One of the duties of the Embassy is to promote Swedish, economic interests in Turkey.
The Embassy works in cooperation with The Swedish Trade and Invest Council (Business Sweden) and the Consulate General in Istanbul to assist Swedish companies to establish themselves, or to expand, in the Turkish market.
A rapidly growing market
Turkey is the world's 18th largest economy, with a young population of 79 million. Turkey's economy has been one of the fastest growing economies in the world during the last few years, with an average economic growth of %3 between 2012-2016 which is projected to follow the same trend in 2017.
The Turkish market has become increasingly interesting for Swedish businesses, and it can also constitute a bridge to the markets of the Middle East, South Caucasus and Central Asia. A strong domestic demand resulted in flourishing business relations between Turkish and Swedish companies.
Sweden is at the forefront of countries in support of Turkey’s candidacy to EU. Turkey is part of a customs union within the EU since 1996, meaning that industrial products and refined agricultural products are exempt from customs tariffs (agriculture, services and public procurement are however not part of the customs union agreement). Through the customs union, Turkey is a production platform that is integrated with the EU. The incentives for foreign investments such as free-zones for production are generous. Companies such as Hyundai, Renault and Toyota as well as Swedish Autoliv have located substantial production plants and assembly plants in Turkey, which primarily cater to the European market. The Turkish textile industry is also an advanced sub-contractor to the global garment industry.
Swedish businesses presence and trade with Turkey
The bilateral trade volume between Sweden and Turkey has been realized as 22.7 billion SEK in 2016 with a decrease of 3% compared to last year. Turkey was Sweden’s 19th largest trade partner in terms of exports and 20th largest trade partner in terms of imports in 2016.
The Swedish exports to Turkey amounted to 11.8 billion SEK in 2016 showing a decrease of 10% compared to 2015 (1% of Sweden's total exports). The main Swedish export goods to Turkey are telecommunications equipment, iron ore, paper and pulp.
Since the 1990s, Swedish businesses have been increasingly interested in entering in the Turkish market and Turkey is today home to more than 125 Swedish companies, Ericsson, TeliaSonera, Autoliv, Securitas, H&M, Sandvik, Lindex and IKEA amongst others. Additionally, more than 250 Swedish companies have distributors/agents in Turkey.
Swedish companies in Turkey are mainly concentrated in health and life science, ICT, industrial equipment and vehicles, transport systems, energy and environmental technology, food, safety security, maritime, retail, packaging, utilities, mining, wood, construction and chemical sectors.
Swedish business interests in Turkey are represented by the Swedish Chamber of Commerce in Istanbul.
The imports from Turkey in 2016 amounted to 10.9 billion SEK, with an increase of 5% from the previous year (1% of total imports to Sweden). The main import goods from Turkey are various industrial products namely motor vehicles parts, textiles, machinery, electrical equipment and mining ores.