October 2026

The Turkish economy continues to evolve in a still challenging environment, but several recent indicators point to an encouraging momentum.

In September, annual inflation fell to 29.73%, dropping below the 30% threshold for the first time since November 2021. This marks an important milestone in the disinflation process initiated by the Turkish authorities.

Against this backdrop, on 22 October, the Central Bank decided to lower its policy rate from 37% to 36%, a reduction of 100 basis points and the first rate cut since January 2026. While vigilance remains necessary, particularly in view of persistent price pressures, these developments point towards a gradual stabilisation of the economic environment.

At the international level, trade relations with the European Union are also continuing to advance. With €217.6 billion in trade in goods in 2025, the EU remains by far Türkiye's largest trading partner, confirming the close integration of their economies and industrial value chains. It was against this backdrop that the third Türkiye–EU High-Level Trade Dialogue took place in Brussels on 13 October. The meeting resulted in several concrete steps aimed at facilitating trade, including the announced removal of an obstacle to import inspections under Türkiye's TAREKS system and the completion of the alignment of Turkish regulations with the EU's new Machinery Regulation.

Both parties are also continuing their work on the mutual recognition of Authorised Economic Operators (AEOs), import surveillance regimes and regulatory cooperation across several sectors, including cosmetics, pharmaceuticals and energy labelling. These issues are directly relevant to European companies exporting to Türkiye or relying on its industrial base for their sourcing needs. While some commitments remain to be implemented, the shared determination to reduce trade barriers sends a positive signal for the development of bilateral trade.

This momentum for cooperation is also reflected in Franco-Turkish relations. On 3 October, France and Türkiye signed a roadmap aimed at strengthening their cooperation in defence and security. Beyond strategic and military dialogue, the agreement notably provides for closer exchanges in air defence, intelligence, countering hybrid threats and the defence industry.

For French industrial companies, this initiative deserves particular attention. Türkiye has a developing defence industrial ecosystem, and this rapprochement could eventually foster new business collaborations, technological partnerships and joint industrial projects.

These various developments highlight that, despite the economic challenges that remain, Türkiye retains a strategic position in European trade and continues to offer growth opportunities for international companies. Its industrial base, geographical position and the integration of its value chains with Europe are all significant advantages for companies looking to export to Türkiye, source products there or establish a local presence.

Economic & business news from Türkiye

CFM International strengthens its partnership with Turkish Airlines

CFM International (CFM), a joint venture equally owned by French group Safran and US-based GE Aerospace, is strengthening its partnership with Turkish Airlines through an agreement covering more than 300 LEAP-1B engines and long-term maintenance services.

These engines will power the 150 Boeing 737 MAX aircraft ordered by Turkish Airlines on 23 September, comprising 100 firm orders and 50 options.

In addition to engine deliveries, the agreement includes three major components:

• Long-term services covering more than 600 LEAP-1B engines operated by Turkish Airlines and its subsidiary AJet.
• The establishment of a state-of-the-art engine maintenance, repair and overhaul (MRO) facility in Türkiye.
• A parts supply agreement with Turkish Technic, which will strengthen its industrial capabilities in engine maintenance and contribute to the development of the local aerospace ecosystem.

Olivier Andriès, CEO of Safran, emphasised that this agreement marks a new milestone in nearly 40 years of partnership with Turkish Airlines. It reflects a shared ambition to support the airline's growth and fleet expansion while developing an open maintenance ecosystem that offers greater flexibility and competitive services.

This deal highlights industrial development opportunities in Türkiye in the aerospace sector, industrial maintenance and technological cooperation.

Source: GlobeNewswire, 16 October 2026

Kansai Paint acquires the remaining 50% stake in Polisan

The Turkish Competition Authority has approved the acquisition by Japan's Kansai Paint of the 50% stake in Polisan Kansai Boya held by Marmara Holding, for USD 93 million. The transaction will make the Japanese group the sole shareholder of one of the established players in Türkiye's paint market.

A transaction building on a partnership established in 2016

Founded in 1964 by the Bitlisi family, Polisan brought Kansai Paint into its shareholding structure in 2016. As part of a total investment of USD 113.5 million, the Japanese group acquired a 50% stake from Polisan Holding.

In September 2025, a restructuring of Polisan Holding led to the transfer of this 50% stake to Marmara Holding, a company controlled by the Bitlisi family and established to bring together several industrial and chemical assets. In June 2026, Kansai Paint began negotiations to acquire Marmara Holding's stake. A preliminary agreement was signed in June, followed by the final share purchase agreement in September for USD 93 million.

