Which sectors are attractive for business investments in Turkey?

Turkey, with all the potential of growth it has is considered to be a true target market for large groups willing to expand worldwide and in the Middle East as well as Turcic Republics zone, in specific.

The thing is this country already has some local groups strong enough to compete even on the int’l scale meaning a newcomer would have to face tough challenge in Turkey.

Currently, we can talk about many groups looking for new sectors to expand…

In Turkey, sectors such as energy, mining, infrastructure projects, logistics, food, retailing and real estate have been drawing highest attention for quite a while.

To provide examples, we can refer Safi, Genpa, Doğanlar and Kipaş for companies interested in the energy sector. On the other hand giants such as Global Yatırım, Zorlu and Güriş are highly interested in mining. Whereas Doğan Holding has been pursuing privatisations in infrastructure management and Sabancı Holding is known to have been planning an investment of nearly $2 billion in 2013 and stay close to the services and logistics sector.

It is easily observed that energy has been the sector to have attracted the most investment, in the recent years. Thus, giant groups such as Ülker, Kipaş, Safi Holding, Genpa and Doğanlar have considered this sector to be of first priority for investment.

Some are particularly focused on a thermal power plant using imported coal. Some are interested in energy production, particularly using renewable sources of energy, energy storage and distribution.

Mining on the other hand has been the sector which has made the fastest entry into the interest area of big groups such as Kiler, Demirören and Doğan Holding. Another wave of newcomers in the sector are reported to be other large groups like Global Yatırım Holding, Zorlu Holding and Güriş Holding.

The advantage with Turkey is that mining is still at the crawling stage which means there could be so many opportunities for new investors that would be operating gold, iron, copper mines and so forth.

Then again it is also recorded that billions of dollars have been invested in the food sector during the last decade. This is probably the sector with most fierce challenge and certainly the most appetizing/ mouth-watering prospects of growth and profits.

Milk and dairy products market for instance is very small compared to the size of the population, currently meaning there is a huge potential of growth which makes it extremely attractive for investors. In fact groups like Limak Holding, a construction giant see the sector as strategic and worth investing a billion of dollars each year.

As for the real estate sector which is seen as the locomotive industry within the macro economy, a considerable number of investments have been realized in this sector, for quite a while.

Groups such as Boyner Holding for instance have grown much interest in the sector although not involved in the industry earlier and taken solid steps towards becoming a major player. Experts say falling interest rates and the inflow of foreign capital is very likely to create major opportunities in the sector.

And another very promising sector open for growth is certainly logistics sector which is quite new in Turkey, as far as well-established organizations are concerned. Because, although there are a few organized companies providing services, the industry needs the services of many more.

To recap, Turkey is a country offering so many prospects of establishing and running successful operations to bring attractive profits. There is no doubt the government in power has been doing its best to make life easy for foreign investors, as well.

07.06.2013
Editor, BTT