GLOSSARY

Harmonized System (HS)

A standardized numerical method of classifying traded products used by customs authorities around the world to identify products when assessing duties and taxes and for gathering statistics. The equivalent of HS Code is GTIP code.

Accelerator

An institution which provides cohort-based programs through mentorship, space, connections, and educational components, usually culminating in a pitch event to accelerate growth.

Acquisition

A financial transaction where a company purchases most or all of another company's shares to gain control of that company.

Advisor

Investment banks and financial advisory firms that invest into startups.

Ally-shoring

The process by which countries rework critical supply chains and source essential materials, goods, and services among and between trusted democratic partners and allies, with a focus on investing in the short and long-term relationships that protect and enhance joint economic and national security.

Alternative Financial Investments

A wide range of investment opportunities that fall outside the traditional categories of stocks, bonds, and cash and are often considered non-traditional or unconventional, involving different asset classes, strategies, and risk profiles.

Angel Investor

An individual who provides capital as well as mentorship and guidance to early-stage startups in exchange for equity ownership.

Asset Management

The practice of increasing total wealth over time by acquiring, maintaining, and trading investments that have the potential to grow in value.

Assets Under Management (AUM)

The market value of the investments managed by a person or entity on behalf of clients.

Bankruptcy

A legally declared state that is usually triggered by a company’s failure or impaired ability to meet its contractual debt obligations.

Bilateral Investment Treaty (BIT)

A treaty between two countries that establishes a framework for the protection of foreign investments and investors.

Bio-Based Feedstocks

Raw materials of biological origin grown and naturally replenished at a human time scale, excluding materials embedded in geological formations and/or fossilized.

Biodegradable Polymers

A special class of polymers that breaks down after its intended purpose by bacterial decomposition process to result in natural byproducts such as gases, water, biomass, and inorganic salts.

Bootstrapping

A method of financing a business by using personal savings, revenue generated by the business, or minimal external capital.

Brown Bonds

Bonds issued to finance projects that focus on environmental sustainability and climate resilience.

Brownfield Investment

A form of FDI where an existing company or facility in the host country is acquired or expanded by a foreign investor.

Buyout

The acquisition of a controlling interest in a company and is used synonymously with the term acquisition.

Capacity Expansion and Modernization

A form of FDI where a where a company or investor expands the capacity of an existing business or facility in a foreign country.

Capital Flow

The movement of funds across borders for investment purposes, including FDI, portfolio investments, and loans.

Capital Intensive

Investment in projects or industries that require significant amounts of capital, often associated with infrastructure and heavy industries.

Capital Repatriation

The process of returning invested capital from the host country to the investor's home country.

Carbon Capture and Utilization (CCU)

Investments in technologies that capture carbon dioxide emissions from petrochemical processes and convert them into useful products, such as plastics or fuels.

Carbon Footprint

The total amount of greenhouse gas emissions, usually measured in CO₂ equivalents, generated by an individual, organization, or investment portfolio.

Chemical Recycling

Investment in chemical recycling technologies that break down plastic waste into their molecular components, allowing them to be used as raw materials for new products.

Citizenship by Investment

The process of obtaining a second citizenship and passport by investing in the economy of the host country.

Community Investing

Directing capital to benefit underserved communities or groups, often through initiatives like affordable housing, community development, and microfinance.

Concordatum

An official agreement between the debtor and the creditor(s) which enables the debtors to pay their debts by extending the redemption period or deducting the amount of debt.

Conflict of Interest

A situation where a person or entity's personal interests or relationships could potentially compromise their impartiality or decisions.

Consortium

A group of companies or entities that collaborate on a specific project, often involving FDI projects with multiple stakeholders.

Convertible Debt

A type of debt that can be converted into equity or ownership shares at a later date.

Corporate Social Responsibility (CSR)

A company's commitment to operating ethically and responsibly by considering the interests of various stakeholders, including employees, customers, communities, and the environment.

Corporate Venture Capital

Investment by established corporations in startups that align with their strategic interests, involving financial support as well as potential partnerships or acquisitions.

