Erdogan: The regional war has made Turkey a cornerstone of the global economy

Turkish President Recep Tayyip Erdogan has announced a comprehensive package of legal and financial reforms aimed at consolidating Turkey's position as a global investment hub.

During the "Century of Turkey... A Strong Investment Center" event in Istanbul, Erdogan revealed the expansion of tax benefits for institutions operating in the Istanbul Financial Center, as the percentage of the reduction on profits resulting from "transit trade" and international brokerage was increased from 50% to 100%.

The Turkish president explained that these incentives will extend beyond the financial center as well, with a tax exemption of up to 95% of the profits of trans-trade for companies operating in various Turkish states.

Targeting regional hubs for global companies

Erdogan stressed that the current priority is to encourage international companies to relocate their regional centers to Turkey, promising to give them strong tax advantages on their profits from running their international operations.

The measures included exemptions for the salaries of qualified cadres working in these centers, with a full deduction of profits from corporate taxes within the Istanbul Financial Center for the next twenty years.

In a move to end administrative complexities, the Turkish president announced the establishment of the "Single Window" system, a unified center under the supervision of the Investment and Finance Office of the Presidency of the Republic, which manages all transactions from the establishment of companies to work permits, residency and taxes.

On the export front, the package included a reduction in taxes on exporting manufacturers from 20% to 9%, and to 14% for the rest of the exporters, in order to enhance the competitiveness of the Turkish product.

A cornerstone in a turbulent world

Erdogan touched on the geopolitical scene, noting that Turkey has succeeded in managing the largest security crisis in recent years, stressing its position as an "island of stability."

He stressed that the "U.S.-Israeli war on Iran" is reshaping the economic system and value chains, making Turkey a "cornerstone" in global economic stability.

Erdogan concluded by emphasizing that Turkey is not just an energy corridor, but an indispensable hub for regional trade, and one of the strongest candidates to be the multipolar "New World Pole."

Turkish Finance Minister Mehmet Simsik recently  indicated that his country is able to rein  in the short-term economic consequences of the war on Iran, noting that the security of energy supplies is not compromised and that fiscal space is used as a means of absorbing the shock.