Recently, at the official launch ceremony of the Turkey Citizenship by Investment Program in China, grandly hosted by WorldWay Group in collaboration with the Turkish government, H.E. Abdulkadir Emin Önen, Ambassador of Turkey to China, delivered a brilliant speech. Curious about the key information he shared? WorldWay Group presents the authentic content of his address for you!
Speaker | H.E. Abdulkadir Emin Önen, Compiled by | WorldWay Group
Ladies and gentlemen, friends, good afternoon:
My Chinese is limited, so I will deliver my speech in English. Your Excellencies, ladies and gentlemen, first of all, I would like to express my sincere gratitude to the organizer, WorldWay Group, for meticulously preparing this exchange platform themed around Turkey on this beautiful afternoon.
My sharing this afternoon is mainly divided into six parts. First, I would like to introduce Turkey to you. In the second part, I will share with you the macroeconomic outlook of Turkey, why one should invest in Turkey, the current overview of foreign direct investment in Turkey, and the Turkish investment immigration policy.
2019 is the year of Göbeklitepe in Turkey, which has been inscribed on the UNESCO World Heritage List. First, I would like to show you a short video about Göbeklitepe. Please watch the big screen.
7,000 years before the pyramids and 6,000 years before Stonehenge, this is an ancient miracle. Rising from a hilltop in southeastern Turkey, it is Göbeklitepe. Built by ancient humans 11,600 years ago, at a time when there were no iron tools or wheels for transportation. Before the dawn of writing and construction engineering, a temple stood tall. It is supported by precisely cut 14-ton stone pillars, carved with totems, animal images, and mysterious symbols. It is so complex and immortal that it has completely changed our perception of the ancient world. Who built Göbeklitepe? How was it built? And what was the purpose of the ancients in building it? Join us on a wonderful journey of exploration—Göbeklitepe: Back to the Beginning of Time.
Why did I play this short video for you?
The first reason: Through this short video, I believe you can feel the long-standing history and culture of Turkey. The second reason: Göbeklitepe is located in my hometown—Urfa, Turkey.
Many Chinese friends often ask me why they should go to Turkey. There are actually many reasons why Turkey attracts you. Due to limited time today, I will briefly point out a few.
First, Turkey has irreplaceable strategic advantages. As we all know, Turkey is located at the center of Asia, Africa, and Europe. This unique geographical location makes Turkey an Asian country, a European country, a Mediterranean country, a Black Sea country, an Aegean country, a Middle Eastern country, as well as a Caucasian and Balkan country.
The second reason is that it benefits from Turkey's location at the throat of the Eurasian continent. Turkey, an ancient civilization with a long history, has been an important global hub for trade and migration since ancient times, and is also the cradle of many civilizations and cultures. For thousands of years, if China was the eastern gate of the ancient Silk Road, Turkey was its western gate.
The third reason is that the Italian composer Vivaldi once composed the famous concerto "The Four Seasons." I think using "The Four Seasons" to describe Turkey's weather is most appropriate. Throughout the four seasons in Turkey, regardless of the heat or cold, you can experience different cultures, food, tourism, and social customs.
The fourth reason is that the hospitality of the Turkish nation and the Turkish people is world-renowned, stemming from the rich history of the Turkish nation and the spirit of enthusiasm and diligence inherited by its descendants. Every year, Turkey hosts 14 million travelers from all over the world.
The fifth reason is Istanbul. Napoleon once said: "If the world were a single country, Istanbul would be its capital." Istanbul is a historic peninsula city with numerous natural landscapes and historical sites, and has been the capital of many empires throughout history.
Based on the above reasons, more and more expatriates around the world are choosing to migrate to Turkey to start their new lives and new jobs. Some investors or expatriate friends even plan their retirement in Turkey.
Currently, the Turkish real estate market is booming. Many international investors choose to purchase property in Turkey. The main buyers of Turkish real estate come from the UK, the US, France, Austria, Germany, the Netherlands, Denmark, Norway, Belgium, and some other Gulf countries. Since the "Turkish Property Law" removed the reciprocity principle, international investors are now able to freely purchase property in Turkey.
Next, I will introduce some of Turkey's economic performance: Turkey is one of the most dynamic economies in the world today, and undoubtedly, it is also one of the most attractive destinations for doing business. From 2002 to 2017, our economy grew rapidly. During these fifteen years, the average annual growth rate of the GDP reached 5.8%. Today, Turkey is the 17th largest economy in the world and the 6th largest in Europe. According to Standard Chartered Bank's assessment based on purchasing power parity, it is estimated that by 2030, Turkey will be the 5th largest economy in the world. Do you know which country I think will be the strongest economy in the world in 2030? Personally, I think the capital of that country is Beijing. We feel very fortunate to be estimated as the world's fifth-strongest economy. In the future, we also hope for further strong economic interaction between Turkey and China.
In 2017, Turkey's GDP growth rate reached 7.4%, making it the fastest-growing country in the G20 and the second-fastest among OECD member countries, thanks to sound government macroeconomic strategies, prudent national fiscal policies, and major policy reforms. Last year, due to financial challenges and unilateral sanctions from certain countries, Turkey's GDP growth rate was 2.6%. Turkey's rapid economic growth has benefited the large middle class of the nation. Over the past 16 years, the purchasing power of the middle class has effectively doubled twice. In 2017, Turkey's GDP per capita was 27,092 USD.
