Sectors

As a major player in the healthcare sector, Turkey has great potential in the production of pharmaceuticals and medical supplies. Turkey’s pharmaceutical sector is worth approximately 7 billion dollars as of 2023. There are more than 500 pharmaceutical manufacturers and more than 300 medical equipment manufacturers operating in the country. The sector is growing at 10% annually and exports account for 20% of total production.

Turkey has a strong healthcare infrastructure and an extensive network of healthcare services. Modern hospitals, health centers and laboratories offer a large market for companies operating in the pharmaceutical and medical supplies sector. In addition, Turkey’s R&D capacity and skilled workforce support innovation in the sector.

Turkey’s aging population, rising healthcare expenditures and evolving healthcare services create a huge market potential in the pharmaceuticals and medical supplies sector. By 2023, healthcare expenditures in Turkey will be around USD 40 billion. Moreover, Turkey is a major supplier of pharmaceuticals and medical supplies to the Middle East, Africa and Europe.

The Turkish government provides various incentives and regulations to support the healthcare sector. R&D incentives, tax breaks, investment incentives and public-private partnership projects offer significant advantages for companies operating in the sector.

Turkey’s pharmaceutical and medical equipment sector is worth approximately 7 billion dollars as of 2023. There are more than 500 pharmaceutical manufacturers and more than 300 medical equipment manufacturers operating in the country. The sector is growing at 10% annually, with exports accounting for 20% of total production. Healthcare spending in Turkey is around $40 billion. This creates new opportunities in the sector.

Turkey is strategically located, connecting Europe, Asia and the Middle East. This geographical advantage facilitates production and export activities in the automotive sector. Especially proximity to Europe has made Turkey an important automotive production center. The Turkish automotive sector is worth approximately 30 billion dollars as of 2023. The country is positioned as one of the world’s top 15 automotive producers. Annual vehicle production is around 1.5 million units, most of which is exported.

Turkey has a strong automotive supply industry and an extensive supplier network. In addition, modern production facilities and the use of high technology increase the competitiveness of the sector. Cities such as Bursa, Kocaeli and Sakarya are important centers of automotive production.

Turkey’s young and dynamic population, rising income level and consumer demand create a huge market potential in the automotive sector. By 2023, annual vehicle sales in Turkey reached approximately 800,000 units. Turkey is a major supplier of automotive exports to Europe. In 2023, automotive exports will be around 20 billion dollars. European countries constitute the largest export markets of the Turkish automotive sector.

The Turkish automotive sector is worth approximately 30 billion dollars as of 2023. Annual vehicle production is around 1.5 million units and most of this production is exported. In 2023, automotive exports will be around 20 billion dollars. Annual vehicle sales in Turkey have reached approximately 800 thousand units. Demand for SUVs and electric vehicles in particular has been growing rapidly in recent years. This creates new opportunities in the sector.

Turkey has a great advantage for the telecommunications sector thanks to its strategic location between Asia and Europe. Being at the crossroads of two continents, the country is a transit point for both east-west and north-south data traffic. This location provides a significant advantage for international data center and internet traffic.

Turkey’s telecommunications sector is worth approximately USD 20 billion as of 2023 and is growing at 5-7% per year. The number of mobile subscribers has exceeded 83 million and the number of broadband internet users is close to 80 million. With the widespread adoption of 5G technology, the sector is expected to grow further.

Turkey’s fiber optic network infrastructure is expanding rapidly and the transition to 5G technology is underway. Major telecommunications companies such as Türk Telekom, Vodafone and Turkcell are increasing their infrastructure investments and expanding service quality and coverage. In addition, satellite communications and broadband internet services continue to develop.

The Turkish government provides various incentives and regulations to support the telecommunications sector. R&D incentives, tax breaks and infrastructure investments offer significant advantages for companies operating in the sector.

Turkey has a great advantage for the logistics and transportation sector thanks to its strategic location between Asia and Europe. The country is located at the crossroads of both east-west and north-south corridors. Istanbul Airport is one of the largest and most modern airports in the world and has the potential to become an important logistics hub.

Turkey’s logistics sector is worth approximately 150 billion TL as of 2023 and is growing by 8-10% every year. With the widespread use of e-commerce, there is a great mobility in the logistics sector. Especially after the pandemic process, the increase in digitalization and online shopping has increased the demand for the sector.

Serious investments are being made in Turkey for road, rail, maritime and air transportation. In particular, the Baku-Tbilisi-Kars railway line and the Marmaray project accelerate and facilitate logistics processes. Sea ports such as Izmir Alsancak Port, Mersin Port and Iskenderun Port make Turkey a logistics hub.

