President Recep Tayyip Erdoğan has urged international companies to relocate their regional management operations to Türkiye, emphasizing the nation’s ambition to become a central hub for investment, trade management, and capital collaboration. During his remarks at the 39th General Assembly of the Foreign Economic Relations Board of Türkiye (DEİK) held in Istanbul, Erdoğan articulated the new benefits that Türkiye offers to global investors, while also appealing to Turkish expatriates to return and contribute to the country’s growth narrative.
Incentives for Global Investors
Erdoğan’s invitation to global companies was clear: “Manage your operations from Türkiye and reap the benefits.” He highlighted enticing tax exemptions, stating that companies engaged in transit trade through the Istanbul Finance Center would be exempt from corporate tax, and income from financial services rendered at this center would remain tax-free for the next 20 years. Furthermore, 95 percent of income from transit trade within Türkiye would also be tax-exempt, making it an attractive choice for businesses seeking to optimize their operations.
To bolster industrial and agricultural growth, the government has halved the corporate tax rate for these sectors. As a result, manufacturers and farmers will only incur a 12.5 percent corporate tax. Erdoğan underscored DEİK’s role in aligning Türkiye’s trade diplomacy with private sector interests, while the Trade Ministry oversees the public initiative. He characterized DEİK as a vital facilitator of the Turkish private sector’s interactions with global markets through its extensive network comprising 153 business councils, 92 founding institutions, and a membership of 6,000.
Expanding Global Trade Relationships
The president revealed that Türkiye has broadened its economic and diplomatic interactions with regions such as Africa, Latin America, and Asia to strengthen trade and cultural connections. He noted remarkable achievements in exports, with Türkiye’s goods and services exports projected to reach $395.9 billion by 2025. Goods exports surged from $36 billion in 2002 to a staggering $273.3 billion in 2025, while services exports grew from $14 billion to $122.6 billion. This growth in international trade positions Türkiye as an increasingly vital player in the global market, with its share of global goods exports climbing from 0.55 percent to 1.07 percent.
Erdoğan highlighted the outstanding rise in medium-high and high-technology exports, which increased from $10 billion in 2002 to an anticipated $112 billion in 2025. He also pointed out that Türkiye’s defense and aviation industries have shown impressive growth, with sector exports exceeding $10 billion, aided by a 29 percent increase in early 2025 exports.
Support for Exporters and Financial Accessibility
The government continues to bolster exporters through various financial support mechanisms, including Eximbank. Erdoğan noted that Eximbank’s capital has been raised to 100 billion Turkish Liras, with its credit and insurance support rising by 31 percent in the first five months of the year to $26 billion. The president forecasted that Eximbank would provide a total of $60 billion in support by year-end. Additionally, the Central Bank has issued 1.26 trillion Liras in rediscount credits over the past year, addressing the critical issue of access to finance for businesses.
Recognizing the challenges surrounding financial accessibility, Erdoğan has tasked the economy management to conduct a thorough examination of the situation following the latest cabinet meetings. He underscored that while gaining access to financial resources is crucial, their efficient allocation toward production, exports, and investments is equally important.
In conclusion, Erdoğan expressed optimism about Türkiye’s economic future. He asserted that as the complex landscape of global economic, commercial, and diplomatic challenges begins to stabilize, Türkiye will emerge as a significant winner on the global stage, creating lucrative opportunities for internal and external stakeholders alike.