Turkey

From Turkey To Poland: Export Trends and Prerequisites

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Poland is absolutely a promising destination for Turkish exports which is caused by a number of reasons.

Here they are, based on current trends and future outlook.

1. Strong and Growing Trade Relationship

  • Significant Volume: The trade volume between Turkey and Poland has increased rapidly, jumping from $7 billion to $12 billion in a very short time. This robust growth indicates strong demand and successful existing partnerships.

  • Ambitious Targets: Both Turkish and Polish leaders have set an ambitious target of $15 billion for bilateral trade, signaling a clear political will to further deepen economic ties.

  • Trade Balance in Turkey’s Favor: Turkey currently holds a positive trade balance with Poland (meaning Turkey exports more to Poland than it imports), though the gap has narrowed slightly in recent years. This indicates a strong market for Turkish goods.

2. Poland’s Robust Economic Outlook

  • Solid GDP Growth: Poland’s economy is expected to maintain robust growth in 2025 (forecasted at 3.3%) and 2026 (3.0%). This growth is primarily driven by strong private consumption (due to rising real wages and increased government benefits) and investment (especially EU-funded public investment in infrastructure and energy).

  • Strategic Location: Poland’s central position in Europe makes it a vital gateway for trade between Western and Eastern Europe. Its well-developed infrastructure (ports, railways, highways) facilitates efficient logistics and distribution.

  • EU Membership Benefits: As an EU member, Poland benefits from free trade within the EU, reduced tariffs, and streamlined customs procedures, making it an attractive entry point to the broader European market.

3. Key Export Sectors with High Potential

Turkish exports to Poland are diverse, indicating wide-ranging opportunities. The top categories in 2024 highlight particular strengths:

  • Vehicles (other than railway, tramway): This is by far the largest Turkish export to Poland ($1.62 billion in 2024), showing a strong demand for Turkish-made or assembled vehicles and parts.

  • Machinery, Nuclear Reactors, Boilers: A significant category ($619.19 million in 2024), driven by Poland’s industrial development and investment.

  • Electrical, Electronic Equipment: Another substantial export ($459.46 million in 2024), reflecting the demand for technology and consumer electronics.

  • Textiles and Apparel (Knit and Not Knit): Combined, these categories represent over $680 million in 2024. Turkish textiles are highly competitive in Poland due to quality, design, and proximity (as Poland also imports heavily from China, Bangladesh, and Germany in this sector).

  • Aluminum: A surprisingly large export ($317.62 million in 2024), indicating industrial demand.

  • Plastics: ($280.32 million in 2024) – used across various manufacturing sectors.

  • Edible Fruits, Nuts, Peel of Citrus Fruit, Melons: A strong agricultural export ($255.26 million in 2024), benefiting from Poland’s import needs for fresh produce.

  • Articles of Iron or Steel: ($259.99 million in 2024) – for construction and manufacturing.

  • Defense Sector: Described as a sector with “significant progress,” with “Arms and ammunition, parts and accessories” at $106.82 million in 2024. This is a growing area of cooperation.

  • Pharmaceutical Products: A consistent export ($63.05 million in 2024), indicating demand for Turkish pharmaceuticals.

  • Furniture, Lighting Signs, Prefabricated Buildings: ($57.47 million in 2024) – aligning with Poland’s construction and real estate development.

4. Favorable Regulatory and Political Environment

  • Free Trade Agreement (FTA): A Free Trade Agreement between Turkey and Poland has been in force since 2002, eliminating tariffs on industrial products and providing a framework for trade in agricultural products. This significantly boosts competitiveness.

  • Strategic Partnership: Relations between Turkey and Poland have been elevated to a “strategic partnership” since 2009. Both countries are members of NATO, OECD, OSCE, and the WTO, ensuring a stable and cooperative political environment.

  • Shared Energy Goals: Both countries are focusing on reducing energy dependence and increasing renewable energy, creating potential for cooperation and related goods/services.

  • Polish-Turkish Chamber of Commerce: Established in 2007, this body actively supports mutual collaboration and strengthens economic ties.

Conclusion

Given the strong historical ties, robust economic growth in Poland, significant existing trade volumes, ambitious future targets, and the diverse range of successful Turkish exports, Poland is indeed a very promising and strategically important destination for Turkish exports.

Turkish exporters should prioritize market research within these key sectors to identify specific niches and capitalize on the existing goodwill and economic momentum between the two countries.

For guidance and consultancy, as well as developing effective strategy for export from Turkey, please feel free to contact us.

