Although banks and insurance companies have been solid during the financial crisis unlike in Europe and the US, Turkey has been facing major challenges in business: Some businesses filed for bankruptcy, some others laid off employees, some industrial companies ceased production periodically. Both local and foreign businesses have been looking for ways to survive the crisis, mostly through short-term maneuvers. How is Turkey handling the financial crisis in terms of FDI? How attractive is the Turkish market compared to the Western economies?
Business in Turkey
Retail sector in Turkey is considered to be the most attractive market for foreign investments. Large population over 70 million, increase in purchasing power, changing consumer behavior in favor of Western style goods and trends are the main reasons why a foreign company should invest in the retail market in Turkey. Turkey's youth dominated population attracts foreign retailers to invest in the Turkish retail sector, which is mainly controlled by independent local firms.