- Developing countries is a potential actor for investment
- December 11, 2013
- Law Firm: HERDEM Attorneys At Law - Istanbul Office
Thanks to FDI, companies or shareholders can provide a firm via new markets, marketing channels, suitable facilities and gain access to new technologies in terms of products and financing. As mentioned above, FDI has chance for a strong impetus so as to economic development, so FDI becomes crucial role for developing countries. Since many developed countries who prefer to invest in developing countries in order to introduce new system in these countries through FDI. This circumstance is salutary for both of them which are host countries and the foreign firm.
Turkey is profitable for investment incentives
Turkey has framework of new investment incentives because it is developing countries which encourage companies to invest and opens to innovations albeit global economic crisis. In particular, Turkey has dynamic economy which is reflected financial market and banking system. Numerous foreign investors prefer to carry on a business such as infrastructure, financial services, real estate, pharmacy, energy, transportation and logistics. Notwithstanding all of them provide to alter structure of society in terms of high technology and economics, energy sector marks a new epoch for Turkey. Fundamentally, Turkey needs to expect more investors in energy sectors since it becomes aware of new energy sources such as solar, wind and nuclear energy so, these sectors have the edge on economy.
In accordance with this purpose, there are many regulations for foreign direct investment so as to enhance the rate of investors. Fundamentally, foreign investors can reach proper conditions because they cannot face with strict regulations, so there is ease work-flow. It is vital that new investment incentives program enables foreign investor to have a benefit in point of customs duty exemption, tax reduction, land allocation, social security premium support and VAT exemption.
Turkey serves as a bridge, but should require market players
Turkey has an advantage in the way of strategic location since there is a substantial commerce network and also it has lots of natural sources which encourage foreign investor to utilize them in separate sectors. Moreover, Turkey has massive population approximately 75 million why it is significant that there is an environment for markets and Turkey has a tendency to promote energy sector. In consequence of this, there is need for several high technologies such as renewable energy in order to operate in the energy sectors. Moreover, escalating of energy demand can pose problem such as lack of energy consumption because many sectors which are industry, construction and transportation consume overabundance energy. Therefore, there should be renewable energy and Turkey start working recently in this field, but there are not enough foreign investors.
Turkish market is suitable to keep on rising and tender convenient opportunities for foreign investors. Turkish government has already provided new regulations for foreign investors and brings new incentive law, so this situation is profitable for investors.