Export Trends from Turkey to Azerbaijan

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Turkey and Azerbaijan, bound by strong historical, cultural, and political ties (“one nation, two states”), exhibit robust and diversifying trade relations.

While Azerbaijan’s exports to Turkey are dominated by energy products (petroleum gas, crude petroleum), Turkish exports to Azerbaijan are much more varied, reflecting Turkey’s industrial and manufacturing strength.

Here’s a breakdown of the export trends from Turkey to Azerbaijan.

Overall Trade Dynamics & Trends

  • Growing Trade Volume: Over the past 5 years (leading up to March 2025), trade between Turkey and Azerbaijan has grown at an impressive annualized rate of approximately 14.1-14.4%. This signifies a strong upward trend in bilateral economic activity.

  • Trade Balance Favors Azerbaijan (Overall): In terms of total trade, Azerbaijan typically has a significant trade surplus with Turkey due to its substantial energy exports.

  • Trade Balance Favors Turkey (Non-Energy): When looking at non-energy goods, Turkey usually maintains a positive trade balance with Azerbaijan, exporting more manufactured and consumer goods than it imports in these categories.

  • Recent Fluctuations (March 2024-2025): In March 2025, Turkey’s exports to Azerbaijan saw a slight decrease of 1.12% compared to March 2024 ($212M vs $215M). However, this is a very short-term snapshot and the long-term trend remains positive.

  • Strategic Goals: Both countries aim to further increase their bilateral trade volume, with ambitious targets set by their leadership.

Top Export Categories and Their Trends

Based on recent data (primarily 2023-2024 figures, as these provide a comprehensive annual view, supplemented by March 2025 data):

1. Packaged Medicaments / Pharmaceutical Products: This is a consistently strong and often the top Turkish export to Azerbaijan.

Trend: Shows high and sustained demand, reflecting Azerbaijan’s healthcare needs and reliance on imported pharmaceuticals. In 2023, it was the top export at $68.2M. In 2024, Pharmaceutical products were $48.44M, showing continued significant value.

2. Machinery, Nuclear Reactors, Boilers, and Electrical/Electronic Equipment: This is a very significant and growing category, driven by Azerbaijan’s ongoing industrialization, infrastructure development, and modernization efforts.

Trend: Consistently among the highest value exports. In 2024, “Machinery, nuclear reactors, boilers” was a massive $456.88M, and “Electrical, electronic equipment” was $344.40M. This indicates a strong and sustained demand for capital goods.

3. Vehicles (other than railway, tramway) / Cars: Azerbaijan imports a substantial number of vehicles from Turkey.

Trend: In 2023, “Cars” alone accounted for $60.8M. “Vehicles other than railway, tramway” was $140.58M in 2024. This reflects increasing consumer purchasing power and a need for transportation.

4. Textiles and Apparel: Turkey is a leading supplier of textiles and ready-made garments to Azerbaijan due to proximity, quality, and design appeal.

Trend: Consistent and significant. In 2024, “Articles of apparel, not knit or crocheted” was $113.93M, and “Articles of apparel, knit or crocheted” was $107.49M. “Carpets and other textile floor coverings” also show a notable presence ($12.91M in 2024).

5. Plastics and Plastic Products: Used in various industries, packaging, and consumer goods.

Trend: Solid and growing. $158.62M in 2024, indicating high demand across multiple sectors.

6. Iron and Steel Articles: Essential for Azerbaijan’s construction and infrastructure projects.

Trend: Stable demand. $101.66M in 2024 for “Articles of iron or steel” and $45.60M for “Iron and steel.”

7. Furniture, Lighting Signs, Prefabricated Buildings: Reflects ongoing construction and urban development.

Trend: Strong, with $97.16M in 2024.

8. Food Products: Azerbaijan imports a variety of food items from Turkey to meet domestic demand.

Trend: Consistent. “Cereal, flour, starch, milk preparations” was $64.14M in 2024, and “Edible fruits, nuts, peel of citrus fruit, melons” was $22.75M.

9. Defense and Aerospace: While specific detailed figures are less public, post-2020 Karabakh War, cooperation in the defense industry has intensified. Azerbaijan has expressed interest in Turkish drones (like Bayraktar TB2) and other military equipment.

Trend: This is a strategically important and rapidly growing area of cooperation, though not always reflected in general trade statistics due to its sensitive nature. “Arms and ammunition, parts and accessories” was $87.84M in 2024.

Contributing Factors to Export Trends

  • “One Nation, Two States” Philosophy: The deep political and cultural affinity translates into strong economic ties and a preference for Turkish products and services.

