Geopolitical Position of Turkey and Investment Value

Turkey is located in the connection point of East and West, Europe and Asia continents. Geopolitical position offers important advantages for Turkey.

Geopolitical position offers important advantages for Turkey.

Many international companies, production and management of them are based in Turkey because of geopolitical position. Thus, Turkey became a regional power and an important center of attraction. Turkey, as well as a skilled workforce and favorable climate, has the opportunity to benefit from long-term economic growth and sustain development for geographic location. There is a Free Trade Agreement with Turkey’s customs union with the EU in 27 countries. This means direct access to a market of 1 billion USD in total. The agreement strengthens the strategic location of Turkey, Turkey is expected to become even more attractive in the coming years.

Logistics Center of the World : Turkey

Turkey has become a regional logistics base. It is known as the largest in Europe in road transport. Important strides have also been made in the shipping industry. Sea trade is expected to gain momentum thanks to the ports commissioned and new ports are under construction. Turkey continues to invest in air transportation. Also, Turkey is one of the leading countries of the world for the concept of cargo transportation. Logistics sector will be supported by investments made in the rail network, Turkey’s geographical advantages also when the growth will continue for many years taken into consideration. an important trade and energy bridge linking East and West that Turkey’s geopolitical position, when China’s historic Silk Road project is also intended to revive, will become more important in the future world economy.

Potentially Developing Sectors

Food and Processing Industry Investments

Thanks to the geopolitical position, Turkey is an important production center for food production in Europe and the Middle East markets. Its agricultural diversity and favorable climate facilitates the status of being a net food and beverage exporter.

Turkey have the opportunity to benefit from geographic proximity with Europe, Central Asia and the Middle East. Turkey, which is the target of 85% of the organic food exports, having the health-conscious European consumers are well suited for organic food production. Foreign investors will be able to play an important role in promoting growth in this sector. The number of foreign companies investing in the Turkish food and beverage industry is increasing every year.

Agricultural R&D Investments

The development of Turkey in the food and beverage industry in the region, an agricultural R & D base of foreign investors seems to be opportunities for Turkey to enter the market when supported by the establishment.

With the arrival of foreign high-tech firms Turkey, as a center of excellence in agriculture will benefit more from the advantages of geopolitical location.

Energy Investments

Turkey is referred to as an energy corridor due to its geopolitical position.

Besides hosting oil and gas pipelines that bridge the East and West, it has the potential to provide approximately one-third of its installed capacity from renewable energy sources thanks to its climate and streams.

The Hydroelectric and solar energy potential is particularly strong.

It is expected to use renewable resources for supply to a large part of the increasing domestic energy demand in the coming period. In addition, the Aegean coastline is home to wind power plants. In the coming years, it is aimed to provide capacity expansion through state-owned and foreign investments.

Automative Investments

Turkey is currently positioned as a major regional center for car production and assembly.

A strong growth in the coming year is expected in Turkey. Generally, the European automobile manufacturers from the customs union with the EU, which chose Turkey to take advantage of the cheap skilled labor and a variety of investment support mechanisms.

On February 21st the economic outlook for Turkey remains stable and they retain their BB status according to credit rating agency Fitch. There is strong economic growth which is predicted to be around 4.3% up until 2021, with inflation coming down to near single digits again.

Despite the global decline in foreign direct investment, which was down more than 40% in developed countries, Turkey continues to register an increase in FDI over the last two years. In 2018 Turkey saw 13.2 billion Dollars of FDI which was a 14% increase year on year.

The banking sector also saw healthy numbers with the Banking Regulation and Supervision Agency registering a 16.1% increase in total asset value for.