THE world is undergoing a new industrial transformation process, and countries wishing to increase their share in global exports and maintain their competitive power prioritize their high-tech investments. Türkiye identified its investment strategy accordingly, and it continues to be a safe port for investors based on its geostrategic position, qualified human resources, robust logistics and commercial infrastructure. Türkiye plans to raise its export of goods to USD 375.4 billion in 2028 with the 12th Development Plan. The share of the high and medium-high technology sectors in exports is aimed to be increased to 50%.

SIX PRIMARY AREAS

Another step to boost the targets under the Development Plan has been taken through the HIT-30 High-Tech Support Program. The program is aimed to achieve private sector investments amounting to over USD 20 billion in electric vehicles, battery technologies, chip technologies, solar cells, wind turbines and R&D areas. As part of the HIT-30 Program, a USD 30 billion source that covers tax incentives, grant support, and market development support will be directed to high-tech areas by 2030. This program is claimed to be the Republic of Türkiye’s incentive program with the most enormous scale. HIT-30 will not be limited to the calls in 6 areas, and investments under over 30 regions that cover hyper-scale data centres, biotechnological medicine, green hydrogen, and industrial robotic systems will be equipped with support.

BATTERY PRODUCTION

Battery production will be encouraged as part of the program. Through support amounting to USD 4.5 billion, a battery manufacturing capacity of 80 gigawatt-hours will be aimed in Türkiye. Incentives, including a grant of USD 6 thousand per megawatt-hour, will be offered until 2030 to develop and manufacture essential batteries in electric cars and energy storage sectors. In this way, Türkiye will become a high-tech production base for local and foreign investors. The program shall provide up to 25% support and tax incentives reaching 60%.

ELECTRIC CARS

One of the primary calls announced as part of the program was concerned with investments in electric cars. One million electric vehicles will be manufactured yearly in Türkiye under the USD 5 billion support package. In this way, Türkiye plans to become an R&D and production base for new-generation vehicles.

The investments need to align with criteria such as an investment capacity of at least 150 thousand vehicles, BEV and PHEV production, a 51% domestic production plan, and the establishment of an R&D centre. Such investments will be equipped with a customs tax exemption for a certain number of vehicles and/or up to 50% grants and tax support up to 80%.

CHIP TECHNOLOGIES

Chip technologies are increasingly important, and the global technology race is felt the most. Türkiye aims to build a chip manufacturing capacity on an industrial scale concerning these technologies. An incentive package worth USD 5 billion will be launched to establish a minimum one-chip factory of industrial scale based on state-of-the-art production technologies. Capital contributions of up to 30%, grants of up to 10%, and tax incentives of up to 80% will be availed to the investments varying based on utilization areas, chip value chain investments and investments with a minimum of 65% nanometer technology.

GREEN ENERGY

The ‘Green Energy’ theme is one of the HIT-30 High-Tech Support Program’s key targets. To maintain the increasing rate of renewable energy investments in Türkiye, grants up to USD 8 thousand per megawatt will be awarded to solar cell investments to establish

a minimum of 5 gigawatts of generation capacity in solar energy in the upcoming period.

This package will total USD 2.5 billion. Regarding wind power, supporting the manufacturing of critical components and offshore wind turbines and building a local wind power brand are planned. A source worth USD 1.7 billion was allocated to such investments.

R&D INCENTIVES

An attractive and flexible model that will draw significant high-tech companies’ research and development centres to Türkiye will also be launched. The new centres to be established in Türkiye by the world’s largest companies with respect to R&D activities will be supported by covering 50% of their staff expenses for 5 years. USD 1 billion in support will be provided for these investments. Employment support, tax exemption, investment site allocation and financial support are among the incentives for such investments.

Eight eligible profiles within the FDI strategy

Türkiye drafted an FDI Strategy (2024-2028) to draw the general framework of its foreign direct investment (FDI) policy and guide its practices. The focal point of this strategy document that shall serve the long-term development targets is to attract eligible, sustainable, high-tech FDIs with high levels of added value that support digital transformation and enable qualified employment. Eight eligible FDI profiles that have been prioritized in light of the analyses are as follows:

* Environmentally-friendly investments

* Digital investments

* Investments focusing on the global supply chain

* Knowledge-intensive investments

* Investments that enable qualified employment

* Investments in services with added value

* Qualified financial investments

* Investments supporting regional development

Aiming to increase the FDI share to 1.5%

Türkiye’s FDI Strategy’s main target is to grow its share of FDI through eligible FDI projects and raise it to 1.5% by 2028. Therefore, Türkiye is expected to take a 12% share of the FDI flow to its highly competitive region as of 2028. Moreover, the number of projects and regional share targets specific to the eligible FDI profiles throughout the strategy have been identified.

A political framework comprising six themes has been built as part of the strategy to achieve the targets. The themes determined based on the global trends influencing the investment agenda and the global investors’ criteria for selecting a location are as follows:

* Investment environment competition

* Green transformation

* Digital transformation

* Global supply chain

* Eligible human resources

* Communication and promotion

Thirty-two sub-policies were formed under these themes.