• It is the spirit and not the form of law that keeps justice alive.
    Earl Warren

REGULATION ON DETERMINATION OF INVESTMENT ZONES

The Ministry of Industry and Commerce (“Ministry”) published their Regulation on Determination of Investment Zones (“Regulation”) in the Official Gazette dated 01.12.2018 and numbered 30612. The Regulation has been drafted in accordance with the Decree on the Presidential Organization published in the Official Gazette dated 10.07.2018 and numbered 30474 (“Decree”), in which the duties and authorities of the Ministry and its directorates are laid out. The Regulation entered into force on the date of its publication. The purpose of the Regulation is to determine the suitable places beforehand in order to accelerate the establishment process of organized industrial zones, technology development zones, free zones, industrial areas; and to determine the procedures and principles for building the infrastructure of such areas to be deemed suitable.

 

Article 385/1(ç) and 390/1(b) of the Decree have already announced that the Ministry would soon publish the regulation with respect to the procedures and principles for determining and declaring the suitable areas for organized industrial zones, technology development zones, free zones, industrial areas. With the publication of the Regulation, it has become clearer what the criteria are and how the relevant bodies of the Ministry will determine the necessary areas.

 

The Ministry shall initially make pre-determination of investment zones by identifying the areas that belong to the Treasury, are non-forest land and/or outside-registration and are in accordance with the environment and land use plans. However, private properties may also be included in such areas should there be a technical necessity in terms of territorial, planning and infrastructural integrity.

 

With this Regulation, the period for establishing investment zones is aimed to be decreased by making use of Treasury lands and avoiding expropriation procedures and fees, as it has been very common for the state to face lawsuits against its expropriations. In practice, previously it used to take the state at least one year just to determine the land to be used as an investment zone. However, now the government expects to consummate the procedure for legally determining the land on which investment zones will be established in a much shorter time, such as one month. The Regulation is also expected to minimize the infrastructure-related costs that the investors would bear; thereby entice the investors into the country and consequently boost the economy.

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