Cross-Border Merger and Acquisition (M&A)

The acquisition of a company located in one country by an entity from another country.

Crowdfunding

The process of raising capital for a venture or a startup via smaller amounts from many investors with or without the expectation of financial return, or in exchange of a specific good or service.

Customs Duty Exemption

The exemption of customs duties for machinery and equipment imported from abroad within the scope of an incentive certificate.

Customs Tariff Statistical Position (GTIP)

Generally used instead of the tariff schedule, it is actually the name given to the 12-digit code in the Turkish Customs Tariff Schedule.

Data Room

A secure place that is used to store privileged data, usually for legal proceedings or mergers and acquisition transactions.

Decacorn

A company, often in the technology or software sector, with a valuation of over USD 10 billion.

Depreciation

A decrease in the value of a currency relative to other currencies, impacting the cost of imports and the returns on foreign investments.

Development Financial Institution (DFI)

Also known as a development bank, it is a financial institution that provides risk capital for economic development projects on a non-commercial basis.

Disinvestment

The process of selling or divesting assets or investments, often in response to changing market conditions or strategic shifts.

Dispute Resolution

The process of resolving a dispute or conflict between the investor and the host country through international arbitration.

Dispute Resolution Mechanism

Procedures outlined in investment agreements to address disputes that may arise between foreign investors and host countries.

Divestment

The process of selling off assets, divisions, or subsidiaries as part of a strategic decision to focus on core operations or reallocate resources.

Double Taxation Agreement (DTA)

An agreement between two countries to prevent the same income from being taxed twice, reducing tax burdens on foreign investors.

Dry Powder

Money held in reserve by a venture fund or angel investor in order to be able to make investments into startups.

Due Diligence

The process of conducting thorough research and analysis to assess the risks and benefits of an investment opportunity.

Early VC

A type of financing that is typically provided by venture capitalists to startups and small businesses that are in their early stages of development.

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)

A measure of cash flow calculated as: = Revenue - Expenses (excluding tax, interest, depreciation, and amortization).

eCommerce & Marketplace

A place connecting a buyer(s) and seller(s) where goods or services are bought, sold or exchanged.

Efficiency Seeking FDI

FDI that comes into a host country seeking to improve operational efficiency, reduce costs, or enhance productivity.

Emission Reduction Targets

Setting and investing in achieving emission reduction targets, aligning with global climate goals and regulations.

Environmental Impact Assessment

A systematic process used to evaluate the potential environmental consequences or impacts of a proposed project, plan, or development before it is approved, authorized, or implemented.

Environmental Permit

A legal document, also known as an environmental license or authorization, issued by a governmental authority or environmental agency that grants permission for an individual, business, or organization to undertake certain activities or operations that have the potential to impact the environment.

Environmental, Social, and Governance (ESG)

A framework that is used in investment and business decision-making, for evaluating environmental, social, and governance factors of a company or organization, including sustainability practices, ethical business behavior, environmental impact and governance standards.

Equity

The totality of non-debt securities (usually common or preferred shares of stock) issued by the company, or ownership in the capital of a company, usually expressed as a difference between the value of the assets and the value of the liabilities of a company.

Equity Investment

The purchase of shares or ownership stakes in a company, providing the investor with ownership rights and potential financial returns.

ESG Factors

Environmental, social, and governance factors that are considered when evaluating the sustainability performance of an investment.

ESG Integration

The practice of incorporating ESG factors into traditional investment analysis to better understand the potential risks and opportunities associated with a company or project.

ESG Ratings

Scores or assessments assigned to companies based on their performance in environmental, social, and governance areas.

ESG Reporting

The disclosure of a company's ESG performance through standardized reports, allowing investors to assess the company's sustainability efforts.

Ethical Funds

Investment funds that adhere to specific ethical criteria, avoiding companies involved in activities that conflict with certain values or principles.

Ethical Investment

Investment strategies that consider environmental, social, and governance (ESG) factors to align with ethical and sustainable principles.

Exit

The sale or exchange of a significant amount of company ownership for cash (or for debt and/or equity of another company).

