Turkey's
population is around 70 million and the population
growth rate is around 1.5%. The local civilian
work force is more than 24 million. The population
is much younger compared to European countries
(approximately 70% of the population is below
the age of 35). Turkey shall continue to constitute
one of the largest populations in the Middle
East and Eastern Europe. The official language
is Turkish. However, many Turkish businessmen
speak and conduct transactions in English.
French, German and Russian are also widely
used for business. Islam is the dominant religion,
but Turkey is a secular state.
Turkey,
situated at the crossroads where two continents
meet, is an ideal centre for investors looking
for a location at the heart of Euro-Asia.
With its dynamic and growing economy, huge
market, competitive and skilled labour force,
Turkey offers numerous opportunities to international
investors. The liberal foreign investment
legislation and the experience of more than
18,000
foreign capital firms ensure a stable and
reliable investment environment.
The
involvement of foreign capital is highly encouraged
in Turkey's privatisation program, South-East
Anatolian Project (GAP) and major infrastructure
projects. Petroleum and natural gas pipelines
from the Russian Federation and CIS countries
place Turkey at the crossroads of world's
future energy resources. Turkey invites international
investors from all countries and business
sectors to take place in such a promising
investment environment.
There
has been a considerable increase in the number
of companies with foreign capital since the
new “Foreign Direct Investment Law”
came into force on June 17, 2003. Those established
between this date and the end-2007 shows an
increase of 180% compared
to those before June 17, 2003. According to
data,
10,720 out of 18,308 companies are of EU origin,
in which Germany leads with 3,125 companies
followed by the United Kingdom with 1,831
companies. On the other hand the total amount
of FDI inflows in 2007 reached $ 21.9 billion,
compared to $19.9 billion in 2006.
| Investment
Advisory Council |
The
first meeting of the Investment
Advisory Council for Turkey (IAC),
chaired by the Prime Minister Recep Tayyip
Erdogan, brought together the CEOs of 19 international
companies, the country’s four leading
business associations, the World Bank Group
and the International Monetary Fund to share
perspectives with the Prime Minister, Minister
of State Ali Babacan and Minister of Finance
Kemal Unakitan on how Turkey could enhance
its competitive position in the world economy
on March 15th, 2004. In line with the priorities
set by the IAC, a discernible progress has
been made in improving the investment climate.
As decided by the Council, an interim
progress report is prepared and submitted
to the Prime Minister and Council Members.
The report contains comprehensive information
and detail about the progress made on the
identified priorities and highlights areas
where work is underway.
The
second meeting, participated by CEOs of 19
multinational companies from 11 countries,
was held in Istanbul on April 29th, 2005.
President of IMF Rodrigo de Rato, deputy president
of World Bank Shengman Zhang, president of
European Investment Bank Philippe Maystadt
also participated in meeting. (click
here for Second IAC meeting - Declaration
of Outcomes or click
here for all progress reports and outcomes)
Third
Investment Advisory Council Meeting participated
by 20 multinational companies’ CEOs
from 11 countries and 12 different sectors
was held in Istanbul on June 29, 2006. The
meeting chaired by Prime Minister Mr.Recep
Tayyip Erdogan was also participated by Ms.
Anne O. Krueger from IMF, Mr. Shigeo Katsu
from World Bank, Mr. Philippe Maystadt, President
of European Investment Bank and representatives
from Turkish private sector.
The
fourth Investment
Advisory Council Meeting was held in Istanbul
on June 11, 2007.