  • Preferential Trade Agreement (PTA): The PTA between Turkey and Azerbaijan, which came into force on March 1, 2021, has likely provided a significant boost by reducing tariffs on many goods, making Turkish products more competitive.

  • Turkish Investments in Azerbaijan: Turkish firms have invested significantly in Azerbaijan (around $12 billion until 2020 in the non-oil sector), particularly in construction, telecommunications, and banking. These investments often create a demand for Turkish machinery, materials, and expertise.

  • Logistics and Connectivity: Shared borders and improving transportation links (e.g., Baku-Tbilisi-Kars railway) facilitate trade.

  • Modernization and Diversification of Azerbaijani Economy: As Azerbaijan works to reduce its reliance on oil and gas and develops non-oil sectors (agriculture, manufacturing, tourism, construction), the demand for diversified imports from Turkey naturally increases.

In summary, Turkey’s export trends to Azerbaijan are characterized by high-value industrial goods, essential consumer products, and strategic defense items, all underpinned by strong bilateral relations and a commitment to increasing trade volume.

What is the Business Profile of STARTINFORUM?

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STARTINFORUM International Consultancy LTD Company, or simply STARTINFORUM, is a Project Management and Business Consultancy firm that specializes in facilitating international business development and expansion.

The business profile encompasses several key areas:

International Business Development & Business Extension

  • This is a core focus. STARTINFORUM provides consultancy for businesses looking to expand their products and services into new countries and cultures. The company conducts market analysis (including legislative regulations, competition, and market demands), develops strategic plans for communication, advertising, and promotion, and helps establish networking with potential partners and customers.
  • The company’s aim is to ensure successful market entry and long-term, mutually beneficial collaborations.

  • STARTINFORUM collaborates with a diverse range of sectors, including agricultural enterprises, food production factories, business organizations, real estate companies, construction companies, industrial machinery factories, textile factories, mass media companies, and technological centers.

International Trade

  • STARTINFORUM actively works on developing new trading plans and strategies, strengthening existing trading relationships, and identifying new products and services in demand in the international market. The company’s aim is to establish reliable ties and connections for long-term partnerships and collaborative consortiums.

Computer Technologies and Software

  • Recognizing the essential role of technology in modern business, STARTINFORUM works to enhance computer technology development and implementation within organizations.
  • The company’s team has expertise in software development, graphics, and multimedia, creating new information products, content, and programs. This includes solutions for the educational sector (online education modules, training programs) and services like website design, e-system development, and database creation.

Education

  • The company develops and implements educational projects, organizes programs and courses, and hosts international conferences in various fields including education, technology, language studies, management, economics, and social sciences.
  • The company also offers consulting services to companies, schools, and higher educational establishments to enhance professional competencies and develop related skills.

Social Activities

  • STARTINFORUM is also described as being socially active at the national and international levels, participating in ERASMUS + projects, volunteering activities, etc.

In essence, STARTINFORUM acts as an international facilitator and consultant, helping businesses navigate the complexities of global expansion, trade, and technological integration, while also engaging in educational initiatives.

The company emphasizes establishing long-term and reliable partnerships for quality and mutual benefits at the national and international level.

To contact the company’s team and discuss the possibilities of collaboration, please feel free to contact us and set an online meeting with the company’s representatives.

Which Country Should be Targeted with Turkish Export in the First Place?

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Considering all factors – historical trade performance, current strategic priorities, economic conditions, and recent government statements for 2025 – Germany should be targeted with Turkish export in the first place.

Here’s why:

  • Largest and Most Consistent Export Market: Germany has consistently been Turkey’s number one export destination for many years, including in March 2025 and for the January-March 2025 period. This indicates deep-rooted trade relationships, established supply chains, and a reliable demand for Turkish goods. It’s a market where Turkey already has a significant competitive advantage and strong infrastructure in place for exports.

  • Stable and Large Economy: Germany boasts Europe’s largest economy, offering a vast and stable market for diverse Turkish products, from automotive and machinery to textiles and food. Even with global economic fluctuations, Germany provides a strong foundation for Turkish exports.

  • Strategic Partnership: The trade relationship between Turkey and Germany goes beyond mere transactions; it’s a strategic partnership with strong industrial ties (e.g., German automotive companies relying on Turkish suppliers).

  • EU Access: As a member of the EU, exporting to Germany also facilitates indirect access to the broader European Union market due to the Customs Union agreement. While there are ongoing discussions about modernizing this agreement, the existing framework provides significant advantages.

While Turkey is aggressively pursuing new and high-growth markets in Central Asia, Africa, and the Middle East, these efforts are aimed at diversification and long-term growth. However, in the “first place” for immediate and substantial export volume, maintaining and strengthening the existing powerhouse relationship with Germany is paramount.

