Let’s Rev Up Production: Turkish Legislator is Looking Forward to Passing a New Package for Industry Sector

Following the official announcement of the referendum results of 16th of April by the Supreme Electoral Council, the official agenda of Turkish economy has already concentrated on realizing long-awaited objectives concerning Organized Industrial Zones.

by Abdülkadir Güzeloğlu
29 April 2017

On 27 April 2017, the press release made from the office of Minister for Science, Industry and Technology revealed details of legislative package that is almost finalized after last session of Economic Coordination Committee. Indeed, the package, which will be sent to the Council of Ministers and ultimately to the Turkish Grand National Assembly for final ratification process, consists of 81 articles that is expected to revolutionize the legal framework of Turkish practice of Organized Industrial Zones.

A significantly vital business model for Turkey that has been playing a major role by introducing a planned and predictable outlook for numerous industries, Organized Industrial Zone have been active for over 30 years in Turkey. Law No:4562, which regulates Organized Industrial Zones, confers highly advantageous incentives for foreign or domestic participants of latter.

That said, some key elements of the highly-anticipated package as follows:

  • The maximum profit for administrating authority of an Organize Industrial Zone can receive from sale of parcels of land will be limited to 25%. Indeed, setting such a reasonable threshold should allow prospective participant to channel its financial resources into establishing its production line, rather than the land itself. If one takes into consideration that the current profit rate in Organized Industrial Zones located in Black Sea region has already reached %300 and tested approximately %500, the rationale behind such amendment becomes clearer.

  • Organized Industrial Zones’ area of operation will be extended to establishing Organized Industrial Zones abroad. Currently, as relevant legislation is silent whether an administration of organized industrial zone may execute said path, this amendment will irrefutably eliminate vagueness.

  • Importantly, the package will also shorten bureaucracy while establishing an Organized Industrial Zone. Therefore, it is said that latter can be established within a maximum of six months rather than two or three years.

  • Moreover, land tax rates will be reduced in order to provide for a sustainable financial forecast.

That said, after seventeen years since ratification of Law No:4562, there is no doubt that the legislator has found the perfect momentum to support legal framework of Organized Industrial Zones. This model, which has proven its success on globally, will surely become a safeguard for foreign investors who seek for an incentivized environment to enter into their targeted sectors in Turkey or neighboring regions.

Should you have any other queries on practice of Organized Industrial Zones in Turkey, please do not hesitate to contact us at

Author: Abdülkadir Güzeloğlu