Exit Load

A fee or charge imposed on investors who sell or redeem their investment in a mutual fund or similar investment vehicle within a specified period.

Exit Strategy

A plan outlining how a foreign investor intends to withdraw or divest from an investment in the host country.

Expansion

A strategy where an investor increases their investment in an existing operation or enters new business areas in a foreign country to grow their market presence.

Expropriation

The act of a government taking ownership of private property or assets, often with compensation, for public purposes.

Family Office

Private wealth management advisory firm that serves ultra-high-net-worth (UHNW) investors.

FDI Incentive Programs

Government-led initiatives designed to attract foreign investors through special benefits, such as tax incentives or streamlined regulations.

Fixed Investment Amount

The total expenditure on investments, including land, buildings, machinery and equipment, and other investment items (auxiliary machinery and equipment, import and customs expenses, transportation, insurance, and assembly expenses, feasibility, and project expenses, etc.).

Foreign Affiliate

A company in which a foreign investor holds a significant ownership stake, either through FDI or other forms of investment.

Foreign Direct Investment (FDI)

Investment made by a foreign entity (individual or company) in a business enterprise located in another country, with the intention to establish a lasting interest and significant degree of influence or control.

Foreign Direct Investor

An entity (an institutional unit) resident in one economy that has acquired, either directly or indirectly, at least 10% of the voting power of a corporation (enterprise), or equivalent for an unincorporated enterprise, resident in another economy.

Foreign Exchange Control

Regulations imposed by governments to manage and control the flow of foreign currency and investment across borders.

Foreign Investment Promotion Board (FIPB)

A government agency in some countries that facilitates and approves foreign investment proposals, ensuring compliance with regulations.

Franchise

A business arrangement in which a foreign company (franchisor) grants the right to operate its business model to a local entity (franchisee) in exchange for fees and royalties.

Free Trade Zone

A designated area within a country where special regulations and incentives are in place to encourage foreign investments, trade, and economic activities.

Free Zone

A special site within the country but deemed to be outside of the customs borders and they are the regions where the valid regulations to foreign trade and other financial and economic laws are not applicable.

Friction Costs

The expenses and obstacles associated with investing or moving capital across borders, including taxes, tariffs, and administrative charges.

Fund of Funds (FOF)

An investment vehicle where a fund invests in a portfolio composed of shares of other funds rather than investing directly in stocks, bonds, or other securities.

General Investment Incentives

Incentive applications that investments, which do not fall under regional, priority, or large-scale investments, can benefit from, provided they meet the minimum investment amount.

General Partner (GP)

The managing partner in a private equity management company who has unlimited personal liability for the debts and obligations of the limited partnership and the right to participate in its management.

Global Value Chain (GVC)

The interconnected series of activities involved in producing goods or services, where each stage of production may take place in different countries with the goal of maximizing efficiency and minimizing costs.

Green Bonds

Bonds issued to fund environmentally friendly projects, often related to renewable energy, energy efficiency, and sustainable infrastructure.

Green Certifications and Labels

Investing in obtaining green certifications and labels for products to demonstrate adherence to sustainable and environmentally friendly standards.

Green Investing

Investing activities aligned with environmentally friendly business practices and the conservation of natural resources.

Greenfield Investment

A form of FDI where a new business or facility is established from the ground up in the host country.

Greenfield Site

An undeveloped piece of land or property where a new facility or project will be built from scratch, often used for FDI projects.

Growth Equity

A type of investment opportunity in relatively mature companies that are going through some transformational event in their life cycle.

Harmonized System (HS)

Hedge Fund

An investment fund that employs various strategies to generate returns for its investors, often including complex financial instruments.

Home Country

The country of origin or headquarters of a company or investor engaged in foreign direct investment.

Horizontal Technology Spillover

The transfer or diffusion of technological knowledge, innovations or advancements from one industry or sector to another that operates in a similar or related field.

Host Country

The country where foreign direct investment is made or targeted.

Host Country Nationals

Individuals who are citizens or residents of the country where the foreign investment takes place.