Germany and Turkey are linked by especially wide-ranging and close relations in which the approximately three million people of Turkish descent living in Germany play an important role. 

Germany is Turkey’s most important trading partner and one of the country’s biggest foreign investors.

Other Strong Contenders for Targeted Export Growth (But Not “First Place”)

  • United States and United Kingdom: These are consistently in Turkey’s top export markets and offer significant potential for growth across various sectors, especially as Turkey seeks to expand its higher-value and defense exports.

  • Uzbekistan and Kazakhstan: These Central Asian countries are strategic long-term targets due to their high growth potential, cultural ties, and Turkey’s specific trade volume targets (e.g., $5 billion with Uzbekistan, $10 billion with Kazakhstan). They represent future “first places” as part of a diversification strategy, but Germany holds the current top spot in terms of sheer volume and established trade.

  • African and Gulf Countries: These are key for future growth and market diversification, especially for defense, construction, and consumer goods.

In conclusion, for immediate and substantial export focus, the priority should remain on Germany, while simultaneously investing in the promising growth markets for future diversification and long-term gains.

For guidance in Turkish production as well as its marketing in different countries of the world, please feel free to contact us.

Which Goods From Turkey Should be Exported to Tajikistan?

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Turkey and Tajikistan share friendly and cooperative relations, backed by a legal framework of numerous treaties and protocols aimed at strengthening economic and trade ties. While Tajikistan’s economy faces challenges, it presents a growing market for Turkish goods due to ongoing development, a relatively undiversified local production base, and consumer demand.

Here are the goods from Turkey that should be targeted for export to Tajikistan, based on current trends, Tajikistan’s import needs, and Turkey’s export strengths.

I. Key Existing Export Categories (Continue and Expand)

Current trade data shows these are already strong performers for Turkish exports to Tajikistan:

  1. Textiles and Apparel:
    • Why: This is historically a top export category from Turkey to Tajikistan, including knitted and non-knitted apparel, other made textile articles, and textile floor coverings (carpets). Turkish textiles are known for their quality, design, and competitive pricing, appealing to consumer preferences.
    • Specifics: Ready-to-wear clothing (men’s, women’s, children’s), home textiles (bedding, towels), specialized fabrics, and carpets.
  2. Machinery, Nuclear Reactors, and Boilers:
    • Why: Tajikistan is investing in its industrial and infrastructure development, creating a consistent demand for various types of machinery and equipment.
    • Specifics: Industrial machinery, construction equipment, power generation machinery, and parts.
  3. Electrical and Electronic Equipment:
    • Why: As Tajikistan modernizes its infrastructure and industries, and as consumer spending potentially rises, demand for electrical and electronic goods increases.
    • Specifics: Home appliances, telecommunications equipment, various electronic devices, and electrical components.
  4. Plastics and Plastic Products:
    • Why: Used across various sectors, including packaging, construction, and consumer goods manufacturing.
    • Specifics: Plastic pipes, fittings, sheets, films, and various finished plastic articles.
  5. Furniture, Lighting, and Prefabricated Buildings:
    • Why: Driven by ongoing construction activities, both residential and commercial, and the development of new urban areas.
    • Specifics: Home and office furniture, lighting fixtures, and components for prefabricated structures.

II. High Potential Growth Areas (Leverage Development Priorities)

Tajikistan’s development goals and current economic structure indicate strong future demand in these areas:

  1. Construction Materials:
    • Why: Tajikistan is undertaking significant infrastructure projects (roads, housing, energy, especially the Roghun Dam), and its domestic capacity for construction materials is limited. Turkish companies have a strong track record in the contracting sector in Tajikistan.
    • Specifics: Iron and steel articles (rebar, structural steel), ceramic products (tiles, sanitary ware), glass and glassware, cement, plaster, and stone.
  2. Pharmaceutical Products:
    • Why: Tajikistan’s healthcare sector is undergoing development, and there’s a constant need for a wide range of medicines and medical supplies. Turkey is a robust producer of generic and branded pharmaceuticals.
    • Specifics: Packaged medicaments, bandages, medical consumables, and potentially some basic medical equipment.
  3. Food Products and Agricultural Inputs:
    • Why: Tajikistan imports a significant portion of its food needs, and there’s a push to modernize its agriculture.
    • Specifics:
      • Processed Foods: Confectionery, canned goods, dried fruits, nuts, and various packaged food preparations.
      • Fresh Produce: Citrus fruits, other fruits and vegetables depending on seasonality and local production gaps.
      • Agricultural Machinery & Equipment: Small-scale farming equipment, irrigation systems, and agricultural processing machinery.
      • Fertilizers and Pesticides: To improve agricultural productivity.
  4. Vehicles and Parts:
    • Why: As the economy grows and transportation infrastructure improves, demand for both passenger and commercial vehicles, along with their parts, will increase.
  5. Miscellaneous Chemical Products & Cosmetics/Toiletries:
    • Why: Growing consumer markets and industrial needs.
    • Specifics: Soaps, lubricants, waxes, perfumes, cosmetics, and various industrial chemical products.

