“We are expecting substantial investment from Europe,” Economy Minister Zafer Çağlayan said on Monday, noting that the number of applications, both domestic and international, should increase in the fourth quarter of the year. Strategic investments requiring high financial capabilities, though limited in number, are also expected to materialize in the following period.
In the same period, 340 of those projects -- for which a total investment of TL 3.93 billion is to be made, and which are to provide jobs for 16,247 people -- have been approved. In view of the fixed investment figures of all the incentive documents which so far have been issued for investments, TL 2.26 billion (57.3 percent) come under the category of regional, TL 1.06 billion ( 27 percent) from general and TL 616 million (15 percent) from big scale investments.
Out of all incentive documents already prepared, 3.8 percent are related to investments in agriculture, 9.1 percent in mining, 56.8 percent in production, 2.9 percent in energy, and 27.4 percent in the service industry. Considering subsectors, textile and garment industry take the lead in view of the number of investments with a share in all incentive documents at 19 percent, and 21 percent in light of the number of jobs provided. Then in descending order, come investments in the food and alcohol industry, mining, tourism, tire and plastic, storage, infrastructure, education, and machinery production.
Çağlayan had more good news to share at the news conference for business people planning to make new investments. Money spent, as part of an investment on existing buildings will be included in the incentive document so that the investor will not only be able to deduct new spending on a plant from tax, but also the cost of an existing building in a production facility. “This new practice will allow old buildings that are sitting idle to be reintegrated into the economy,” Çağlayan stated.
To promote the new incentive package, which is valid for all investments made in Turkey since January 1, Turkey is set to start a promotion campaign. “We are going to start a promotion campaign in both national and international media in September,” the minister announced. The campaign will utilize media sources that target the business community and will also get financial support from institutions such as the Union of Chambers and Commodity Exchanges of Turkey (TOBB) and the Turkish Exporters' Assembly (TİM). Promotional videos in more than ten languages are being prepared for the campaign.