Turkey is positioning Istanbul as a rival to Dubai by expanding tax incentives and support measures to attract international investors. According to a report citing a senior Turkish official, Ankara plans to enhance benefits already available at the Istanbul Financial Center (IFC), including tax exemptions and income incentives for foreign professionals. The move comes as regional instability, triggered by Iran’s retaliatory attacks on Gulf financial hubs following strikes by the United States and Israel, threatens the Middle East’s investment centers.

Bloomberg reported that Turkey intends to broaden these tax incentives for multinational companies, allowing up to 50 percent tax exemption on income from foreign trade activities. Earlier this year, President Recep Tayyip Erdoğan hosted 40 global CEOs at a World Economic Forum event in Istanbul, signaling growing foreign interest in Turkey’s investment landscape. IFC’s CEO said some firms are considering relocating or expanding operations in Turkey due to the Iran conflict.

However, concerns remain over Turkey’s legal system, inflation, and rule of law, which some international bankers say could deter investors. Officials acknowledge that addressing these issues is key to attracting data centers and AI companies.