Host Government Agreement

An official contract between a foreign investor and the host government that outlines terms, conditions, and obligations for the investment.

Impact Investment

Investments made with the intention of generating positive social or environmental impacts in addition to financial returns.

Incentive Package

Offers made by host countries to attract foreign investors, which can include tax breaks, subsidies, grants, or other financial benefits.

Incentive Zone

A specific geographic area within a country that offers various incentives to attract foreign investments.

Independent Work Permit

The type of work permit issued to foreigners who would like to be self-employed.

Industrial Zone

Investment zones for increasing the national economy’s international competitiveness, facilitating technology transfer, boosting production and employment, accelerating foreign capital inflows, and creating suitable industrial areas for large-scale investments in terms of production costs.

Inflation Hedge

Investments that have the potential to protect against the eroding effects of inflation on purchasing power.

Initial Public Offering (IPO)

The process by which a private company becomes publicly traded by offering its shares for sale on a stock exchange, allowing it to raise capital from public investors.

Innovation Cluster

A geographic concentration of interconnected companies, research institutions, and supporting organizations that promote innovation and collaboration.

Innovation Ecosystem

A network of institutions, organizations, and individuals that support the development and commercialization of new technologies and ideas.

Institutional Infrastructure

The regulatory, legal, and administrative framework that supports and governs foreign investments within a country.

Institutional Investor

Large organizations, such as pension funds, insurance companies, and mutual funds, that invest on behalf of their clients or beneficiaries.

Intellectual Property Rights (IPR)

Legal protections for inventions, creative works, and trademarks to ensure exclusive rights to their use and distribution.

Interest and Profit Share Support

Financial support that foresees the coverage of a portion of the interest or profit share expenses to be paid to intermediary institutions for loans received.

Internal Rate of Return (IRR)

The discount rate that makes the net present value (NPV) of a project zero. In other words, it is the expected compound annual rate of return that will be earned on a project or investment.

Internationalization

The process of expanding business operations beyond domestic borders, often through FDI or exporting.

Investing Country

The country from which the foreign investor originates, providing the investment capital and expertise.

Investment Bank

A bank that provides financial services for corporate and institutional customers, such as investing and raising capital and arranging mergers and acquisitions.

Investment Completion Visa

An approval document indicating that an investment made with an investment incentive certificate has been completed by fulfilling the necessary obligations.

Investment Contribution Amount

The portion of the tax that is waived through reduced corporate tax and covered by the state.

Investment Contribution Rate

The rate that is calculated by dividing the investment contribution amount by the total investment amount.

Investment Fund

A supply of capital belonging to numerous investors used to collectively purchase securities while each investor retains ownership and control of his own shares.

Investment Incentives

All financial resources, aid, and incentives provided by the government to promote the faster development of specific sectors.

Investment Promotion Agency (IPA)

A government agency responsible for attracting foreign investments and assisting investors in navigating the local business environment.

Investment Protection

Provisions in agreements that safeguard the rights of foreign investors from unfair treatment, discrimination, and unjust expropriation.

Inward FDI

Foreign investment flowing into a host country from foreign investors.

Joint Venture

A business arrangement in which two or more parties pool their resources and expertise to establish a new entity, often for a specific project or venture.

Labor Intensive

Investment in projects or industries that rely heavily on manual labor, often found in manufacturing and agriculture.

Late VC

A type of financing that is typically provided by venture capitalists to startups that have a proven track record of success and are looking to expand their business.

Leasing

A legal and financial arrangement, also known as "renting" or "lease agreement", in which one party (the lessor) allows another party (the lessee) to use an asset, such as real estate, equipment, or a vehicle, for a specified period in exchange for regular payments, often called "lease payments" or "rent."

Limited Partner (LP)

An individual or an entity that invests in private equity funds managed by a General Partner (GP), and has limited liability to the extent of their investment, and has no management authority.

Local Content Requirement

A mandate that requires a certain portion of a product's components or materials to be sourced locally.