Turkey is located at the center of the Eurasian continent. Since 1996, it has established a Customs Union with the European Union. To date, Turkey has signed 27 free trade agreements with countries in Africa, the Middle East, Latin America, and the Balkans. For Chinese investors, this means: Turkey will be a most favorable production hub for trade and access to European markets and other regions. A 4-hour flight from Istanbul can reach a customer base of 1.6 billion people from 57 different countries, entering multiple markets with a total GDP of 24 trillion USD.
Of course, thanks to our qualified human resources and competitive local free market, Turkey has become the fourth-largest strategic trade partner of the EU, following China, the US, and Russia. Now, what is displayed on the big screen are some international brands you are familiar with, all of which have established their production centers in Turkey.
Another major characteristic of Turkey lies in its demographic structure, which mainly has two features. First, Turkey has young, highly educated, and skilled human resources. Second, the average age of the entire Turkish population is under 31, with an annual population growth of about 1 million.
Below is data regarding foreign direct investment in Turkey. From 2003 to 2017, over the fourteen or fifteen years, the total amount of foreign direct investment in Turkey was nearly 200 billion USD. If categorized by the country and region of the foreign investor, Europe accounts for the largest share, approximately 74%, followed by the Americas and Asia. Currently, the most popular industry for foreign direct investment is the service sector, accounting for 60%.
More than 61,000 foreign-invested enterprises have been established in Turkey. Among them, there are about 1,000 Chinese-invested companies. Turkey provides excellent business development prospects and favorable policies for Chinese investors. The industries in which Chinese foreign investors develop in Turkey are mainly concentrated in banking, construction, power construction, infrastructure, IT, mining, agriculture, and transportation. Displayed on the screen are well-known Chinese giant enterprises that have taken root in Turkey.
On July 17, 2003, the "Foreign Direct Investment Law" came into effect: it abolished the foreign investment approval system, introduced advanced systems of equal treatment and free repatriation of capital, and brought more and better favorable policies for foreign investors. This not only improved the convenience of foreign direct investment but also greatly increased the returns that foreign-invested enterprises can generate in Turkey.
Turkey actually established very good trade relations with China a long time ago. Since 1990, Turkey has signed a bilateral investment protection agreement with China, and since 1996, it has signed a double taxation treaty with China, which means that Turkey is ready to welcome the arrival of Chinese investors.
Since 2012, the Turkish government has vigorously promoted and implemented many incentive policies for foreign investment in Turkey. The incentive policies cover many preferential benefits, such as tax exemptions, social security benefits for corporate employees, land allocation, and financial support. Facts have proven that the incentive policies implemented since 2012 have been very successful in encouraging foreign investment in Turkey.
Investment incentive policies are designed according to the different needs of foreign investors. Based on different industrial needs, different enterprise scales, different industry operations, or the different terminal products you produce, 5 types of investment incentive plans have been designed for you, mainly including regional investment plans, priority investment plans, large-scale investment plans, strategic investment plans, and general investment incentive plans. If you have any needs, you can consult the Turkish Embassy in Beijing.
In addition, I would like to show you that the location on the screen I am referring to is my hometown, where Göbeklitepe is located. Among the investment incentive policies I just mentioned, my hometown is located in the sixth investment region. The sixth region enjoys many strong incentive policies, and the level of benefits is ahead of other regions in Turkey.
According to Article 12 of the "Turkish Citizenship Law" No. 5901, foreign nationals are allowed to obtain Turkish citizenship through specific investment means. By meeting one of the following investment requirements, you and your family can obtain Turkish citizenship in 2019.
Displayed on the screen are the regulations of the Turkish investment immigration policy regarding investment requirements.
The first investment method is to purchase local real estate in Turkey with an amount of 250,000 USD or equivalent in Lira, and hold it for 3 years to obtain Turkish citizenship. Under previous legal regulations, the investment amount to obtain Turkish citizenship through real estate investment was 1 million USD. Currently, it has been drastically reduced to 250,000 USD. The second investment method is to deposit 500,000 USD in a Turkish bank and lock it for 3 years.
The third investment method requires approval from the Turkish Ministry of Industry and Technology, involving a fixed asset investment of at least 500,000 USD. The fourth investment method is to purchase Turkish government bonds approved by the Turkish Ministry of Treasury and Finance and hold them for more than three years. The fifth investment method is to invest 500,000 USD in Turkish real estate investment trusts or purchase shares in Turkish venture capital funds.
That is all for my sharing today. I hope you have found the reasons to invest and live in Turkey. Thank you for your patience and kindness, and thank you to the organizer, Dr. Xing, Chairman of WorldWay Group. Once again, thank you to all the friends present. Thank you, thank you all.
As a pioneer in European investment immigration, WorldWay Group, in collaboration with the Turkish Embassy in China, the Consulate General in Shanghai, and the Consulate General in Guangzhou, held the official launch ceremony of the Turkey Citizenship by Investment Program in China, officially introducing the Turkey Citizenship by Investment Program, which has attracted global investor attention, to China. This pioneering event will go down in history!
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