Investor Guide – Saudi Investors – September 2026

Investing in Türkiye: A Practical Guide for Saudi Investors

Opportunities, incentives, tax and legal protection — explained clearly

15 September 2026

Economic relations between Türkiye and Saudi Arabia have entered a new phase. The relationship is no longer limited to conventional trade: it is increasingly built on long-term investment, industrial cooperation, technology transfer and joint ventures. Saudi capital is already present in Turkish financial services, manufacturing and real estate, while new opportunities are emerging in renewable energy, technology, tourism and logistics.^[7]

For Saudi companies, investment groups, family offices and private investors, this creates a growing range of options — from establishing a presence in Türkiye to acquiring Turkish companies or developing cross-border projects. This guide explains where the opportunities are, how to structure an investment, which incentives and tax rules apply, and how your investment is protected.

How Can You Invest in Türkiye?

Türkiye’s foreign direct investment framework is built on equal treatment. International investors may establish any company type provided under the Turkish Commercial Code, and the conditions for setting up a company or transferring shares are generally the same as for local investors.^[3] Saudi investors typically use one or more of the following routes:

• Acquire shares in an existing Turkish company.
• Form a joint venture or an industrial partnership combining Saudi capital with Turkish production capacity, expertise and technology.
• Invest through an investment fund, including real estate and venture capital funds.
• Set up a new company — a limited liability company (Ltd. Şti.) or joint stock company (A.Ş.), which can be 100% Saudi-owned.
• Invest directly in assets such as hotels, residential and commercial property, or energy projects.

The right structure depends on your commercial goals, financing model, tax position and exit plans. Deciding this at the outset avoids costly restructuring later.

Key Sectors for Saudi Investors

Renewable Energy

Renewable energy has become a flagship area of Türkiye–Saudi cooperation. Under the February 2026 intergovernmental agreement, Saudi companies are expected to develop solar and wind projects with a total installed capacity of up to 5,000 MW. The first phase focuses on two large-scale solar power plants in Sivas and Karaman with a combined capacity of 2,000 MW, to be financed through external funding with support from international financial institutions.^[1]

The projects carry a 50% localisation target to support domestic production and supply chains, with construction expected to begin in 2027 and completion planned between 2027 and 2029. They also support Türkiye’s national target of 120,000 MW of installed solar and wind capacity by 2035.^[1] Beyond generation, this creates opportunities in project finance, energy infrastructure, equipment manufacturing and local supply chains.

Turkish Companies, Manufacturing and Strategic Partnerships

Saudi investors are showing increasing interest in Turkish companies and assets through investment funds, mergers and acquisitions, joint investment and industrial partnerships. Recent reporting points to a clear shift toward longer-term structures involving technology transfer and localised production, allowing Saudi investors to benefit from Türkiye’s established manufacturing capabilities and technical expertise.^[7]

This direction is supported at government level. In March 2026, the Saudi-Turkish Coordination Council’s committee on trade, industry, investment, infrastructure and energy agreed to prepare a work plan covering 22 joint initiatives, and the two countries have highlighted opportunities in industry, technology, food and agriculture, transport, infrastructure, energy and finance.^[2]

Before completing an acquisition or partnership, investors should review corporate ownership, existing contracts and liabilities, regulatory requirements, employment matters, tax exposure and potential disputes. The appropriate structure will depend on whether the investment takes the form of a share acquisition, joint venture, new company or fund.

Tourism and Hospitality

Türkiye’s tourism sector offers participation through hotels and hospitality projects, tourism-related real estate, joint ventures with Turkish operators and tourism development projects. The country has an established investment ecosystem in this field: the 2026 Tourism Investment Forum in Istanbul brought together investors, financial institutions, hotel brands, developers and policymakers around hospitality investment and financing.^[8]

The sector is a natural fit for Saudi investors: Saudi Arabia is itself experiencing substantial growth in tourism investment under its diversification strategy, and both governments have placed tourism among the sectors targeted for deeper cooperation.^[9] Hotel acquisitions and developments require careful review of title, zoning and construction permits, tourism licences, financing, management or franchise agreements, and tax.

Technology and Digital Investment

In their February 2026 joint statement, Türkiye and Saudi Arabia identified the digital economy, artificial intelligence, emerging technologies and space technologies as fields for deeper cooperation.^[9] Technology, science and research are also part of the Coordination Council’s 22-initiative work plan.^[2] Opportunities include digital infrastructure, data centres, AI, smart-city technologies, cloud services, mobility solutions and technology partnerships with Turkish companies.^[9] Such investments should address licensing, intellectual property, data protection, cybersecurity and technology-transfer arrangements from the outset.

