2013 Gaziantep Chamber of Commerce
2013 Gaziantep Chamber of Commerce
2013 Gaziantep Chamber of Commerce
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INVEST IN<br />
GAZANTEP<br />
<strong>Gaziantep</strong> <strong>Chamber</strong> <strong>of</strong> <strong>Commerce</strong><br />
<strong>2013</strong>
1<br />
Dear Readers,<br />
<strong>Gaziantep</strong> located on the gateway <strong>of</strong> Europe and Middle East, has been the main trade and production center on the<br />
historical Silk Road for centuries. Having a variety in the production from textile to agro-food, machinery, plasticschemicals<br />
etc., <strong>Gaziantep</strong> <strong>of</strong>fers numerous opportunities for foreign investors which are willing to invest in <strong>Gaziantep</strong><br />
in terms <strong>of</strong> infrastructure, location, geographical proximity to pr<strong>of</strong>itable markets, qualified and skilled workforce and<br />
many other factors will be explained in detailed in this booklet.<br />
<strong>Gaziantep</strong>’s export figure was 5.9 billion dollars in 2012. Our exports increased by 19% compared to the year 2011.<br />
<strong>Gaziantep</strong> is currently doing trade with 172 countries in the world and 6th ranked city in Turkey with the highest export<br />
volume. All these developments were accomplished with the entrepreneurial spirit <strong>of</strong> the local people and that is what<br />
makes <strong>Gaziantep</strong> a unique industry and trade center in Turkey.<br />
As we all know, foreign direct investment plays a very important role in an economy. It definitely creates employment<br />
opportunities, tax revenues and export opportunities for the city itself. For this reason, as <strong>Gaziantep</strong> <strong>Chamber</strong> <strong>of</strong><br />
<strong>Commerce</strong> we believe that we have to promote <strong>Gaziantep</strong> and its advantages <strong>of</strong>fered to foreign investors. Recently;<br />
Turkish Government has announced the new Investment Incentive System specifically aims to support investments<br />
which will reduce Turkish industry’s dependency on the importation <strong>of</strong> machinery and raw materials which are used<br />
in major industrial sectors <strong>of</strong> <strong>Gaziantep</strong>. Equally, developing products with more added-value and high export prices<br />
are the ultimate goal <strong>of</strong> the new Investment Incentive System. We truly believe that such incentives will help us to<br />
reduce the gap between Turkish export and import figures and eventually will result as a dramatic decrease in the<br />
current account deficit status <strong>of</strong> Turkey .At this point; as <strong>Gaziantep</strong> <strong>Chamber</strong> <strong>of</strong> <strong>Commerce</strong>, our job is to inform foreign<br />
investors who are willing to invest in <strong>Gaziantep</strong> about the new Investment Incentive System and the opportunities that<br />
are available for them within the incentives in <strong>Gaziantep</strong>.<br />
For abovementioned reasons, we have prepared the Invest in <strong>Gaziantep</strong> booklet. You will find all the necessary<br />
information about <strong>Gaziantep</strong> and its industry and trade which will be useful for an investor who is planning to invest<br />
in <strong>Gaziantep</strong>. The booklet contains very valuable information which was collected in cooperation with other institutions<br />
and organizations in <strong>Gaziantep</strong> and in Turkey.<br />
I am confident that <strong>Gaziantep</strong>’s economy will continue its growth while maintaining its leadership, dynamism in the<br />
region and in the near future we believe that <strong>Gaziantep</strong> will be a main destination for the foreign investments. Finally,<br />
I would like to express that all the businessmen who are interested to invest in <strong>Gaziantep</strong> that as <strong>Gaziantep</strong> <strong>Chamber</strong><br />
<strong>of</strong> <strong>Commerce</strong>, they may see us as their contact, guiding and information point for any matter.<br />
Best Regards,<br />
Mehmet ASLAN<br />
President <strong>of</strong> <strong>Gaziantep</strong> <strong>Chamber</strong> <strong>of</strong> <strong>Commerce</strong>
2<br />
LOCATION<br />
“Only 2 hour<br />
distribution range<br />
by plane to all major<br />
cities in North Africa<br />
and Middle East and<br />
reaching more than<br />
”<br />
500 million people<br />
ACCESS TO MARKETS<br />
Major Turkish Cities<br />
Major Middle Eastern cities<br />
City Kilometers Miles City Kilometers Miles<br />
stanbul* 1126 704 Aleppo 97 60<br />
Ankara 673 421 Damascus 408 253<br />
zmir* 1106 691 Baghdad 759 472<br />
Adana 206 129 Tehran 1272 790<br />
Mersin* 275 172 Riyadh 1644 1022<br />
Konya 562 351 Jiddah* 1737 1079<br />
Kayseri 353 221 Musul 518 322<br />
Diyarbakr 313 196 Arbil 599 372<br />
Antalya* 764 478 Amman 583 363<br />
Samsun* 726 454 Beirut* 393 244<br />