Turkey is one of the most visited countries in the world. In 2023, it hosted approximately 50 million tourists and generated 35 billion dollars in tourism revenues. Turkey’s historical and cultural richness, natural beauties and modern tourism opportunities are constantly increasing the demand in the sector. Various types of tourism such as sea tourism, health tourism, winter tourism, cultural tourism and congress tourism provide the opportunity to offer services in different segments. Touristic regions such as Cappadocia, Pamukkale, Ephesus, Antalya attract high numbers of tourists.

The Turkish financial sector has shown resilience even during global financial turmoil and economic crises, largely due to regulatory reforms and structural overhaul introduced by the government after the country’s financial crisis in the early 2000s. These measures boosted investor confidence to such an extent that the industry has become the most attractive sector for FDI, attracting USD 57 billion since 2002.

Banking dominates the Turkish financial sector, accounting for more than 70 percent of overall financial services, while insurance services and other financial activities also hold significant growth potential. In Türkiye, there are 57 banks with 25 classified as foreign banks, including deposit banks, development and investment banks, participation banks, and banks under the management of the Savings Deposit Insurance Fund (TMSF).

The Turkish insurance market is still relatively untapped compared to its peers, and it has the potential to capitalize on its growth opportunities as new insurers establish themselves in the market. Türkiye’s strong economic growth, driven in part by a young and dynamic population increasingly in need of financial products and services, has played a significant role in this trend.

The Turkish financial sector has benefited from the country’s robust and diverse economy, which has seen impressive growth over the 2003-2021 period, with an average annual real GDP growth rate of 5.4 percent. This growth momentum is expected to continue, and Türkiye has become the 11th largest economy in the world in 2021.

Türkiye’s economic expansion has led to higher income and an emerging middle-class with increased purchasing power.

The Turkish government has established ambitious economic goals, one of which is to transform Istanbul into a major financial hub. Istanbul’s favorable attributes, such as its sizable and youthful population, skilled workforce, growing markets, and strategic location, make it an ideal location for an international financial center. Since the government’s launch of the Istanbul Financial Center project, the city has made significant strides towards this goal and is now recognized as one of the world’s emerging financial centers.

Türkiye presents significant investment opportunities in the tourism industry, with its favorable location, existing potential, and mega projects. The country’s tourism sector continues to grow at a rate that outstrips its bed capacity, despite the surge of investments in the last several years. Eastern and Southeastern Anatolia are particularly promising regions for cultural tourism and the boutique hotel concept, given their unique nature, history, and culture.

In 2022, Türkiye was the 3rd most popular tourist destination in the world, with 51.4 million international tourist arrivals, up 75% year-on-year, with the average spending per visitor at USD 950. Türkiye boasts a significant number of tourist accommodation establishments with over 833,000 rooms, and its occupancy rates have been recovering strongly since the pandemic.

Türkiye is a unique destination that caters to various types of tourism, including religious tourism, beach tourism, geothermal tourism, and golf tourism. With its 8,300 km of coastline and 529 blue-flag beaches, Türkiye ranks 3rd globally in terms of beaches. It also has over 1,500 thermal springs, making it one of the top seven countries in the world and the first in Europe for geothermal tourism. In addition, the Belek region stands out as the most significant golf destination in Türkiye, attracting millions of tourists annually.

Türkiye also ranks 7th among the top 10 European countries for tourism FDI between 2016 and 2020, with 36 FDI projects, according to fDi Intelligence’s Tourism Investment Report 2021. The Turkish government offers various incentives, such as reduced utility prices and tax rates, and has been implementing policies to eliminate bureaucratic barriers that may hinder growth in the tourism sector. Overall, Türkiye presents a promising investment destination for the tourism industry, where foreign businesses can explore various opportunities, including:

Accommodation: With the increasing number of tourists, there is a growing demand for quality accommodations in Turkey. Foreign businesses can invest in developing hotels, resorts, and other types of accommodation to meet this demand.

Tour operators: Turkey has a diverse range of attractions, and many tourists prefer to explore the country with the help of local tour operators. Foreign businesses can invest in this sector by providing high-quality tour services that cater to different types of tourists.

Transportation: With the growing number of visitors, there is a need for reliable transportation services to move tourists around the country. Foreign businesses can invest in developing transportation services, including car rental services, shuttle services, and public transportation systems.

Food and beverage: Turkey is known for its delicious cuisine, and many tourists enjoy trying out different local dishes. Foreign businesses can invest in the food and beverage sector by developing restaurants, cafes, and other food-related businesses.

