Sabah - The draft law concerning the abolishment of reciprocity principle for foreign property buyers is a welcome step in increasing the foreign direct investment (FDI) inflow to Turkey, according to the Investment Support and Promotion Agency of Turkey (ISPAT) President Ilker Ayci. Turkey currently applies the reciprocity principle for foreign citizens seeking property acquisitions in Turkey, allowing only citizens of certain countries that have granted the same right to Turkish nationals to buy real estate.
The new law will help increase the overall amount of FDI into Turkey, in addition to its immediate positive effect on the real estate sector, said Ayci. “Foreign investors take a country’s living conditions into consideration when deciding on an investment. This is because most investing companies transfer their managers and high-ranking staff with their families,” adding that the lifting of the reciprocity principle would make living and working in Turkey even easier. Turkey’s Grand National Assembly will begin discussing the draft law later this month.
Assessing the latest developments in the global FDI scene, Ayci said Turkey’s position is strong in relation to the financial crisis in the EU and the upheaval in Arab countries. “Turkey’s appeal to investors is on the rise. Potential investors are impressed by Turkey’s high growth rate and increasing industrial output,” said Ayci, stating that the Agency is intensifying efforts to draw Gulf investments to Turkey.
Turkey pays special attention to foreign investments that create employment, have added-value and are an export focus, Ayci noted, signaling that such an investment from an Asia-based company is to be announced in the coming months.