Key facts
- Ataturk Airport is being converted into Terminal Istanbul, a startup and entrepreneurship hub.
- The project aims to become the world's largest hub for startups and entrepreneurs.
- The first phase will open 5,000 sqm to 50 startups next month.
- Techstars and Shanghai State-owned Capital Investment have signed agreements to be part of the hub.
- The Turkish government is offering tax incentives to attract foreign investors and businesses.
- A one-stop service center for immigration, social security, and taxation will be available.
Turkey is transforming the abandoned Ataturk Airport in Istanbul into Terminal Istanbul, a massive hub designed to foster startups and entrepreneurs and attract global investors. The project aims to repurpose the vast airport, which closed in 2018, into modern workspaces, meeting rooms, co-working spaces, and incubation centers.
Erkam Tuzgen, chief executive of the Terminal Istanbul initiative, stated the goal is to create an ecosystem that attracts both local and foreign talent and capital. The first phase, opening next month, will feature 5,000 square meters and accommodate 50 startups, with plans to expand to 100 by year-end. The initiative has already secured a memorandum of understanding with Techstars, a prominent global organization in the entrepreneurship sector, which will establish incubation and globalization programs at the site. Additionally, Shanghai State-owned Capital Investment, a Chinese government entity managing significant assets, has agreed to open an office to connect with startups seeking investment.
Several venture capital firms, including Disrupt, Enhance Ventures, and Uzbekistan's UzVC, are in negotiations to establish a presence within the complex. The Turkish government is supporting the initiative with tax incentives, including a 20-year exemption for certain foreign residents and further relief for technology startups, positioning Turkey as an alternative to Gulf countries for businesses and investors. A one-stop service center for immigration, social security, and taxation is also planned to streamline bureaucratic processes for investors and employees.
Despite potential concerns regarding Turkey's regulatory environment, rule of law, and economic challenges like high inflation, Terminal Istanbul aims to address these issues. The project will also leverage the airport's existing VIP terminal, allowing private jet access for investors. The initiative has garnered international attention, with a prince from a Gulf kingdom expressing interest in replicating the model in his own country.