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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 />

www.investingaziantep.org


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 />

www.investingaziantep.org


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 />

www.investingaziantep.org


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 />

www.investingaziantep.org


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 />

Business actors are encouraged to share, define and disseminate best practices in fields such<br />

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

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