Iranians registered the most investment companies in Türkiye
According to statistics published in Turkey, Iranians broke the record for the largest number of foreign-invested companies in Turkey in the first 10 months of 2019. An Istanbul-based expert explained the reason for this in an interview with Deutsche Welle.
According to statistics from the General Assembly of Chambers of Commerce and Stock Exchanges of Turkey (Türkiye Odalar ve Borsalar Birliği), 10,682 foreign investment companies were established in Turkey in the first ten months of this year, from January to October. Among them, Iranian citizens are at the top of the list of investors, registering 49 public joint-stock companies and 772 limited liability companies.
According to these statistics, the number of companies registered in Turkey's metropolitan cities has increased, and the largest number of public joint-stock companies were registered in Istanbul, followed by Ankara, Izmir, Antalya, and Mugla.
Data from the General Assembly of the Chambers of Commerce and Stock Exchanges of Turkey shows that Iranians led the way in establishing public joint-stock companies, with 49 companies. Germany came in next with 45 companies, Azerbaijan with 31 companies, the United States with 22 companies, the Netherlands with 19 companies, and the United Arab Emirates with 17 companies.
Iranian citizens also ranked first in terms of establishing limited liability companies, establishing the most companies in Turkey with 772 companies in the first 10 months of the year. After Iran, Syrian investors came in second with 684 companies, Saudi Arabia with 362 companies, Jordan with 288 companies, Iraqis with 274 companies, and Egyptians with 260 companies.
But what was the reason for the establishment of these companies by Iranians, and what factors have made Iranian citizens more attracted to the Turkish market?
Deutsche Welle raised this question with Mohammad Saleh Khatam, an expert on Iran and Turkey. In response, he explained that the record-breaking number of Iranian companies establishing companies was “not very unexpected,” and given the problems Iranian companies face in the UAE and the diversity of the country’s market, it seems natural for Iranian companies to establish companies in Turkey.
According to this Istanbul-based expert, one of the most important reasons for Iran and Iranian nationals registering companies in Turkey is an attempt to circumvent Iranian sanctions. He added: “Turkish President Recep Tayyip Erdogan has repeatedly stated his strong opposition to US sanctions on Iran, and even said in November 2018 at a meeting of the ruling Justice and Development Party that Turkey will not cooperate with US sanctions on Iran in any way.”
Iranian investors flee
Saleh Khatam continued his explanation by mentioning several other factors that have caused Iranian investors to gravitate more towards the Turkish market.
He emphasized: "In addition to the issue of sanctions, some Iranian investors, given Iran's unclear economic outlook and the relative stability of the Turkish lira, prefer to invest their assets in Turkey rather than witnessing a decline in the value of their assets, and in addition to investing, even obtain Turkish residency if possible."
According to this expert, the purchase of real estate and independent properties by Iranians in Turkey is another manifestation of this investment. Referring to the easy conditions for registering a company in Turkey, he noted that unlike Iran, registering a company in Turkey is very easy and companies registered in Turkey have various tax exemptions, and these advantages have made Turkey a safe place for investment.
Source: DW
