In addition to having one of the fastest growing economies in the world, Turkey has become a favorite of not only Turkish investors but also foreign investors in recent years, with its high young population, strategic location, and many other advantages. It stands out as the second largest reformer country among the Organization for Economic Co-operation and Development (OECD) countries, especially in the last 20 years, in terms of removing restrictions on foreign direct investments and creating a more liberal investment environment for foreign investors. While Turkey offers highly competitive investment conditions to investors, it also observes the principle of equal treatment for all investors. With its strong industry and service sector, Turkey hosts approximately 65,000 companies with international capital as of 2020.
Turkey increased its Gross Domestic Product (GDP) from 231 billion USD in 2002 to 717 billion USD in 2020 and has more than tripled its Gross Domestic Product (GDP). Between 2002 and 2020, the annual average real GDP growth rate was around 5.1 per annum, and stable economic growth continued. According to Gross Domestic Product (GDP) - Purchasing Power Parity (PPP) data, it is the 11th largest economy in the world and the 3rd largest economy in the European Union countries.
Half of Turkey's population, which has a population of over 83 million, consists of young, dynamic, well-educated, and highly cultured individuals under the age of 32. This ratio shows that Turkey is the country with the largest young population compared to EU countries. More than 800,000 undergraduate students graduate from 183 universities in Turkey every year. Turkey's more than 32.3 million young, well-educated, and dynamic individuals are increasing Turkey's workforce productivity day by day.
Turkey has created a new and advanced technological infrastructure in the fields of transportation, telecommunication, and energy, especially with the increasing investments in recent years. It has the advantages of providing highly developed and low-cost maritime transport facilities, as well as rail transport linking Central and Eastern Europe, and a direct distribution mechanism with well-structured land transport routes to most EU countries. While Turkey creates a natural bridge between East-West and North-South axes, it offers an efficient and cost-effective entry into major markets. It is possible to provide access to approximately 2 billion customers in Europe, Eurasia, the Middle East and North Africa from Turkey. With this access, it is possible to reach more than one market with a total GDP value of 30 trillion dollars.
Turkey is an important energy terminal and corridor connecting the East and the West in Europe. Turkey is located close to more than 70 percent of the world's proven primary energy reserves, while Europe, the largest energy consumer in the region, is located just west of Turkey. Thus, Turkey becomes a junction point and an energy terminal in the energy transition.
Tax advantages and incentives, including income tax exemptions, social security share grant and land allocation, are provided for foreigners who want to invest in Technology Zones, Industrial Zones and Free Zones. In addition, the R&D and Innovation Support Law was enacted, and additional incentive opportunities were created for strategic and large-scale investments.
Turkey has become a regional base in logistics. It is known as the largest in Europe in road transport. It has also made important breakthroughs in the maritime sector. Maritime trade has gained a great momentum thanks to the ports that have been put into operation and the new ports that are still under construction. Turkey continues its investments in air transportation as well. Turkey, which flies to the world's most visited destination in international passenger and cargo transportation, acts with the aim of becoming one of the most important players in the world in passenger and cargo transportation with its large fleet. The logistics sector, which will be supported by investments in railway networks, will continue to grow for many years, considering Turkey's geographical advantages. Turkey's geopolitical position, which is an important trade and energy bridge connecting the East and the West, will gain even more importance in the world economy in the future, considering China's project to revive the historical Silk Road.