Turkey is actively working to boost foreign investment in its technology sector, aiming to attract leading global tech giants to establish operations in the country. Finance Minister Mehmet Şimşek announced that Ankara has launched a new strategy to strengthen its technological ecosystem and increase productivity. The plan focuses on positioning Turkey as a hub for innovation, offering stability, competitive tax incentives, and a skilled workforce to draw more international investors.
“Globalization remains one of the strongest engines of growth. Since 1990, world trade has grown nearly sixfold, lifting a billion people out of poverty. Turkey is open to the world — offering stability, low taxes, and a skilled workforce. Our goal is to become home to major global technology players,” Şimşek stated.
Building a Competitive Tech Ecosystem
Turkey’s new strategy focuses on lowering business risks, simplifying regulations, and promoting tax incentives for R&D and tech-based investment.
The government has already introduced digital-friendly tax regimes and is supporting joint ventures with multinational companies, particularly in sectors like artificial intelligence, biotechnology, cybersecurity, and renewable energy.
Şimşek noted that Turkey aims to position itself as a technology gateway between Europe, the Middle East, and Central Asia — leveraging its highly qualified specialists and growing innovation ecosystem.
“Critical areas like data privacy and cybersecurity require national resilience — and we are already building it,” he added.
Foreign Investment and Technological Growth
Over the past five years, Turkey’s technology and innovation sectors have seen record levels of foreign direct investment (FDI).
According to the Turkish Investment Office, total FDI inflows exceeded $15 billion in 2024, with over one-third directed to tech-related fields such as electronics, defense technology, cloud computing, and renewable energy.
Key international investments include:
- Amazon Web Services (AWS) expanding its regional data center in Ankara (2025)
- Google partnering with Turkish universities for AI research
- Siemens investing in green hydrogen projects
- South Korea’s LG Energy Solutions building a new EV battery plant near Bursa
- Qatar and UAE sovereign funds investing heavily in Turkish fintech and digital infrastructure
Turkey’s “Digital Turkey 2030” plan also prioritizes developing 10 new technology zones and innovation campuses, encouraging both domestic startups and international corporations to co-locate in state-supported R&D clusters.
Why Global Companies Are Looking at Turkey
Vice President Cevdet Yılmaz, speaking at the Saudi Future Investment Initiative (FII) in 2025, described Turkey as an open and resilient economy supported by “strategic diversification.”
“We advocate for an open and sustainable economy, powered by strategic diversification and global partnerships,” Yılmaz said.
He emphasized that Turkey’s strategic geographic position, strong manufacturing base, and innovative startup ecosystem make it a natural destination for tech firms looking to establish regional operations.
- Geographic advantage: A logistics hub linking Europe, Asia, and the Middle East — with 1.5 billion consumers within a 4-hour flight radius.
- Production infrastructure: Advanced industrial capacity in automotive, electronics, and aerospace.
- Skilled labor force: Over 1.2 million graduates in STEM fields each year.
- Innovation ecosystem: More than 6,000 startups and 90+ technoparks operating across the country.
Strategic Agreements to Support Growth
To enhance its global competitiveness, Turkey has:
- Finalized a free trade agreement with the United Kingdom,
- Begun modernizing its Customs Union with the European Union, and
- Strengthened partnerships with Gulf countries to attract new investment into energy, logistics, and smart cities.
The government is also working to reduce bureaucratic barriers, speed up company registration processes, and improve IP protection — key steps to reassure foreign investors.
Sustainability and Green Transformation
As part of its Vision 2053 Climate Strategy, Turkey is channeling billions into green transformation projects, renewable energy, and digital infrastructure upgrades.
The European Bank for Reconstruction and Development (EBRD) and the World Bank have both expanded their investment portfolios in Turkey, citing “strong momentum in sustainable technologies.”
Interesting Facts
- Turkey ranks #3 globally for affordable electricity prices for industrial users.
- Istanbul is home to three unicorn startups, including Trendyol (e-commerce), Getir (on-demand delivery), and Insider (marketing AI).
- The Istanbul Financial Center (IFC), inaugurated in 2023, aims to rival Dubai as a hub for fintech and sustainable finance.
- Over 40 countries currently operate R&D offices or regional HQs in Turkey.
Final Thoughts
Turkey’s drive to attract global technology giants is more than an investment strategy — it’s a statement of ambition. By combining economic stability, favorable tax policies, and strategic location, the country is shaping itself into a new digital powerhouse bridging Europe and Asia.
If Ankara continues to foster innovation, strengthen regulatory transparency, and maintain investor confidence, Turkey could become one of the top technology investment destinations of the 2030s.
Featured Image by Hüseyin Sevgi from Pixabay