ORGANIZED Industrial Zones’ (OIZ) establishment in Türkiye started in the industrial and production infrastructure of 1962, and they continue to grow with new investments. There are

408 OIZs in Türkiye, and 288 of them are operational. Seventy-eight new OIZs were built in 44 cities in the last five years. In addition,

4 thousand new plots have been included in industrial production by the OIZs in this process. Seven hundred thousand people were employed by the OIZ in the last 5-year period, raising the OIZ’s employment to 2 million 600 thousand people. Over 67 thousand factories conduct production as part of the OIZ, realizing 45% of Türkiye’s industrial production. Six hundred forty-eight out of 1000 major industrial corporations in Türkiye have been conducting production in OIZs.

NEW LEGISLATION

In 2024, Türkiye launched the legislative facilities to boost the investments in the OIZs that realize 45% of the industrial production. To this end, the Ministry of Industry and Technology altered the Implementation Regulation of Organized Industrial Zones. The reformative move through these new regulations included many areas, such as expropriation, infrastructure and allocation processes in OIZs. These legislations enabled OIZs to build and sell or rent plants to local and foreign investors, provided they conduct production. The regulation allowed OIZs to acquire revenues through pre-allocation for rapid completion of the infrastructure.

ALLOCATION TO INVESTORS

The primary objectives of the amended regulation are to accelerate the industrial zones’ allocation to the investors and enable resource development to OIZs through pre-allocation. The power granted by the regulation allows the OIZ boards to build facilities in their plots and thus fulfil local and foreign investors’ demands to purchase or rent plots with the superstructure. Superstructure rental and selling permissions will be granted on condition that production is conducted. Strict measures regarding unauthorized transfer or rental processes will be adopted to obtain property revenues and protect the investors conducting manufacturing activities. Additional measures were taken to align with the planned schedule and realize the investments in the allocated sites.

OTHER NOVELTIES

In line with the new regulation, the Ministry of Industry and Technology can determine the site selection of the potential OIZ - without an OIZ site selection process - if the 1/5000 and 1/1000 zoning plans demonstrate an industrial zone.

The private properties can be acquired through purchase by consent or expropriation. The owners of the plots who commit to investing in a specific period can operate in the selected areas without expropriation. Following the amended regulation’s entry into force, the plots in the OIZs are available online for investors on the first Monday of each month. The applications for allocation are collected via the Ministry of Industry and Technology’s website ‘meydip.sanayi.gov.tr’. The map information on the plots to be allocated can also be reached via ‘meydip.sanayi.gov.tr’. Each plot’s allocation provisions, square meter prices, and other detailed info specific to each OIZ are available on each OIZ’s website.

The port transfers to speed up with railways

Türkiye aims to raise its production volume and investments by connecting the OIZ to the ports through the railways. The 12th Development Plan that covers 2024-2028 includes the target to connect the OIZ to ports by railways as well. Within this scope, the studies to build the new industrial zones and logistics lines by considering the natural disaster risks continue, and the more efficient usage of the existing railway infrastructure is planned. The operations between the industrial zones and ports, including the ro-ro ships, will further accelerate thanks to the railways. The ongoing high-speed train projects will be completed, capacities of the lines with intense population will be increased, and connection to the regions with high load-bearing potential will be enabled. The construction of the junction line projects with complete feasibility projects will be prioritized. The capacity will be enhanced through double line and branch line implementations in railway corridors with higher load demand.

Green OIZ regulation completed

Türkiye has been striving to achieve the ‘Zero Carbon’ target by 2053. To this end, the amended regulation covered the ‘Green OIZ’ concept. As per this new regulation, OIZs that align with energy efficiency and environmentally friendly practices shall be certified as ‘green OIZs.’

The new regulation also draws the construction provisions in the OIZ plots where charging stations will be built. The OIZ that stand out with resource and energy efficiency, lean production, industrial waste cooperation and environmentally friendly practices will be certified by the Turkish Standards Institute (TSE) in line with environmental, economic, social and administrative aspects identified by the Ministry of Industry and Technology and will be qualified as ‘green OIZ’.

OIZs wishing to obtain the Green OIZ certificate can apply to the Ministry of Industry and Technology’s Spatial Management and Digitalization Project System (MEYDİP) after aligning with the preliminary conditions designed by the TSE and obtaining written approval. The Green OIZ concept is also essential for aligning with the European Union’s Border Carbon Adjustment Mechanism (BCAM) and access to markets.

Advantageous for the business

* The companies in OIZ can obtain optimal production sites with expert feasibility approval. Additionally, the land and infrastructure facilities in these sites are fully available to industrialists.

* The complementary connections emerging during production allow the creation of added value in a certain part of any company’s end product and the reduction of production costs.

* Companies operating within the OIZs built in regions with qualified workforce reach the required employees much more straightforwardly.

* The support provided by transport facilities will decrease company transport costs.

* OIZs assist companies by providing an environment that facilitates marketing and the availability of other services.

The incentives and support provided

Investors operating in the OIZS in Türkiye can benefit from numerous incentives, such as general investment incentives, regional investment incentives, large-scale incentives, strategic investment incentives, and incentives regarding employment and R&D support.

* VAT exemption in land purchases

* Property tax exemption for five years valid upon the completion of the plant building

* Low water, natural gas and communication expenses

* Tax exemption in dividing/ uniting plots

* Local administration tax exemption in building and operating plants

* Solid waste exemption where OIZS do not benefit from the municipal services