Discover sector by sector the latest news to understand the dynamic business opportunities in Turkey. Turkey offers many investment options, especially in industry.

Business Opportunities in Turkey

Turkey offers significant business opportunities, thanks to its strategic position and growing economy. Business Opportunities in Turkey

Why invest in Turkey?

Investing in Turkey is strategic as the country is located at the crossroads of East and West and therefore enjoys a privileged location, in the current context of redefining supply routes. Some geopolitical conflicts are in fact obstructing the main routes of international trade.

Tensions in the Chinese Sea, the Strait of Hormuz and the Suez Canal have fully contributed to increased uncertainty about the supply of maritime cargo.

As a result, the inevitable rise in transport costs – road deviation, consequences of raw material shortages, rising fuel prices, higher demand than supply – are changing companies’ business strategies in terms of supply. Companies are seeking to minimize costs and delivery times.

It is therefore in this rather disturbed context that Turkey de facto positions itself as the strategic hub for ensuring efficient and less costly supply.

Moreover, Turkey, located between three continents, provides easy access to European, Middle Eastern, and Caucasian markets. Turkey offers a privileged access to major international markets. Furthermore, the country is little affected by the economic sanctions imposed by the major economies, between the US and China. Access to markets and raw materials in Turkey is generally rather easy.

Finally, Turkey has a dynamic economy with a high growth potential. Turkey’s business opportunities are supported by investment-friendly economic reforms in Turkey. Business Opportunities in Turkey

Promising sectors And Business Opportunities In Turkey

Business opportunities for international companies in Turkey are vast and promising. The industry is diverse and plays a leading role in Turkey’s economy. The country also has strategic advantages, sector by sector. One of these main reasons is Turkey’s geographical position and the strength of its emerging markets. Business Opportunities in Turkey

The Agricultural and Agri-Food Sector in Turkey

International agri-food companies can greatly benefit from the growth of the Turkish market. Turkey is the leader in Europe in terms of agricultural GDP. Turkey’s agricultural GDP grew by 141 per cent between 2002 and 2022, reaching $58 billion in 2022. These data show strong macroeconomic growth in the agro-agricultural sector in Turkey. The country is the world’s largest producer of apricots, figs and walnuts, and its agri-food exports reached $29.9 billion in 2022. In fact, Turkey earned over $1 billion 824 million during the 9-month period of the 2023-2024 hazelnut export season.

The agricultural sector in Turkey represents a real investment opportunity. Turkey’s agricultural product reached a record level of $69.2 billion in 2023. In addition, the country ranks 4th in the world for vegetable production and 5th for fruit production.

To learn more about agriculture in Turkey, see our detailed article here.

Turkey continues to innovate in the agricultural and agri-food sectors, focusing on investment in natural resources, including land, which is a key element of the Turkish comprehensive agricultural vision. Indeed, geothermal energy should boost Turkish agricultural production. There are currently more than 5,200 acres of geothermal greenhouses in Turkey, and the country can expand its capacity to 100,000 acres within a decade. Geothermal agriculture, in which Turkey invests massively, can provide a solution to the climate crisis.

For many years, major agri-food companies such as Carrefour, Danone, Nestlé, Ferrero, Coca Cola, Cargill, Unilever, and Mondelez have been present in Turkey. Business Opportunities in Turkey

The Renewable Energy Sector in Turkey

Sustainable development is one of the mandates set by the Turkish Government and the country has achieved success in this area. Between 2023 and 2024, Turkey exceeded the world average in terms of renewable energy use, 42% of Turkey’s electricity now comes from renewables. This result is part of the global vision for energy independence.

In a landmark agreement, the World Bank and Turkey have signed a $1 billion financing pact for renewable energy projects in Turkey (2024). Since 2002, Turkey’s primary energy supply has doubled and its electricity production capacity has skyrocketed from 31.8 GW to 95.9 GW, with ambitious goals for the future. Renewable energy sources, particularly hydropower (30.9 GW), wind power (8.8 GW) and solar power (6.7 GW), play a crucial role, driven by strong government incentives and significant investment. This makes Turkey an attractive market for renewable energy investment.

