Companies in Free Zones Export Four Times More Than the Average
Free zones have become strategic investment regions in Türkiye through the marketing activities carried out by founder and operater companies, focusing on domestic and foreign companies engaged in export-oriented production, and the world-class services they offer. Considering the 8-month export data for the January-August period of this year, companies in free zones generate 4 times more export revenue than the national average.
Free zones have become prominent regions in Turkish exports due to their high productivity. The figures achieved in the eight-month period of this year and throughout 2024 show that companies operating in these zones have performed much better than exporters across the country.
In the January-August period of this year, exports from free zones amounted to $8.2 billion. Considering that a total of 2,000 companies operate in these zones, this translates to $4.1 million in exports per company in free zones.
Türkiye’s total exports between January and August amounted to $178.1 billion. According to TİM data, there are a total of 150,000 exporting companies in the country. Taking this number into account, the export revenue per exporting company in Türkiye is $1.1 million. This shows that companies in free zones generate four times more export revenue than the Turkish average.
The Free Zone Model and Strategic Location Provide a Competitive Advantage
Yusuf Kılınç, Chairman of the Board of Directors of the Turkish Free Zones Founders and Operators Association (SEBKİDER), emphasized that free zones are not just production sites, but strategic investment environments that now provide an advantage in global competition for the country’s economy.
Yusuf Kılınç highlighted that the companies establishing and operating free zones have made a significant contribution to this difference. Kılınç stated that free zones, equipped with world-class infrastructure, have attracted investments from companies that produce high-tech products and export them to global markets, particularly through these founder and operator companies. “In today’s conditions, where financing is difficult to obtain, investors can flexibly expand or downsize by renting production-ready buildings without having to allocate their capital to purchasing land and buildings in our regions. This advantage is also decisive in the preferences of domestic and foreign investors. The fact that investors can start production within a month after obtaining their operating license increases the appeal of investing in our regions,” he said.
SEBKİDER President Kılınç stated that another important advantage that free zones offer investors is the logistics capabilities they provide, saying: “Most zones offer direct access to ports, airports, and international highway networks. With these features, free zones have become strategic investment areas connecting Türkiye to global supply chains. In addition to tax incentives and logistical advantages, companies in free zones are more easily oriented towards high value-added production and R&D investments. This enables them to become strong players in global markets, not only with low-cost but also innovative and flexible production capabilities. As a result, the export value per kilogram from some of our free zones, which have become advanced technology production centers, has exceeded $8.5. The advantages offered by free zones support Türkiye’s efforts to gain a competitive edge in global markets through exports.
Strong Growth in Exports, Decline in Domestic Sales
The data shows a sharp increase in exports from free zones to foreign markets. Sales from these zones to foreign markets rose from $7.727 billion in 2020 to $11.993 billion at the end of 2024. This represents a 55.2% increase. In contrast, sales from free zones to the domestic market declined by 11.6% during the same period, falling from $4.7 billion to $4.1 billion.
Purchases made by free zones from SMEs in the domestic market, however, are on an upward trend. The volume, which was $2.57 billion in 2020, rose to $3.61 billion by the end of 2024, recording a 23% increase. Commenting on these figures, SEBKİDER President Kılınç said:
Free zones focused on growth in global markets are also significantly increasing their trade with domestic SMEs in the supply of raw materials or semi-finished products. Türkiye’s free zones have become strategic bases for the country’s exports, thanks to their per-company export figures, their role in global supply chains, and the competitive advantages they offer. The data indicates that with the right incentives and policies, free zones could increase Türkiye’s export capacity much more rapidly.”
Changes In Commercıal Flows By Dırectıon (1,000$)
DIRECTION 2020 2024 DIFFERENCE %
—————– ————- ————– ————
From Türkiye to FZs 2,573,562 3,617,399 40.5
From FZs to Abroad 7,727,313 11,993,086 55.2
From abroad to FZs 7,028,256 7,901,228 12.4
From FZs to dom. market 4,728,935 4,179,720 -11.6
Source: Free Zones General Directorate
January-August Period Export Revenue per Company in Türkiye and Free Zones
EXPORT VALUE NUMBER OF COMPANIES PER COMPANY (USD)
(Million USD)
——— ——— ———————
TÜRKİYE 178,100 150,000 1,187,000
FREE ZONES 8,200 2,000 4,100,000
