Turkish President Recep Tayyip Erdoğan delivered a speech on foreign investment in Turkey at the opening of his address to the "6th Turkish Capital Markets Conference." At SkyLine Real Estate, we have analyzed the key points of his speech, providing a detailed economic analysis relevant to foreign investors.

Stay close to the realities of foreign investments in Turkey, the current state of the Turkish economy, and its future through the words of President Erdoğan.

Doors are Open for Foreign Investment in Turkey

In his message to the 6th Turkish Capital Markets Conference, President Erdoğan stated:

"The interest of foreign investors in Turkey reflects their confidence in our country's economy and diplomacy. Our doors are open to all investors who trust the rising future of Turkey's economy."

Several important factors create a secure environment for foreign investments, as highlighted by President Erdoğan:

• Mutual trust between foreign investors and the Turkish economy.
• Turkish diplomacy and policies that overcome non-economic obstacles, such as political issues and disputes.

Factors Building Foreign Investors' Confidence in the Turkish Economy

Key factors that attract investors to Turkey and boost their confidence include:

• Continuous growth in Turkish economic indicators.
• Turkey's membership in the G20, aiming to be among the top 10 global economies by 2023.
• Investor-friendly Turkish laws that facilitate foreign investments.
• The Turkish government's efforts to lower interest rates, encouraging more investments and competition instead of stagnant investor funds as bank deposits.
• Istanbul's unique geographical location, strengthening import-export activities and connecting the East and West.
• Cultural diversity in Turkey, creating a welcoming environment for entering the Turkish market and easy adaptation for various foreign nationalities.
• A large foreign community, estimated in the millions, creating unique consumer markets in Turkey.

Role of Turkish Diplomacy in Attracting Foreign Investors

Political disputes often negatively impact trade and investment relations between countries. However, Turkey has created a unique atmosphere that neutralizes many political and legal disputes to attract foreign investments. Examples include:

• Since 2012, Turkey abolished the reciprocity principle for foreign property ownership, allowing any foreigner to own property in Turkey, even if their home country restricts Turkish citizens from owning property there. This attracts tens of thousands of foreign real estate investments annually.
• Despite significant disputes between Turkey and Egypt, trade relations, especially agreements concerning free zones, have not been severed.
• Investment relations between Turkey and the UAE and Saudi Arabia were minimally affected during years of disputes, a situation that has improved recently with the normalization of relations.
• Despite many disagreements between Turkey and EU countries, economic ties have remained unaffected.
• Turkey has successfully created a model that separates economic activities from international disputes, such as its mediating role between Russia and Ukraine, resulting in economic agreements that alleviated significant global concerns.

Istanbul: A Future Global Financial Hub

President Erdoğan emphasized that Turkey is making steady progress, leveraging various economic fields such as trade, tourism, and transportation, to make Istanbul a global financial center.

Istanbul hosts several financial centers that significantly fund projects inside and outside Turkey. Turkish construction companies have entered real estate markets in many countries worldwide, and Turkey offers a conducive environment for opening branches of many global banks.

Moreover, a significant number of Arab and foreign businessmen have shifted their focus from the United States, EU countries, Russia, Ukraine, and most Middle Eastern countries to Turkey.

Istanbul also hosts numerous economic events and exhibitions annually in various fields such as finance, tourism, real estate, and other significant economic sectors.

The Turkish Economy's Strength After Global Conflicts and Changes

President Erdoğan also addressed the Turkish economy's resilience post-COVID-19 and amid regional conflicts such as the Russia-Ukraine war, which has placed Turkey in a "different position." He stated:

"Turkey has become a rising global star thanks to its strong healthcare infrastructure, production strength, and rapid recovery capacity."

These particular strengths are often revealed after conflicts that crippled many economies and caused numerous countries to lose billions while Turkey recovered quickly and emerged as a rising power. For instance, while hospitals in many countries were overwhelmed by COVID-19, Turkey opened the "Başakşehir Medical City in Istanbul," illustrating the robustness of the Turkish economy.

These favorable conditions attracting foreign investment in Turkey have materialized across various fields and sectors.

Turkish Capital Markets to Continue Growing

President Erdoğan emphasized that Turkey's economy and capital markets will continue to grow, countering "malicious" propaganda aimed at reducing investor confidence amid sharp fluctuations in the Turkish lira exchange rate.

Turkish law has increased foreign investor appeal through various incentives such as:

• Different tax exemptions.
• Turkish citizenship through real estate investment of $400,000.
• Turkish citizenship for depositors, investors, and Turkish workforce operators under favorable conditions competitive with European and American standards.
• Turkish policies aimed at reducing inflation to ease living, working, and investing conditions in Turkey.

Additionally, Turkey's economy boasts many encouraging statistics, such as:

• The Turkish economy grew by 3.9% in Q3 2022 and 7.3% in Q3 2021, the fastest growth among G20 countries.
• Social and health services activities increased by 7.6%.
• Real estate activity grew by 4.1%.
• Agricultural investment activities rose by 1.1%.
• Industrial activities increased by 0.3%.
• The GDP volume increased by 3.6%, reaching 4,258,168,000 Turkish lira at current prices.
• Turkish exports rose by 12.6%, while imports increased by 12.2%.

About the Turkish Capital Markets Conference

The 6th "Turkish Capital Markets Conference" was held on December 1, 2022, both virtually and physically in Istanbul.

This conference is organized annually by the "Turkish Capital Markets Association (TCMA)" with participation from numerous global and local economic and investment activities, themed "Beyond Finance... Investing in the Future of the World."