Free economic or trade zone is a special area where companies are not taxed for importing, exporting and manufacturing goods.
According to the Free Zones Act No: 3218 and legal decisions major objectives of Free Zones are to encourage economic activity of the country, to increase foreign investment and technology delivery into the country, to improve external economic relations and trade development and others. It should be also noted that Free Zones as logistic centres fully support companies that intend to conduct trade by establishing ground for the business.
The world
The success of Singapore and Hong Kong freeports that were established after the World War I and later on positive outcomes of the Panamian, Irish, Taiwanese and South Korean Free Zones proved the importance of Free Zones in the national economy growth. A number of Free Zones were established, notably in the Far East (ex. China, India), after the United Nations Economic and Social Council (ECOSOS) approved in 1967 that Free Zones boost counties’ economical activity.
Turkey
The history of Free Zones in Turkey is based on the “Free Zone Law” that was passed already in 1927. After numerous attempts in 1946, 1953 and 1956 Free Zones Act No: 3218 was adopted and first Free Zones began to set in 1986.
In total there are 19 Free Zones in Turkey now. The total turnover of all the companies is $200 billion whether the average number of employees is 56000 people.
ANTALYA FREE ZONE
Antalya Free Zone was founded and its borders were determined upon the Council of Ministers’ Decision which is based on the Free Zones Act No.3218 dated June 6, 1985. It began operating in November 14, 1987. Located adjacent to Antalya Port, its total area is 625.000 square meters.
Initially its main function was giving logistic support to foreign contracting companies. Besides the Free Zone was used as a storage area. Later on it has developed alongside the companies it comprised. Currently there are 106 companies and more that 3500 employees. Companies specialise in yachting, medical sector, textile, agriculture, mine and wood sectors, electrical and electronics, rental and others. The total turnover of Antalya Free Zone reached $10 billion. Every year a number of shipyards located in Antalya Free Zone attend Boat Shows and Yachting Festivals and win numerous awards making the Free Zone one of the biggest repair and maintanance centres in Turkey.
