitious vision for 2023, the centennial foundation of the Republic, envisages grandiose targets for the energy sector in Turkey. These targets include:

  • Raising the total installed power capacity to 120 GW
  • Increasing the share of renewables to 30 percent
  • Maximizing the use of hydropower
  • Increasing the installed capacity based on wind power to 20,000 MW
  • Installing power plants that will provide 1,000 MW of geothermal and 5,000 MW of solar energy
  • Extending the length of transmission lines to 60,717 km
  • Reaching a power distribution unit capacity of 158,460 MVA
  •   Extending the use of smart grids
  • Raising the natural gas storage capacity to more than 5 billion m3
  • Establishing an energy stock exchange
  • Commissioning nuclear power plants (two operational nuclear power plants, with a third under construction)
  • Increasing the coal-fired installed capacity from the current level of 15.9 GW to 30 GW

Finances in Turkey. The Turkish finance sector enjoys a leading position in the world

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The Turkish financial sector proved resilient during the global financial turmoil in 2009 as well as the ensuing economic crisis thanks to the regulatory reforms and structural overhaul that the government implemented in the wake of the country’s own financial meltdown in the early 2000’s. In fact, the reforms in the sector boosted investor confidence so much that financial services has become the preferred sector for FDI, attracting over USD 48 billion during the past 14 years.

  • Banking dominates the Turkish financial sector, accounting for around 60 percent of overall financial services, while insurance services and other financial activities also show significant growth potential.
  • There are 53 banks in Turkey (34 deposit banks, 13 development and investment banks, 6 participation banks). Out of 53 banks,  21 hold significant foreign capital (30% of total assets are held by foreign investors).  Expanding loan base and favorable liquidity conditions contribute to the healthy growth of Turkey’s financial services.
  • The sector enjoys a leading position in the world with an ever-growing asset size and strong equity structure protecting it against shocks that may arise from loans or turbulent market conditions.
  • The sector overall exhibited a robust 18 percent compound annual growth rate (CAGR) between the years 2008 and 2015, reaching a total asset size of TRY 3.6 trillion (USD 1.2 trillion). The banking sector in particular almost doubled its assets during this period, with TRY 2.4 trillion (USD 807 billion) on the books by the end of 2015.

Information and Communication Technologies in Turkey. Increasing the sector’s share in GDP from 2.9 percent to 8 percent

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The Information and communication technologies (ICT) sector has become an essential part of the economy, in particular social life, since it is directly or indirectly affecting the ever-changing business world. Turkey is well aware of the fact that this sector will have a much more influential role in the future than it currently has. Searches for solutions brought about by this development and growth, which are appropriate for the requirements of today, and the efforts to enable today’s economic and social life to acquire these most up-to-date and fast solutions instantly, together form the basis of information and communications technology, since these solution searches basically require the utmost efficient utilization of both time and physical resources. In this regard, Turkey has increased its interest in the ICT sector further, and started the necessary studies so as to have a voice in the sector in the future. The greatest indicators of these efforts are the new initiatives and R&D Law issued for the investors.

 

  • As the young population increases and online market expands, the total number of mobile phone subscribers is expected to reach 75 million by 2017, up from 73.2 million in 2015.
  • IT spending on hardware, software, IT services and telecommunication services in Turkey is expected to increase to USD 30 billion by 2017.
  • ICT spending in Turkey is expected to grow faster than the world average. With regard to its large domestic market with sizeable potential in the ICT sector, sector growth is expected to grow with a CAGR of 7.4 percent during the 2012-2017 period.
  • 69.5 percent of all households in Turkey have internet access.
  • The percentage of internet users in Turkey is around 56 percent and this is forecast to rise to above 60 percent in 2017.

