Türkiye last week unveiled a new investment incentive system focusing on three main areas targeting strategic, technological and regional development with the aim of boosting production and employment.
The initiative, whose details were published in the country's Official Gazette on Friday, was established on three main foundations: Türkiye's Century Development Move, Sectoral Incentive System and Regional Incentives.
The decision aims to increase production and employment in line with the targets foreseen in the development plans, to encourage high-value-added investments that will meet Türkiye's critical needs, ensure supply security, reduce external dependency and increase international competitiveness. It also aims to accelerate the green and digital transformation of enterprises, increase foreign direct investments (FDI) and support investments aimed at reducing regional development disparities.
Under the scheme, investors can receive cash support of up to TL 240 million ($6.1 million).
"We will provide incentives of up to 20% of the investment amount and TL 240 million with 11.5 to 18.4 points of interest-profit share support in investment loans," said Industry and Technology Minister Mehmet Fatih Kacır.
"We will provide cash support of up to 25% of the machine price, 15% of the investment amount, and TL 240 million for the machinery purchases they will make with their own resources within the scope of the 'Türkiye Century Development Move,'" he added.
This area will be the part where the government will provide the strongest support, according to the minister.
In a separate statement on the social media platform X, Kacır shared that "Technology Move" covers investments in approximately 1,000 medium-high/high-tech products.
Moreover, he noted that the "Local Development Initiative" targets investments specific to each province, which he said will activate local potential, focusing on agriculture-based industries, clustering in the manufacturing industry, and tourism.
"Strategic Move," on the other hand, covers investments in areas of highly imported products, supporting the foreign trade balance and large-scale digital/green transformation investments. Moreover, he explained that "Prioritized Investments" are investments made under prioritized headings such as renewable energy, data centers, R&D-based investments, railway, sea or air transportation, licensed warehousing, soilless greenhouses and investments against disaster risk.
"We will provide strong financial support for these investments and increase production and employment," he added.
Kacır also said the system is now "more selective and focused," designed to reduce the financial burden on investors.
He also stated that they will gradually implement employment incentives in six regions in line with the updated Socio-Economic Development Index, indicating that they will offer employment incentives at higher limits and for more extended periods.
Kacır also touched upon the support to be provided in the earthquake zone, saying, "The 6th Region provinces, the 65 districts that were heavily affected by the earthquake and the provinces in the 'Attraction Centers Program' will be the places that benefit the most from employment incentives." He referred to the provinces in the country's southeast, which were some of the most affected by the devastating earthquakes in 2023.
"Our government will cover the employer's share of the social security premiums of those working in the organized industrial zones (OSB) in these areas for 14 years and the employee share for 10 years," he added.
"May our new Investment Incentive System, which is more selective, focused and effective, be beneficial. Our support for investment and regional development in productive sectors will continue to grow stronger," Treasury and Finance Minister Mehmet Şimşek said on X, commenting on the initiative.
The representatives from the business world welcomed the move, stating that the new investment incentive system will support Türkiye's development vision.
"Organized Industrial Zones, which have assumed the role of a locomotive in Türkiye's planned industrialization, will benefit directly and strongly from the new investment incentive system. The system will directly shape our development vision, not only today but also until 2030. As organized industrial zones, we will be at the center of this transformation," Memiş Kütükcü, the head of OSBÜK, a top organization overseeing organized industrial zones, told Anadolu Agency (AA).
Gözde Diker, the president of the Entrepreneurial Businesswomen Association (ANGIKAD), said they welcomed the new system published to support Türkiye's production power, employment capacity and sustainable development goals.
Ankara Chamber of Industry (ASO) President Seyit Ardıç also stated that they see the new investment incentive system as a strategic step that will support the sustainable transformation of the industry and accelerate high-value-added production. He also drew attention to the new system's selective project-based approach, especially for investments focused on technology and improving the foreign trade balance.
"We find the investment incentive system's focus on twin transformation and value-added production extremely valuable in terms of increasing our high-tech production, competing on a global scale and ultimately achieving our sustainable development goals," he said.