Trabzon* 841 526 Dubai* 2144 1332<br />
Bursa* 1043 652 Jerusalem 611 379<br />
*Cities with ports (1 km=0.625 miles)<br />
www.investingaziantep.org
3<br />
Having one <strong>of</strong> the<br />
16 international<br />
airports in Turkey<br />
with open-sky<br />
agreement<br />
The unique<br />
geographic location,<br />
The Gateway<br />
between Middle East<br />
and European Union<br />
Strong ties and<br />
easy access with<br />
Middle East,<br />
Causasus and<br />
Central Asia<br />
Highway<br />
connections from<br />
Şanlıurfa-<strong>Gaziantep</strong><br />
to İstanbul<br />
completed.<br />
Geographical<br />
proximity to major<br />
ports <strong>of</strong> Turkey<br />
such as İskenderun<br />
and Mersin<br />
www.investingaziantep.org
4<br />
INDUSTRY INFRASTRUCTURE<br />
Key Industry Sectors<br />
Textile<br />
Machine-made carpet<br />
Non-woven fabric<br />
Yarn<br />
Leather shoes<br />
Knitted Fabric<br />
Woven Fabric<br />
Textile<br />
Agro-Food<br />
Machinery-metal<br />
Chemicals-plastics<br />
Construction materials<br />
Agro-Food<br />
“Mature and<br />
dynamic private<br />
sector”<br />
Pistachio<br />
Lentil<br />
Semolina<br />
Bulgur<br />
Chocolate and Chocalate Products<br />
Wafer and Biscuit<br />
Wheat Flour<br />
Vegetable oil<br />
Pasta<br />
Promising sectors<br />
Renewable energy-solar&wind<br />
Tourism<br />
Health<br />
Technical Textile<br />
www.investingaziantep.org
5<br />
“A fast developing industry”<br />
“Leading role in the region”<br />
Machinery-metal<br />
Manufacture <strong>of</strong> Grinding Machines<br />
Escalator<br />
Carpet industry machines<br />
Fancy yarn twisting machines<br />
Money safes<br />
Pressure vessels<br />
Plastic shoe injection machines<br />
BCF yarn machines<br />
Chemicals-plastics<br />
Plastifiers<br />
Glues<br />
Soap, detergent, shampoo<br />
Textile Dye<br />
PP Bags and Sacks<br />
PU and PVC shoes and slippers<br />
Dyeing, Bleaching and<br />
Finishing for All Types <strong>of</strong> Yarns<br />
and Fabrics<br />
Construction materials<br />
Cement<br />
PVC door and window pr<strong>of</strong>iles<br />
“Huge production dominance and field <strong>of</strong> excellence in textile, plastics and agro-food”<br />
www.investingaziantep.org
6<br />
INDUSTRY INFRASTRUCTURE<br />
Sectoral Distribution in GAOIZ<br />
350<br />
300<br />
250<br />
200<br />
150<br />
100<br />
50<br />
0<br />
Textile Agr<strong>of</strong>ood Plastics Chemicals Others<br />
More than 160.000 people are employed in the GAOIZ. The zone covers as area <strong>of</strong> 34.700.000 m 2 .<br />
Textile 317<br />
Agro-Food 170<br />
Plastics 56<br />
Chemicals 64<br />
Others 147<br />
Total number <strong>of</strong> companies in GAOIZ 754<br />
Source: <strong>Gaziantep</strong> Organized Industry Zone<br />
www.investingaziantep.org
7<br />
Number <strong>of</strong> companies from <strong>Gaziantep</strong> in ‹CI (Istanbul <strong>Chamber</strong> <strong>of</strong> Industry)<br />
TOP 1000 Companies List<br />
YEAR First TOP 500 Second TOP 500 TOTAL<br />
2007 11 18 29<br />
2008 10 21 31<br />
2009 16 16 32<br />
2010 16 20 36<br />
2011 19 24 43<br />
Number <strong>of</strong> companies from <strong>Gaziantep</strong> in ISO TOP<br />
“ 1000 increased by %48 between 2007 and 2011<br />
<strong>Gaziantep</strong>’s position in TM (Turkish Exporters’ Union) TOP 1000 Exporters List<br />
CITY 2007 2008 2009 2010 2011<br />
1) stanbul 535 503 492 483 475<br />
2) zmir 63 65 67 66 66<br />
3) <strong>Gaziantep</strong> 33 48 49 53 63<br />
4) Kocaeli 41 47 41 44 62<br />
5) Bursa 57 55 52 55 48<br />
6) Ankara 42 48 52 47 45<br />
7) Denizli 29 28 22 27 23<br />
8) Hatay 17 16 23 19 17<br />
9) Adana 15 15 15 17 17<br />
10) Manisa 16 18 20 20 14<br />
“<br />
Number <strong>of</strong> companies from <strong>Gaziantep</strong> in TM 1000<br />
increased by % 91 between 2007 and 2011<br />
www.investingaziantep.org<br />
“<br />
“
8<br />
INDUSTRY INFRASTRUCTURE<br />
GAZANTEP ORGANIZED INDUSTRY ZONE<br />
Companies take the advantage <strong>of</strong> producing in an investor-friendly environment where the finished<br />
and ready-to-use infrastructure is provided for them in <strong>Gaziantep</strong> Organized Industry Zone.<br />
The infrastructures available for investors are: natural gas, roads, water, electricity, communication,<br />
waste water treatment system, fire department, gendarmerie and other services.<br />
“Number 1 ranked in energy consumption among OIZ’s in Turkey”<br />
Cost advantages<br />
for natural gas,<br />
water,<br />
communication<br />
and electricity<br />
Relatively low<br />
land prices<br />
Real estate duty<br />
exemption for 5<br />
years starting from<br />
the construction <strong>of</strong><br />
the investment<br />
GAZANTEP<br />
ORGANIZED<br />
INDUSTRY ZONE<br />
Municipality tax<br />
exemption for<br />
the municipality<br />
tax on solid<br />
waste<br />
No VAT for<br />
land purchases<br />
No tax for<br />
unification or<br />
