Last Updated on 24/04/2023
The Istanbul Finance Center (IFC), one of Turkey’s most important projects, moves forward at full speed and as inaugurated on April 17th 2023. According to President Erdoğan, the Istanbul Finance Center is an innovative initiative created with the goal of improving Turkey’s standing in the international economy and turning it into a regional and global financial hub in the future.
Istanbul Finance center is Turkey’s new economic hub
The Istanbul Financial Center (FC) has started its construction since 2009 in Ataşehir district. It aims to provide an efficient financial services ecosystem. Moreover, it seeks to deliver growth to the Turkish economy and international investors by becoming a regional center in the short term and a worldwide center in the medium term. Istanbul Finance center will bring together Turkish and international financial institutions, as well as public and private sector banks, asset management corporations, real estate agencies, insurance companies, and professional service firms. Thus, the center will host different investment sectors in Turkey.
Estimated to become a hub for Turkish-international cooperation, the center includes renowned local and international companies such as The Central Bank of the Republic of Turkey (CBRT), Banking Regulation and Supervision Agency (BRSA), Capital Markets Board of Türkiye (CMB), Borsa Istanbul as well as many famous banks.
A mixed-use project
Istanbul Finance center has 1.4 million square meters of office space spread on 21 buildings. Moreover, the center includes a 100,000 square meter shopping mall, a convention center (capacity: 2,100 people), a 30,000 square meter 5-star hotel, and a 26,000-car parking garage, all built on a ‘smart city’ standard.
Istanbul Finance center project is home to up to 50,000 employees on a daily basis, providing a cutting-edge working environment as well as green space and recreational facilities to encourage work/life balance and overall well-being for all visitors.
Anti-Covid work frame
One of the key features that distinguishes The Istanbul international financial center from other projects is its construction during the COVID-19 pandemic. Consequently, there was a willingness to prepare the project for eventual similar crisis in the future. In fact, to guarantee a safe work environment, all offices include openable windows and UV-filtered ventilation systems.
Istanbul Finance Center finally opened
President Recep Tayyip Erdogan attended the opening of the Istanbul Finance Center on May 17, 2023. Thus, the center joins other centuries-old international financial hubs.
The Istanbul Finance Center, according to President Erdogan, will increase Turkey’s capacity to draw investment by facilitating the flow of foreign capital, bringing savings into the economy by channeling them toward new financial instruments, and preserving financial stability by funding significant infrastructure projects. The Turkish president said, “While implementing alternative financial instruments here, we will also help young businesses working on financial technology and blockchain technologies that aim to grow and make investments in this field. He also mentionned that Istanbul Financial Center was a result of ten years of hard work using a smart city model.
Turkish central bank to switch to Istanbul Finance center
Turkey’s central bank is scheduled to move its activities from the capital Ankara to its new headquarters in Istanbul in the coming months.
The president of the Central Bank of the Republic of Turkey (CBRT) Vahap Kavcolu indicated last year that the bank’s units would relocate to the Istanbul Financial Center (IFC) after its opening.
According to Turkish media, the changeover will be completely occur between June and September 2023. So stated an email given to employees in February 2022. Before moving to Istanbul Finance Center, the bank has begun relocating units from Ankara to its building in Istanbul’s district.
Investment incentives from Istanbul Finance center
The center provides many investment incentives to both domestic and foreign enterprises and investors. Therefore, it will contribute to the long-term development of the Turkish economy.
Moroever, financial institutions at the IFC will benefit from a number of tax benefits. This includes the possibility to deduct 75% of their income from the corporate tax base. Moreover, they will also be exempt from fees and stamps.
A step to boost the economy
Turkey is surely moving forward with the terms of its plan to become one of the top 10 economies in the world by the end of 2023. The establishment of Istanbul Finance Center is a huge step on this path. It makes part of the famous “Turkey’s 2023 vision” aiming to enhance Turkey’s position worldwide. Therefore, it seeks to increase its share of global GDP, and increase foreign direct investment in the country. Moreover it tends to make Istanbul a global financial center.
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