Real Estate and Urban Development

In July 2026, Saudi and Turkish officials discussed expanding cooperation in housing, real estate and urban development, including private-sector partnerships and real estate financing, and the two ministries signed a memorandum of understanding to support investment partnerships in these areas.^[10] Türkiye’s property market continues to attract significant foreign capital: real estate FDI reached approximately USD 2.8 billion in 2024, or 25% of total FDI inflows, with opportunities across residential, commercial, urban development and logistics property.^[11]

Before buying, a legal review should confirm title ownership, mortgages and other encumbrances, zoning and construction status, and any restrictions on foreign ownership.^[12]

Islamic (Participation) Finance in Türkiye

Saudi investors can structure transactions in line with Islamic finance principles in Türkiye. The country has a well-established participation (interest-free) banking sector regulated under Banking Law No. 5411, and lease certificates (sukuk) are issued by both the Turkish Treasury and private issuers. Several participation banks have Gulf shareholders — among them Türkiye Finans Katılım Bankası, a subsidiary of the Saudi National Bank.

In practice, this means that property acquisitions, project finance, working capital and corporate transactions can be financed through participation-finance structures such as murabaha, ijara and musharaka-based products.

Investment Incentives: What Support Is Available?

Saudi investors can benefit from Türkiye’s investment incentive system on the same basis as any other international investor. Depending on the nature, location, scale and strategic importance of the project, qualifying investments may receive support such as VAT and customs-duty exemptions on machinery and equipment, corporate tax reductions, social security premium support, financing support and land allocation.^[13]

Incentives are granted through an investment incentive certificate issued before the investment is made, so eligibility should be checked at the planning stage rather than after purchases have been completed.

New in 2026: 20-Year Income Tax Exemption on Foreign Income

Türkiye introduced a major new incentive for people relocating to the country. Law No. 7582, published in the Official Gazette on 4 June 2026, added Article 20/D (repeated) to the Income Tax Law. Under this rule, individuals who become resident in Türkiye — and who had neither a residence nor an income tax liability in Türkiye during the previous three calendar years — can have their foreign-source earnings and income exempted from Turkish income tax for 20 years.^[6]

The exemption applies to individuals considered settled in Türkiye from 1 January 2026. Exempt foreign income does not need to be declared in Türkiye. Income generated inside Türkiye — for example, rent from a Turkish property or profits from local business activity — remains taxable under the normal rules. To benefit, an application must be made to the tax office, generally by the end of the year in which the individual is considered settled in Türkiye (or by the end of February of the following year for those who settle in the last two months of the year).^[14]

Residence Permits and Citizenship through Investment

Many Saudi investors want to live in Türkiye as well as invest there. Foreign nationals who own residential property may apply for a renewable short-term residence permit.^[12] Since 16 October 2023, the property must be worth at least USD 200,000, and it must be located outside neighbourhoods that are closed to new residence registrations for foreigners.^[15]

For those seeking a second citizenship, Türkiye’s exceptional citizenship-by-investment framework offers several routes, subject to the applicable conditions:^[12]

Tax: The Türkiye–Saudi Arabia Double Taxation Convention

Türkiye and Saudi Arabia are parties to the Convention for the Avoidance of Double Taxation and the Prevention of Tax Evasion with Respect to Taxes on Income, signed in Ankara on 9 November 2007 and in force since 1 April 2009. It allocates taxing rights between the two countries and prevents the same income from being taxed twice.^[4]

Treaty rates apply only where the Convention’s conditions are met.^[4]

Under Articles 5 and 7, business profits of a Saudi company are generally taxable only in Saudi Arabia unless it carries on business in Türkiye through a permanent establishment, such as a branch, office, factory or workshop.^[4]

The Convention also matters when you exit. Under Article 13, gains from selling immovable property in Türkiye may be taxed in Türkiye, and gains from selling shares in a Turkish-resident company may also be taxed in Türkiye; other capital gains are generally taxable only in the seller’s country of residence, subject to the Convention’s exceptions. Article 23 eliminates double taxation by allowing a deduction for tax paid in the other country and, in Saudi Arabia’s case, preserves the Zakat collection regime applicable to Saudi nationals.^[4]

The Convention should always be read together with domestic tax rules and the structure of the specific transaction.

How Your Investment Is Protected

Investment Treaties

The Saudi Arabia–Türkiye Bilateral Investment Treaty was signed on 8 August 2006 and has been in force since 5 February 2010. Both countries are also parties to the Organisation of Islamic Cooperation’s Agreement on Promotion, Protection and Guarantee of Investments.^[5] Treaties of this kind generally provide protections such as fair and equitable treatment, protection against unlawful expropriation, the free transfer of investment-related payments, and access to international arbitration, subject to their specific terms.