Souvenirs and retail: Tourists often purchase souvenirs and other local products during their visits. Foreign businesses can invest in this sector by developing retail outlets, souvenir shops, and other businesses that sell local products.

If you’re interested in investing in Turkey’s tourism sector, it’s important to seek guidance from experienced business consultants, local lawyers, and accountants who can help you understand the regulations related to land purchase or lease, taxation, employment, health and safety, and provide you with 360-degree guidance and support throughout the investment process. With our expertise, you can ensure that your investment is in compliance with local laws and regulations, and that you have the necessary resources to navigate any challenges that may arise in this exciting sector.

The public procurement sector in Turkey is a significant contributor to the country’s economy and offers many opportunities for foreign businesses, covering a wide range of goods, services, and works, such as construction, transportation, energy, healthcare, and IT. The Turkish government purchases a significant amount of goods and services every year, making it one of the largest purchasers in the country.

The public procurement process in Turkey is regulated by the Public Procurement Law, which aims to increase transparency, competition, and efficiency in public procurement. The law requires public institutions to conduct procurement processes in a fair and impartial manner, and to provide equal opportunities to all potential bidders. Additionally, the law requires that all procurement notices be published on the Electronic Public Procurement Platform (EKAP), which is a centralized portal for all public procurement activities in Turkey.

Turkey has a modern and efficient electronic procurement system, which allows businesses to access procurement opportunities and submit bids online. This system increases transparency and reduces bureaucracy in the procurement process, making it easier for foreign businesses to participate. The country is also committed to complying with international procurement standards, making it easier for foreign businesses to participate in tenders.

It is important to note that the public procurement sector is highly competitive, and businesses need to be prepared to compete against both local and international

competitors. Additionally, businesses need to ensure that they comply with all relevant regulations and have a strong understanding of the procurement process in Turkey.

Some of the key goods and services that the Turkish government purchases include:

Construction: The Turkish government invests heavily in infrastructure projects, such as roads, bridges, and airports, creating significant opportunities for construction companies.

Transportation: Turkey has a large transportation network that includes railways, highways, airports, and ports. The government purchases goods and services related to transportation, such as vehicles, fuel, and maintenance services.

Healthcare: The Turkish government is committed to improving healthcare services in the country and purchases a range of medical equipment and supplies.

IT: The government purchases a variety of IT goods and services, such as software, hardware, and technical support.

Private-public partnerships: Turkey also offers opportunities for private-public partnerships (PPP) in public procurement. PPP projects are becoming increasingly popular in Turkey as a way to finance and develop major infrastructure projects, such as airports, highways, bridges, hospitals, and energy plants.

For foreign businesses interested in PPP projects in Turkey, it may be beneficial to partner with a local firm with experience in the relevant sector, as PPP projects in Turkey can be complex and require a deep understanding of the local regulatory environment, cultural nuances, and market conditions. By partnering with a suitable local firm, foreign businesses can gain valuable insights into local market conditions and access to local networks, which can help them to compete more effectively.

At Turkinvest, we can help you with the complex process of partnering with a local firm and increase your chances of success in the PPP sector in Turkey. In particular, we can:

• –  identify potential local partners by conducting market research, analyzing the capabilities and track record of local firms, and evaluating their compatibility with your goals and values,
• –  facilitate communication and negotiations between you and local firms, draft a comprehensive partnership agreement that outlines each party’s roles, responsibilities, and expectations,
• –  provide guidance and support throughout the partnership, including monitoring progress, resolving conflicts, and identifying opportunities for growth and expansion

The construction sector is a significant contributor to the Turkish economy, accounting for a significant portion of GDP and employment. The country has a long history of construction projects, which has resulted in a well-educated and experienced labor force that can execute projects to high standards. There is strong demand for new construction projects in Turkey, driven by population growth, urbanization, and a need for modern infrastructure. In addition, the Turkish government has implemented policies and regulations that support the construction sector, including initiatives to streamline the permitting process, reduce bureaucracy, and encourage foreign investment. Turkey is also investing heavily in infrastructure projects, including transportation, energy, and communication networks. These projects create significant opportunities for construction companies to secure new contracts and projects and support the overall growth of the sector.

In summary, the construction sector in Turkey is strong and offers significant opportunities for foreign construction companies, as the country has a growing construction sector and a supportive business environment. Below are some of the potential opportunities for foreign construction companies in Turkey:

Infrastructure projects: Turkey has ambitious plans to invest heavily in its infrastructure, including transportation, energy, and communication networks. Foreign construction companies can participate in these projects by partnering with local firms or tendering for contracts.

