Local connections, global influence

A Turkish Manufacturing Property Boom Driven by Asian Investors

Turkish Manufacturing Property Boom

A Turkish Manufacturing Boom Fuelled By Capital From Asia 

Tourism is back in business in Turkey following large volumes of domestic and foreign visitors flocking to the beaches and resort towns during the Eid holiday. Tourism is vital in Turkey with up to 8% of GDP being generated directly from the sector and possibly an even greater number from indirect tourism related income. 

Turkish automobile manufacturing has also seen positive advances despite COVID according to the European Automobile Manufacturers Association (ACEA). Those looking to apply for the citizenship by investment scheme will be pleased to hear of the success and positive trade and manufacturing figures. The Istanbul Chamber of Industry stated that due to increased output and new orders, Turkey’s manufacturing sector saw sharp rates of expansion. 

The Asia Anew Initiative launched last year, aimed to improve ties with Asian countries in different regions which would include cooperation in education, the defence industry, investments, trade, technology, culture and political dialogue. This coincides with China’s belt and road initiative. The Belt and Road initiative is already promoting easier distribution of goods to various destinations in the Middle East, Europe and North Africa. Many Asian investors are looking further afield, particularly amidst trade wars between the US and China which threaten the profitability of investments in the region. Trade cooperation between Turkey and China in 2018 reached $23.6 billion with a 120% increase in the number of Chinese investments in Turkey. 

Turkey’s presidential financial chief has sights set on an Istanbul Finance Centre which is due to complete in 2022. More than 1000 Chinese companies are already doing business in Turkey including Bank of China, Shipping Group COSCO and the telecoms giant Huawei. Rising energy demand in Turkey is expected to continue, fuelled by ambitious renewable energy targets. The Honotlu Thermal Power Plant in the Turkish state of Adana saw a total investment of $1.7 billion. This plant is set to generate 9 billion kilowatt hours per year which accounts for about 3 percent of the total electricity supply across Turkey. There are huge investment opportunities in renewable energies such as solar wind farms and geothermal energy plants with a 10-year forecast of investments set to reach 130 billion euros. 

A Bridge Between Europe and the Middle East 

Since the fall of Constantinople, Turkey has been a hub of trade, knowledge transfer and social relations between Africa, the Middle East and Europe. Modern Turkey, admired by countries across Europe for many reasons, owes its commercial and leisure popularity and rich culture to the history and geography that placed Turkey in a unique gateway position. The human capital within Turkey is a huge competitive advantage with a young and increasingly skilled and educated population. Furthermore, Turkey has built a robust and resilient banking and financial system off the back of the financial crisis. Supporting commerce and international investors, Turkey utilises arbitration as its favoured dispute resolution mechanism and has set up several investment zones or technology development zones which have their own special rules and incentives available for businesses set up within those zones. For any investors looking for great return on investment and an ideal location to establish business affairs, Turkey provides the whole package. 

The Turkish Citizenship by Investment scheme has withstood the global pandemic, boasting incredible success rates with over 4000 investors gaining citizenship over March, April and May. As a direct result of this, huge amounts of capital have been injected into the Turkish economy. 

If you are interested in finding out more about the Turkish Citizenship by Investment Scheme or you require further guidance on global immigration, investment or citizenship solutions, please contact Global Capital Hub for a free initial consultation. 

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