How safe does Turkey look for foreign investors?

Turkey has recently enjoyed strong promotion on the international arena for having performed extraordinarily well in terms of its economic achievements during the last decade.. Moreover, the ruling AK Party claims to have spent much effort to introduce advanced democracy to the country.

These two factors have certainly made this country a spot of attraction for foreign investors from all over the world. The fact that Turkey has received a substantial amount of foreign investment during the last decade verifies this statement.

Among factors that make Turkey attractive for foreigners we can also name its location, and hence the perception that investment in Turkey will not stay limited to Turkey but will also expand to the surrounding destinations such as Russia, the Middle East and Central Asia. This perception that could be interpreted as “Turkey is an ideal hub for global investments” has certainly been a major factor for the irresistible appeal of this country.

On the other hand however, this country is also observed to have been rather uncomfortable lately, concerning unfavorable incidents such as the Gezi events (anti-government demonstrations that initially sparked by an environmentalist protest) as well as the wrong preferences Turkey has made regarding its relations with neighbors like Syria and friendly countries like Egypt.

Then again, in spite of such business opportunities for global investors, experts comment that legal uncertainties are considered to be the biggest risk factor also partly due to the fact changes are too fast. The major problem seems to be that the state is often too fast in taking regulatory decision and implementing them which makes it considerably difficult for concerned parties to follow the legislation.

No one would deny the need for speed in a world changing so quickly. However this is not to ignore that too much rush also brings along major mistakes to make up for and management of a great country like Turkey cannot afford to resemble a jigsaw puzzle. In other words, stability and consistency should not be of concern for foreign investors seeking profitable destinations.

Having said that we should also mention the importance of the upcoming elections as they would certainly provide some important clues as to stability will be a factor to rely on in this promising market.

All in all, experts believe that elections will not have an excessive negative impact on investment opportunities in any case meaning not much is expected to change on the economic arena. This could be attributed to the reason that state has some aggressive policies in strategic sectors and encourages development all over the country.

09.12.2013
Editor