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Turkey Entering the Market

Turkey is famously where East meets West across the River Bosphorus in its capital, Istanbul. With its multi-cultural society, the country has been subjected to numerous empires in its colourful past, with the Greeks and Ottomans amongst the civilizations leaving their mark. With its bustling souks, famous food and Mediterranean seas, the country is also a popular tourist destination and Istanbul is set to be the European Capital of Culture. Turkey also boasts Europe's sixth largest economy and is recognized as a candidate for full EU membership.

Why Expand to Turkey

With over half of its seventy two million strong population under the age of 28, Turkey is seen as an emerging market and is a major trading partner with the UK, with a presence of over 1,600 British businesses in the country. With its youthful population seeking development in a diverse group of sectors from education to finance, British expertise is seen as a valuable commodity. Coupled with Turkey's developing economy, where growth is predicted in shipbuilding, construction, water and the development of infrastructure to meet the demands of a growing population, there are a wealth of investment opportunities for entrepreneurs thinking about expanding a business in Turkey. Turkey is also a participant in the Kyoto agreement on climate change and consequently there is an array of opportunities for sustainable technologies, as the government looks to invest in the sector to meet its obligations. Turkey also has an ongoing program of privatisation involving its leading ferry operator (IDO) and the gas distributor, IGDAS.

Business Opportunities

• Environment - With a £52billion allocation from the EU and Turkeys participation in the Kyoto Agreement, environmental technology, covering waste treatments and sustainable technologies is being invested in heavily.
• Water - To meet the growing demands of its population, water is a growth market, with the industry predicted to be worth £54 by 2020. British expertise in areas such as desalination offers a route to this lucrative market.
• Ports and Shipbuilding - Turkish shipbuilding is a huge industry and it is expected that the sector is going to continue to grow. With its geographical location making it a prime location to the markets of Central Asia, the Middle East and the Black Sea markets, such as Russia and the Ukraine, Shipbuilding is expected to be worth £12billion by 2015.
• Manufacturing - Britain already exports a variety of industrial equipment, materials and parts to Turkey, including iron and steel, vehicles (excluding rail and trams) and electrical machinery and parts.
• Education and Training - With a youthful population, there is a high demand for expertise, with British services enjoying a strong reputation in this sector.
• Telecoms - With an industry worth in excess of £13billion annually and growing at a rate of 20% per year, this is a huge market, with mobile operators launching 3G networks.
• Airports - Air traffic in Turkeys growth exceeds the EU average and is expanding by around 10% each year.
• Agriculture - Turkey offers opportunities in the franchise, retailing and manufacture of agriculture.
  
  

Challenges Foreign Companies Face

The sheer speed of development in Turkey means that the government sometimes has problems keeping up. Rules and regulations can change quickly and can be complicated so it is recommended that if registering a business in Turkey, you employ a local partner with a good understanding of the markets legislation. In addition there are various social differences, which can be confusing, such as the Turkish wagging of the head meaning "I don't understand?" instead of no. As usual, make sure you research and plan well ahead before starting a business in Turkey.

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