Turkey & Eurasia Business — 2026-10-23
Türkiye’s startup ecosystem continues to expand, with AI startups surpassing 500 and fintech funding surging, led by a $137 million raise by Istanbul-based Midas. Simultaneously, the government targets $70 billion in tourism revenue for 2027, aiming to place the nation among the world's top five tourism earners, while the IMF has revised its 2026 growth forecast to 2.7%.
Turkey & Eurasia Business — 2026-10-23
Key Highlights
AI and Startup Ecosystem Growth The number of artificial intelligence startups in Türkiye has officially exceeded 500 for the first time, according to the latest update by the Türkiye Artificial Intelligence Initiative (TRAI). This milestone highlights the rapid expansion of the country’s tech landscape. Additionally, Istanbul-based investing app Midas has raised $137 million, positioning itself at the top of recent fintech funding rounds.
Tourism Revenue Targets Türkiye is aiming for a record $70 billion in tourism revenue by 2027, with plans to rank as the sixth-highest-earning country in the sector globally. To support this goal, the government has allocated a new budget of $244.5 million under the 2027 central budget.
Economic Forecasts and Fund Liquidations The International Monetary Fund (IMF) has revised Türkiye’s growth forecast for 2026 down to 2.7%. In the financial sector, there have been reports of fund liquidations involving A1, Bulls, and Pardus funds, alongside a fine imposed on Akbank.
Analysis
The most significant business development this week is the dual trajectory of Türkiye’s economy: a robust tech startup sector contrasting with tempered macroeconomic growth projections. While the IMF’s downward revision to 2.7% growth for 2026 suggests a cooling macroeconomic environment, the private sector—particularly in tech and tourism—remains highly dynamic. The surge in AI startups to over 500 and the substantial $137 million funding round for Midas indicate that investor confidence in Türkiye’s innovation ecosystem remains strong, driven by fintech and gaming sectors.
What to Watch
- Tourism Policy Implementation: Monitor the execution of the $244.5 million budget allocated for tourism promotion to see if Türkiye can meet its ambitious $70 billion revenue target for 2027.
- Financial Sector Stability: Keep an eye on the aftermath of the Akbank fine and the liquidation of several funds (A1, Bulls, and Pardus) to assess potential regulatory changes or shifts in investor sentiment.
- Startup Funding Trends: Continue tracking funding rounds in the fintech and gaming sectors, which have historically accounted for a significant majority of startup investment in Istanbul.
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