 

Turkey’s ambitious vision of 2023, the centennial foundation of the republic envisages grandiose targets for the ICT sector in Turkey. These targets include:

  • Reaching 30 million broadband subscribers
  • Providing internet connection for 14 million houses at a speed of 1,000 Mbps
  • Increasing the sector’s share in GDP from 2.9 percent to 8 percent
  • Becoming one of the top 10 countries in e-transformation
  • Having 80 percent of the population computer literate
  • Increasing the number of companies to 5,500; employees to 65,000; and exports to USD 10 billion in TDZs
  • Increasing the ICT sector’s size to USD 160 billion, with a market growth of around 15 percent each year
  • Increasing the R&D expenditure to GDP ratio to 3 percent from 1 percent

Life Sciences in Turkey. The Ministry of Health to spend TRY 100 billion in lease payments for its Healthcare PPP Program

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The life sciences and healthcare sectors are considered industries of strategic importance in Turkey, especially when taking into consideration their social and economic impacts. Turkey showed its commitment to healthcare reforms with the implementation of the “Healthcare Transformation Program” introduced in 2004 by the Ministry of Health. These reforms marked a significant improvement in Turkey’s healthcare system, which is backed by investments in R&D and innovation in the healthcare sector.

Some key facts and figures in the Turkish life sciences sector include:

  • The Turkish market for pharmaceuticals reached a size of TRY 16.8 billion in 2015, growing by 15.5 percent over 2014. Unit sales rose by 6.7 percent over the same period, reaching 1.95 billion units.
  • According to IMS Health Report, Turkey is one of the top 20 “pharmerging” countries, having been ranked 19th in 2014, and expected to be ranked 17th in 2019.
  • The Turkish market is expected to grow by 11-14 percent between 2015-2019 (IMS Consulting Group)
  • There are approximately 300 pharmaceutical entities operating in the sector. Among the 67 manufacturing facilities that meet international standards, 12 are owned by multinational companies.
  • There are 12 raw material producing facilities in Turkey, 3 of which are owned by multinational companies.
  • Approximately 30,000 people are employed in the sector and more than 11,500 products are produced.
  • During 2009-2015, pharma sales grew by 27.8 percent and 43 multinational pharmaceutical companies entered the Turkish market, bringing the number of foreign entities in the market to 116.
  • Pharma exports, which stood at USD 612 million in 2010, have grown by 53.4 percent over the past five years to reach USD 939 million in 2015.
  • Turkish pharmaceutical manufacturers are exporting to more than 170 countries, with the bulk of that trade occurring with the EU, MENA, and CIS countries.

The Ministry of Health and the Ministry of Development are currently working on a joint long-term strategic plan for the pharmaceuticals industry, which is experiencing growth in parallel with the world markets. This plan aims to create a market where domestic production of pharmaceuticals and medical devices will account for 60 percent and 20 percent respectively of total domestic demand in terms of volume.

A rapidly growing young population is one of the key factors driving demand for healthcare in Turkey. According to the Economist Intelligence Unit forecasts, the healthcare sector in Turkey is set to boom as healthcare spending per capita will increase at a CAGR of 5.6 percent during 2013-2017, while most developed countries will be experiencing relatively lower growth rates.

Favorable long-term macroeconomic conditions and increased access to medicine will continue to drive demand for medicine and attract foreign pharmaceutical companies, which in turn, will make Turkey an increasingly important location for pharmaceutical manufacturing in Central and Eastern Europe.

With regard to healthcare facilities, the Ministry of Health is planning to open organized health zones, which will include hospitals, rehabilitation centers, thermal tourism facilities, nursing houses, health techno-cities, and R&D centers.

 

The Turkish government has also taken on an ambitious healthcare public private partnership (PPP) program. According to PPP professionals, Turkey is the 2nd most attractive market globally for PPP projects in the medium to long term. Investments in the healthcare sector are expected to continue as the government strives to increase the number of hospital beds per 10,000 people to 32 in 2023 from the current level of 26.5.

With considerable potential for growth, the Turkish healthcare sector provides a vast number of investment opportunities. The Ministry of Health will be spending an estimated TRY 100 billion in lease payments for its Healthcare PPP Program, whereas free healthcare zones, health tourism, and e-health provide similarly attractive investment.

Moreover, the government aims to boost manufacturing infrastructure through the establishment of special pharmaceutical zones, with the goal to make the country a global pharmaceutical R&D and production hub. The Turkish government also aims to make the country one of the world’s top ten economies in healthcare services by 2023 by increasing R&D expenditures to 3 percent of GDP and by increasing exports to USD 500 billion. As expectations for readily-accessible and higher-quality healthcare services increase in line with the advancement in economic welfare, healthcare spending per capita in Turkey is expected to almost triple by 2023, hitting USD 2,000.

