To provide strong evidence that Turkey’s manufacturing and industrial investments are profitable and have growth potential, several factors must be considered. Turkey has a strategic geographical location in the region, combined with an educated and young workforce, and benefits from robust infrastructure. All these factors position it to become one of the significant players in the global manufacturing landscape. In this article, we aim to explore potential opportunities in Turkey’s manufacturing and industrial sector, highlighting why it’s an ideal destination for investors and its advantages. Also, we will discuss the advantages of investing in Turkey, key industries, areas of opportunity, and the incentives available to guide potential investors in this dynamic market.
At the intersection of the Middle East, Asia, and, EU Turkey, with its magnificent strategic location, has emerged and positioned itself as a vital hub in global manufacturing. Turkey’s manufacturing and industrial sector provides a diversity of products with world-class standards that make it an important exporter globally.
According to the data we obtained from the general trade system of Turkey, exports increased by 3.6% at the end of 2024, totaling $63 billion and $603 million. This growth in numbers is a positive indicator and a good sign for investors. Also, it is proof of the resilience and adaptability of Turkey’s manufacturing sector in the global manufacturing arena. Today, this country is the home of international companies; still, it has many potentials and opportunities to attract foreign direct investment (FDI). The country offers competitive production costs and has established trade agreements with the European Union and other markets, which further enhance its attractiveness to foreign investors.
Numerous elements are involved in the advantages of industrial investment in Turkey, and we will mention them briefly below:
Developed Logistics (Transport and Shipping)
With complete, modern, and developed highways, extensive rail networks, and land and sea ports, Turkey offers ideal shipping operations for industrial and manufacturing products and goods, allowing them to export them worldwide at low costs easily.
Strategic Geographical Location
Turkey’s exceptional geographical location positions it as a bridge between Europe and Asia, facilitating unlimited access to markets with over 1.3 billion consumers.
Skilled and Cost-Effective Workforce
With over 32 million people in the labor force, Turkey has one of the most important advantages of industrial investment: skilled workforces with cost-effective wages. Many young individuals in Turkey can easily enter the labor market with competitive wages compared to Western Europe.
Government Incentives for Investors
To ease the process of investment in the country’s manufacturing and industrial sector, the Turkish government offers various benefits to investors, including tax exemptions, reduced customs duties, and financial support for R&D and innovation. Additionally, special incentives are available in Free Trade Zones (FTZs) and Organized Industrial Zones (OIZs).
Competitive Production Costs
Thanks to Turkey’s diversity in geography, there are a large number of raw materials for manufacturing and industries. This abundance of natural resources leads to much lower production costs compared to other countries.
Reaching 13th global rank from 18th in 2023 is strong proof of the quality and strong economy of Turkey’s manufacturing and industrial sector. They offer numerous opportunities for industrial and manufacturer investment across various sectors:
Automotive Industry: The cornerstone of Turkey’s manufacturing industry is the automotive sector. There are massive opportunities in this sector, where Chinese carmaker Chery, in March 2025, announced a $1 billion investment to develop a manufacturing facility with a capacity of 200,000 vehicles yearly in Turkey’s northern Samsun province.
Textiles and Apparel: Another efficient industry of Turkey that has recently experienced significant global growth is the textile industry, which is the oldest and most developed sector in exports. This sector’s main focus is on high-quality production and innovative designs. Turkey is among the top five textile exporters globally.
Machinery: Turkish machinery sector exports experienced a growth of 5% in 2024. They aim to achieve a 20% increase in the sector’s experts by 2025.
Electronics: Turkey’s electronic market has excellent domestic demand and export potential, particularly in Germany. This sector has made a good effort in research and development and focuses on high-tech production, which has led to continued growth.
To attract industrial investments, Turkey provided incentives and exceptional opportunities to investors, including:
Free Zones: The Turkish government decided to establish multiple free economic zones to attract more investors. These free zones are designed to promote export-oriented investment and production. Active investors and companies here benefit from various advantages, including tax exemptions, reduced bureaucratic procedures, and access to modern infrastructure.
Investment Incentive Programs: Incentive schemes designed to meet investor needs are offered by the Turkish government. These programs, which aligned with the country’s development goals, include:
- Customs duty and VAT exemptions
- Corporate tax reductions
- Social Security premium support
- Land allocation
Turkey, due to its strategic location, skilled workforce, competitive costs, and government incentives, has positioned itself as one of the major hubs for manufacturing and industrial investment. Key industries such as automotive, textiles, machinery, and electronics offer multiple opportunities for safe and lucrative investments for both local and foreign investors. Moreover, the government has introduced various special conditions, including Special Economic Zones, Free Trade Zones, and government-backed incentives to facilitate and encourage companies seeking to make an investment or expand operations in their country. The Turkish government is actively pursuing projects to enhance the growth of manufacturing and industrial investment, and it remains an attractive destination for global investors.
