Over 250 OIZs have positively impacted the future of modern Turkey.
Originally developed in the early 1960s as a means of stimulating economic and industrial development in Turkey, Organized Industrial Zones, or OIZs, have flourished as powerful promoters of public-private partnership in underdeveloped and distressed regions. Empowered by generous tax incentives, OIZs have stimulated the economy of modern Turkey and connected a willing workforce with stable careers.
Tax Incentives
In order to spur the economic development of underdeveloped areas of Turkey, Organized Industrial Zones benefit from generous tax incentives from the federal government. New commercial and industrial buildings in OIZs are exempt from real estate taxes for five years following their construction. In addition, OIZs benefit from exemptions from the Value Added Tax on certain goods and from corporate and wastewater taxes if certain conditions are met.
Infrastructure
Through public-private partnerships, entities within OIZs collaborate to develop all of the necessary infrastructure to stimulate industrial activities within the zone. OIZs are able to attract industrial and commercial business development by providing existing roads, wastewater treatment plants, transportation infrastructure, functioning electric grid and communications infrastructure. In combination with the possibility of obtaining free land, the industry-focused infrastructure of the OIZs creates a fertile and attractive environment for new industry.
Benefits of Collaboration
In addition to the incentives provided directly by the OIZ, new businesses attracted to the OIZ benefit from the collaboration possibilities presented by their presence within these zones. Businesses within the OIZ can share the cost of environmental impact assessments, and any necessary mitigation or abatement, lowering the costs and timeframe for starting operations. Furthermore, all businesses in the OIZ benefit from the efforts of the OIZ management group to cultivate a trained workforce and from business development services provided by the OIZ entity.
Oversight
As entities, OIZs possess a limited amount of autonomy. Although overseen directly by Turkey's Ministry of Industry and Trade, OIZs establish a governance structure with significant representation by local stakeholders, including local chambers of commerce, local and regional government and business owners and investors. This shared governance model ensures that decisions are made that will further stimulate economic activity in the region. This regulatory body governing the OIZ is established as a mandated non-profit entity, reinvesting all profits in activities which will benefit the region's economic growth, such as research, vocational training and business development.
Tags: benefit from, business development, OIZs have, Organized Industrial, generous incentives