Turkey Vision 2023

REPUBLIC OF TURKEY PRIME MINISTRY
Investment Support and Promotion Agency of Turkey
Turkey
Vision 2023
Vision 2023
Turkey in 2023
 One of the top 10 economies in the world
 GDP: circa $2 trillion
 Population: 82 million
 Export: $500 billion
 Single digit Inflation and Interest rates

Vision 2023
GDP (Current Prices)
Source: TURKSTAT and «Turkey is Ready, Target 2023»

Vision 2023
GDP Per Capita
(Current Prices)

Vision 2023
Export ($ Billion)

Vision 2023
Public Finance Policy
 Enhance fiscal transparency and accountability
 Reinforce pioneering role of private sector and decisively

continue privatization
 End sate’s role in power distribution and sugar production
 Diminish state’s role in power generation, telecom,

management of ports, highways and bridges
Vision 2023
 A new governance model for State-Owned-Companies

based accountability, transparency and flexibility
 To utilize dormant public land in favor of economy
 To expand investor base for domestic government bonds

by introducing new instruments and selling methods
 Diminish state’s role in power generation, telecom,

management of ports, highways and bridges
Vision 2023
Revenue Policy
 Revising tax policy to support economic growth,

investment and employment and to decrease unregistered
economy
 The less unregistered economy, the lower tax rates
 New tax system will be predictable and proactive,

supporting investors producing more, committed to utilize
their resources efficiently, paying taxes regularly, creating
more jobs and expanding economy
Vision 2023
Revenue Policy
 Sources of taxes will change in favor of indirect taxes
 Tax policies will aim to increase FDI inflows, support

investment and R&D, increase employment and reduce
regional disparity
 A simplified and effective tax system
 New regulations to increase revenue sources of local

authorities
Vision 2023
Public Expenditure & Investment
 Priority will be given to infrastructure investments which

will support economic productivity in the medium and long
term (highway, railway, airports, dams, irrigation, ICT)
 Public investments will focus on economic and social

infrastructure which cannot be realized by private sector
 Public-Private-Partnership will increasingly continue
 Public spending will focus on social and infrastructure

projects with development potential
Vision 2023
 Sources of taxes will change in favor of indirect taxes
 Tax policies will aim to increase FDI inflows, support

investment and R&D, increase employment and reduce
regional disparity
 A simplified and effective tax system

Vision 2023
Monetary Policy
 Monetary policies will support government’s growth and

employment policies provided that they are not in
contradiction with financial and price stability
 Inflation targetting will continue to be the main policy
 Inflation targets will be determined for 3 years by the

Central Bank and government
 Floating exchange rate regime will continue
 Central Bank will continue to be the principal authority

Vision 2023
Financial Services
 Istanbul will be one of top 10 financial centers in the world;

to this end, human resource, physical, technical, legal and
tax measures will be taken
 Other cities will support istanbul to be a financial center
 Number of Turkish companies tarded in Istanbul Stock

Exchange (ISE) will be at least 1000;
 Foreign companies in ISE will be more than Turkish

companies and will be representing at least 10 countries
Vision 2023
Balance of Payment
 In order to diminish dependency of production and export

on import, policies and incentives to increase local
production capacity of especially intermediary and capital
goods
 Improve local technologic skills in the sectors with high

external dependence
 For global competitiveness in export, production and

marketing of products and services based on innovation,
R&D, high added-value and branding, will be supported
Vision 2023
Employment
 Unemployment: 5%; Employment: 50%
 Unregistered non-agriculture employment: 15% (from 30%)
 Lifelong learning participation from 8% (from 2%)
 Annual training of 400.000 unemployed to attain skills
 Analysis of provincial labor force in order to meet labor

force demand for required skills, number and sector
 International standards in professional competence

Vision 2023
R&D and Innovation
 R&D expenditures: 3% of GDP
 2/3 of R&D expenditures by private sector
 Number of full-time equivalent researcher: 300.000
 Working on manned rocket to space and national satelite
 National centers of excellence
 Venture capital and angel investor to turn R&D into

businness
Vision 2023
Microeconomy, Entrepreneurship
and Industrial Policies
 Manufacturing base of medium and high tech products
 Support companies’ technological development
 Manufacturing and R&D base in automotive, national

automobil
 Aircraft factory for commecial planes
 Support production of unmanned aerial vehicles

Vision 2023
 Improve infrastructure (OIZ)
 Free land for investors in OIZs where it is available
 Laboratory and test centers with int’l standards
 Ending poor-quality and non-standard products
 Online company establishment in 5 minutes.

Vision 2023
 Support SMEs, IPO of SMEs
 R&D and innovation support for SMEs up to 1 million TL
 27K TL grant and 70K TK loan for new entreprenurs
 15 new business development centers

Vision 2023
Defence Industry
 National rifle
 National cannon
 National tank
 National helicopter
 National fighter aircraft

Vision 2023
Export of Goods & Services
In order to achieve $500 billion export volume;
 Export-based production, 100.000 exporters (from 50.000)
 To create at least 10 national brands known worldwide
 Diversification of export markets and products
 Support high value-added, medium and high tech products
 Support key sectors; machinery, iron&steel, automotive,

textile, electronics, chemicals
Vision 2023
Tourism
 Annually 50 million tourists with $50 billion revenue
 Existing 1-million bed capacity will be increased to 1,5 mio
 Number of marinas will be increased 65 up from 25
 Promote health, religion, convention, fair, culture, golf,

thermal tourism
Vision 2023
Agriculture
 $150 billion gross agricultural domestic product
 $40 billion agricultural export
 One of top 5 countries in term of agricultural size
 8,5 million hectare irragble area (from 5,4 millon)
 Nnumber 1 in fisheries in EU
Vision 2023
Energy
 125.000 MW installed power (up from 54.423 MW)
 Increase share of renewables to 30%
 60.717 km transmission lines (from 49.104 km)
 158.460MVA power distribution unit capacity (from 98.996MVA)
 Decrease electricity loss-theft to 5% and smart grids
 5 billion m3 natural gas storage capacity (from 2.6 billion m3)
 To establish an energy stock exchange