III. Niche or Emerging Opportunities

  • Defense Industry Products: Tajikistan recently ratified a military assistance agreement with Turkey, specifically mentioning potential purchases of “weapons, ammunition, UAVs and modern devices.” This opens a new avenue for defense exports, particularly drones (like the Bayraktar TB2), armored vehicles, and other military equipment where Turkey has become a global player.
  • Renewable Energy Technologies: Tajikistan has enormous hydropower potential and is focusing on developing its energy sector. Turkish expertise in renewable energy, especially in equipment and project development, could be valuable.
  • Digitalization and IT Services: As Tajikistan aims to digitalize its economy and public services (“single window” initiatives), Turkish IT solutions and software could find a market.

Factors Favoring Turkish Exports to Tajikistan

  • Strong Bilateral Relations: Over 30 treaties and protocols underpin cooperation, fostering a supportive environment for trade and investment.
  • Geographic Proximity and Connectivity: While not bordering, the Central Asian corridor via the Caspian Sea facilitates trade.
  • Cultural Affinity: Shared historical and cultural ties often lead to a preference for Turkish goods.
  • Turkish Contracting Sector Presence: Turkish companies have undertaken significant construction projects ($659 million across 52 projects), which creates a natural demand for Turkish-made materials and equipment.
  • Turkish Investment: Over $285 million in Turkish capital has been invested in Tajikistan, stimulating demand for Turkish goods within these ventures.

To succeed, Turkish exporters should focus on competitive pricing, reliable logistics, adherence to quality standards, and building strong business relationships in Tajikistan. Understanding local regulations and the predominantly state-driven nature of the economy is also crucial. Sources

Import-Export Between Turkey and Kazakhstan

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Turkey and Kazakhstan share deep historical and cultural ties, which have fostered strong economic relations, particularly in trade.

Both countries are key partners and have been working to significantly increase their bilateral trade volume, with a target of reaching $10 billion.

Overall Trade Dynamics

  • In 2022, the trade volume between Turkey and Kazakhstan reached a record of $6.3 billion.
  • Kazakhstan is a significant import partner for Turkey, while Turkey’s exports to Central Asia, including Kazakhstan, have seen substantial growth.
  • Turkey generally has a positive trade balance with Central Asia, though historically it has a negative trade balance specifically with Kazakhstan.
  • Trade agreements, such as the currency swap agreement signed in April 2025, aim to simplify mutual settlements, reduce currency risks, and boost trade.
  • There are numerous bilateral agreements covering various sectors such as transportation, machinery, chemicals, energy, and mining.

Main Export Products from Turkey to Kazakhstan

Turkey’s exports to Kazakhstan are diverse and include both industrial and light industry goods, as well as food products.

Key categories include:

  • Machinery and Equipment: This is a significant export category, including nuclear reactors and boilers.
  • Vehicles and Parts: Cars and vehicle bodies are notable exports.
  • Textiles and Apparel: This includes knitted and non-knitted clothing (e.g., jerseys, pullovers, suits), as well as bedding, carpets, and other textile floor coverings.
  • Electrical and Electronic Equipment
  • Plastics and Plastic Products
  • Iron and Steel Articles
  • Mineral Fuels and Oils
  • Pharmaceutical Products
  • Food Products: Such as sunflower seeds and citrus fruits (oranges, mandarins, lemons).
  • Furniture, Lighting, and Prefabricated Buildings
  • Soaps, Lubricants, and Waxes

Main Import Products by Turkey from Kazakhstan

Turkey primarily imports raw materials and commodities from Kazakhstan, leveraging Kazakhstan’s rich natural resources.

