Investing in Turkey: Why AI May Be a Smarter Choice than Real Estate
Turkey has long positioned itself as a country with an open economy and a liberal investment regime. Government institutions actively attract foreign capital by offering incentives, simplified company registration procedures, and access to emerging markets in the Middle East and Asia. However, behind this apparent simplicity lies a crucial question: which sectors truly provide long-term value, and where do potential risks remain hidden?
According to the Turkish Ministry of Trade, over 60% of foreign investments are still directed toward real estate and the banking sector. These assets are perceived as safe and liquid but do not contribute significantly to the country’s technological growth. In contrast, sustainable economic progress in Turkey depends increasingly on digital and innovation-driven industries — particularly artificial intelligence (AI), biotechnology, and the defense sector.
From a legal standpoint, foreign investment in AI and innovative industries is governed by Law No. 4875 (“Foreign Direct Investment Law”) and Law No. 6769 (“Industrial Property Law”). These acts ensure the protection of investor rights and intellectual property, as well as access to government support programs such as TÜBİTAK and KOSGEB, and tax incentives for tech-oriented companies.
Long-term investors (5–10 years) should therefore consider not only economic but also legal infrastructure. Establishing reliable local partnerships, securing proper licenses, and protecting IP rights are essential factors for success.
Thus, Turkey’s liberal investment environment offers both opportunities and challenges. Real estate may bring short-term gains, but investment in technology and AI builds strategic advantage. For foreign investors, this is not merely a financial opportunity — it is a chance to become part of Turkey’s growing innovation ecosystem.
Sources:
- Law No. 4875 on Foreign Direct Investments (Republic of Turkey)
- Law No. 6769 on Industrial Property
- Official data of the Ministry of Trade of Turkey
- TÜBİTAK and KOSGEB investment program