Vision 2023
Energy
 8 nuclear reactor with 10.00 MW will be active
 Contruct 4 nuclear reactors with 5.000 MW
 Construct power plants with 18.500 MW in the coal basins
 Full utilization of hydro power
 Increase wind power to 20.000 MW (up from 1.694 MW)
 Power plants with 600 MW geothermal, 3000 MW solar

energy
Vision 2023
Mining
 $20 billion export of mining (from $10 billion)
 5.5 million tons production of $2.5 billion export of boron
 Meeting demand for coking coal by domestic production
 Annual 5 milliom m2 drilling for mining (from 1 million m2)
 20 billion tons proved reserve of lignite (from 11.5 billion tons)
 70% of geothermal potential proved to transfer to investors

Vision 2023
Transportation / Highways
 Additionally 16 new large-scale logistic centers
 36.500 km dual carriageway, 7.500 km motorway
 70.00 km with bitumen hot-mix asphalt
 In 2019 sub-marine tube, 3. bridge on Bosporus
 Bridge on Dardanelles
Vision 2023
Transportation / Railways
 10.000 km high-speed railway, 4.000 km new railway
 8.000 km with electricity and signal
 Annually 500 km railway will be renovated
 Liberalization of railways opening to private sector
 Renovation of terminals and stations and construction of

new terminals for high-speed trains
 Support railway projects to connect Turkey with Caucasus,

Middle East, North Africa
Vision 2023
Transportation / Aviation
 Domestically produced plane (regional)
 New airports, 400 million passanger capacity (165 mio)
 3 new airports in Istanbul
 750 planes fleet (200 regional)
 At least 2 aviation maintanence and training centers
 Establish Turkish Space Institute by 2015

Vision 2023
Transportation / Maritime
 Connect main ports with railways
 Transfer ports in Aegean/Mediterranean/Marmara/Blacksea
 To have at least one of top 10 ports in the world by 2019
 32 million TEU handling capacity for container transport
 Handling 500 million tons of solid & 350 million liquid load
 10 million DWT shipbuilding capacity
 100 marina with 50.000 yacth capacity

Vision 2023
Transportation / ICT
 30 million broadband subscribers
 50% of ICT sector by domectic products and services
 8% ICT sector’s share in GDP
 One of top 10 countries in e-transformation
 Provide all public services electronically by 2019
 80% of population will be computer litterate
 Liberalization of postal services by 2015

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Turkey Vision 2023

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REPUBLIC OF TURKEY PRIME MINISTRY

Investment Support and Promotion Agency of Turkey

 GDP: circa $2 trillion

 Export: $500 billion

 Single digit Inflation and Interest rates

Source: TURKSTAT and «Turkey is Ready, Target 2023»

Source: TURKSTAT and «Turkey is Ready, Target 2023»

Source: TURKSTAT and «Turkey is Ready, Target 2023»

Public Finance Policy

 Enhance fiscal transparency and accountability

 Reinforce pioneering role of private sector and decisively

 End sate’s role in power distribution and sugar production

 Diminish state’s role in power generation, telecom,

Public Finance Policy

 A new governance model for State-Owned-Companies

 To utilize dormant public land in favor of economy

 To expand investor base for domestic government bonds

 Diminish state’s role in power generation, telecom,

 Revising tax policy to support economic growth,

 The less unregistered economy, the lower tax rates

 New tax system will be predictable and proactive,

 Sources of taxes will change in favor of indirect taxes

 Tax policies will aim to increase FDI inflows, support

 A simplified and effective tax system

 New regulations to increase revenue sources of local

 Priority will be given to infrastructure investments which

 Public investments will focus on economic and social

 Public-Private-Partnership will increasingly continue

 Public spending will focus on social and infrastructure

Public Finance Policy

 Sources of taxes will change in favor of indirect taxes

 Tax policies will aim to increase FDI inflows, support

 A simplified and effective tax system

 Monetary policies will support government’s growth and

 Inflation targetting will continue to be the main policy

 Inflation targets will be determined for 3 years by the

 Floating exchange rate regime will continue

 Central Bank will continue to be the principal authority

 Istanbul will be one of top 10 financial centers in the world;

 Other cities will support istanbul to be a financial center

 Number of Turkish companies tarded in Istanbul Stock

 Foreign companies in ISE will be more than Turkish

 In order to diminish dependency of production and export

 Improve local technologic skills in the sectors with high

 For global competitiveness in export, production and

 Unemployment: 5%; Employment: 50%

 Unregistered non-agriculture employment: 15% (from 30%)

 Lifelong learning participation from 8% (from 2%)

 Annual training of 400.000 unemployed to attain skills

 Analysis of provincial labor force in order to meet labor

 International standards in professional competence

 R&D expenditures: 3% of GDP

 2/3 of R&D expenditures by private sector

 Number of full-time equivalent researcher: 300.000

 Working on manned rocket to space and national satelite

 National centers of excellence

 Venture capital and angel investor to turn R&D into

 Manufacturing base of medium and high tech products

 Support companies’ technological development