The main imports include:

  • Mineral Fuels and Oils: Crude petroleum and other distillation products are the most significant imports. Kazakhstan’s economy is heavily reliant on oil and gas exports.
  • Metals: This includes:
    • Copper (refined copper, copper ores and concentrates)
    • Aluminum
    • Iron and Steel
    • Zinc
    • Lead
    • Precious stones and metals (including gold)
  • Ores, Slag, and Ash
  • Inorganic Chemicals
  • Agricultural Products: Cereals (like wheat) and legumes (peas, lentils), as well as edible vegetables and certain roots and tubers.
  • Cotton

In essence, Turkey exports a range of manufactured goods and some agricultural products to Kazakhstan, while importing primarily raw materials and energy resources from Kazakhstan.

This complementary trade structure is a basis for their ongoing economic cooperation.

To learn more about import-export opportunities with Turkey as well as develop trading partnerships, please feel free to contact us.

Business Needs in Turkey

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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

President of the Central Bank of Turkey Şahap Kavcıoğlu: “Turkish Economy Model is Focused on Investment, Production and Exports”

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President of the Central Bank of Turkey Şahap Kavcıoğlu: “Turkish Economy Model is Focused on Investment, Production and Exports”

At the online meeting, hosted by Memiş Kütükcü, Head of the Konya Chamber of Industry, Prof. Dr. Şahap Kavcıoğlu, President of the Central Bank of the Republic of Turkey (CBRT), stated that Turkish economy model is focused on investment, production and exports.

During the meeting, Prof. Dr. Şahap Kavcıoğlu mentioned the efforts of the Central Bank to fight inflation in the country.

Kavcıoğlu stated that they are making efforts to cope with the inflation in the country, though it is important that all industrial sectors support the Central Bank’s struggle to eliminate the volatility in exchange rates and reduce inflation.

Stating that the Turkish economy model is focused on investment, production and exports, and in this respect the Central Bank has been developing important financial instruments to strengthen this model, Kavcıoğlu said, “Sustainable price stability can be achieved with the current account balance. As the Central Bank, we do our best to support investment, production and exports, to increase capacity utilization rates, and ensure that imported products are produced in Turkey for making it easier for the business world to access finance.”

Kütükcü, Head of the Konya Chamber of Industry, who conveyed the demands of the industrialists from Konya to Kavcıoğlu, stressed that high inflation and the meltdown in the working capital are the two most important problems at the moment, “We are under serious inflation pressure due to the price increase in almost every field, especially in commodities and energy. This pressure of inflation is literally melting the capital of our businesses. For a sustainable investment and production environment, our business world needs new financial mechanisms that will strengthen their working capital.”

As it is already known, the March inflation in Turkey increased by 5.46 percent compared to February.

While annual inflation was 61.14 percent according to TUIK data, the 12-month average rate of increase is 29.88 percent.

In March 2022,  in terms of the main expenditure groups, clothing and footwear showed the least increase, that was 1.78 percent, housing – 1.84 percent, while entertainment and culture got the price increase in 2.78 percent. On the other hand, the main groups with the highest increase in March 2022 were transportation with 13.29 percent, education with 6.55 percent, restaurants and hotels with 6.04 percent, respectively.

Sources:

https://www.haberturk.com/tcmb-baskani-kavcioglu-konyali-sanayicilerle-bir-araya-geldi-3395005-ekonomi

https://www.haberturk.com/mart-ayi-enflasyon-oranlari-ne-zaman-saat-kacta-aciklanacak-tuik-2022-mart-enflasyon-orani-3397539-ekonomi/3

Turkish Inflation Skyrockets Reaching a New 20-Year High

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Turkish Inflation Skyrockets Reaching a New 20-Year High

In March, Turkish inflation reached a new two-decade high, making the lira increasingly vulnerable.

According to Bloomberg’s estimations, consumer prices rose an annual 61.1% last month.

Source: Turkey Inflation February 2022- https://www.focus-economics.com/countries/turkey/news/inflation/inflation-reaches-near-20-year-high-in-february

The central bank’s pause for three months caused Turkey’s interest rates to become the lowest in the world. 

With Turkey’s real rates at minus 47%, the lira has already come under pressure, staging the second worst performance after Russian ruble in emerging markets against the dollar in March.

The highest annual price increase last month was seen in transportation with 99.12%, followed by food and nonalcoholic beverages at 70.33% and furnishing and household equipment at 69.26%.

The lowest annual increases were posted by communication with 15.08%, education with 26.73%, and clothing and footwear with 26.95%.

Onur Ilgen, Head of the treasury at MUFG Bank Turkey in Istanbul, said, “Given the dramatic change in the macro outlook and financial conditions, we think the long-term sustainability of this policy framework will be less likely with inflation running above 60% and likely to remain high above 50% at least until last quarter”.

