Finance Sector The Turkish financial sector proved resilient during the global financial turmoil in 2008 as well as the ensuing economic crisis thanks to the regulatory reforms and structural overhaul that the government implemented in the wake of the country’s own financial meltdown in the early 2000’s. In fact, the reforms in the sector boosted investor confidence so much that financial services have become the preferred sector for FDI, attracting over USD 50 billion during the past 15 years. Banking dominates the Turkish financial sector, accounting for around 60 percent of overall financial services, while insurance services and other financial activities also show significant growth potential. There are 51 banks in Turkey (33 deposit banks, 13 development and investment banks, 5 participation banks). Out of 51 banks, 21 hold foreign capital. Expanding loan base and favourable liquidity conditions contribute to the healthy growth of Turkey’s financial services. The sector enjoys a leading position in the world with an evergrowing asset size and strong equity structure protecting it against shocks that may arise from turbulent market conditions. The sector overall exhibited a robust 18 percent compound annual growth rate (CAGR) between the years 2008 and 2016, reaching a total asset size of TRY 4.2 trillion (USD 1.2 trillion). The banking sector in particular almost doubled its assets during this period, with TRY 2.7 trillion (USD 775 billion) on the books by the end of 2016. Defense and Aerospace The Turkish defence and aerospace industry has been undergoing a profound transformation over the past decades. Having achieved unparalleled success in the industry in recent years, today Turkey has one of the fastest developing defence and aerospace sectors in the world. The experience and emphasis on quality is evident among Turkish defence and aerospace companies as they undertake numerous endeavours, create products that are competitive worldwide, and assume important roles in international projects.
With their qualified human resources and state-of-the-art technology infrastructure, Turkish companies bring global solutions to satisfy many countries’ local requirements. These Turkish companies conduct activities in many critical areas of the defence and aerospace sector, from original design development to domestic production, from modernization to modification, and from R&D to international projects. Turkey is one of the largest defence spenders in the world. Turkey’s USD 15 billion defence expenditure in 2016 ranked as the 17th largest defence budget in the world. Turnover in the defence industry doubled over the past decade and reached USD 6 billion by the end of 2016. Agriculture and Food Home to the headwaters of the Tigris and Euphrates Rivers, Turkey’s agricultural sector today is echoing the prosperity of ancient Mesopotamia. With its favourable geographical conditions and climate, large arable lands, and abundant water supplies, Turkey is considered to be one of the leading countries in the world in the field of agriculture and food. Turkey has a robust agriculture and food industry that employs almost 20 percent of the country’s working population and accounts for 6.1 percent of the country’s GDP in 2016. The sector’s financial contribution to the overall GDP increased 40 percent from 2002 to 2016, reaching USD 52.3 billion in 2016. The strengths of the industry include the size of the market in relation to the country’s young population, a dynamic private sector economy, substantial tourism income and a favourable climate. Turkey is the world’s 7th largest agricultural producer overall and is the world leader in the production of dried figs, hazelnuts, sultanas/raisins, and dried apricots. The country is also one of the leading honey producers in the world.