CATALYST BETWEEN TURKEY AND THE WORLD
ISPAT President Arda Ermut talks about the Prime Ministry Investment Support and Promotion Agency, which promotes Turkey in many countries including the U.S., China, France, and Canada.
The Republic of Turkey Prime Ministry Investment Support and Promotion Agency, has added many companies, including brands such as Microsoft, Huawei, and Ford, to the long list of companies investing in Turkey. The organisation’s duties include promoting Turkey’s investment potential in various countries, as well as providing consultancy, coordination, and investment support services to investors during this process; its president Arda Ermut assessed Turkey in terms of investment opportunities.
Turkey is a fast-developing country. The reforms implemented create new opportunities. What kind of opportunities are awaiting investors in this regard?
With its young (average age 30) and dynamic population, trained workforce, increasing employment rate, growing middle-class with high purchasing power, and unique geographical location, Turkey is the fastest growing OECD country. R&D and tax reforms, regional and sectoral incentives and general incentive programmes for improving the investment environment provide attractive opportunities in construction, logistics, banking and finance, energy, food, automotive, agriculture, health industries, petro-chemicals, defence, and civil aviation for those looking to invest in Turkey.
How does ISPAT promote investment opportunities provided by Turkey to the global business world?
Our agency, with our expert staff able to provide services in many languages, is the first address of the investors looking to take advantage of the opportunities provided by Turkey. In addition to foreign consultants’ activities for the promotion of investment opportunities in our country, we organise company visits, toptier events, one-on-one meetings, roadshows, and investment environment promotion events in coordination with all of our stakeholder institutions and organisations.
Do you also provide post-investment services for foreign investors?
ISPAT is doing everything it can to solve the different problems companies face during the investment process, from making the decision to invest to successfully making the investment, by ensuring coordination among related bureaucratic organizations. After the investment, we do not end our relationship with the companies, on the contrary, we further develop our relationship and carry out negotiations on how they can expand their investment in the coming years and we contact them regularly to help them continue their investment efficiently and without any problems.
Among the Gulf Companies, the U.A.E. is one of the top countries in terms of foreign direct investment in Turkey. In which areas are the companies from this country active in, why do they choose to invest in Turkey?
United Arab Emirates’ international direct investment stock in Turkey surpassed $4.6 billion at year-end 2016. Additionally, as of the end of 2016, the number of U.A.E.-owned companies operating in Turkey exceeded 400, including such companies as DP World, Damac, Emaar, Etihad, and Dubai Islamic Bank. These companies are mainly active in the construction, logistics, finance, energy, and food industries.
On the one hand, Turkey has been attracting international direct investment, and on the other hand, it has been removing obstacles faced by investors via reforms and incentives. As a matter of fact, with the amendment to the Law on Turkish Citizenship, which entered into force in January 2017, it became possible for foreign nationals, who purchase at least $1 million worth of real estate in Turkey, to be able to acquire Turkish citizenship. Again, with another regulation, which was adopted in February 2017 and will enter into force in July 2017, a VAT-exemption was provided for the first residence or office purchased in Turkey by foreign national persons or entities who are not located in Turkey.
Along with the real estate sector, given the various incentives and opportunities we offer in many other sectors including energy, automotive, food, agriculture, logistics, banking and finance, we hope to see more investors from the U.A.E. in our country in the coming period.