Turkey

Long-regarded as an affordable getaway for European tourists seeking the sun in the coastal resorts of Antalya, Bodrum or Marmaris, Turkey is starting to draw rising numbers of visitors from the Middle East region.

Narrowing the current account gap and correcting the underdevelopment of the Anatolian provinces are just two of the goals of the Turkish government’s latest investment incentive scheme, announced in early April. The plan, which specifically aims at replacing intermediate goods imports with locally manufactured products, has won accolades from the private sector and business organisations.

The insurance market in Turkey is bracing itself for consolidation following a decade of growth that has brought key international players to the country eager to play a part in the sector’s development. Buoyed by the introduction of the Turkish Insurance Law almost five years ago, the industry has expanded steadily.

Increased foreign mergers and acquisitions (M&A) activity and regulatory changes that encourage consolidation are expected to dramatically alter the commercial playing field in Turkey over the next several years.

The Turkish aviation sector is experiencing accelerating growth with foreign firms taking note of fresh opportunities. The new alliance in early March between Aéroports de Paris (AdP) and TAV, the Turkish airports operator, is a sign that the rapid growth in passenger numbers and air traffic at the country’s main airports has not only drawn interest from international investors but is also spurring TAV to expand to other regions.

The recent announcement of plans for the establishment of new free trade agreements (FTAs) with Malaysia and South Korea in the first half of 2012 will likely lead to a significant increase in trade between Turkey and East Asia.