Low-Emission Technologies

Investments in technologies that reduce emissions during petrochemical production processes, such as improved catalysts and efficient energy utilization.

Market Access

The ability of international investors to enter and participate in a host country's market, often subject to specific conditions or regulations.

Market Entry Strategy

The approach an international investor adopts to enter a new market, which may involve joint ventures, acquisitions, greenfield investments, etc.

Market Seeking FDI

Investments made to access and serve new markets in the host country, often driven by consumer demand.

Mediation

A structured, interactive process where an impartial third party neutrally assists disputing parties in resolving conflict with specialized communication and negotiation techniques.

Medium-High Technology Investment Incentives Scheme

Incentives for investments made in the medium-to-high technology group according to the technology intensity definition of the Organization for Economic Cooperation and Development (OECD).

Memorandum of Understanding (MoU)

A preliminary agreement that outlines the terms and understanding between parties involved in a potential investment or partnership.

Merger

A fusion of two companies into one new legal entity agreed on generally equal terms.

Mergers and Acquisitions (M&A)

The process of one or more companies merging or one company acquiring another with the aim of business expansion, increasing market share or gaining a competitive advantage.

Microfinance

Providing small loans and financial services to individuals or businesses in underserved communities, often with the goal of promoting economic development and poverty reduction.

Mixed Organized Industrial Zone

An industrial area where facilities from various industries are located, equipped with the necessary administrative, social, and technical infrastructure, and operated in a systematic manner.

Multilateral Investment Agreement

An international agreement involving multiple countries that aims to promote and protect cross-border investments.

Multinational Enterprises

Large companies that operate in multiple countries, conducting business and production on a global scale.

Mutual Funds

Investment vehicles that pool money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities.

NACE Code

A six-digit code that stands for "Statistical Classification of Economic Activities" in the European Union.

Nationalization

The process by which a government takes control of private assets or industries, often without providing compensation to the owners.

Natural Resource Seeking FDI

Investments made to gain access to and exploit the natural resources available in the host country.

Nearshoring

The practice of relocating business activities to nearby countries or regions to take advantage of cost savings and proximity.

Negative Screening

The process of excluding certain industries, sectors, or companies from an investment portfolio based on specific ESG criteria.

Offshore Investment

Investment made in a foreign country or jurisdiction to take advantage of tax benefits or financial incentives.

Organized Industrial Zone

An industrial area designed to allow companies to operate within an investor-friendly environment with ready-to-use infrastructure and social facilities, including roads, water, natural gas, electricity, communications, waste treatment, and other services.

Outsourcing

The practice of contracting out specific business processes or services to third-party providers generally in other countries.

Outward FDI

Investment made by domestic entities in foreign countries.

Ownership Percentage

The stake each owner has in a business, determined by dividing the number of shares they own by the number of outstanding shares.

Ownership Stake

The percentage of a company's shares or equity owned by a particular investor.

Partnerships for Sustainability

Collaborating with research institutions, NGOs, and governments to jointly invest in projects that promote sustainable practices.

Patent and Intellectual Property Investments

Funding directed towards protecting and monetizing intellectual property, such as patents, trademarks, and copyrights.

Pension Fund

A fund from which pensions are paid, accumulated from contributions from employers, employees, or both.

Performance Requirements

Regulatory conditions imposed by host states requiring investors to achieve certain economic and social goals in relation to the establishment or operation of their investments.

Permanent Work Permit

The type of work permit issued to foreigners who meet necessary conditions, including holding a long-term residence permit or having a work permit for at least 8 years.

Plastic Recycling Infrastructure

Investing in the development of efficient plastic recycling facilities and technologies to process and repurpose used plastic materials, reducing plastic waste in the environment.

Political Risk Insurance

Coverage that protects investors against losses resulting from political events such as expropriation, currency restrictions, or civil unrest.

Portfolio Investment

Investment in financial assets such as stocks, bonds, or other securities, without direct control or ownership of the underlying company.

Positive Screening

The process of selecting investments based on specific ESG criteria that align with sustainability goals.

Post IPO Convertible

A round that takes place when a company receives a convertible round after the company has already gone public.

