Turkey has updated rules for Organized Industrial Zones Specialized in Agriculture (“Agriculture Zones”). Changes apply to principles and procedures for projects, applications, zoning plans, activities, operations and audits of Agricultural Zones. They also include increased details for determining and establishing Agricultural Zones.

The Regulation on Organized Industrial Zones Specialized in Agriculture (“Regulation”) was published in Official Gazette number 30251 on 25 November 2017, entering into effect on the same date.

Significant changes introduced by the Regulation include:

  • Agriculture Zones will now acquire legal entity status once the Ministry of Food, Agriculture and Livestock (“Ministry”):
    • Approves the establishment protocol.
    • Registers the Agriculture Zone.
  • Agriculture Zones must now have at least one founder member from:
    • Chamber of industry.
    • If the above is not applicable, any of Chamber of commerce and industry.
    • If the above is not applicable, Chamber of commerce which is located in the area where the relevant Agriculture Zone will be established.
  • Institutions and organizations which will participate in establishment of Agriculture Zones must now deposit at least 100,000 Turkish liras into bank accounts held by either:
    • The provincial special administration, or
    • The presidency of monitoring and coordination of investments (if no provincial special administration exists).
  • The participation ratio for Agriculture Zones must now be at least 6%.
  • The sum of participation ratios for institutions and organizations which will participate in entrepreneur teams must now be at least 100%.
  • Agriculture Zones can now establish and operate necessary facilities to procure necessary drinking and utility water, as well as distribute and sell water within the required drinking and utility water by purchasing it from public and private entities.
  • Agriculture Zones can now establish and operate necessary infrastructure to procure natural gas required for enterprises within Agriculture Zones, as well as sell the natural gas to enterprises within the Agriculture Zones can now establish and operate necessary in compliance with related legislation.
  • The Ministry must now audit all Agriculture Zone activities on an annual basis.

Please see this link for full text of the Regulation (only available in Turkish).

Information first published in the MA | Gazette, a fortnightly legal update newsletter produced by Moroğlu Arseven.