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Lessons for Ukraine: How Turkey attracts foreign investments

Author : Pavlo Vernivsky

Turkey has three types of investment zones - technology development, industrial, and free zones
23:21, 30 October 2019

e15initiative.org

If we look at the list of instruments for investors to Turkey, and I see how huge the gap between us is.

Just imagine, Turkey has three types of investment zones.

Related: Ukraine, Turkey discuss military cooperation

First type: technology development zone (TDZ). This is a zone to support research and development, as well as the development of high technology. There are 63 of them in Turkey and 21 more are under construction!

Second type: organized industrial zones (OIZ). This is a fully prepared area with ready-made infrastructure for the investor, including roads, water, gas, electricity, communications, and even waste management. There are 234 such zones, and 97 of them are under construction!

Third type: free zones (FZ). These are zones that are located on the territory of the country, but legally outside the customs zone, which exempts companies from customs, tax, financial, administrative issues. The main objective of such zones is the processing of products for export. There are 18 of them in Turkey.

Related: Trump announces lifting of US sanctions on Turkey

From specific incentives:

 cash grants;

 exemption from VAT;

 exemption from customs duties;

 corporate tax reduction;

 social security;

 interest rate compensation;

 provision of land;

 ready-made infrastructure;

 simplification of licensing procedures and permissions;

 staffing;

 credit support;

 export financing support.

In this case, incentives are divided into general, regional, strategic, project-oriented ones.

For each investor, there is detailed information on all key costs. Investors receive full legal support in terms of creating a company, doing business, and specifics of tax legislation.

If you ask yourself the question why Turkey has become the 19th economy of the world and is a member of the club of OECD developed countries; why they annually attract about $ 15 billion of direct investment, here is the answer.

To be honest, I don’t even know if we will create anything like that. Only I am terribly upset with that. Well, why can’t we do it like the Turks?!

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