Post IPO Debt

A round that takes place when firms loan a company money after the company has already gone public.

Post IPO Equity

A round that takes place when firms invest in a company after the company has already gone public.

Priority Investment Incentives Scheme

Incentives for investments in sectors identified as priority by the state.

Private Equity

Companies that use their own capital or capital raised from investors to take companies private with the aim of running them better and later taking them public or selling them at a profit.

Privatization

The process of transferring ownership and control of state-owned assets to private entities, often involving FDI.

Project Financing

Securing funding for a specific project, often through loans or bonds, with the project's assets serving as collateral.

Project-Based Incentives Scheme

Largest-scale incentives aiming to support project-based, innovative, R&D-intensive, and high-value-added investments that will meet a country's critical needs and ensure technological transformation.

Proxy Voting

The practice of voting on behalf of shareholders during corporate governance matters, allowing investors to influence company decisions on ESG-related issues.

Prudence

A measure by which the decision making of the individual or organization could be evaluated in comparison with what a reasonable person would have been expected to do.

Real Estate Investment Trust (REIT)

A company that owns, operates, or finances income-producing real estate, offering a way for investors to gain exposure to real estate without buying physical properties.

Reciprocal Agreement

An agreement between two or more countries that involves mutual benefits, often related to trade, investment, or economic cooperation.

Reciprocity

The principle that countries offer similar investment rights and protections to each other's investors based on mutual agreements.

Regional Investment Incentives

Incentives that provide various support elements under specific conditions and sectors for provinces located in different regions based on socio-economic development levels.

Regulatory Approvals

Permissions, licenses, or authorization granted to an international investor by a government, state agency, or regulatory authorities before commencing operations in the host country.

Reinvestment of Earnings

The practice of taking profits generated by a business and reinvesting them back into the same business, involving funding expansion, research and development or other initiatives to support business growth.

Relocation

The process of moving a business or operation to a different location, often for strategic or economic reasons.

Renewable Energy Investments

Investments in companies and projects focused on clean and renewable energy sources, such as solar, wind, hydroelectric, and geothermal power.

Repatriation of Profits

The process of transferring earnings, dividends, or returns on investment back to the investor's home country from the host country.

Reshoring

The practice of bringing manufacturing or production activities back to the home country from foreign locations.

Residence Permit

The permission that needs to be obtained from the relevant authorities to stay in a country for more than the visa expiration duration.

Responsible Water Management

Water conservation efforts by implementing advanced water treatment technologies and sustainable water management practices.

Retention

A strategy where an investor aims to preserve and maintain his existing assets and operations in a foreign country to safeguard current operations, protect competitive advantages, and maintain asset values.

Right of Easement

A legal concept that grants someone the limited legal right to use or access another person's land or property for a specific purpose, without transferring ownership of the property.

Risk Assessment

The process of evaluating potential risks associated with an investment, including political, economic, financial, and operational risks.

Round-tripping

The movement of funds or investments from one country to another and then back again to the original country, involving various financial transactions.

Scaleup

A startup in its growing phase.

Secondary Market

A marketplace where investors can buy and sell existing private equity investments, providing liquidity to investors who want to exit before the investment matures.

Seed Capital

The type of financing used in the formation of a startup and provided by private investors, usually in exchange for an equity stake in the company or for a share in the profits of a product.

Seed Funding

Initial capital provided to a startup to prove its concept, develop a prototype, or conduct early-stage market research, often referred to as the first round of funding.

Small Business Administration (SBA) Loans

Loans offered by government agencies to support small businesses to be used for various purposes, including startup capital.

Social Security Premium Employee Share Support

An incentive element that ensures that the portion of the social security premium employee share that must be paid to the Social Security Institution for employment created by investment is covered by the government.

Social Security Premium Employer Share Support

An incentive element that ensures that the portion of the social security premium employer share that must be paid to the Social Security Institution for employment created by investment is covered by the government.

Software-as-a-Service (SaaS)

A method of software delivery and licensing in which software is accessed online via a subscription, rather than bought and installed on individual computers.

