Foreign Direct Investment Law in Turkey, part 2

FDI has been greatly facilitated in Turkey since the government created ISPAT in 2006 to streamline the international investment process in the country.
Last month, I wrote an article about Foreign Direct Investment, or FDI, Law in Turkey. In that article, I handled the issue in terms of legislation. Today, I would like to talk about FDI in institutional terms, especially in terms of these questions:
· Which institutions are interested in FDI in Turkey?
· What are the services offered in this context?
· Which institutions do people wishing to invest in Turkey have to deal with?
[HH] Your one-stop shop in Turkey
Until 2006, the procedures for making foreign investments were in institutional disarray. Foreign investors had to go through many procedures at different institutions.
Later that year, however, the Investment Support and Promotion Agency, or ISPAT, was established in direct connection to the prime minister, meaning that ISPAT became the only interlocutor for foreign investors.
Today, ISPAT is the official organization for promoting Turkey’s investment opportunities to the global business community and rendering assistance to investors before, during and after their entry into Turkey.
Active on a global scale, ISPAT operates with a network of 15 representatives in a total of 21 countries throughout the world, including Belgium, Canada, China, France, Germany, India, Israel, Italy, Japan, Kazakhstan, Luxembourg, Saudi Arabia, Spain, the Gulf states (Bahrain, Kuwait, Oman, Qatar, United Arab Emirates), the Russian Federation, the United Kingdom and the United States.
The agency offers an extensive range of services to investors through a one-stop shop approach and assists them in obtaining optimum results from Turkey. ISPAT’s team of professionals can assist investors in Arabic, Chinese, English, French, German, Italian, Japanese, Korean, Russian or Spanish, as well as Turkish.
Some of ISPAT’s free services for global investors include market information and analyses that themselves are constituted by the following topics: Industry overviews and comprehensive sector reports, assessing conditions for investments, site selection, finding companies for potential partnerships and joint ventures, negotiations with relevant governmental institutions and facilitating legal procedures and legislation issues.
The issues include the following:
- Establishing business operations
- Incentive applications
- Getting licenses
- Work/residence permits
The most striking point about ISPAT is that it offers these services with “private-sector understanding” instead of the standard, bureaucratic “state logic.”
[HH] Civil organization for FDI: YASED
While government services are offered to foreign investors by ISPAT, the International Investors Association, or YASED, is a civilian organization for foreign investment in Turkey.
YASED says its mission is “to proactively promote a business environment which matches the best global practices and to encourage the free trade of goods and services, free competition, investment and the movement of capital.” To fulfill its mission, YASED carries out these activities:
· Maintaining continuous dialogue between the international investment community and the Turkish government;
· Following the implementation of laws, rules and regulations between the international investment community and the Turkish government;
· Tracking foreign investment-related international legislation and practice with a view to providing case studies that the Turkish Government may use to improve its own legislation and practices;
· Providing a database that enables the international investment community to gain an understanding of Turkish national policy and the Turkish regulatory environment; and
· Organizing conferences, seminars and lectures to educate the public about the benefits of international investment.
With their successful and harmonious functioning, ISPAT and YASED make a major contribution at improving Turkey’s investment environment. I wish them continued successes.
Hurriyet Daily News/06.03.2010
Last month, I wrote an article about Foreign Direct Investment, or FDI, Law in Turkey. In that article, I handled the issue in terms of legislation. Today, I would like to talk about FDI in institutional terms, especially in terms of these questions:
· Which institutions are interested in FDI in Turkey?
· What are the services offered in this context?
· Which institutions do people wishing to invest in Turkey have to deal with?
[HH] Your one-stop shop in Turkey
Until 2006, the procedures for making foreign investments were in institutional disarray. Foreign investors had to go through many procedures at different institutions.
Later that year, however, the Investment Support and Promotion Agency, or ISPAT, was established in direct connection to the prime minister, meaning that ISPAT became the only interlocutor for foreign investors.
Today, ISPAT is the official organization for promoting Turkey’s investment opportunities to the global business community and rendering assistance to investors before, during and after their entry into Turkey.
Active on a global scale, ISPAT operates with a network of 15 representatives in a total of 21 countries throughout the world, including Belgium, Canada, China, France, Germany, India, Israel, Italy, Japan, Kazakhstan, Luxembourg, Saudi Arabia, Spain, the Gulf states (Bahrain, Kuwait, Oman, Qatar, United Arab Emirates), the Russian Federation, the United Kingdom and the United States.
The agency offers an extensive range of services to investors through a one-stop shop approach and assists them in obtaining optimum results from Turkey. ISPAT’s team of professionals can assist investors in Arabic, Chinese, English, French, German, Italian, Japanese, Korean, Russian or Spanish, as well as Turkish.
Some of ISPAT’s free services for global investors include market information and analyses that themselves are constituted by the following topics: Industry overviews and comprehensive sector reports, assessing conditions for investments, site selection, finding companies for potential partnerships and joint ventures, negotiations with relevant governmental institutions and facilitating legal procedures and legislation issues.
The issues include the following:
- Establishing business operations
- Incentive applications
- Getting licenses
- Work/residence permits
The most striking point about ISPAT is that it offers these services with “private-sector understanding” instead of the standard, bureaucratic “state logic.”
[HH] Civil organization for FDI: YASED
While government services are offered to foreign investors by ISPAT, the International Investors Association, or YASED, is a civilian organization for foreign investment in Turkey.
YASED says its mission is “to proactively promote a business environment which matches the best global practices and to encourage the free trade of goods and services, free competition, investment and the movement of capital.” To fulfill its mission, YASED carries out these activities:
· Maintaining continuous dialogue between the international investment community and the Turkish government;
· Following the implementation of laws, rules and regulations between the international investment community and the Turkish government;
· Tracking foreign investment-related international legislation and practice with a view to providing case studies that the Turkish Government may use to improve its own legislation and practices;
· Providing a database that enables the international investment community to gain an understanding of Turkish national policy and the Turkish regulatory environment; and
· Organizing conferences, seminars and lectures to educate the public about the benefits of international investment.
With their successful and harmonious functioning, ISPAT and YASED make a major contribution at improving Turkey’s investment environment. I wish them continued successes.
Hurriyet Daily News/06.03.2010