Turkish officials are turning Istanbul's abandoned Ataturk Airport into Terminal Istanbul, a startup and entrepreneur hub they hope will become the world's largest. The old airport's halls, once built for passengers, luggage and check-in counters, are being stripped down and repackaged as open-plan offices, meeting rooms, co-working spaces and incubation centres. The project will also host international accelerator programmes for companies and investors. Same concrete shell. New class of tenants.
The State Rebrands the Ruins
Erkam Tuzgen, chief executive of the Terminal Istanbul initiative, said the goal was not just to build a hub for technology companies but to create an ecosystem that could attract local and foreign investors, businesses and entrepreneurs. People with innovative ideas and viable roadmaps, he said, would be able to access international mentorship and capital to help them expand into global markets. That’s the language of the new airport order: mentorship, capital, expansion. The old terminal becomes a funnel for money and ambition, with the state as landlord and broker.
Around 200,000 sqm of terminal buildings will gradually be converted into modern workspaces. The first phase is due to become operational next month, with a 5,000-sqm area opening to 50 startups and other initiatives. Officials expect that number to reach 100 by the end of the year. Tuzgen said the project had already signed a memorandum of understanding with Techstars, one of the world's largest organisations in the entrepreneurship sector. He said Techstars would be based at Terminal Istanbul and would run incubation and globalisation programmes, and that it operates its own incubation and accelerator programmes, as well as investment funds, with a network involving thousands of investments.
Capital, Couriers, and the VIP Lane
Tuzgen also said Shanghai State-owned Capital Investment, a Chinese government entity that manages assets worth $47bn, had signed an agreement to open an office at Terminal Istanbul. He said its presence would allow the fund to engage directly with technology startups and entrepreneurs seeking investment. Venture capital companies including Disrupt and Enhance Ventures, as well as Uzbekistan's UzVC, are negotiating separate agreements to establish a presence in the complex, according to Tuzgen. The place is being built as a meeting point for state capital, private capital and the people who need both to survive the game.
Flat6Labs, one of the Middle East's largest startup ecosystem builders, has signed an agreement to join the project. Monshaat, Saudi Arabia's Small and Medium Enterprises General Authority, is also negotiating a deal to participate. Raad Aljouni, a Switzerland-based AI venture builder, said, "The space immediately stands out for its creative and innovative design, with thoughtfully built areas that complement different industries." He added, "Given Turkey's position linking East and West, its rich heritage, strong infrastructure and growing market, I believe Terminal Istanbul has all the ingredients to become a globally significant innovation ecosystem. That is exactly why I am excited to be part of its journey."
From Airport to Investment Corridor
The Turkish government faced fierce criticism in 2018 when it transferred commercial operations from Ataturk Airport to the newly built Istanbul Airport. The new airport has since become one of Europe's busiest, handling an average of 1,623 flights a day in July. Terminal Istanbul has so far attracted little substantial criticism, partly because the former airport buildings had stood empty and without a clear purpose for years. Empty buildings make a useful alibi. A public asset sits unused, then gets handed over to a new economic order dressed up as innovation.
Turkey has also sought to position itself as a destination for businesses and investors leaving the Gulf, offering incentives to financial services companies, entrepreneurs and digital nomads. In June, the government introduced a personal tax regime targeting foreign investors, including a 20-year exemption for certain individuals who become residents in Turkey. It also offered further tax relief to technology startups. The Istanbul Financial Center, a separate financial hub, offers substantial corporate tax exemptions. The pitch is simple: come here, pay less, move faster, and let the bureaucracy clear a path.
Tuzgen said parliament was expected to approve legislation allowing companies to be established digitally, which he said would resolve one of the main obstacles facing businesses operating in the country. He said Terminal Istanbul would also have a one-stop service centre for immigration, social security and taxation, allowing investors and their employees to resolve bureaucratic issues without having to visit several government agencies. Another advantage, he said, was the airport's existing VIP terminal, which allows private jets to land and take off next to the complex. Investors will be able to arrive, access parts of the complex without passing through passport control, hold meetings and oversee projects for several hours before flying on to their next destination. The ordinary rules of movement are for everyone else.
The complex will also include several kitchens supported by the Culinary Arts Academy, known as MSA, offering modern Turkish cuisine. Tuzgen said the project had already generated considerable interest. He recalled presenting it at an international conference when a prince from a Gulf kingdom approached him afterwards and said, "This is a perfect project. I really liked it." The prince added, "That is why we will do exactly the same thing in our own country." Tuzgen said he remains unsure whether he should feel pleased by the comment or disappointed. The answer, in the end, may depend on whether you think a former airport should become a public commons or a polished corridor for investors, private jets and state-backed capital.