New incentive system increases investments in Turkish economy

The Economy Ministry has certificated 5,567 incentive documents, which is expected to bring 84 billion Turkish Liras ($42 billion) in investments, within the framework of the new incentive system that came into force last June. Speaking during a meeting of the Independent Industrialists' and Businessmen's Association (MUSIAD) on Sept. 28, Deputy Economy Minister Mustafa Sever said that within the incentive documents, the government foresees investments worth 84 billion liras, creating employment for 205,000 people. Sever stated that the latest incentive system had many extra opportunities when compared with the previous one. "Some 5,567 incentive documents were certificated between June 2012 and July 2013. Within the framework of these incentives, 84 billion liras in investments and 205,000 jobs are expected to be created," he said. He noted that the number of incentive documents had increased by 24 percent in the new system from the old one, while the value of investments and employment figures showed a 60 percent rise. He added that the amount of expenditure per investment rose from 11.6 million liras to 15.1 million liras, while employment per facility rose from 28 to 37 percent. "This shows that as the scale of investments grows and they become more productive, economic and competitive facilities will be built," Sever said. He also stressed that 776 of these incentive documents were certificated for the Southeastern Anatolia Region, the area particularly targeted in the new investment system. Sever also said Turkey's service exports surged last year along with its increase in total exports. Service exports reached $43.4 billion last year, a 7 percent increase from a year earlier. Domestic construction business played a considerable role in this increase. "Globally, Turkish contractors carried out 456 projects abroad worth $16.5 billion in the first eight months. Turkish contractors rank second, following China," he added. Sever said Turkey's export volume to the Middle East had risen from $9.5 billion in 2003 to $65 billion last year. "Turkey has signed free trade agreements with Lebanon, Palestine, Jordan and Syria. The negotiations for the free trade deal with the Cooperation Council for the Arab States of the Gulf are still ongoing. After it comes into force, a more accessible Middle Eastern market will put into service," he said.