Arbitration, Enforcement and Documents

Both Türkiye and Saudi Arabia are parties to the 1958 New York Convention, so arbitral awards can be enforced in either country under a common framework.^[16] Foreign court judgments may be enforced in Türkiye under Law No. 5718 on International Private and Procedural Law, subject to conditions including reciprocity.^[17] Both countries also apply the Hague Apostille Convention, which simplifies the use of Saudi public documents in Türkiye.^[18]

Judicial Cooperation

On 3 February 2026, the Ministries of Justice of Türkiye and Saudi Arabia signed a Memorandum of Understanding on Judicial Cooperation in Riyadh.^[19] The Ministers of Justice met again in Ankara on 22 July 2026 to discuss its implementation, mutual legal assistance and cooperation in combating crime.^[20][21] Both countries are also parties to the United Nations Convention against Transnational Organized Crime, Article 18 of which provides a framework for mutual legal assistance.^[22]

Your Legal Checklist Before Investing

• Choose the right vehicle: acquisition, joint venture, fund, new company or direct asset investment.
• Carry out legal and financial due diligence on any target company, partner, hotel or property.
• Decide early whether the transaction will be financed through participation-finance structures.
• Confirm sector-specific licences and regulatory approvals.
• Check eligibility for investment incentives and treaty tax benefits, including the 5% dividend rate.
• Plan residence permits, citizenship and — where relevant — the 2026 foreign-income tax exemption for family members and key individuals.
• Agree clear governing-law and arbitration clauses in all key contracts.

Frequently Asked Questions

Can a Saudi investor own 100% of a Turkish company?

Yes. International investors may establish any company type under the Turkish Commercial Code on the same terms as Turkish investors.^[3]

Can I finance a purchase in line with Islamic finance principles?

Yes. Türkiye has a well-established participation banking sector and a sukuk market, so property and corporate transactions can be structured without conventional interest-based financing.

What tax applies to dividends paid to a Saudi parent company?

Under the tax treaty, Turkish tax is limited to 5% where the Saudi company directly holds at least 20% of the capital, and to 10% in other cases, provided the conditions are met.^[4]

Can my family obtain Turkish citizenship through investment?

Yes. Acquiring real estate worth at least USD 400,000, subject to a three-year no-sale annotation, is the most common route; other investment routes are also available.^[12]

References

1. Presidency of the Republic of Türkiye Investment and Finance Office, “Türkiye and Saudi Arabia Sign USD 2 Billion Renewable Energy Investment Agreement,” 3 February 2026. Source
2. Saudi Press Agency, “Saudi-Turkish Committee on Trade and Investment Meets,” 11 March 2026. Source
3. Presidency of the Republic of Türkiye Investment and Finance Office, “Establishing a Business.” Source
4. Saudi Zakat, Tax and Customs Authority (ZATCA), Convention between the Government of the Kingdom of Saudi Arabia and the Government of the Republic of Turkey for the Avoidance of Double Taxation and the Prevention of Tax Evasion with Respect to Taxes on Income, signed 9 November 2007; in force 1 April 2009. Source
5. UNCTAD Investment Policy Hub, International Investment Agreements — Türkiye. Source
6. Law No. 7582, Official Gazette of the Republic of Türkiye No. 33270, 4 June 2026 (Income Tax Law, Article 20/D (repeated)).
7. Asharq Al-Awsat, “Ankara Seeks to Take Saudi Economic Ties to ‘Higher Levels’,” 10 September 2026. Source
8. Tourism Investment Forum, Istanbul, 2026 Program. Source
9. Union of OIC News Agencies, “Joint Statement Issued at the Conclusion of the Visit of the President of the Republic of Türkiye to the Kingdom of Saudi Arabia,” 4 February 2026. Source
10. Saudi Press Agency, “Minister of Municipalities and Housing Discusses Strategic Partnership and Expansion of Real-Estate Investment with Turkish Counterpart,” 8 July 2026. Source
11. Presidency of the Republic of Türkiye Investment and Finance Office, “Real Estate.” Source
12. Presidency of the Republic of Türkiye Investment and Finance Office, “Acquiring Property and Citizenship.” Source
13. Presidency of the Republic of Türkiye Investment and Finance Office, “Incentives Guide,” 2026. Source
14. Income Tax General Communiqué (Serial No. 333), Official Gazette of the Republic of Türkiye, 4 July 2026.
15. Presidency of Migration Management, implementing instruction on property-based short-term residence permits, 16 October 2023.
16. Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York, 1958) — status of parties, UNCITRAL.
17. Law No. 5718 on International Private and Procedural Law (MÖHUK), Articles 50–54.
18. Hague Conference on Private International Law (HCCH), status tables of the Apostille, Service and Evidence Conventions.
19. Republic of Türkiye Ministry of Justice, Directorate General for Foreign Relations and European Union, “Memorandum of Understanding” list – Saudi Arabia entry, 3 February 2026, Riyadh. Source
20. Republic of Türkiye Ministry of Justice, Türkiye–Saudi Arabia judicial cooperation meeting, 22 July 2026. Source
21. Hürriyet Daily News, “Türkiye, Saudi Arabia seek closer judicial cooperation,” 22 July 2026. Source
22. United Nations Treaty Collection, United Nations Convention against Transnational Organized Crime – status of parties and treaty text. Source

Disclaimer: This guide is provided for general information only and does not constitute legal or tax advice. Laws, thresholds and administrative practice may change, and the application of any rule depends on the facts of each case. Specific advice should be obtained before making an investment decision. Information is current as of 15 September 2026.