Chinese e-commerce giant Alibaba Group Holding Ltd (9988. HK) plans to invest $2 billion in Turkey in the coming period, its president Michael Evans said at a meeting with Turkish President Tayyip Erdogan, the company’s Turkish unit said on Monday. Evans was in Turkey for a two-day visit that included talks with business leaders and officials. “Turkey is an important country for us to invest in, especially in the field of e-commerce,” he said. “We plan to invest in infrastructure and to expand our platform in the country.”
The world’s third-largest economy has become one of China’s most active trade partners. The two countries trade more than $1 trillion annually, up from $600 million in 2000. Trade between the two has expanded as China becomes a global manufacturing powerhouse and Turkey continues to grow its consumer markets.
During the meeting with Erdogan, Evans also discussed Turkey’s efforts to promote its startups and improve its IT industry. He added that the company plans to open a logistics hub at Istanbul Airport and invest in a data center near Ankara. “These investments will benefit the Turkish economy and Alibaba,” he said.
Evans also expressed his satisfaction with the progress made by the government in fighting the COVID-19 pandemic and said that the country’s banking system is stronger than ever. He said he believes the Turkish economy will remain resilient despite current uncertainties.
According to Statistics Office data, the Turkish economy has grown steadily, and its labor force is one of the most active in Europe. The IT and technology sector has been crucial to the country’s development. It accounts for over 70% of the country’s information and communication technologies exports, with most going to Europe. The sector employs 1.4 million people, making it one of the top IT employers in the Middle East and North Africa. It has produced two dec acorns, Trendyol and Getir, and three unicorns, Peak Games, Dream Games, and Insider.
In 2021, the IT and tech sector contributed 6% to GDP. The sector is characterized by a high degree of specialization and innovation. The government has been investing heavily in R&D to support the industry.
In recent years, the Turkish startup ecosystem has seen a significant rise in early-stage investments, ranking 10th in Europe. Investors in the sector have seen a strong return on their investments, with the returns in seed, early, and later VC stages reaching more than 2 billion dollars.
In addition, the country’s IT and software industries are well-developed. It has signed Double Taxation Prevention Treaties with 86 countries, which allow companies to offset taxes paid in one country against the taxes payable in another. This has created an environment that allows startups to flourish and attract foreign investment. An educated workforce and a good IT infrastructure enhance the industry’s competitiveness.