separation <strong>of</strong> the<br />
parcels<br />
Municipality tax<br />
exemption for<br />
the construction<br />
and usage <strong>of</strong> the<br />
factory<br />
“Unique Industrial Design and Modelling Center Project to be implemented by GCC.”<br />
www.investingaziantep.org
9<br />
<strong>Gaziantep</strong>’s share in Turkey’s total production in a specific product-%<br />
Machine-made carpet 82<br />
Pistachio 75<br />
Plastics bags and sacks 60<br />
Acrylic-Synthetic-Polyester and PP yarns 60<br />
Tricot 60<br />
Non-Woven Fabric 59<br />
Pasta 40<br />
Bulgur 40<br />
Wafers-Confectionary-Crackers-Chocolate 30<br />
Red Pepper Flakes 27<br />
Lentil 23<br />
Blankets-Home Textile-Ready Wear 10<br />
Vegetable Oil 10<br />
Baby Diaper 10<br />
PVC Window Frames-Construction Materials 10<br />
Wheat Flour 9<br />
www.investingaziantep.org
10<br />
INDUSTRY INFRASTRUCTURE<br />
<strong>Gaziantep</strong><br />
Technopark<br />
within the<br />
structure<br />
<strong>of</strong><br />
<strong>Gaziantep</strong><br />
University<br />
The<br />
Construction<br />
<strong>of</strong> 5th<br />
Organized<br />
Industry<br />
Zone is<br />
underway<br />
Cost <strong>of</strong> Investment in<br />
<strong>Gaziantep</strong> Organized Industry Zone<br />
Land Cost<br />
Electricity Price(excluding VAT-%18)<br />
Freshwater(excluding VAT-%8)<br />
Natural Gas(excluding VAT%18)<br />
Minumum wage rate(Worker)<br />
Average wage rate(Engineer)<br />
100 USD/m2(with completed infrastructure)<br />
Standard: 0.102USD/Kwh<br />
1.05 USD/Ton<br />
0.41 USD/m3<br />
590 USD/Month<br />
850 USD /Month<br />
Source:<strong>Gaziantep</strong> Organized Industry Zone-Prices are as <strong>of</strong> December 2012<br />
www.investingaziantep.org
11<br />
GAZANTEP FREE ZONE<br />
<strong>Gaziantep</strong> Free Zone is a special area where the zone is established outside the customs area.<br />
<strong>Gaziantep</strong> Free Zone is operating close to the EU and Middle Eastern markets adjacent to major<br />
Turkish ports on the Mediterranean, with easy access to international trade routes. Due to the<br />
important geographical location <strong>of</strong> the zone, it is acting as a central hub.<br />
100%<br />
exemption from<br />
income taxes<br />
on employees’<br />
salaries<br />
GAZANTEP<br />
FREE ZONE<br />
Transfer <strong>of</strong><br />
revenues and<br />
income from<br />
<strong>Gaziantep</strong> Free<br />
Zone to both Turkey<br />
and other countries<br />
are allowed<br />
No customs fee and<br />
funds for imported<br />
machinery and<br />
goods, which<br />
are brought to<br />
<strong>Gaziantep</strong> Free<br />
Zone<br />
Goods can stay<br />
in <strong>Gaziantep</strong><br />
Free Zone for an<br />
unlimited period<br />
100% exemption<br />
from Value Added<br />
Tax and Special<br />
Consumption Tax<br />
Companies involved<br />
in production in<br />
<strong>Gaziantep</strong> Free<br />
Zone enjoys 100%<br />
exemption on<br />
corporate income<br />
tax<br />
100% Exemption<br />
from all kinds <strong>of</strong><br />
custom duties<br />
www.investingaziantep.org
12<br />
INVESTMENT INCENTIVE SYSTEM IN GAZANTEP<br />
The new investment incentive system came into effect on 19th <strong>of</strong> June 2012. According to the new system; Turkey<br />
is divided into 6 different regions. <strong>Gaziantep</strong> is located on the 3rd region but the investment which will be made<br />
in <strong>Gaziantep</strong> Organized Industry Zone will be evaluated as they are made in the 4th Region and will be supported<br />
by the incentives <strong>of</strong>fered to the 4th region cities in Turkey in terms <strong>of</strong> tax reduction and Social Security Premium<br />
Support for Employers.<br />
The new investment incentive system consists <strong>of</strong> 4 main mechanisms.<br />
1. General Incentives<br />
2. Regional Incentives<br />
3. Incentives for large-scale investments<br />
4. Incentives for strategic investments<br />
INCENTIVE MECHANISM<br />
GENERAL<br />
INCENTIVES<br />
REGIONAL<br />
INCENTIVES-3RD<br />
ZONE-GAZANTEP<br />
LARGE SCALE<br />
INVESTMENTS<br />
INCENTIVES<br />
FOR STRATEGIC<br />
INVESTMENTS<br />
VAT exemption YES YES YES YES<br />
Exemption from customs<br />
duties<br />
YES YES YES YES<br />
Tax reduction - YES YES YES<br />
Social Security Premium<br />
Support for Employers<br />
Income Tax Withholding<br />
Support*<br />
Social Security Premium<br />
Support for Employees*<br />
- YES YES YES<br />
YES YES YES YES<br />
- YES YES YES<br />
Interest support** - YES - YES<br />
Land allocation - YES YES YES<br />
VAT Refund*** - - - YES<br />
*It will provided if the investment is made within 6th Region.<br />
** It will be provided if the investment is made in 3rd. 4th. 5th and 6th regions within the Regional Investment Incentives.<br />
***It will be provided for the investments within the Strategic Investment Incentives which has a minimum fixed investment amount over 500 million TRY.<br />
www.investingaziantep.org