Kansai Paint at a glance

• Nearly USD 4 billion in annual revenue
• 17,000 employees
• 93 production sites across 34 countries
• Automotive coatings account for 26% of revenue

This transaction marks a new stage in the evolution of Polisan Kansai Boya's ownership structure and strengthens the Japanese group's presence in the Turkish paint market.

Source: Patronlar Dünyası, 29 September 2026

Uniper and Biotrend explore Türkiye’s biomethane potential

German energy company Uniper and Turkish company Biotrend Enerji have signed a Memorandum of Understanding (MoU) to explore biomethane production in Türkiye and its export potential to European markets.

The objective is to assess the conversion of some of Biotrend’s existing facilities, currently dedicated to producing biogas and electricity from organic waste, to enable biomethane production.

Key figures:

• Up to 50 TWh/year: estimated untapped biomethane potential in Türkiye.
• 1.4 TWh/year: estimated production potential of Biotrend’s current portfolio.
• Potential supply to Europe: using existing gas infrastructure, subject to the applicable regulatory frameworks and required certifications.

According to Michael Lewis, CEO of Uniper: “European industry needs reliable and competitive solutions to reduce its emissions. Biomethane can be transported through existing gas infrastructure and supplied to customers without requiring fundamental changes to their processes.”

At this stage, the MoU covers only the initial project development phase and does not constitute an investment decision or a firm offtake commitment. The implementation of future projects will depend, in particular, on regulatory conditions, certification requirements, and technical and commercial feasibility.

Source: Uniper press release, 30 September 2026

Florentia Village opens: a new luxury outlet destination

Istanbul welcomes a new destination dedicated to luxury shopping with the opening of Florentia Village Türkiye, the country’s first luxury outlet centre designed to international standards. Developed by Kalyon Holding Construction and Italian group RDM Fingen Group, the project represents an investment of €250 million and reflects Türkiye’s ambitions to develop shopping tourism.

Key figures:

• 65,000 m² of gross leasable area in the first phase.
• 190 boutiques featuring international brands.
• An additional 45,000 m² planned for the second phase, bringing the total area to 110,000 m².
• More than 15 million visitors expected annually.
• More than 5,000 direct jobs targeted.

Located just five minutes from Istanbul Airport, Florentia Village aims to become one of Europe’s largest outlet centres and one of the most significant worldwide. The site targets an international clientele, with the ambition of having foreign visitors account for more than 40% of its total footfall in the long term.

Beyond retail, the project is part of a broader vision known as “Airport City”. Presented by Murathan Kalyoncu, Chairman of Kalyon Construction, this ambition seeks to develop a new economic and tourism ecosystem around Istanbul Airport, bringing together retail, gastronomy, culture, art and entertainment.

The project illustrates how international investment is helping transform Türkiye’s retail and tourism landscape.

Source: Daily Sabah, 18 September 2026

USD 750 Million in funding to strengthen the competitiveness of Türkiye’s Agri-Food sector

The World Bank has approved USD 750 million in funding for Türkiye’s agri-food sector.

Implemented by the Ministry of Agriculture and Forestry and the Agriculture and Rural Development Support Institution, this funding aims in particular to:

• Strengthen the competitiveness of agri-food value chains.
• Increase producer productivity.
• Improve market access.
• Support sector modernisation and rural economic development.

This latest operation brings the total amount of long-term external financing provided by the World Bank to Türkiye since the beginning of 2026 to more than USD 9 billion.

For French and international companies operating in agriculture, agri-food, agricultural equipment and technologies, increased investment and productivity in the sector could create new opportunities for growth in the Turkish market.

Source: Yeni Şafak, 25 September 2026

Igloo launches cyber insurance in Türkiye

Singapore-based insurtech company Igloo is entering the Turkish insurance market through a partnership with Sigortayeri, the technology subsidiary of Aktif Bank, to launch a cyber insurance product for individuals.

Distributed through the N Kolay banking app, which has 8 million users, the new offering covers several digital risks, including cyberbullying, identity theft, online fraud, digital extortion and security vulnerabilities in home networks.

This move marks Igloo’s first expansion beyond the Asia-Pacific region. Already operating in six Southeast Asian markets, where it has facilitated the purchase of more than 2.2 billion insurance policies, the company intends to use Türkiye as a gateway to new markets in the Middle East, Central Asia and North Africa.

A market with growth potential: With insurance penetration standing at 2.62% of GDP at the end of 2025, compared with a target of 4.7% by 2030, Türkiye offers growth prospects for providers of innovative insurance solutions, particularly in cybersecurity.

This transaction highlights the attractiveness of the Turkish market for international fintech companies looking to accelerate their regional expansion.

Source: Beinsure, 13 October 2026