Türkiye Emerging as a Regional Technology Hub for Global Investments

Türkiye is on the path to becoming a regional technology hub for international investments, as more and more foreign firms carry out research and development efforts in the country, said Bekir Polat, the vice president of Türkiye’s Investment Office.

Polat said Türkiye last year reached a gross domestic product (GDP) of $1.2 trillion and the country aims to join the ranks of the world’s top 10 economies, noting the importance of Türkiye’s digital and green transformation targets and investments to achieve the goal, The Caspian Post reports, citing Turkish media.

He said Yandex’s new Yazeka, an artificial intelligence-powered search engine specifically engineered for the Turkish market, is a testament to foreign firms’ interest in Türkiye’s engineering power and qualified workforce, noting that the Investment Office will support Yandex in future investments, such as in cloud technology and taxi-on-demand applications.

“It is of great importance for foreign companies like Yandex to take advantage of Türkiye’s engineering capacity and develop new technologies via the country’s research and development capabilities - such investments are critical to support Türkiye’s digital ecosystem,” he said.

Türkiye continues to be a safe harbor for long-term investments, while the world struggles with wars, and its competitive investment environment contribute to that, he said.

Polat underlined that macro balances can shift quickly, such as when supply chains were disrupted during the pandemic, and trade protectionism and regional conflicts can also affect investors.

“When we look at the century-long history of Türkiye, there are international companies that have been investing throughout that time, as these direct investments are made with much longer-term commitments,” he said.

Polat stated that Türkiye became one of the largest suppliers to Europe with its successful efforts in digital and green transformation after the pandemic, while Türkiye’s free trade agreement and the Customs Union with the European Union enables it to reach 1.3 billion people and a total combined economy of $30 trillion.

Green and digital transformation will be the most important focuses for Türkiye’s foreign direct investment strategy for 2024-2028, he added.