Turkish officials are converting Istanbul's abandoned Ataturk Airport into Terminal Istanbul, a startup and entrepreneur hub they hope will become the world's largest. The project involves transforming the old airport's halls, once bustling with passengers, luggage, and check-in counters, into modern open-plan offices, meeting rooms, co-working spaces, and incubation centres. It's also set to host international accelerator programmes for companies and investors.
Erkam Tuzgen, chief executive of the Terminal Istanbul initiative, articulated a vision beyond merely constructing a technology hub. He stated the goal was to cultivate an ecosystem capable of attracting both local and foreign investors, businesses, and entrepreneurs. Individuals with innovative ideas and viable roadmaps, he explained, would gain access to international mentorship and capital, empowering them to expand into global markets.
Transforming Infrastructure
Around 200,000 sqm of the former terminal buildings will be gradually converted into these modern workspaces. The first phase is scheduled to become operational next month, with a 5,000-sqm area opening its doors to 50 startups and other initiatives. Officials anticipate that number will double to 100 by the end of the year. Tuzgen confirmed the project has already secured a memorandum of understanding with Techstars, one of the world's largest organizations in the entrepreneurship sector. Techstars will establish a base at Terminal Istanbul, running incubation and globalization programmes, and it operates its own incubation and accelerator programs, alongside investment funds, within a network involving thousands of investments.
Tuzgen also announced that Shanghai State-owned Capital Investment, a Chinese government entity managing assets worth $47bn, has signed an agreement to open an office at Terminal Istanbul. He indicated that this presence would enable 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 currently negotiating separate agreements to establish a presence within the complex, according to Tuzgen.
Global Partnerships
Flat6Labs, recognized as 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 in negotiations for participation. Raad Aljouni, a Switzerland-based AI venture builder, remarked, "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."
The Turkish government faced significant criticism in the eighth year since it transferred commercial operations from Ataturk Airport to the newly constructed Istanbul Airport in 2018. The new airport has since become one of Europe's busiest, handling an average of 1,623 flights a day this 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.
Incentives and Vision
Turkey has also actively sought to position itself as a destination for businesses and investors relocating from the Gulf, offering incentives to financial services companies, entrepreneurs, and digital nomads. In June, the government introduced a personal tax regime specifically targeting foreign investors, which includes a 20-year exemption for certain individuals who become residents in Turkey. It also provided further tax relief to technology startups. The Istanbul Financial Center, a distinct financial hub, offers substantial corporate tax exemptions.
Tuzgen stated that parliament is expected to approve legislation allowing companies to be established digitally, which he believes will resolve one of the primary obstacles facing businesses operating in the country. He noted that Terminal Istanbul will also feature a one-stop service centre for immigration, social security, and taxation, enabling investors and their employees to resolve bureaucratic issues without visiting multiple government agencies. Another key advantage, he pointed out, is the airport's existing VIP terminal, which permits private jets to land and take off directly next to the complex. Investors will have the ability to arrive, access parts of the complex without passing through passport control, hold meetings, and oversee projects for several hours before continuing to their next destination.
The complex will also incorporate several kitchens supported by the Culinary Arts Academy, known as MSA, offering modern Turkish cuisine. Tuzgen recalled presenting the project at an international conference when a prince from a Gulf kingdom approached him afterwards, stating, "This is a perfect project. I really liked it. That is why we will do exactly the same thing in our own country." Tuzgen remains unsure whether he should feel pleased by the comment or disappointed.
"media