13<br />
1. General Investment Incentives:<br />
Except the investments which are excluded from the investment incentives program, all investments which have a<br />
minimum fixed investment amount <strong>of</strong> 500,000 TRY will be supported within the General Investment Incentives in<br />
<strong>Gaziantep</strong>. Custom Duties Exemption for imported machinery and appliances and VAT exemption for machinery<br />
and appliances bought in Turkey or imported machinery and appliances are available both for Turkish and<br />
foreign investors.<br />
2. Regional Investment Incentives:<br />
As <strong>Gaziantep</strong> is in the 3rd Region in the Investment Incentive System, such incentives listed below will be available<br />
for Turkish and foreign investors:<br />
• Custom Duty Exemption<br />
• VAT Exemption<br />
• Tax Reduction<br />
• Social Security Premium For Employers<br />
• Interest Support<br />
• Land allocation<br />
www.investingaziantep.org
14<br />
INVESTMENT INCENTIVE SYSTEM IN GAZANTEP<br />
REGIONAL INVESTMENT INCENTIVES IN GAZANTEP<br />
Incentive Mechanisms<br />
VAT Exemption<br />
GAZANTEP-3rd region<br />
YES<br />
Tax<br />
Reduction<br />
Social<br />
Security<br />
Premium For<br />
Employers<br />
Custom Duty Exemption<br />
Rate <strong>of</strong><br />
contribution<br />
to<br />
investment<br />
(%)<br />
Duration <strong>of</strong><br />
Support<br />
Outside GAOIZ<br />
Within GAOIZ<br />
25(before 31/12/<strong>2013</strong>)<br />
20 (after 31.12.<strong>2013</strong>)<br />
30 (before 31/12/<strong>2013</strong>)<br />
25 (after 31.12.<strong>2013</strong>)<br />
YES<br />
Tax Reduction<br />
60 (before 31.12.<strong>2013</strong>)<br />
50 (after 31.12.<strong>2013</strong>)<br />
Tax Reduction<br />
70(before 31.12.<strong>2013</strong>)<br />
60 (after 31.12.<strong>2013</strong>)<br />
Outside GAOIZ 5 years(before 31/12/<strong>2013</strong>)-3 years(from 01.01.2014)<br />
Within GAOIZ 6 years(before 31/12/<strong>2013</strong>)-5 years(from 01.01.2014)<br />
Interest<br />
Support<br />
Land allocation<br />
Domestic Loan<br />
Foreign Exchange/<br />
FX Denomination Loans<br />
YES<br />
3 Points<br />
1 Point<br />
www.investingaziantep.org
15<br />
The prior investment areas which will be supported in <strong>Gaziantep</strong> with the same<br />
incentives mechanisms <strong>of</strong>fered to 5 th region are:<br />
• Tourism investments made in Culture and Tourism Conservation and Development Regions which are<br />
determined by the Council <strong>of</strong> Ministers<br />
• Mining Investments<br />
• Investments made in good or passenger transportation by railways and maritime.<br />
• Specific investments made with a minimum <strong>of</strong> 20 million TRY in pharmaceutical defense industry<br />
• Testing centers, wind tunnels, and similar investments(automotive, space or defense industry)<br />
• International Trade fair investments with a closed area <strong>of</strong> minimum 50.000 m2<br />
• Primary, secondary and high school investments made by private sector<br />
• The investments made for manufacturing the products which are the output <strong>of</strong> R&D projects<br />
supported by the Ministry <strong>of</strong> Science, Industry and Technology.<br />
www.investingaziantep.org
16<br />
INVESTMENT INCENTIVE SYSTEM IN GAZANTEP<br />
SECTORS TO BENEFIT FROM THE REGIONAL INCENTIVE SYSTEM IN GAZANTEP<br />
AND MINIMUM INVESTMENT AMOUNTS<br />
Sector<br />
Code<br />
Code <strong>of</strong> US-97<br />
Sector<br />
Minimum<br />
Amount<br />
1 0121 Integrated Animal Husbandry including breeding animals 500.000 TRY<br />
2 0500.0.04 Fishery 500.000 TRY<br />
Investment<br />
3 15<br />
Food and Beverage Production (Please check for<br />
exclusions)<br />
1 million TRY<br />
4 17 Textile Production (Please check for exclusions)<br />
5 18 Ready-wear clothes production<br />
10 million TRY for finishing<br />
in textiles, 2 million TRY for<br />
other investments.<br />
Expansion and<br />
modernization investments<br />
over 1 million TRY<br />
8 1912 and 1920 Luggage, handbag, saddlery, footwear etc. production 1 million TRY<br />
9 20<br />
Wood and cork production(excluding furniture), products<br />
made by weaving straw and similar items<br />
2 million TRY<br />
10 21 Paper and paper products 10 million TRY<br />
11 24 Chemicals and chemical products manufacturing 2 million TRY<br />
18<br />
26(excluding<br />
261, 2693.2,<br />
2694.1,2695.3,2695.4<br />
Non-metallic mineral products(excluding glass and<br />
glass products, fired clay, briquette, bricks, and building<br />
materials, cement, ready mixed concrete and normal<br />
concrete)<br />
2 million TRY<br />
27 2720, 273<br />
Metal industry excluding iron and steel, metal casting<br />
industry<br />
2 million TRY<br />
28 28 Metal products 2 million TRY<br />
30 29 Machinery and equipment production 2 million TRY<br />
32 30<br />
Office, accounting and data processing equipment<br />
production<br />
2 million TRY<br />
