Business Needs in Turkey



Turkey, strategically located at the crossroads of Europe, Asia, and the Middle East, presents a dynamic and evolving business landscape.

Driven by a young and educated workforce, government incentives, and ongoing infrastructure development, several key sectors are demonstrating significant potential for growth and investment.

Business Needs and Opportunities in Turkey

Here are some of the current business needs and opportunities in Turkey:

I. High-Growth and Emerging Sectors

Renewable Energy

Turkey has ambitious targets for increasing its share of electricity from renewable sources (e.g., solar, wind, geothermal, hydroelectric).

This commitment, coupled with its favorable geography, creates significant opportunities in:

    * Infrastructure development for renewable energy projects.

    * Manufacturing of renewable energy equipment (solar panels, wind turbines).

    * Related services and technologies in the green energy sector.

Technology and Software Development

Turkey’s IT sector is thriving, Fuelled by a digitally fluent population and a surge in tech entrepreneurship. Key areas of demand include:

    * Cybersecurity: With increasing digitalization, there’s a strong need for experts in threat detection and response, encryption, network security, and vulnerability management.

    * Fintech: Development of financial technologies and digital payment solutions.

    * E-commerce and Digital Retail: Continued growth in online retail platforms and digital services.

    * Artificial Intelligence (AI) and Automation: Investment in AI engineers, data scientists, and automation specialists as Turkey aims to integrate AI into its economy.

    * Cloud Computing and Data Science: Demand for professionals and solutions in cloud-based operations.

    * Blockchain Technology: Growing interest and investment in blockchain for various applications, including real estate and cryptocurrency.

Manufacturing and Industrial Production

Turkey Remains a Strong Manufacturing Hub, Particularly for:

    * Automotive: Home to production facilities for major global brands (Ford, Toyota, Fiat), with growing momentum in electric vehicle (EV) production, EV infrastructure, smart mobility, and component manufacturing.

    * Textiles and Apparel: Renowned for high-quality fabrics and garments, offering opportunities for sourcing and manufacturing.

    * Electronics and Machinery: Continued demand for advanced machinery and electronic components.

    * Food Processing and Agricultural Technology (Agritech): Turkey is a leading producer of agricultural products, and there’s a growing need for smart farming tools, sustainable practices, and food processing technologies.

Healthcare and Medical Tourism

The healthcare industry has seen rapid advancement with increasing public and private investment. Opportunities exist in:

    * Developing new healthcare facilities and modernizing existing ones;

    * Medical tourism (cosmetic surgery, dentistry, fertility treatment) due to high-quality yet affordable services;

    * Digital health technologies and virtual healthcare services, especially for rural areas.

Real Estate and Construction

The real estate market remains resilient, driven by urban regeneration projects, population growth, and demand for residential, commercial, and industrial spaces. Istanbul, in particular, remains a hotspot.

Logistics and Transportation

Turkey’s strategic location makes it a crucial hub for logistics. Investment in modern transportation networks, ports, and free trade zones enhances efficiency and reduces logistics costs, creating opportunities in freight, warehousing, and supply chain management.

Tourism and Hospitality

A vibrant industry attracting millions of visitors. Opportunities include:

    * Developing hotels and resorts.

    * Emerging niches like medical tourism, eco-tourism, wellness tourism, and curated cultural experiences.

    * Developing multilingual service capabilities to attract diverse international markets.

II. Key Business Needs and Challenges

Skilled Labor Shortages

Despite a young workforce, there are specific skill gaps in high-demand fields such as:

    * Robotics Engineering

    * Cybersecurity

    * Healthcare (technically advanced professionals)

    * Renewable Energy Engineering

    * Blockchain Management

    * Biotechnology Research

    * Professionals with strong English proficiency.

Maintaining Macroeconomic Stability

While policies are being implemented to restore sustainable growth and reduce economic imbalances, challenges like inflation and external financing needs persist. Businesses need to navigate this economic environment carefully.

  • Regulatory Complexity

Understanding and navigating Turkish business laws, tax systems, and trade requirements can be complex for foreign investors. Partnering with local experts is often crucial.

  • Identifying Reliable Partners

Finding trustworthy local partners is essential for successful market entry and operations.

  • Cultural and Language Barriers

While English is becoming more common, especially in business, understanding Turkish business culture and addressing language differences can be important.

  • Intellectual Property Protection

A significant concern, particularly in manufacturing and technology sectors.

  • Data Privacy and Cybersecurity

Critical considerations for businesses operating in the technology sector.

III. Government Support and Incentives

The Turkish government actively encourages both domestic and foreign investment through various incentive programs:

  • Investment Incentive Program

Provides tax benefits (corporate tax reductions, VAT and customs duty exemptions), social security premium support, interest rate support, and land allocation based on region and sector.

  • Research and Development (R&D) Incentives

Tax deductions for R&D expenditures, social security premium support for R&D personnel, and additional benefits for companies with dedicated R&D centers.

  • Technology Development Zones (Technoparks) Incentives

Income tax exemption for employees, VAT exemption for software and R&D products developed in Technoparks.

  • Free Zones (FZ) Incentives

Exemptions from VAT and customs duties, income tax withholding incentives for export-oriented companies.