Real estate development: Turkey has a large and growing real estate market, with a strong demand for new residential and commercial developments. Foreign construction companies can participate in this market by partnering with local developers or investing in their own projects.

Green building and sustainability: Turkey is increasingly focusing on green building and sustainability in its construction projects. Foreign construction companies with expertise in these areas can find opportunities by offering innovative solutions and technologies.

Joint ventures and partnerships: Foreign construction companies can also explore opportunities to partner with Turkish firms in order to tap into their local knowledge and expertise.

If you are interested in pursuing these opportunities, it may be beneficial to consult with professionals with specific knowledge and experience in the Turkish market. At Turkinvest, we can provide you with a comprehensive range of services to support your business operations in Turkey, in particular assistance with legal and regulatory compliance, contract negotiation, market research, and project management.

Turkey has a rapidly growing and developing infrastructure sector, with significant opportunities for foreign companies to get involved in a range of projects. Some of the key areas of opportunity for foreign infrastructure companies in Turkey include:

Transportation infrastructure: Turkey is investing heavily in the development of its transportation infrastructure, including highways, railways, and airports. There are numerous opportunities for foreign companies to participate in the design, construction, and maintenance of these projects.

Energy infrastructure: Turkey is investing heavily in its energy infrastructure, particularly in renewable energy projects such as wind and solar power. Foreign companies with expertise in these areas can find significant opportunities to get involved in the design, construction, and operation of these projects.

Water infrastructure: Turkey faces significant challenges in managing its water resources, particularly in regions that are prone to drought and water scarcity. There is a growing need for investment in water infrastructure projects, including dams, irrigation systems, and wastewater treatment facilities.

Urban infrastructure: Turkey’s growing population and urbanization rate are driving demand for new and improved urban infrastructure, including housing, public transportation, and social infrastructure such as schools and hospitals. Foreign companies with expertise in these areas can find opportunities to get involved in public-private partnerships and other projects.

In conclusion, Turkey offers significant opportunities for foreign infrastructure companies looking to expand their business in a dynamic and rapidly growing market. The country’s strong economic fundamentals, strategic location, and supportive regulatory environment make it an attractive destination for foreign investment. However, navigating the complex regulatory landscape, building relationships with local stakeholders, and understanding the

local business environment can be challenging for companies that are new to the market. Working with an experienced local business consultant is therefore an effective way for foreign infrastructure companies to overcome these challenges and ensure that their projects are completed on time and within budget.

You can count on us to gain a deeper understanding of the local market, navigate the complex processes involved in infrastructure projects in Turkey, get the necessary support with permits and approvals, as well as with legal and contractual issues. At Turkinvest, we can also help you build relationships and trust with key stakeholders in the Turkish infrastructure market, including government officials, local businesses, and community organizations to help you achieve long-term success in Turkey.

If you are interested in exploring opportunities in Turkey’s infrastructure sector, do not hesitate to contact us. We would be happy to discuss your specific needs and provide you with more information about how we can assist you in this dynamic market.

Türkiye’s economy and population have been growing rapidly, leading to an increase in the demand for energy and natural resources. In an effort to increase liberalization and competition in the energy market, the government has handed over the majority of power generation assets to the private sector. The country has seen significant growth in primary energy supply and installed capacity for electricity generation and new investments in power generation, transmission, and distribution assets, with further investments planned to meet the country’s increasing needs.

Although Türkiye is a net energy importer, the government has also been implementing new policies, investment models, incentives and subsidies to utilize the country’s substantial renewable (hydro, wind, solar) energy potential with abundant hydroelectric resources, strong winds in certain regions, and ample sunlight throughout much of the country. As of end-2020, these renewable energy sources accounted for the majority of the country’s installed capacity. Türkiye also possesses significant coal reserves, and its natural gas sector has been steadily improving.

The Turkish energy market is highly regulated and highly competitive, with many local players already established in the market. By working with a reputable consultancy firm and leveraging the expertise of local partners, foreign investors who can offer unique value can successfully navigate the challenges of the Turkish energy market and develop successful energy projects in the country.

At Turkinvest, we have a strong understanding of Turkish energy markets’ regulatory environment and the political and economic climate that can help you with making informed investment decisions and mitigating your risks, as well as a strong network that can assist you in establishing new business relationships with local partners including in areas such as manufacturing, logistics, and distribution. We can also provide you with ongoing support in the Turkish energy markets, including project management, contract management, compliance with regulations, as well as dispute resolution through our leading solution partners.

If you are interested in exploring opportunities in Turkey’s rapidly growing energy sector, do not hesitate to contact us. We would be happy to discuss your specific needs and provide you with more information about how we can assist you in this dynamic market.