Global Technology and Energy Giants Relocate Their Regional Bases to Istanbul
Driven by security concerns, geographical location, and new tax advantages, global companies have begun shifting their regional structures from Dubai to Istanbul.
It has been reported that global companies operating in the fields of technology, energy, and data centers have begun shifting their regional structures from Dubai to Istanbul, driven by security concerns, geographical location, and new tax advantages.
Global Companies' Interest and Investments in Istanbul
Global companies operating in the fields of technology, energy, and data centers are preparing to strengthen their structures in Turkey. Although the cost factor maintains its importance in investment decisions, security has reportedly become much more decisive recently.
While Amazon Web Services made its infrastructure in Istanbul generally available in May, it had been previously announced that Google would establish a new cloud region in Turkey in cooperation with Turkcell.
Regional Hub Shift from Dubai to Istanbul
It is stated that Amazon has moved a significant portion of its regional structure in Dubai to Turkey, and Google is making similar preparations. Istanbul is reportedly evaluated not only as a market but also as an alternative center from which Middle Eastern operations can be managed.
While Amazon and Google declined to comment on the matter, it is reported that some Japanese, Chinese, Indian, and US companies with bases in Dubai have also begun shifting their management staff to Turkey.
New Investment Searches from the Gulf and Asia
The mobility toward Turkey is also reflected in new investment searches from the Gulf and Asia. Large groups from Saudi Arabia are sending their investment teams to Turkey to conduct inspections.
While Asian investors are reportedly in a similar search, a major Chinese group is stated to be preparing for an investment in Kırklareli.
Data Center and Cloud Technologies
Data centers constitute one of the prominent areas in the new investment wave. The increasing capacity demand driven by artificial intelligence and cloud technologies boosts interest in Turkey.
Alongside Istanbul and its surroundings, Thrace is also among the regions that have entered the radar of investors in terms of data center and technology investments.
New Tax Regulations and Advantages
One of the factors supporting the interest of global companies was the new tax regulations announced by President Recep Tayyip Erdoğan. Regulations aimed at encouraging the relocation of regional management centers have been prepared.
It is aimed to provide a tax reduction for 20 years on a large portion of the earnings generated by companies from overseas operations managed through the Istanbul Finance Center.
Security Perception and Reflections at the Dubai Exhibition
One of the striking examples of the changing security perception of global companies was seen at the electricity and energy exhibition in Dubai. Some major companies did not send their top executives to the exhibition.
While this situation shows that companies are acting more cautiously against security risks in the Middle East, Turkey stands out with its security and geographical location advantages.