While the exports of free zones which are centres of high tech production increased by 55 % in the last 5 years, their trade with domestic companies increased by 51 %. Realising %4 of Türkiye’s total exports in 2018, free zones increased this ratio to % 5 in 2023 with an amount approaching 13 billion USD. Companies operating in free zones increased their share in international markets, while they increased trade with local small and medium enterprises.

The trade of the companies in free zones with the companies in the domestic market increased from 2.5 billion USD in 2018 to approximately 3.8 billion USD in 2023.

This %51 increase stemmed from the fact that firms in the free zones reflected the growth they achieved in foreign markets to their trade with small and medium enterprises in the domestic market. In the last 2 years trade with regions from abroad has shrunk by %16.8, while trade with companies within the country has increased. Due to the faster supply process, companies operating in free zones are increasingly trading with local companies. Especially after the pandemic the trade of free zones with domestic small and medium companies has gained more importance. While the companies in our free zones increase their exports, they trade more with small and medium companies in our country and ensure that they also get a share in exports.

Small and medium companies can produce without spending capital for buildings and land purchase

In today’s conditions where access to finance is even more difficult small and medium companies can come to free zones and use all their savings in production activities and open up to global markets without investing capital in buildings and land. When this opportunity is combined with the tax incentives provided for exports it turns into a great competitive advantage. Small and medium companies should invest in free zones in order to benefit more from the opportunities available to them.

Provides small and medium-sized companies with the opportunity to expand into international markets

The semi-finished products coming from abroad or from within the country are processed and exported as high value-added products. In free zones there are many companies operating in various sectors such as aviation, automotive, software, yacht, shipbuilding and repair, medical equipment, ready-to-wear clothing and research and development activities. There are also giant companies on a global scale. Free zones are strong industrial centres and Turkish companies doing business with free zones have the opportunity to open up to international markets.

National and international investors coming to free zones in order to benefit from the incentives provided for export-oriented production also contribute to the increase in domestic production and the development of domestic enterprises. Firms in the free zones prefer to procure raw materials to support these production processes from local firms as it will offer cost and time advantages while producing for international markets. International companies operating in the free zones can transfer new technologies and ways of doing business to local businesses while local companies can increase their competitiveness through this transfer of knowledge and technology.

 Infrastructure improved with free zones accelerates development

Free zones also contribute to the development of local infrastructures such as roads, ports and storage facilities in the regions where they are located and these developments increase domestic trade and the efficiency of logistics. These investments also develop economic activities. While these developments that create new job opportunities reduce unemployment rates, the developing logistics infrastructure reduces the costs and increases the speed of trade by ensuring faster and safer transport of products. This increases both domestic and international trade. Since the improvement of production and distribution processes will increase local and foreign investments, these improvements encourage economic development not only in free zones but also in other regions around them.