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INTRODUCTIONIn the last 10 years Turkey has experienced a rate of economic growth close to the best inthe world. This has been attributed to several factors:• a shift from a focus on agriculture to a focus on industry and the services sector;• rapid modernisation of the existing industries and class leading technologytransfer;• Political stability and good economic management;• The EU accession process bringing massive legal infrastructure change;• Successful Privatisation programmes;• Istanbul becoming the go to place for Middle East/Asian business and tourists;• Strategic positioning as an Energy corridor between East and West;• Improved relations with neighbours.In addition, private investments were the driving force in accelerating economic activitiesin recent years. The liberalisation of capital movements and the willingness of foreigncreditors to lend to Turkish investors contributed to the high growth rate of privateinvestment.Turkey attaches a high priority to the encouragement of foreign investment and provides avariety of incentives.Please note that many of the laws referred to below are complex and the followingsummaries are very general in nature. This document is not legal advice. Please do not actin reliance upon it but always seek specific legal and other appropriate professional advicebefore taking action.2

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