www.investingaziantep.org
17<br />
33 31 Electrical machinery and appliances production 2 million TRY<br />
34 32 Radio, TV, communication equipment production 2 million TRY<br />
35 33 Medical equipment, precision and optical tools 500.000 TRY<br />
36 34 Automotive and automotive supply industry<br />
Minimum investment<br />
amount for automotive is<br />
50 million TRY, minimum<br />
investment amount for<br />
automobile supply industry<br />
is 2 million TL<br />
37 3530.0.15 Maintenance and repair <strong>of</strong> aircrafts and motors 2 million TRY<br />
38 3591 and 3592 Production <strong>of</strong> motorcycle and bicycle 2 million TRY<br />
40 361<br />
Furniture production(except for the ones made <strong>of</strong> only<br />
plastic)<br />
2 million TRY<br />
41<br />
5510.1.01,<br />
5510.2.01,5510.3.02,<br />
5510.5.02, 5510.5.04<br />
Hotels<br />
3 stars and more<br />
42 5510.3.01 Student dormitories 100 students<br />
43 6302.0.01 Cold storage warehouses 1.000 m2<br />
44 6302.0.03 Licensed warehouses 1 million TRY<br />
45 80(except 809)<br />
Educational services(including pre-school education<br />
services, excluding adult education and other educational<br />
services)<br />
500.000 TRY<br />
46<br />
8511.0.01-<br />
05,8511.0.99,<br />
8531.0.01-03<br />
Hospital investments, nursing home<br />
Hospital:500.000 TRY<br />
Nursing home:100 people<br />
47 Smart and multi-functional technic textile 500.000 TRY<br />
48 Waste recycling and disposal facilities 500.000 TRY<br />
50 Greenhouse 20 decares<br />
www.investingaziantep.org
18<br />
INVESTMENT INCENTIVE SYSTEM IN GAZANTEP<br />
LARGE SCALE INVESTMENT INCENTIVES IN GAZANTEP<br />
12 investment areas which are listed below will be supported within the largescale<br />
investment incentives in <strong>Gaziantep</strong>.<br />
Investment Areas<br />
Minimum fixed investment<br />
amount(Million TRY)<br />
1 Production <strong>of</strong> refined petroleum 1000<br />
2 Production <strong>of</strong> chemical products 200<br />
3 Harbor and harbor services investments 200<br />
4 Automotive production 200<br />
4-a Automotive main industry 200<br />
4 Automotive supply industry 50<br />
5 Production <strong>of</strong> locomotives and vagons for railways and trams<br />
6 Transportation services by transit pipes<br />
7 Investments on electronic industry<br />
8 Medical equipment, high-precision and optical tools production.<br />
9 Production <strong>of</strong> pharmaceuticals<br />
50<br />
10 Production <strong>of</strong> air and spacecrafts and/or its parts<br />
11<br />
12<br />
Production <strong>of</strong> machinery(including electrical machinery and<br />
equipment)<br />
Investments in the metal industry(including integrated mining<br />
investments)<br />
www.investingaziantep.org
19<br />
LARGE SCALE INVESTMENT INCENTIVES IN GAZANTEP<br />
VAT Exemption<br />
Incentive Mechanisms<br />
Custom Duty Exemption<br />
GAZANTEP-3rd region<br />
YES<br />
YES<br />
Tax<br />
Reduction<br />
Rate <strong>of</strong><br />
contribution<br />
to<br />
investment<br />
(%)<br />
Outside<br />
GAOIZ<br />
Within<br />
GAOIZ<br />
35(before 31.12.<strong>2013</strong>)<br />
30 (after 31.12.<strong>2013</strong>)<br />
40(before 31.12.<strong>2013</strong>)<br />
35(after 31.12.<strong>2013</strong>)<br />
Tax Reduction<br />
60(before 31.12.<strong>2013</strong>)<br />
50(after 31.12.<strong>2013</strong>)<br />
Tax Reduction<br />
70 (before 31.12.<strong>2013</strong>)<br />
60( after 31.12.<strong>2013</strong>)<br />
Social<br />
Security<br />
Premium<br />
For<br />
Employers<br />
Duration <strong>of</strong><br />
Support<br />
Outside<br />
GAOIZ<br />
Within<br />
GAOIZ<br />
5 years(before 31/12/<strong>2013</strong>)-3 years(from 01.01.2014)<br />
6 years(before 31/12/<strong>2013</strong>)-5 years(from 01.01.2014)<br />
Land allocation<br />
YES<br />
Within the regional and large-scale investment incentives; companies can benefit<br />
from the 4 th region incentives in terms <strong>of</strong> tax reduction and social security<br />
premium support on employer’s share in <strong>Gaziantep</strong> if they make their investment<br />
in <strong>Gaziantep</strong> Organized Industry Zone or joint integration investments in the area<br />
<strong>of</strong> sectorial cooperation made by companies which are active in the same area.<br />
www.investingaziantep.org
20<br />
INVESTMENT INCENTIVE SYSTEM IN GAZANTEP<br />
STRATEGIC INVESTMENTS INCENTIVES IN GAZANTEP<br />
Investments which are fulfilling all the requirements listed below will be supported with Strategic<br />
Investments Incentives in <strong>Gaziantep</strong>.<br />
• A minimum amount <strong>of</strong> 50 million TRY must be invested<br />
• Creating a minumum added-value <strong>of</strong> %40 in the industry invested(excluding petrochemicals and<br />
refinery invesments)<br />
• Investment must be made for the production <strong>of</strong> intermediate and finished goods<br />
which have very high import dependency<br />