Soonicorn

A term used to describe startups that are likely to become unicorns in the near future.

Sovereign Wealth Fund

A state-owned investment fund comprised of money generated by the government, often derived from a country's surplus reserves.

Special Industrial Zone

An industrial zone that can be declared in accordance with the provisions of the Industrial Zones Law and are owned by natural or legal persons and have industrial facilities established on them.

Special Purpose Acquisition Company (SPAC)

A company created specifically to pool funds to finance a merger or acquisition opportunity within a set timeframe.

Special Purpose Entities (SPE)

A legal structure established for specific purposes often to manage, finance or isolate particular transactions or assets.

Specialized Organized Industrial Zone

An Organized Industrial Zone where facilities operating in the same sector group and sub-sectors are located.

Spinoff

A new and separate company that is created when a parent company distributes shares in a subsidiary or business division to the parent company shareholders.

Stakeholder

Individuals, groups, or entities that have an interest or are impacted by the outcomes of an investment project.

Stakeholder Engagement

The process of interacting with various stakeholders, including communities, NGOs, and employees, to understand their concerns and incorporate their perspectives into investment decisions.

Startup

A company designed to grow fast either by developing tech or using tech to operate its business.

Strategic Asset Seeking FDI

Investments made with the goal of acquiring specific strategic assets or resources in the host country.

Strategic Investment Incentives Scheme

Incentives for investments that increase international competitiveness by producing products with high import dependence to reduce the current account deficit.

Strategic Supply Chain Diversification

A strategic approach of expanding sourcing options and optimizing procurement timing to facilitate the efficient flow of products into the market and to reduce geopolitical risks.

Subsidiary

An independent business entity fully controlled or owned by a company as a result of direct investment.

Sunk Costs

Expenses incurred during the initial stages of an investment project that cannot be recovered if the project is abandoned.

Sustainable Development Goals (SDGs)

A set of 17 global goals established by the United Nations to address various social, environmental, and economic challenges by 2030.

Sustainable Infrastructure

Developing roads, buildings, energy and water infrastructure with due consideration to economic, social and environmental implications.

Tax Exemption

The exclusion of the tax amount that businesses are obligated to pay from tax payment within the scope of incentives provided by the government.

Tax Reduction

The payment of the tax amount that businesses are obligated to pay within the scope of incentives provided by the government at specified rates.

Technology Development Zone

An area designed to support R&D activities and attract investments in high-technology fields.

Technology Park

A designated area that encourages research, development, and innovation, often housing technology-focused companies and institutions.

Technology Transfer

The sharing or exchange of knowledge, skills, and technology from an international investor to a host country for the purpose of economic development.

Temporary Work Permit

A type of work permit that can only be applied by the employer on behalf of the employee.

Trade Balance

The difference between a country's exports and imports, indicating the relative strength of its trade relationships.

Unicorn

A company, often in the technology or software sector, with a valuation of over USD 1 billion.

US-97 Code

A "National Activity and Product Classification" code created by the Ministry of Industry and Technology to find the product when determining incentives for investment.

Valuation

The analytical process of determining the current or projected worth of an asset or a company.

VAT Exemption

The process of exempting businesses covered by the incentive certificate from the VAT amount they are required to pay.

Venture Capital

A subset of private equity that is focused on early-stage and high-growth startups and provide funding to startups in exchange for equity, with the expectation of significant returns if the companies succeed.

Vertical Technology Spillover

The transfer of technological know-how or innovations between firms or stages in the same supply chain or production process but at different levels.

Water Management Technologies

Technologies that reduce water consumption and improve water quality during production processes.

Wealth Management Firm

An investment advisory service that combines other financial services to address the needs of affluent clients.

Work Permit

A legal document issued by a competent authority of a state giving authorization for employment of migrant workers in the host country during the period of validity of the permit.

Work Permit Exemption

The right to work and reside in a country without having to obtain a work permit.

Zoning Plan

A detailed, legally binding document or map that outlines the approved land use and development regulations for a specific area or municipality.