Türkiye targets eastern region growth with new industrial incentives

ANKARA

Türkiye has unveiled a new investment incentive system prioritizing high-value-added technological investments and regional employment, with the eastern and southeastern provinces expected to benefit the most.

The scheme, enacted through a presidential decree published in the Official Gazette, introduces differentiated incentives for strategic, technology-oriented and green transformation investments.

It places particular emphasis on a large part of the eastern and southeastern provinces, offering enhanced support for employment in these areas.

According to the new model, investors in these regions will benefit from extended social security premium support: The employer’s share will be covered by the government for 14 years, while the employee’s share will be covered for 10 years.

The government aims to encourage the relocation of industrial facilities from the highly populated and earthquake-prone Marmara region, including Istanbul, to inner Anatolia. Investors relocating machinery and equipment from high-development regions to these regions will be eligible for local employment incentives at their new location.

Under the strategic initiative component of the scheme, investors will receive cash support of up to 240 million Turkish Liras ($6.1 million).

Each province will have four priority investment areas tailored to local dynamics.

Technological fields to be supported under the new system include high-tech industries, such as pharmaceutical products, computers, electronics and optical equipment and aerospace vehicles.

They also count in medium-high tech industries, including chemical products, military land vehicles, weapons and ammunition and electrical equipment.

Speaking on the changes, Industry and Technology Minister Mehmet Fatih Kacır said the system is now “more selective and focused,” designed to reduce the financial burden on investors.