• Investments must be made in the areas <strong>of</strong> production where we see<br />
an import value <strong>of</strong> at least USD 50 million during the past one<br />
year in that spefific product.(This condition is not valid if<br />
there is no production in Turkey.)<br />
www.investingaziantep.org
21<br />
STRATEGIC INVESTMENT INCENTIVES IN GAZANTEP<br />
Incentive Mechanisms<br />
VAT Exemption<br />
Custom Duty Exemption<br />
GAZANTEP-3rd region<br />
YES<br />
YES<br />
Tax Reduction Rate <strong>of</strong> contribution to investment (%) 50<br />
Social Security<br />
Premium For<br />
Employers<br />
Duration <strong>of</strong> Support<br />
Land allocation<br />
Interest Support<br />
VAT Refund<br />
7 years<br />
YES<br />
5 Points - Local Loans<br />
2 Points - Foreign Exchange<br />
YES (Investments for 500 million<br />
TRY or more)<br />
www.investingaziantep.org
22<br />
INVESTMENT INCENTIVE SYSTEM IN GAZANTEP<br />
R&D Law<br />
Special incentives for investment in R&D projects in <strong>Gaziantep</strong> for<br />
companies where the companies employs a minimum <strong>of</strong> 50 employees in an<br />
R&D department. These incentives which will be mentioned below are valid<br />
until 2024:<br />
Exemption for<br />
income withholding<br />
tax for the<br />
employees<br />
50% exemption for<br />
5 years in social<br />
security premium<br />
share <strong>of</strong> the<br />
employees<br />
Tax base deduction<br />
for the grants that<br />
are received by<br />
public institutions<br />
and international<br />
organizations<br />
R&D Law<br />
Exemption in<br />
stamp duties for<br />
documents to be<br />
prepared<br />
Technological<br />
entrepreneurship<br />
capital <strong>of</strong> 100.000<br />
TRY for new<br />
scientists<br />
In the cases where the numbers <strong>of</strong> researchers are more than 500, %100 <strong>of</strong> the R&D Expenditures will be<br />
deducted from the company’s tax base. In addition to this; %50 <strong>of</strong> the increase in the R&D expenditures in<br />
the operational year <strong>of</strong> the company when compared to the previous year will be deducted from the tax base<br />
as well.<br />
www.investingaziantep.org
23<br />
Technology Development Zones (Technoparks) supports<br />
The advantages <strong>of</strong> <strong>Gaziantep</strong> Technopark are:<br />
Offices and infrastructure are ready to use<br />
Companies are free from the corporate and income taxes for the revenues generated by s<strong>of</strong>tware development<br />
and R&D activities until 31.12.2023<br />
Wages <strong>of</strong> the R&D, s<strong>of</strong>tware development personnel and researchers <strong>of</strong> the <strong>Gaziantep</strong> Technopark companies<br />
are exempt from in come taxes until 31.12.2023<br />
The sale <strong>of</strong> the application s<strong>of</strong>tware which are produced in <strong>Gaziantep</strong> Technopark are exempt from VAT until<br />
31.12.2023<br />
50% <strong>of</strong> the employer’s share <strong>of</strong> the social security premium will be covered by the government for 5 years<br />
until 31.12.2024<br />
www.investingaziantep.org
24<br />
FOREIGN TRADE AND FOREIGN INVESTMENT<br />
Doing trade<br />
with 172<br />
countries<br />
6 th ranked<br />
in highest<br />
amount <strong>of</strong><br />
exports among<br />
Turkish cities<br />
Foreign Trade Statistics for <strong>Gaziantep</strong><br />
Overview <strong>of</strong> <strong>Gaziantep</strong>'s Foreign Trade<br />
12.000.000.000<br />
10.000.000.000<br />
8.000.000.000<br />
6.000.000.000<br />
4.000.000.000<br />
2.000.000.000<br />
0<br />
2008 2009 2010 2011 2012<br />
EXPORT IMPORT TOTAL VOLUME<br />
Source: Undersecretariat <strong>of</strong> the Prime Ministry for Foreign Trade<br />
www.investingaziantep.org
25<br />
YEAR EXPORT IMPORT TOTAL VOLUME<br />
2008 3.481.081.719 2.793.357.000 6.279.253.438<br />
2009 3.260.097.544 2.126.150.000 5.386.247.544<br />
2010 3.887.663.321 3.430.052.000 7.317.715.321<br />
2011 4.928.967.610 4.722.622.976 9.651.590.586<br />
2012 5.879.414.120 5.053.852.029 10.933.266.149<br />
*All units are in USD<br />
7 th ranked<br />
in highest<br />
amount <strong>of</strong><br />
imports among<br />
Turkish cities<br />
TOP 10 Export Destinations-(US Dollars):<br />
1. Iraq 2.374.466.000<br />
2. Saudi Arabia 302.499.000<br />
3. USA 211.960.000<br />
4. Libya 204.358.000<br />
5. Germany 164.131.000<br />
6. United Kingdom 146.522.000<br />
7. Egypt 143.652.000<br />
8. Russia 123.747.000<br />
9. Iran 105.174.000<br />
10. Italy 95.890.000<br />
Source:TIM(Assembly <strong>of</strong> Turkish Exporters)<br />
TOP 10 Import Partners-(US Dollars):<br />
1. Saudi Arabia 771.760.588<br />
2. Russia 496.040.791<br />
3. Germany 467.077.952<br />
4. China 322.581.075<br />
5. Ukraine 294.253.422<br />
6. USA 294.253.422<br />
7. India 200.974.635<br />
8. Belgium 192.022.218<br />
9. Iran 157.274.488<br />
10. Bangladesh 142.550.396<br />
