Despite actors like Israel seeking to reignite the flames of war, Turkish President Recep Tayyip Erdogan said on Friday that they are following the process with “cautious optimism.”
Speaking at the Century of Türkiye - Strong Hub for Investment event at the Dolmabahce Presidential Office in Istanbul, Erdogan stressed that Ankara is doing everything it can to make the ceasefire permanent and to open the path toward a just peace.
Erdogan said neither the region nor the world can return to the past and added that “the repercussions of fractures caused by such a major tremor will become clearer over time.”
The president said recent tensions have created one of the most turbulent and uncertain periods for both the region and the global economy, with impacts felt across sectors, including energy, production, trade, tourism, and transportation.
“While the intensity of the fire has subsided, neither our region nor the world can be 100% certain about the future of tensions,” he said, noting that Türkiye continues diplomatic efforts in coordination with friendly and allied countries.
“By successfully managing one of the biggest security crises of recent years, Türkiye has once again confirmed and cemented its status as an island of stability in its region,” Erdogan added.
“The war, which is reshaping the global economic order and value chains, has made our country a cornerstone of global economic stability,” Erdogan said.
He added that the traditional characterization of Türkiye as merely a bridge between East and West or North and South is insufficient, emphasizing that the country has become an indispensable hub for energy and trade corridors.
Erdogan also underlined that Türkiye is taking legal, administrative, financial, and institutional steps to strengthen its investment environment, enhance competitiveness, ensure sustainable high growth, and support international direct investments.
New economic measures
Erdogan also announced a series of new economic measures aimed at boosting investment, attracting global capital, and strengthening Türkiye’s position as a regional financial and startup hub.
He said new regulations will encourage citizens and companies to bring their overseas assets into the Turkish economy.
“We are implementing arrangements that will enable assets held abroad by our citizens and companies to be brought into our economy. In this context, we are allowing money, gold, and securities held abroad to be transferred to Türkiye within a certain period at a low tax rate,” he said.
Erdogan also announced expanded tax incentives for institutions operating at the Istanbul Finance Center, including full tax exemptions on certain international trade activities.
“With the regulations we will introduce, we are expanding tax advantages provided to institutions operating at the Istanbul Finance Center. We are increasing the current 50% tax deduction rate on earnings from transit trade and intermediary activities in overseas goods trading to 100%,” he said, noting that such earnings will be exempt from corporate tax.
He added that similar incentives will be extended beyond the finance center, with 95% of earnings from transit trade activities outside the center exempt from taxation.
Erdogan said Türkiye will also offer major incentives to attract global companies’ regional headquarters, including long-term tax advantages and income exemptions for qualified employees.
He highlighted the introduction of a system to streamline investment processes, enabling all procedures, from company establishment to work permits and tax transactions, to be handled through a single, digitalized platform.
On exports, the president announced further tax cuts to support exporters, particularly manufacturers.
Erdogan also unveiled incentives aimed at attracting individuals living abroad and said Türkiye will offer a 20-year tax exemption on foreign income for returning nonresidents, with inheritance tax set at 1%.
He also announced the launch of the first phase of the Terminal Istanbul Project to strengthen the country’s entrepreneurial infrastructure.
He added that project-based guarantees will be introduced for large-scale investments to enhance predictability and minimize the impact of future tax changes.
Stressing Türkiye’s economic resilience, Erdogan said the country is now better equipped to withstand global shocks. “Türkiye’s economy has gained the strength, capacity, and resilience to absorb much larger shocks compared to the past,” he said.