Machinery in Turkey. Known for being R&D intensive Turkey graduates over 450,000 engineers every year

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Machinery manufacturing continues to be one of the key growth drivers of the Turkish economy. This sector plays a crucial role in the development of Turkey’s greater manufacturing industry due in no small part to its capability to produce intermediate goods and provide inputs to other key sectors such as construction, energy, textiles, agriculture, and mining. The machinery manufacturing sector in Turkey is known for being R&D intensive — Turkey graduates over 450,000 engineers every year — and for creating high value. Local sourcing accounts for approximately 85 percent of all inputs at the production level.

  • Total export value of the machinery industry reached USD 13.4 billion in 2015, up from USD 5.2 billion in 2005.
  • Annual growth rate of machinery exports between 2005 and 2015 was 16 percent, double Turkey’s overall export growth rate during the same period.
  • As the 2nd largest export industry of Turkey, accounting for a 9.3 percent share in Turkey’s total exports, machinery products are exported to more than 200 countries.
  • 60 percent of the total machinery product exports are shipped to the EU countries and the USA.
  • Total imports of the machinery sector surpassed USD 26 billion in 2015 while posting an average annual growth of 10.3 percent over the past decade, evidencing the strong demand from the domestic market.
  • FDI inflow in machinery manufacturing represents a significant source for Turkey’s overall FDI amount, making up around 20 percent of total manufacturing FDI between 2005 and 2015.
  • R&D expenditures on machinery manufacturing reached USD 600 million in 2014, accounting for almost 10 percent of the total R&D expenditure of Turkey.
  • Turkey’s competitiveness in the machinery sector is driven by favorable input costs and strong enablers. Input costs include competitive labor cost, an affordable and reliable energy supply, and logistical advantages based on the geostrategic location of Turkey, while enablers include a skilled workforce, generous investment incentives, an innovation-oriented infrastructure, and a strong supply base and domestic clusters.

Mining and Metals in Turkey. The sector’s total production value soared to USD 34.2 billion in 2016, up from USD 2.6 billion in 2003.

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Turkey’s mining and metals sector has grown in parallel with the country’s robust economy. Harboring a large expanse of the western portion of the Tethyan-Eurasian Metallogenic Belt, which is an ophiolite extending from the Alps to southeastern Europe through Turkey, the Lesser Caucasus, Iran, and the Himalayas on to China, Turkey offers proven potential for mining investors. As the least exploited portion of the belt, Turkey stands out as a very promising region for companies engaged in mineral extraction. Mining in Turkey has mainly been limited to surface excavations, meaning huge potential with deep drilling is awaiting international investors.

Here are some essential facts and figures about the Turkish mining and metals sector:

  • The sector’s total production value soared to USD 13.2 billion in 2014, up from USD 2.6 billion in 2003.
  • Turkey’s young, dynamic, and well-educated labor force offers a high-quality labor pool.
  • There are 30 mining engineering departments in 26 cities in Turkey, while five new mining engineering departments have been opened since 2005. The number of mining engineers in Turkey has increased by more than 50 percent since 2005, now reaching 30,000.
  • Turkey’s advantages for players in the mining sector are not limited to a high-quality labor pool, but also include relatively low logistics and drilling costs, proximity to major markets, lucrative government incentives, and highly competitive taxes.
  • As a result of its remarkable economic growth, years of political stability, structural reforms, and the backing of governmental bodies, Turkey attracted USD 201 million of FDI to its mining industry in 2015, while mining exports in the sector totaled USD 3.9 billion.
  • These figures prove investors’ increased interest in Turkey, as today Turkey hosts more than 750 international mining companies, up from only 138 in 2004.

 

Turkey’s regional investment incentive system is based on a descending pattern where regions vary in a range of 1 to 6 based on their level of development, with 6 being given to the least developed regions. With this system, the most advantageous incentives are offered to the lesser-developed regions. Mining is one exception to this scheme, as most investments in the mining sector are supported with incentives extended to Region 5, regardless of the investment’s location.