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Turkey becoming alternative production hub to Asia

Turkey becoming alternative production hub to Asia

Turkey coming to the fore as an alternative to the Asia-based production and supply network is an important development, President Recep Tayyip Erdoğan said Thursday, asserting the country has the necessary infrastructure to grab its fair share of the market.

The president made the comments in a video message sent to the Regional Finance Conference.

Stating the COVID-19 pandemic has dragged economies into a global period of crisis, Erdoğan said the world economy narrowed by 3.5% in 2020 and that world trade has shrunk by almost 10%.

International foreign direct investments decreased by 42% while global debt has reached $282 trillion, a record high volume.

The president explained that Turkey chose to adopt a different approach during this period, and did not enforce practices such as a complete shutdown of production, logistics, employment and industry, even when the pandemic was at its most intense.

Thanks to this approach, Erdoğan said, “Turkey has recorded an economic growth in the pandemic year of 2020 and secured a spot among the G-20 countries that recorded the most growth with a rate of 1.8%.”

This momentum has continued with 7.2% and 21.7% growth in the first and second quarters of this year, Erdoğan said.

He reiterated that exports are also performing at record-breaking levels and that the flow of global investments in Turkey is not easing.

Erdoğan said that all these developments have caught the attention of international investors who see Turkey as an alternative to Asia-based production and supply destinations.

The country’s legislation also encourages global investors to establish their businesses here, he said, listing benefits including value-added tax (VAT) exemptions, tax reductions and customs duty exemptions.

“There are many fields in which we can cooperate, from energy to transportation, from the defense industry to technology and finance,” Erdoğan said.

Erdoğan also stressed that with the Istanbul Finance Center (IFC), Turkey aims to be one of the leading centers in the field internationally, while contributing to Islamic Finance, also known as “participation banking” in the country.

The center, which is now under construction, will focus on the sustainable growth of interest-free finance and participation banking based on Islamic principles.

The finance center project, expected to be completed by early 2022 in Turkey’s financial capital, is set to serve as a global hub for financial systems and nonbanking financial practices.

This content was originally published here.