The comprehensive Reform Plans of Turkey (2025 – 2027)

Turkey has recently unveiled a series of comprehensive reform plans aimed at strengthening the economy and boosting its production capacity, with a focus on green investments, digital transformation, and enhancing the supply chain. These reforms are intended to create a competitive business environment, enhance regulatory frameworks, and ensure fairness and efficiency in taxation, while simultaneously advancing the industrial sector.

1. Increasing Green, Digital, and Supply Chain-Focused Investments

One of the pillars of Turkey’s reform strategy is to boost investments in environmentally friendly technologies and digital innovation. As the global economy shifts toward greener practices, Turkey aims to enhance its competitive edge by embracing sustainability. The focus on green and digital investments will help align the country with global environmental goals while advancing its digital transformation. This includes fostering innovation in logistics and supply chain management to support seamless production and distribution.

2. Establishment of Competitive New Investments

Turkey is prioritising the establishment of new investments across strategic sectors to strengthen its industrial base. By enhancing the competitive environment, the government seeks to attract foreign direct investment (FDI) and support the growth of domestic industries. This approach is designed to create a favourable investment climate where new businesses can flourish, contributing to long-term economic growth and job creation.

3. Improving the Regulatory Framework

Reforms are also focused on improving the regulatory framework to streamline business processes and reduce bureaucratic obstacles. Simplifying regulations is essential to fostering entrepreneurship and innovation. By creating a more transparent and efficient regulatory environment, Turkey aims to increase investor confidence and enable businesses to operate more smoothly.

4. Improving Business and Investment Processes

In tandem with regulatory reforms, Turkey’s reform plans include enhancing business and investment processes. This involves cutting red tape, speeding up licensing procedures, and creating a more accessible platform for businesses to engage with government services. Such reforms are crucial for accelerating investment in critical sectors and improving ease of doing business in Turkey.

5. Fairness and Efficiency in Taxation

Turkey recognises the importance of a fair and efficient taxation system for economic development. Reforms aimed at achieving fairness in taxation will help distribute the tax burden more equitably while ensuring that businesses contribute to public revenues. Additionally, making the taxation process more efficient will reduce administrative costs for businesses, improving their overall financial health.

6. Financing a Disaster-Resistant Structure

In light of Turkey’s vulnerability to natural disasters, particularly earthquakes, the government has made financing disaster-resistant infrastructure a key component of its reform agenda. Ensuring the resilience of public and private structures will protect citizens, reduce economic losses from potential disasters, and increase investor confidence in Turkey’s long-term economic stability.

7. Increasing Savings

Another aspect of the reform plan is to boost domestic savings. By encouraging savings through various incentives, Turkey aims to enhance the financial stability of households and create a larger pool of resources that can be channelled into productive investments. This focus on increasing savings will also support the growth of domestic industries and reduce reliance on external financing.

8. Development of Financial Technologies

Turkey is committed to fostering the development of financial technologies (FinTech) as part of its broader digital transformation. By supporting innovation in the FinTech sector, the country aims to modernise its financial system, improve access to finance for businesses, and promote financial inclusion. The adoption of cutting-edge technologies will also facilitate more efficient financial transactions and provide new opportunities for businesses and consumers.

9. Technological Renewal and Sectoral Transformation in the Industrial Sector

To increase production capacity, Turkey’s reform plans emphasise technological renewal and sectoral transformation in its industrial base. The government aims to encourage the adoption of advanced technologies, such as automation and artificial intelligence, across various sectors to boost productivity and competitiveness. This transformation will help Turkish industries remain resilient and competitive in the global market.

10. Facilitating Access to Finance for the Real Sector

Recognising the importance of easy access to finance for the real sector, Turkey’s reforms also focus on ensuring businesses can secure the necessary funding to grow and innovate. This will be achieved by creating new financial instruments, enhancing credit availability, and supporting alternative financing solutions. By ensuring businesses have access to adequate funding, the government aims to accelerate industrial growth and foster innovation.

Long-term Economic Growth

Turkey’s comprehensive reform agenda reflects its commitment to promoting a sustainable, competitive, and inclusive economy. By focusing on green and digital investments, improving regulatory frameworks, and supporting industrial transformation, Turkey is laying the groundwork for long-term economic growth. These reforms are also aimed at enhancing the country’s resilience in the face of global challenges, ensuring a prosperous and sustainable future.