www.investingaziantep.org
26<br />
FOREIGN TRADE AND FOREIGN INVESTMENT<br />
TOP 10 Exported Product<br />
Amount-USD<br />
Cereals, Pulses and Oily Seed Products 1.526.846.000<br />
Machine-made carpet 1.451.663.000<br />
Textile and raw materials 932.480.000<br />
Chemical products and substances 610.803.000<br />
Foresty Products 325.887.000<br />
Steel 291.217.000<br />
Vegetable and fruit products 123.591.000<br />
Ready-wear clothes 98.196.000<br />
Dried-Fruit products 88.894.000<br />
Machinery and appliances 80.790.000<br />
%78 <strong>of</strong><br />
Turkey’s total<br />
machine-made<br />
carpet export<br />
was made by<br />
<strong>Gaziantep</strong><br />
alone in 2012<br />
Number <strong>of</strong> Exporting companies 1142<br />
Number <strong>of</strong> countries as export destination 172<br />
<strong>Gaziantep</strong>’s share in Turkey’s total exports %3,7<br />
www.investingaziantep.org
27<br />
TOP 10 Exporting Cities in Turkey-2012<br />
Rank City Export in 2012(USD)<br />
1) Istanbul 60.999.029.980<br />
2) Kocaeli 13.080.860.990<br />
3) Bursa 11.916.550.920<br />
4) Izmir 8.484.258.370<br />
5) Ankara 6.550.266.810<br />
6) <strong>Gaziantep</strong> 5.879.414.120<br />
7) Manisa 4.314.899.980<br />
8) Denizli 2.739.106.770<br />
9) Hatay 2.083.841.900<br />
10) Adana 1.802.801.810<br />
Huge dominance in Iraq<br />
market-%22 <strong>of</strong> Turkey’s total<br />
export is done by <strong>Gaziantep</strong><br />
alone in 2012<br />
<strong>Gaziantep</strong>’s<br />
Export<br />
Increased By<br />
%69 Between<br />
2008 And 2012<br />
www.investingaziantep.org
28<br />
FOREIGN TRADE AND FOREIGN INVESTMENT<br />
Foreign Companies in <strong>Gaziantep</strong> by<br />
Country <strong>of</strong> Origin<br />
IRAQ<br />
SYRIA<br />
GERMANY<br />
2<br />
3 2 2<br />
4 3<br />
5<br />
2 2 22<br />
68<br />
IRAN<br />
BELGIUM<br />
AFGHANISTAN<br />
U.S.A<br />
LIBYA<br />
5<br />
20<br />
26<br />
AZERBAIJAN<br />
FRANCE<br />
SWEDEN<br />
ITALY<br />
KAZAKHSTAN<br />
Source: Republic <strong>of</strong> Turkey Prime Ministry-Undersecretariat <strong>of</strong> Treasury<br />
A total <strong>of</strong> 166 companies are operating<br />
in <strong>Gaziantep</strong> with foreign origin<br />
www.investingaziantep.org
29<br />
Sectoral Distribution <strong>of</strong> Foreign Companies in <strong>Gaziantep</strong><br />
Wholesale trade and commission<br />
trade,except <strong>of</strong> motor vehicles and<br />
motorcycles<br />
32<br />
Manufacture <strong>of</strong> textiles<br />
6<br />
5<br />
76<br />
Retail trade, except <strong>of</strong> motor vehicles and<br />
motorcycles,repair <strong>of</strong> personel and<br />
household good<br />
Construction<br />
8<br />
Land transport, transport via pipelines<br />
10<br />
12<br />
17<br />
Manufacture <strong>of</strong> food products and<br />
beverages<br />
Manufacture <strong>of</strong> chemicals chemical<br />
products<br />
Others<br />
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30<br />
DEMOGRAPHICS<br />
Population Of <strong>Gaziantep</strong> - 2012<br />
Population<br />
1.799.558(8 th ranked in Turkey)<br />
034 years %68.9<br />
35-59 years %24<br />
60 years and over %7.1<br />
Annually Population Growth Rate<br />
%0.025(7 th ranked in Turkey)<br />
Source: Turkish Statistical Institute (TurkStat)<br />
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31<br />
DEMOGRAPHIC STRUCTURE - 2012<br />
Age Range<br />
60+<br />
55-59<br />
50-54<br />
45-49<br />
40-44<br />
35-39<br />
30-34<br />
25-29<br />
20-24<br />
15-19<br />
10-14<br />
5-9<br />
0-4<br />
0% 2 % 4% 6% 8% 10% 12% 14%<br />
Source: Turkish Statistical Institute (TurkStat)-2012<br />
%69 <strong>of</strong> the population under the age <strong>of</strong> 35<br />
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32<br />
ACCOMODATION AND FAIRS<br />
Very well developed infrastructure in terms <strong>of</strong> banking, logistics,<br />
insurance, customs clearance, transportation and communication<br />
Hotels Certified by the Ministry <strong>of</strong> Tourism<br />
Number <strong>of</strong> hotels<br />
Number <strong>of</strong> beds<br />
5-star hotels 4 1219<br />
4-star hotels 9 1523<br />
3-star hotels 11 1124<br />
2-star hotels 11 748<br />
Others 4 233<br />
Total 39 4847<br />
Hotels Certified by the Municipality<br />
Number <strong>of</strong> hotels<br />
Number <strong>of</strong> beds<br />
1 st Class 10 600<br />
2 nd Class 2 76<br />
Others 5 178<br />
Total 17 854<br />
144<br />
Bank<br />
Branches<br />
150<br />
International<br />
Transportation<br />
Companies<br />
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FAIR CALENDAR<br />
JANUARY<br />
GAPSHOES SUMMER FOOTWEAR AND FOOTWEAR<br />
INDUSTRY SUPPLIERS FAIR<br />
FEBRUARY<br />
PENTEX TEXTILE AND TECHNOLOGY FAIR<br />
GAP AGRICULTURE, TECHNOLOGIES AND ANIMAL<br />
HUSBANDRY FAIR<br />
MARCH<br />
INTERNATIONAL FLOOR FAIR<br />
APRIL<br />
MIDDLE EAST GOLD&JEWELLERY FAIR<br />
JUNE<br />