According to London-based Capital Economics, inflation will stay close to these high levels until the very final months of this year, “but the central bank and, crucially, President Erdogan seem to have no appetite for interest rate hikes”.

As President Recep Tayyip Erdogan’s goal is to use a cheaper lira to turn Turkey into a manufacturing power, the rate hikes aren’t on the agenda. 

Declines in the currency, which has lost over 9% this year, are making imports more expensive.

The currency’s turbulence has hit Turks hard, as the value of their salaries dropped and living costs dramatically increased. Steep hikes in electricity and natural gas tariffs have compounded the pain for consumers and businesses.

After the data release on Monday, Nureddin Nebati, Treasury & Finance Minister, predicted that inflation would fall to “a reasonable level” by the end of the year, though he did not provide any specific details.

Ziad Daoud, Chief Economist on Emerging Markets, mentioned, that the inflation data highlights an alarming situation for Turkish Lira and Turkish economy. Simultaneously, an escalation of the war in Ukraine will hit the currency through rising import costs. On the other hand, the end of the war conflict is expected to bring pressure from higher global interest rates. The inability of the central bank to raise interest rates magnifies the risks for the national currency.

Stating that the world economy, which has been facing an extraordinary period due to the pandemic over the last two years, has been shaken once again by the Russia-Ukraine war, the finance minister of Turkey noted that the economic effects of the war, as well as its tragic individual and social effects, have affected the whole world.

The supply problems, especially in agricultural and energy products, increase the inflationary pressure on all the countries, including Turkey. 

Sahap Kavcioglu, Governor of the Central Bank of Turkey, says that support for the local currency will be a key objective this year, though little sign has been shown that it will involve a tighter monetary policy stance. 

The lira has fallen down 9.5% this year so far.

The central bank hopes to curb price growth by taking measures to encourage de-dollarization. 

The highlights of the March inflation report published by Turkstat on Monday are below:

  • Producer prices rose 9.2% in the month, bringing annual inflation to 115%. 
  • Elevated levels of factory-gate inflation are continuing to put upward pressure on consumer prices.
  • Energy inflation climbed to 102.9% from 83% in February, driven by a surge in the cost of refined products and natural gas, despite tax cuts.
  • Food prices, which make up roughly a quarter of the consumer basket, rose an annual 70.3%, up from 64.5%

With the central bank on the sidelines, Erdogan’s government is trying to contain prices by means of a new round of value-added tax cuts on some staple products, which will go into effect by April.

Though, according to Fatih Akcelik, Deutsche Bank AG economist, the inflationary pressures should be addressed via a monetary policy rather than minor fiscal adjustments. 

Sources:

https://www.bloomberg.com/news/articles/2022-04-04/turkish-inflation-climbs-to-fresh-20-year-high-on-energy-lira

https://www.cnbc.com/2022/03/03/turkeys-inflation-rate-hits-a-new-20-year-high-of-54percent-.html

https://www.dailysabah.com/business/economy/turkeys-inflation-at-61-in-march-surpassing-estimations

Choosing Turkey to Improve Your Health? Here are Some Things to Consider

STARTINFORUM Business, Medical Tourism, Real Estate, Tourism, Translation , , , , , , , 0 Comment
Choosing Turkey to Improve Your Health? Here are Some Things to Consider

With opening borders and making tourism more and more available in terms of travel regulations, finance, a variety of the traveling means and affordable destinations, medical tourism has gained a special place and becomes more and more popular among customers of all social groups and levels.

Why To Search for Health Services Abroad?

Reasons for Growth in Demand for Medical Tourism / Assoc. Prof., Dr. Alper Guzel (Gazi University, Turkey), at APBM 2021, II International Conference on Applied Psychology and Business Management

Being not satisfied with the local health services, their costs or due to the absence of some services, patients start looking for the medical opportunities in other countries.

When we think about health services, moreover in a different country, there are several things which are usually taken into consideration according to the recent research data:

  • quality of clinicians;
  • quality of facilities;
  • reputation of the clinicians / hospitals;
  • information available and its accessibility;
  • price for services;
  • accessibility of the destination or easiness to travel
Factors to Consider When Choosing a Place to Receive Medical Services / Assoc. Prof., Dr. Alper Guzel (Gazi University, Turkey), at APBM 2021, II International Conference on Applied Psychology and Business Management

The distribution of the tourists flow is quite different and it tends to change depending on the political and economic situations, powers of influence, reputation and costs, easiness to travel and attractiveness of the services themselves.