  • Strategic Investment Incentives

Tailored support for large-scale, high-value-added projects that reduce foreign dependency.

  • Project-Based Investment Incentives (Super Incentives)

Financial support for innovative, technology-oriented, R&D-focused projects that align with national development plans.

In summary, Turkey offers a compelling landscape for businesses, particularly in sectors aligned with its strategic economic priorities like renewable energy, technology, and advanced manufacturing.

However, successful entry and growth require a clear understanding of the local market, effective navigation of regulations, and addressing the demand for specialized skills.

To learn more about different sectors of Turkish economy, explore possibilities for partnerships as well as import-export activities, please feel free to contact us by filling out the form below or by email to start.inforum@gmail.com

Bursa – the City of the Industrial Production and International Trade

Bursa – the City of the Industrial Production and International Trade

Bursa, one of the few cities in the world that has succeeded in combining natural beauty with industry and technology.

Being the centre of industry and culture, Bursa has turned into a driving force of the Turkish economy, especially taking into account the increasing inflation and economical crisis of nowadays.

With its factories and production areas, Bursa makes a significant contribution to the country’s economy by intensive import and export activities.

The city has a well-developed infrastructure and technological background to continue its rise in production and international trade.

Located in a close distance from the sea routes of the Marmara Sea, Istanbul, and the Aegean Sea, being surrounded by other industrially powerful areas of Turkey, Bursa has gained a reputation of the city which is rapidly developing and quickly reacting to the demands of the international production and trade.

Thanks to its favourable climate, affordable routes of transportation, closeness to the vein of the Turkish economy and production, Bursa has opened its doors to the partners from Eastern and Western Europe, Middle and Far East, countries of the North and South America. 

In Bursa, such sectors such as textile, automotive, machine-metal manufacturing, agriculture-based industry, food, furniture are leading the market and producing value at the national and international levels.

32 of the 500 largest Turkish companies are located in Bursa.

According to the records of the Provincial Directorate of Science, Industry and Technology, the total number of factory parcels in the region is 2,142, and the number of active facilities is 1,652.

What Industries are Especially Developed in Bursa?

Automobile Industry

Among the 250 companies in Bursa, the automotive industry produce the highest added value with a share of 44 percent. Automotive is followed by the food, agriculture and livestock industry with 16 percent, and the textile and apparel industry with 15 percent.

Two car factories of Turkey are located in Bursa. They are Renault and Tofaş (Fiat). The number of factories related to automotive industry working in Bursa are quite high. 16 types of machines are manufactured in Bursa including different types of equipment and tools. 32 varieties of auto accessories are assembled at the factories of Bursa and its branches in other cities and countries.

Textile Industry

In Bursa, there are 18 organized industrial zones and approximately 4100 textile and ready-made clothing companies operating in 1 free zone.

The textile factories manufacture goods using nylon, polyester, wool, etc to produce a big variety of textile for homes, cloths, cars, and so on.

2020 Data 

Bursa´s companies have developed a big number of local products which have been exported all over the world for the last 10 years, thank to the series of business projects developed together with the city municipality. 

Bursa has also become famous for such products as first metro-bus produced in Turkey, first domestic tram, first national 3D printer, laser chip, etc. 

250 big companies in Bursa reached 189 billion TL in their net sales, 30.6 billion TL in their added value, and 49.9 billion TL in their equities in 2020. 

The assets of these companies were recorded as 145.7 billion TL, their sales from production as 139.4 billion TL and their profit for the period is 12.6 billion TL. 

The exports of 250 large companies in 2020 amounted to 9.8 billion dollars. 

The total employment of the first 250 companies in 2020 was 149 thousand people.

In Bursa, the locomotive city of the Turkish economy, the first 6 companies ranked according to their net sales in 2019 maintained their positions in 2020 as well. 

Renault took the first place with 31.2 billion TL, the same as in 2019. Tofaş ranks second with TL 24.7 billion, while Bosch ranks third with TL 8.4 billion. Borcelik, Limak, Sütaş, Pro Yem, Yazaki Systems, Beyçelik Gestamp and Asil Çelik followed the 3 companies mentioned above. Out of the companies in the ranking list, 68 are automotive sub-industry, 43 are textiles, 30 are food, agriculture and livestock, 22 are retail trade, 17 are machinery and equipment, 13 are metal, 7 are ready-to-wear, 7 wood forest products and furniture, 6 plastics, 5 cement, soil products and mining, 5 energy, 5 environment and recycling, 4 construction, 4 automotive main industry, 3 economic relations and finance, 3 services, training and consultancy, 3 chemistry, 3 logistics, 1 electrical-electronics, and 1 health.

To find out more about the city, its industries and producers, set up connections for import-export activities, please feel free to contact us start.inforum@gmail.com

Resources:

Bursa’nın en büyük 250 şirketi belli oldu! İŞTE TAM LİSTE https://www.memleket.com.tr/bursanin-en-buyuk-250-sirketi-belli-oldu-iste-tam-liste-2110235h.htm

Turkiye Tekstil Sektörü ve Bursa https://uib.org.tr/tr/kbfile/turkiye-tekstil-sektoru-ve-bursa

Bursa’da Organize Sanayi Bölgeleri https://www.btso.org.tr/?page=bursaeconomy/industrialzone.asp

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