Turkish officials are converting Istanbul's abandoned Ataturk Airport into what they're calling Terminal Istanbul, a startup and entrepreneur hub designed to become the world's largest. The project transforms the old airport's passenger halls, luggage areas and check-in counters into open-plan offices, meeting rooms, co-working spaces and incubation centres that will host international accelerator programmes for companies and investors.
Erkam Tuzgen, chief executive of the Terminal Istanbul initiative, said the goal wasn't 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.
The Scale and Timeline
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.
Major Players Signing On
Shanghai State-owned Capital Investment, a Chinese government entity that manages assets worth $47bn, has signed an agreement to open an office at Terminal Istanbul. Tuzgen 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.
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 that given Turkey's position linking East and West, its rich heritage, strong infrastructure and growing market, he believes Terminal Istanbul has all the ingredients to become a globally significant innovation ecosystem. That's exactly why he's excited to be part of its journey, he said.
Strategic Context and Government Support
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.
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.
Removing Bureaucratic Obstacles
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 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 the project was perfect and that he really liked it. The prince added that they would do exactly the same thing in their own country. Tuzgen said he remains unsure whether he should feel pleased by the comment or disappointed.
Why This Matters:
Turkey's move to transform an idle airport into a global startup hub reflects a broader strategic shift in the region's economic competition. The project arrives as Gulf states accelerate their own efforts to diversify away from oil dependency and attract technology investment, creating direct competition for capital and talent. The tax incentives introduced in June — including a 20-year exemption for certain foreign investors — signal Turkey's willingness to use fiscal policy aggressively to compete with Dubai, Riyadh and other regional hubs. The presence of Chinese state capital alongside Middle Eastern and Western investors also positions Turkey as a crossroads economy that can bridge markets in ways Gulf states cannot. Whether parliament follows through on digital company registration and whether the one-stop bureaucratic service centre actually functions will determine if this becomes a genuine alternative to established hubs or another ambitious project undermined by Turkish regulatory complexity. The prince's comment about replicating the model suggests Turkey may have identified a competitive advantage worth defending.