Tourism in the World / Assoc. Prof., Dr. Alper Guzel (Gazi University, Turkey), at APBM 2021, II International Conference on Applied Psychology and Business Management

Among a variety of places and destinations for medical services and health tourism, Turkey has occupied a firm position with its attractive costs, quality of the hospitals, beautiful locations, speed of diagnostics and treatment provision.

Thanks to its geographical location Turkey has become Choice Number One for patience coming from Middle East and Europe, including neighbouring countries and those which are quite far (e.g. Indonesia, Sri Lanka, etc.).

Turkey as a Destination for Health Tourism / Assoc. Prof., Dr. Alper Guzel (Gazi University, Turkey), at APBM 2021, II International Conference on Applied Psychology and Business Management

So, What Makes Turkey So Attractive in Terms of the Medical Services?

Together with a favourable geographical location and climate peculiarities, the country has gained a positive image worldwide due to a big variety of medical infrastructure and facilities.

The medical centres are equipped with modern diagnostic machines, tools and all necessary chemicals to make diagnostics quick and to provide necessary treatment prescriptions in a fast way for the patients to keep up with their travel plans.

Together with that, available language services make communication easy and understandable for all patients. Whether they are coming from Eastern Europe, West or from the Arab countries, they can find appropriate interpretation services, services for translation of their medical papers and prescriptions, to make the process really fast and comprehensible.

Strengths of Turkey as a Destination for Health Tourism / Assoc. Prof., Dr. Alper Guzel (Gazi University, Turkey), at APBM 2021, II International Conference on Applied Psychology and Business Management

Dynamics in the popularity of Turkey as a Medical Destination can be checked on the picture below, starting from 2013 and coming up to 2020, when some fall can be observed due to the travel restrictions, caused by the global lockdown.

Dynamics of the Medical Tourists Flows to Turkey / Assoc. Prof., Dr. Alper Guzel (Gazi University, Turkey), at APBM 2021, II International Conference on Applied Psychology and Business Management

Stabilising the global situation in terms of traveling is going to renew the flows of tourists coming to Turkey with a purpose to find better medical solutions and services for their health.

Meanwhile this time can be used to rethink and to revaluate potential of the country in the global market of the medical services and to consider its weaknesses contrasting with the achievements of the main competitors.

Among the weaknesses to be considered is the absence of standards on the medical services, discrepancy of provision available in private and public hospitals, necessity to enhance the medical staff’s competences on the patients’ rights, international regulations, and so on.

Weaknesses to Consider for Enhancing Medical Services for International Patients in Turkey / Assoc. Prof., Dr. Alper Guzel (Gazi University, Turkey), at APBM 2021, II International Conference on Applied Psychology and Business Management

Together with that the hospitals and doctors working in Turkey still need international branding for their services to be known and accepted at the international level.

With the enthusiasm of the local medical business, high standards for the medical education in the country, encouraging the most talented students to choose medicine as a profession and pursue medical career with the support of the government, it is certain that the medical sector of Turkey will continue developing and gaining more popularity worldwide.

Despite national enthusiasm there are still things to consider on the way to improvements and development and namely some threats which cannot be ignored.

Among them is political instability, strong international competitions and some other factors which can be checked on the picture below.

Threats to Consider in Developing Medical Tourism in Turkey / Assoc. Prof., Dr. Alper Guzel (Gazi University, Turkey), at APBM 2021, II International Conference on Applied Psychology and Business Management

References

Burtan Doğan, B., & Aslan, A. (2019). Türkiye’de Sağlık Turizminin Mevcut Durumu ve Ülke Ekonomisine Katkıları. 9(18), 391-420.

Saglık Turizmi Verileri. (2021). 10 28, 2021 tarihinde USHAŞ: https://www.ushas.com.tr/saglik-turizmi-verileri/ adresinden alındı

SHGM Sağlık Turizmi Daire Başkanlığı. (2021). Ministry of Health: https://saglikturizmi.saglik.gov.tr/siteagaci adresinden alındı

Tengilimoğlu, D. (2021, Ekim). Sağlık Turizmi. Eskişehir.

Uysal Şahin, Ö., & Şahin, M. (2018). Türkiye’de Sağlık Turizminin Potansiyeli ve Geleceği: SWOT Analizi. Journal of Awareness, 3(Special Issue), 287-300. doi:10.26809/joa.2018548638


The overview is based on the materials of the research and presentation done by Assoc. Prof., Dr. Alper Guzel (Gazi University, Turkey) at APBM 2021, II International Conference on Applied Psychology and Business Management

More information on the medical tourism in Turkey, suggestions, recommendations together with consultancy and translation for individuals and groups who would like to visit Turkey for the health purposes can be received by contacting us at start.inforum@gmail.com.


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