Türkiye emerges as a stable business hub amid regional uncertainty

Amid ongoing instability across the Middle East, Türkiye is increasingly viewed as a relatively stable and diversified base for investors and businesses, creating new opportunities for investment and growth.

After several years of economic turbulence, the country’s business environment is becoming more predictable, although high inflation, borrowing costs and regulatory change continue to challenge companies.

In the latest International Accounting Bulletin (IAB), MGI Worldwide members Baycan Aksu, partner at Bağımsız Denetim A.Ş. and İsmail Vefa AK, partner at Vizyon, both based in Istanbul, joined other industry leaders to share their views on the evolving Turkish business environment, the changing demands on professional services firms and the opportunities emerging from regional uncertainty.

A more predictable business environment

Türkiye’s monetary conditions remain tight, with financing costs still elevated and access to credit selective. Although borrowing remains challenging, businesses are operating in a more stable economic environment than in recent years.

“Compared with the instability seen during the peak inflation period of 2022–2024, the business environment has become more predictable. The return to more orthodox monetary and fiscal policies has improved investor sentiment and restored a degree of confidence among international lenders and foreign investors.”
— Baycan Aksu

Businesses still face significant challenges, including persistent inflation and wage pressure, high borrowing costs and regulatory unpredictability. “Overall, the environment is less hostile than during the peak crisis period, but it remains difficult and highly cost-sensitive,” adds Baycan. “Companies are more cautious with investment decisions, and many are prioritising liquidity preservation and operational efficiency.”

The conflict in the Middle East has also changed the nature of demand, with professional services firms seeing greater need for restructuring, cash flow and risk management, as well as independent audit support linked to inflation accounting and going-concern assessments.

New opportunities for professional services

For İsmail, regional instability is creating increased interest in Türkiye, particularly in financial services, investment advisory and corporate structuring.

“Türkiye is increasingly viewed as a relatively stable and well-established regional base. We have observed growing interest from foreign investors in acquiring Turkish companies, entering into partnerships, investing in Turkish capital markets and using Türkiye as a regional platform. Financial services, corporate finance, valuation, restructuring and tax advisory services are therefore seeing stronger demand.”
— İsmail Vefa AK

A more competitive market

The accounting profession in Türkiye is evolving rapidly, with new firms entering the market and expanding the range of specialist advisory services available to businesses.

“This has made the market more competitive and entrepreneurial,” explains İsmail. “It has also created more boutique and specialist advisory firms that can serve clients in areas such as tax, audit, transfer pricing, corporate finance, sustainability reporting and regulatory consulting.”

However, competition for talent is adding further pressure. “In some cases, the transfer of trained personnel between firms has created concerns around unfair competition, and there have been public reviews and investigations in relation to practices that may affect competition in the sector,” he adds.

Demand set to grow

İsmail is confident that demand will continue to grow over the next 12 months. “Regional instability and security concerns in the Gulf and the wider Middle East may encourage more investors and businesses to consider Türkiye as a safer and more diversified regional base,” he says.

“This should support further growth in accounting, audit, tax advisory, corporate finance and restructuring services. From the perspective of the accounting profession, the next 12 months are likely to bring both stronger client demand and a need for higher-quality, more specialised advisory services.”

Looking ahead

Despite continued pressure on margins, talent and operating costs, the outlook for the profession remains positive. Growing investor interest, new advisory opportunities and Türkiye’s emerging role as a regional base are expected to support demand for higher-value, specialist services.

Overall, Türkiye’s business environment remains challenging but is becoming more predictable, while regional uncertainty is opening new opportunities. For accounting and advisory firms, success will depend on combining specialist expertise with the flexibility to respond to changing client needs.

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