The Turkish government has drawn up a new decree-law that aims to turn the eastern and southeastern parts of the country's into a production hub, creating more than 100,000 jobs.
The law, which has been a long time in the making, is expected to be published in the Official Gazette soon. It also includes development plans for eastern and southeastern Turkey which legislators hope will form an economic base to fight terrorism in the region.
The program looks to transform the region into a production hub and create more than 100,000 jobs. In addition, it will offer incentives, energy and financial support to those investing in the region.
Some 23 provinces in the region will be part of the program and each will equally benefit from the incentives. Regardless of their region, all 23 provinces will be categorized as the sixth region, within the Ministry of Economy's regional investment incentives framework. The general package for the sixth region will also focus on expanding the sectoral scope, reducing labor force costs, and improving finance opportunities.
In terms of financial incentives, the sixth region will receive an interest rate support up to TL 900,000 ($232,011). Moreover, up to 80 percent of the investment contribution rate will be imposed on the turnover, secured from other operations. In order to cut labor costs, the package for the region also includes a contribution for the insurance premium and tax cuts.
Moreover, the latest decree-law pitches for energy support, which will be determined according to provinces and sectors. Incentives in manufacturing and import are among the other supports provided under the program. The investors, who want to establish their own plants, will be given loan cost support and the state will pay for a portion or the whole of the loan. Currently, around 130,000 people work in the region's manufacturing sector.