TRIKONFEX-READY-WEAR AND TECHNOLOGIES FAIR<br />
JULY<br />
GAPSHOES WINTER FOOTWEAR AND FOOTWEAR<br />
INDUSTRY SUPPLIERS FAIR<br />
SEPTEMBER<br />
MIDDLE EAST CARPET FAIR<br />
NOVEMBER<br />
GAP CONSTRUCTION MATERIALS, TECHNOLOGY, REAL<br />
ESTATE AND FINANCIAL SOLUTIONS FAIR<br />
GAP REAL ESTATE-PROPERTY& FINANCIAL SOLUTIONS<br />
FAIR<br />
DECEMBER<br />
GAPSHOES SUMMER FOOTWEAR AND FOOTWEAR<br />
INDUSTRY SUPPLIERS FAIR<br />
FAIRS IN GAZANTEP<br />
<strong>Gaziantep</strong> Middle East Fair Center has been<br />
established in 2007. The fair centre is one <strong>of</strong><br />
the largest fair centres in Middle East. The fair<br />
centre has a 15.000 m2 closed exhibition area<br />
and 90.000m2 open-air exhibition area with<br />
completed infrastructure. In average a total <strong>of</strong><br />
10 international and local fairs are organized<br />
starting from year 2007. The fairs are mostly<br />
in textile, food, construction, jewellerly, shoes,<br />
carpet, furniture and general trade and gives<br />
the opportunity for local producers to be able<br />
to expand to the world markets.<br />
Vital logistic center<br />
for the transfer <strong>of</strong><br />
goods that come<br />
from Mersin and<br />
skenderun Ports<br />
to Iraq<br />
33<br />
www.investingaziantep.org
34<br />
GAZANTEP CHAMBER OF COMMERCE<br />
<strong>Gaziantep</strong> <strong>Chamber</strong> <strong>of</strong> <strong>Commerce</strong> proudly serves as the information and<br />
consultancy center for foreign investors. <strong>Gaziantep</strong> <strong>Chamber</strong> <strong>of</strong> <strong>Commerce</strong><br />
serves as an information center for foreign based companies and individuals<br />
who are interested in investigating direct investment and joint venture<br />
opportunities in <strong>Gaziantep</strong>.<br />
Contacting<br />
the necessary<br />
authorities for<br />
the investors<br />
Information<br />
about the<br />
industry and<br />
economy <strong>of</strong><br />
<strong>Gaziantep</strong><br />
Assistance in<br />
finding local<br />
partners for<br />
the foreign<br />
investors<br />
Providing<br />
assistance<br />
for investors<br />
about company<br />
establishment<br />
procedures<br />
Country<br />
specific help<br />
desks for<br />
Italy and<br />
Syria.<br />
Guiding the<br />
investors for<br />
finding feasible<br />
investment<br />
areas<br />
www.investingaziantep.org
GAZANTEP CHAMBER OF COMMERCE<br />
35<br />
YOUR PROFESSIONAL<br />
CONTACT POINT IN SOUTHEASTERN<br />
ANATOLIA! INVITING YOU TO<br />
INVEST IN GAZANTEP<br />
For more information:<br />
Hasan Baran Ucaner<br />
<strong>Gaziantep</strong> <strong>Chamber</strong> <strong>of</strong> <strong>Commerce</strong><br />
Enterprise Europe Network-GAPSUN Consortium<br />
Tel:+90 342 220 30 30<br />
Fax:+90 342 231 04 31,<br />
E-mail: baranucaner@gto.org.tr<br />
Sources: www.tim.ogr.tr, www.dtm.gov.tr, www.gaib.ogr.tr, www. treasury.gov.tr, www.gaoiz.org.tr, www.invest.gov.tr<br />
www.investingaziantep.org
36<br />
NOTES<br />
www.investingaziantep.org
The Enterprise Europe Network<br />
The Enterprise Europe Network is the largest network <strong>of</strong> contact points providing information<br />
and advice to EU companies on EU matters, in particular small and medium enterprises (SMEs).<br />
We provide practical answers to specific questions in your language.<br />
A One-Stop Shop For Businesses In Over 50 Countries<br />
The Network <strong>of</strong>fers concrete and effective solutions to entrepreneurs and companies in more<br />
than 50 countries, including the 27 EU member states, EU candidate countries, members <strong>of</strong> the<br />
European Economic Area (EEA) and other participating third countries.<br />
The Enterprise Europe Network is unique both in terms <strong>of</strong> its wide geographic reach and <strong>of</strong><br />
the wide range <strong>of</strong> integrated services it provides to SMEs and other business actors. This is<br />
made possible thanks to the coordinated action <strong>of</strong> more than 600 local partner organisations,<br />
employing around 4000 experienced staff working to support the competitiveness <strong>of</strong> EU<br />
businesses.<br />
The Enterprise Europe Network <strong>of</strong>fers easy access and proximity to local services for SMEs,<br />
thus creating regional business gateways. Regional consortia cooperate to create a coherent<br />
support structure for local companies, boosting the region s pr<strong>of</strong>ile and its competitiveness.<br />
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as innovation, expansion to new markets, enlargement <strong>of</strong> the client base, improvement <strong>of</strong> market<br />
position, etc. As a result, the Enterprise Europe Network helps SMEs realise their potential in<br />
terms <strong>of</strong> growth and regional job creation.<br />
GAZANTEP<br />
CHAMBER OF COMMERCE
INVEST IN<br />
GAZANTEP<br />
www.investingaziantep.org