New Era in Industry: State Support for Investments Over 5 Billion TL

The Ministry of Industry and Technology is launching a reform set to fundamentally reshape Turkey's investment landscape, introducing a new support mechanism that centers exclusively on colossal-scale and strategic projects.

The League of Giants: The 5 Billion Lira Threshold

The Ministry's new regulation abandons the classic incentive approach, demonstrating a determination to channel resources toward high value-added projects. Under this framework, the primary criteria for supported projects are:

■A fixed investment amount of at least 5 billion TL.

■Projects must be of a "complex new investment" nature, meaning facilities built from scratch.

■Authorization of investors or their fully-owned subsidiaries to sign these contracts.

The New Architecture of Project-Based Incentives

This move places financial discipline and economies of scale at the heart of industrial policy. With this regulation;

■The Ministry of Industry and Technology will sign direct contracts with investors, guaranteeing the efficient use of public resources.

■Instead of small and fragmented investments, "mega projects" that provide high foreign trade volume and employment to the country's economy will be prioritized.

■Legal and administrative processes for investors will become more predictable through project-based contracts.

This move sends a critical signal for individual savers and credit markets. The determination of such a massive financial threshold at 5 billion TL carries the potential to improve the quality of banks' corporate credit portfolios, while indicating that the cost of funds may shift toward these large-scale projects in the long run. From the perspective of the individual investor, this deepening in industry suggests that positive effects on future inflation and the current account deficit could make growth-oriented equities and corporate bonds a strategic necessity in long-term asset allocations.