Türkiye Offers New Incentives for Regional Industry Development

Türkiye works hard to develop its regional industry. Not long ago, the country came out with an investment plan to promote industrial growth. This new incentive scheme would take the production capacity away from Istanbul, which is the main economic center of Türkiye, and use it in less developed areas.

The new initiative was built on three core foundations: Türkiye’s Sectoral Incentive System, Century Development Move, and Regional Incentives.

Investors can receive millions in Turkish liras, getting the support they need.

What Is the Purpose of the New Decision?

The new investment incentive system will prioritize high-value-added tech investments, as well as employment in each region. The southeastern and eastern regions might benefit the most from these new plans. The scheme was revealed in a presidential decree published in the country’s Official Gazette.

With the new investments, foreign dependency will decrease, and the security of supply will be ensured. Moreover, it will give international competitiveness a boost.

The new incentive will speed up digital and green enterprise transformation. As a result, foreign direct investments and support investments that try to reduce regional development inequalities will increase.

Under this new scheme, investors can receive TL 240 million cash as support.

“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,” Mehmet Fatih Kacır, Industry and Technology Minister, said.

“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.”

What Areas Will Receive the Most Support?

Investors in eastern and southeastern provinces will get extended social security premium support. The government will cover the employer’s share for a total of 14 years. On the other hand, the employees’ share will be covered for 10 years.

One plan of the government is to push industrial facilities to relocate from earthquake-prone or highly populated areas, such as Istanbul and the Marmara region, to Anatolia. Any investor that moves equipment and machines from these places will qualify for local employment incentives in the new location.

There will be four priority investment areas in each province. They will all be tailored to suit the dynamics of the area.

Tech industries that will get support include computers, aerospace vehicles, optical equipment, electronics, and pharmaceutical products. Medium-high tech industries might also receive assistance, including military land vehicles, electrical equipment, weapons, ammunition, and chemical products.

According to Mehmet Fatih Kacır, the system will be more focused and selective. This will ease things for investors, reducing their financial responsibilities.

The business world is pleased with the new system, with many representatives saying that the new plans will boost the development vision of Türkiye. The country will be able to reach a sustainable development goal and compete at the global level.