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THE AEGEAN FREE ZONE AND ESBAS

The Aegean Free Zone, which opened in 1990, is the first manufacturing-based modern free zone in Turkey.  It also is the first Turkish free zone to be developed and operated by a private-sector company, ESBAS, the Aegean Free Zone Development and Operating Company.  ESBAS is part of a privately owned U.S. company, called EAC International. Today, the Aegean Free Zone has attracted more foreign direct investment than any of the other 19 free zones in Turkey and accounts for more than 30% of Turkey’s total free zone employment. ESBAS was established using the “Build–Operate–Transfer” (BOT) model.

All infrastructure and superstructure investments, loading, unloading, transportation, labor procurement, food, landscaping, utilities and around the clock support services, including a fire truck and all other municipal services, are provided by ESBAS.

The Aegean Free Zone is located on 2.5 million m² (600 acres) in Gaziemir, Izmir. The Zone is 4 km from the Izmir Adnan Menderes International Airport, 12 km from the Port of Izmir and 1 km from major highways.
Today there are 167 companies in the Aegean Free Zone, 94 domestic and 77 international. Total trade volume generated in 2017 was $4.3 billion USD, and the overall trade volume generated since the establishment of the Zone is $78 billion USD.  One-third of all investment in the 18 free zones in Turkey is at the Aegean Free Zone.

 

 

The Aegean Free Zone provides employment for nearly 21,292 people. This accounts for one-third of the employment generated in all 18 free zones in Turkey.

Electronics, automotive parts, machinery manufacturing and assembly, aerospace and defense industry, precision measuring devices, metal fasteners, kitchen furniture manufacturing, textiles, food processing and packaging are among the predominant sectors in the Aegean Free Zone.

Textile products, ready-to-wear garments, heavy construction equipment, chemical products and consumer durables are the most traded product types.

KEY REASONS TO INVEST IN TURKEY

Turkey has a population of 80 million, with nearly half the population under the age of 31.7.  Turkey is strategically located near significant world markets and boasts a strong culture of industry and service.


The Turkish economy owes its extraordinary performance and high growth rates over recent years to the government’s steady and consistent financial policies, backed with economic reforms undertaken since 2002. These reforms have rendered Turkey an important player in foreign direct investment.


The economic success of Turkey during the last decade has impressed many experts and international organizations, causing them to make confident projections about the future of the country.  Turkey rose to become the 6th largest economy as compared to EU member countries in 2017 and 17th largest economy in the world.  Turkey has:

  • Attracted a total of $158 billion USD worth of foreign direct investment in the last decade
  • An average real GDP growth rate of 5.8% between 2002–2017
  • Increased GDP from $305 billion USD in 2003 to $851 billion USD in 2017
  • Vigorous financial discipline and consistent economic policies
  • A finance sector with proven durability during the global economic crisis

QUICK REASONS TO INVEST IN TURKEY

SUCCESSFUL ECONOMY

Rapidly developing economy; GDP, which was US $231 billion in 2002, increased more than threefold in 2017 to US $851 billion.(TURKSTAT) 

Stable economic growth;  Between 2002 and 2017, annual average real GDP increased by 5.8%.

A promising economy expected to be one of the fastest growing economies among OECD member countries in 2018-2019 with an annual real GDP growth rate of 5.0%

In 2017, the 13th largest economy in the world and the fifth largest economy compared to the EU region (GDP, IMF WEO according to Purchasing Power Parity)

The institutionalized economy attracting $ 193 billion of foreign direct investment (CBRT)

A dynamic and mature private sector with an export volume increased by 335% between 2002 and 2017 to 157 billion US dollars. (TURKSTAT)

POPULATION

Population of 80 million

Young, dynamic, educated, and sophisticated population, half under the age of 31.7

QUALIFIED AND COMPETITIVE WORKFORCE

More than 31,6 million young, educated and motivated professionals (2017, TURKSTAT)
Increased labor efficiency

More than 985,000 high school graduates (2017, MoNE), half of whom are from vocational high schools and technical high schools.

Over 800,000 graduates per year from more than 183 universities (2017, CoHE).

A LIBERAL AND INNOVATIVE INVESTMENT ENVIRONMENT

Business-friendly environment, promising company incorporation in an average of 6,5 days. (World Bank Business Report 2018)

Competitive investment conditions, with a strong culture of industry and service

Approximately 58.400 foreign capital companies in Turkey in 2017 (Ministry of Commerce)
No barriers to transferring funds in and out of Turkey

INFRASTRUCTURE

A new and advanced technical infrastructure in transportation, telecommunications and energy sectors

Highly advanced, low-cost sea transportation and rail transportation to the Middle East and Eastern Europe

CENTRAL LOCATION

An effective and cost-efficient point of exit towards the significant markets of the world as a natural bridge between East-West and North-South

Easy access to 1.7 billion customers in Europe, Eurasia, Caucasia, the Middle East and North Africa

Access to many markets with a total GDP of $25 trillion USD

An important energy corridor and a terminal to Europe

LOW TARIFFS, LUCRATIVE INCENTIVES

Corporate tax reduced to 20% from 33%

Tax advantages for technology development zones, industrial zones and free zones such as partial or full exemption from corporate tax or providing aid to employers for their social security contribution as well as land allocation

CUSTOMS UNION AGREEMENT WITH EU SINCE 1996

Customs Union Agreement with the EU and Free Trade Agreements with 20 countries

LARGE INTERNAL MARKET

Between 2002-2017:

The number of cell phone subscribers increased from 23 million to 78.9 million

The number of airline passengers increased from 33 million to 193 million

The number of foreign tourists increased from 13 million to 32 million

(from TÜİK, the Turkish Statistical Institute)

  
 

KEY REASONS TO INVEST IN IZMIR

Izmir is Turkey’s third largest city and the center of the Aegean Region. It boasts rich natural resources, high capital accumulation, a qualified work force, a developed corporate structure, scientific and technological infrastructure and a robust transportation network. Located on the Aegean Sea, the city’s population is 4 million. One of the oldest coastal towns in the world, Izmir is known as an important meeting point for people of different cultures, languages and religions.

The quality of industrial products produced in Izmir meet international standards. For ages, this historical city has been a vibrant center of trade, culture and arts and has been called the “Pearl of the Aegean.”

Izmir is a home to free zones, industrial parks, technology development zones as well as the second most important port in Turkey, making Izmir a major investment attraction in the Aegean Region. 

Izmir exceeds the overall average education level of Turkey, standing out with its qualified work force.  It boasts nine universities, as well as vocational high schools and higher education institutions, and a high percentage of people who speak a foreign language.   Izmir has many organizations that provide foreign language training in English, German, French and Italian, as well as Russian, Japanese and Chinese.

Izmir has business experience with renowned multinational companies such as Hugo Boss, TESCO, Akzo Nobel, Delphi, Tetra Pak, Japan Tobacco International, Philip Morris, British American Tobacco, Krone, Rultrans, Mahle, Cummins, Kale Pratt & Whitney, Gates, PFW, Eldor, Lansinoh and Aero.