For more details on Turkey’s ambitious vision for its green transition and to learn more about the 2035 targets, read our full article here!

Many international companies, including Engie, RWE and LM Wind Power, have chosen Turkey for their investments. Business Opportunities in Turkey

The Defense And Military Sector In Turkey

Turkey is the world’s 12th largest arms exporter. Turkey stands out as an emerging but strong player in the defence sector. The defence industry in Turkey represents a great business opportunity, as Turkey’s defence spending will amount to $10.6 billion in 2022.

In addition, industry revenues have tripled over the past decade to $12.2 billion and the defence and aerospace industry has exported $4.4 billion worth of goods, demonstrating its global competitiveness.

Turkey has just officially launched production of its first main battle tank, the Altay, designed and manufactured entirely in Turkey. The series production of this tank underlines Turkey’s future ambitions in the international defence trade scene.

Turkey has also made significant progress in the field of combat drone technology, with innovations such as the TB2 Bayraktar and Kargu-2 drones. These drones, which are well known in military operations, are strengthening Turkey’s defence capabilities and attracting the interest of the international community and countries in Africa and Central Asia. Turkey aims to achieve 80 per cent of its defence production domestically by 2025. Business Opportunities in Turkey

Information And Communication Technologies In Turkey

The Information and Communication Technology (ICT) market in Turkey is valued at $27 billion (2022), with a CAGR of 25.2% in TRY over the last five years. Turkey is home to more than 1,200 ICT R&D centres, supported by a young and skilled workforce of more than 213,000 employees, 70% of whom are under the age of 35. In addition, a Technopark has been established in Istanbul, offering government incentives to attract foreign investors. Indeed, the ICT sector in Turkey is considered a priority sector by the Turkish government. Several initiatives have been taken to encourage investment in the sector.

Start-ups in Turkey are also very promising in terms of investment. The Turkish start-up ecosystem in the technology and innovation sector has grown considerably. Decacorn Angels, a prominent investor network with offices in North America and Europe, has officially launched its operations in Turkey. The network is dedicated to supporting innovative start-ups with the potential to achieve ‘Decacorn’ status – companies valued at over $10 billion.  Business Opportunities in Turkey

The volume of investment is huge. Turkish start-ups are expected to raise a record $1.6 billion in 2021, which shows the growing interest and confidence of global investors. Business Opportunities in Turkey

To understand the startup ecosystem in Turkey and discover the investment opportunities in the country, click here!

Some of the international companies operating in Turkey: Amazon Web Services, DE-CIX, Equinix, MasterCard, Picus, Visa, Vodafone. Business Opportunities in Turkey

The Automotive Sector In Turkey

The automotive industry can benefit from many infrastructure projects in Turkey. Turkey is the leading producer of commercial vehicles in Europe (2023). It benefits from a competitive and highly skilled workforce, a dynamic local market and a strategic geographical location. Indeed, with an impressive annual production capacity of 2 million vehicles, the country is one of the world leaders. Since 2000, total investment by global brands in the Turkish automotive industry has reached $18 billion. The country also has 162 R&D and design centres accredited by the Ministry of Industry and Technology. Business Opportunities in Turkey

By October 2023, car production in Turkey had increased by 19%. Business Opportunities in Turkey

Some of the players in the sector present in Turkey: Renault, Mercedes, Toyota, Hyundai, Fiat, Ford, Iveco, Bosch, Denso, Good Year, MAN, Pirelli, etc. Business Opportunities in Turkey

The Chemical Industry in Turkey

The chemical industry in Turkey is a major industry that contributes significantly to the economy and growth of Turkey. Last month’s results confirm this success. According to the Assembly of Turkish Exporters (TIM), Turkish exports reached a monthly record level in May 2024, with $24.1 billion in exports, an increase of 11.4% over the same period last year. The sector became the second largest exporting sector in May. Business Opportunities in Turkey

