Doing Business in Türkiye in its tenth edition

Norton Rose Fulbright and Pekin Bayar Mizrahi are pleased to present the tenth edition of Doing Business in Türkiye.

The 2025 update provides an in-depth look into Türkiye’s evolving business and legal landscapes, incorporating the latest regulatory, economic and industry sector developments.

Türkiye continues to be a pivotal economic hub, ranked as the 18th largest economy in the world. Its vibrant and diversified economy is characterized by advanced manufacturing, robust agriculture and a vibrant services sector. The country’s strategic location and skilled workforce continue to draw foreign direct investment, making it an attractive destination for global businesses.

Key updates and trends

Economic outlook and developments

Economic stabilization

As part of Türkiye’s Medium-Term Program (2024-2026), the government has prioritized inflation control, monetary policy tightening and foreign exchange stabilization. Fiscal discipline remains a core priority, with an increased emphasis on attracting foreign capital.

Trade agreements

Strengthened ties with the European Union (EU), Gulf Cooperation Council (GCC) countries and Central Asian markets have expanded export opportunities, particularly in technology, renewable energy equipment and consumer goods.

Industry sector growth

Growth is driven by investments in technology, renewable energy, healthcare and logistics.

Energy transition and sustainability

Renewable energy expansion

With almost 60 percent of new energy capacity coming from renewables, Türkiye is working to integrate green hydrogen and battery storage technologies into its energy mix. Government incentives have fueled growth in wind, solar and geothermal projects.

Energy efficiency

Smart grid initiatives and energy-efficient technologies are being prioritized as Türkiye aims to reduce energy consumption and achieve its carbon-neutrality goals.

Carbon pricing mechanisms

Building on the EU’s Carbon Border Adjustment Mechanism, Türkiye is preparing to adopt its own carbon pricing mechanism and relevant legislation which was recently submitted for public review.

Sustainable finance

Turkish banks are leading in issuing green bonds and sustainability-linked loans. Environmental, social and governance (ESG) considerations are increasingly influencing investment strategies and credit decisions.

Finance and FinTech innovation

Digital transformation in banking

The adoption of blockchain technology, artificial intelligence (AI)-driven financial tools and digital wallets have become mainstream, with Türkiye emerging as a FinTech innovation hub.

Crypto regulation

New regulations provide clarity for blockchain applications and cryptocurrency operations, fostering a safer investment environment.

Alternative financial methods

Following the regulator’s approval of real estate-backed bond issuance, legislative efforts are now underway to advance real estate tokenization and broader tokenization initiatives, ensuring compliance with the Markets in Crypto-Assets (MiCA) regulation. At the same time, Buy Now, Pay Later (BNPL) transactions have experienced a marked increase.

Alternative payment structures

Wallet-as-a-Service (WAAS) and Banking-as-a-Service (BAAS) services were regulated and increased in number.

Mining industry developments

Resource development

Favorable commodity prices and regulatory reforms have driven exploration activities in gold, copper, and lithium, which are key for energy storage technologies.

Sustainability focus

Enhanced environmental compliance measures now govern mining projects, ensuring adherence to global standards.

Healthcare evolution

Health tourism

Türkiye is now a global leader in medical tourism, attracting patients for advanced procedures in oncology, cardiology, and cosmetic surgery. Updated legislation addresses compliance with international healthcare standards.

Digital health

Investments in digital technology and telemedicine platforms have transformed healthcare delivery, providing cost-effective and accessible services.

M&A

Following a slowdown in 2023, mergers and acquisitions (M&A) activity in Türkiye rebounded, with a 5 percent increase in transaction volume, reaching 422 deals in 2024. Total transaction value also grew by approximately 6 percent, reaching US$8.5 billion

Among the foreign investor groups, European investors remained the most active group in 2024, accounting for the highest number of foreign transactions. Asia-Pacific investors also stood out while the financial investors significantly increased their footprint, completing 246 transactions worth US$2.1 billion, marking a 65 percent increase in transaction value.

Private equity fund activity also gained momentum, with deal volumes and transaction values increasing. Key sectors of focus for these funds included manufacturing, technology, internet, and mobile services.

Trends suggest that the startup companies’ demand for growth capital continues, while venture capital investments in technology, AI, internet and mobile services remain aligned with global trends emphasizing sustainability and digital transformation.

Regulatory highlights

Türkiye’s regulatory landscape has seen significant advancements in various domains to enhance governance, transparency, and investor confidence. The corporate legal frameworks offer enhanced protections for minority shareholders and streamlined governance practices, alongside strengthened anti-corruption laws and stricter reporting requirements for foreign investments. Labor regulations have been updated to better support remote work, incorporating provisions for work-from-home arrangements, and aligning workplace safety and health standards with EU regulations.

Meanwhile, data protection and cybersecurity measures have been bolstered, with expanded penalties for breaches under Türkiye’s Personal Data Protection Law and mandates for critical infrastructure companies to implement advanced threat detection systems. A cybersecurity board was established, and the draft cyber security law was approved by parliament. Under the draft law, all cybersecurity companies will be subject to board approval and audit.

In the competition and environmental spheres, new requirements demand Turkish Competition Board approval for technology sector acquisitions, stricter scrutiny of digital market transactions and revised thresholds for merger notifications. Listed companies are also now required to disclose their ESG performance. Green finance has gained momentum through tax incentives fostering investments in renewable energy and ESG-compliant businesses, showcasing Türkiye’s commitment to sustainable growth and its alignment with international regulatory practices.

Future trends to watch

Technology and innovation

• AI and quantum computing are poised to transform Türkiye’s tech ecosystem, supported by significant government investments in research and development.
• The adoption of Internet of Things (IoT) technologies is expanding rapidly, particularly in agriculture and smart city projects.
• The emergence of super apps, which consolidate all financial instruments onto a single platform, alongside simultaneous access to crypto exchanges and secondary markets, has the potential to boost lending capacity in the marketplace.
• Tokenization infrastructure and the securitization of next-generation assets through stock market listings are gaining significant traction.

Infrastructure investments

• Post-2024 municipal elections, a surge in infrastructure projects, including transportation and urban development, is expected.
• Investments in digital infrastructure, such as 5G and high-speed internet, continue to grow.

Environmental resilience

• The implementation of the Draft Climate Law and draft Regulation on Türkiye Green Taxonomy marks a significant step in combating climate change, with stricter controls on industrial emissions.

For more information, read the full legal guide, Doing Business in Türkiye.