INVESTING IN TÜRKİYE: RISK OR STRATEGIC OPPORTUNITY?

Recently, one statement is frequently heard:

“In the current economic and political climate, investing in Türkiye is too risky.”

But is that truly the case?

Türkiye’s Structural Advantages

Türkiye has a dynamic population exceeding 85 million, creating a strong domestic market. It is strategically positioned between the European Union, the Middle East, the Caucasus, and Africa.

Additionally:

• Strong industrial and manufacturing infrastructure

• Customs Union advantages with the EU

• Competitive labor costs

• Significant regional export potential

• Developed supply chain ecosystem

These factors position Türkiye as a regional production and distribution hub.

A Realistic Risk Perspective

Certainly, Türkiye is not a risk-free market.

• Currency volatility

• Regulatory changes

• Sector-specific compliance intensity

• Trust concerns in local partnerships

However, investment is not an emotional decision — it is a mathematical one. Where risk exists, it can be structured, priced, and managed. Properly priced risk can translate into opportunity.

Two Types of Capital

Capital generally follows two paths:

🔹 Security-seeking capital prefers low-risk, low-return markets.

🔹 Opportunity-seeking capital enters transforming economies where pricing dynamics are still evolving.

Türkiye continues to present significant potential for the second category.

Foreign investors currently active in Türkiye often observe:

• A strong domestic demand base

• Competitive production costs

• Open regional export channels

• Operational advantages when entering with the right local partner

  
  

How to Manage Risk

The key to successful investment is not “which country,” but “which model.”

Critical legal and strategic considerations include:

• Proper corporate structuring

• Balanced shareholder agreements

• Arbitration and dispute resolution planning

• Clearly designed exit strategies

• Tax and incentive planning

• Comprehensive legal due diligence on local partners

Right legal framework + right local partner + right sector analysis= Manageable risk.

Conclusion

Türkiye is not an easy market.But easy markets rarely generate substantial returns.

The real question is not:“Should one invest in Türkiye?”

The real question is:“With which structure, which partner, and which risk management strategy should one enter Türkiye?”

For those who answer this correctly, Türkiye remains a powerful strategic opportunity.

Lawyer

İlhan Subaşı, LL.M.