The industry is therefore very successful in Turkey. Other investment sectors in Turkey offer interesting business opportunities due to the country’s potential. Other key sectors in Turkey include textiles, pharmaceuticals, real estate, mining and drilling, infrastructure construction and financial services. Business Opportunities in Turkey

The Naval Sector And Nautical Tourism In Turkey

Turkey’s strategic geographical location, characterised by the Dardanelles and the Bosphorus Straits, reinforces its role in maritime trade routes.The country’s shipbuilding industry is experiencing exceptional growth, with exports expected to reach $1.6 billion by 2021. Turkey has around 80 shipyards, demonstrating its considerable capacity and expertise in the sector. The city of Yalova, located in the northwestern region of Turkey on the eastern coast of the Sea of Marmara, stands out for its $757.2 million in shipbuilding exports (2021). To further support this sector, the Turkish government is actively encouraging foreign investment by offering a range of incentives, including tax exemptions for investors. Business Opportunities in Turkey

Additional information: Turkey is the largest distributor of Bénéteau, which strengthens its position as a key player in the global maritime industry. Business Opportunities in Turkey

The Vision Of Our CEO

Who Are You?

I am Simay Kocaoğlan, CEO of ERAI Turkey, an independent and multilingual business development and management consulting firm.

After graduating from the Francophone University of Galatasaray with a Master’s degree in Political Science and International Relations, I started my career in business development as a representative at the ICC. Since then, I have been involved in long-term business development in the Turkish market.

In 2015, I acquired shares in ERAI Turkey, a French association specialising in international consulting, which was closing its doors. I did not want to disembark from the ship of business development in Turkey. As CEO of the company, I continued to offer practical solutions to international companies that are always eager to discover the Turkish market. I have more than 20 years of experience in business development and management. Today, we are a team of more than 30 people providing strategic advice and operational support to foreign companies in Turkey.

My passion for sailing is also important to me and I see my work as an extension of it. For any development project in Turkey, I will sail with you, navigating together towards your business success, developing strategies to help you enter the Turkish market, helping you build strategic partnerships and grow your business and turnover while staying ahead of the competition.

Our multilingual and independent consulting company has become the 1st choice of companies in the Turkish market. We are the 1st private intermediary and the 1st independent incubator offering a range of customised and complementary solutions. Business Opportunities in Turkey

Tips For Business Success In Turkey

Development Of Business In Turkey And Communication With Partners

An important aspect to consider when setting up a business in Turkey is the set of administrative and regulatory practices within Turkey. This should not be overlooked in your investment strategy in Turkey.

Turkey requires rigorous procedures, both in terms of the responsiveness of the commercial service and the quality of the export documentation in order to pass through customs smoothly. It is strongly recommended not to go it alone and to rely on a solution partner in Turkey.

A solution partner is essential when it comes to strategic advice on how to design and execute operations for growth and business sustainability in Turkey. Working with the right local partner is key to your success in Turkey. Business Opportunities in Turkey

That is exactly why ERAI Turkey offers tailor-made services and supports you throughout the process of your investment project in Turkey. Business Opportunities in Turkey

Business Advice For Working With Turkey

To work with Turkey, here is what you need to know:

Emphasise your competitive advantages: The issue of price is of paramount importance to the Turkish people. Make a solid case for the price of your products. Be clear about the costs and benefits.

Avoid sensitive topics: When you first meet, try to avoid discussing anything political or religious. Although Islam is the majority religion, Turkey remains a secular and multi-ethnic country.

Take your time when you are negotiating: Don’t rush. Let the negotiations run their course through the water. The Turks have a penchant for taking their time with business deals. Avoid offering your best deal at the outset; they expect to negotiate with you. Business Opportunities in Turkey

Conclusion

Navigate the dynamic waters of the Turkish market with the expertise of ERAI Turkey. Inspired by the maritime tradition of our region, we will guide you through the challenges of international expansion with expertise. Business Opportunities in Turkey

With ERAI Turkey, keep up to date with the latest news from Turkey by visiting our blog and following us on social networks: LinkedIn. Business Opportunities in Turkey

Sources: Invest in Turkey, VOI. Business Opportunities in Turkey