Turkey & Eurasia Business — 2026-10-29

Key Highlights

Digital Sovereignty Strategy Unveiled In a move announced on Tuesday (October 27/28), Türkiye unveiled a comprehensive digital sovereignty strategy. The primary objectives are to strengthen national cybersecurity infrastructure, significantly reduce dependence on foreign technology solutions, and protect critical digital assets. This policy marks a pivot toward homegrown tech solutions in the face of rising cyber threats.

The "Turcorn" 2030 Vision While the digital sovereignty news is the freshest, it aligns with the "Turcorn" framework recently emphasized by the Industry and Technology Minister. The government aims to have 100,000 startups founded by 2030 and to drive the combined valuation of Türkiye's "Turcorns" (billion-dollar startups) to $100 billion. This ambition is supported by a surge in the AI sector, where the number of AI-focused startups has recently risen above 500.

Analysis

The most significant development for the business sector this week is the formalization of the Digital Sovereignty Strategy. This policy is not merely defensive; it serves as a demand-side catalyst for the domestic tech industry. By explicitly aiming to reduce reliance on foreign technologies, the state is effectively creating a protected market for local software, cloud, and cybersecurity firms.

This strategy complements the supply-side incentives seen in the "Turcorn" initiative. While the government pushes for quantity (100,000 startups) and value ($100B valuation), the Digital Sovereignty agenda provides a strategic niche for these companies to thrive. For investors, this signals a shift toward "sovereign tech" opportunities—companies that can offer compliant, locally hosted alternatives to global tech giants.

What to Watch

• Implementation of Cybersecurity Standards: Investors should monitor which sectors are first required to migrate to "sovereign" compliant infrastructure.
• AI Regulation & Support: With AI startups surpassing 500 in Türkiye, upcoming regulations regarding data localization—a key component of digital sovereignty—will heavily impact the AI sector's operational costs and scalability.
• Fintech Integration: As the sector aims for high valuations, the intersection of fintech infrastructure with the new digital sovereignty rules will be a critical area of regulatory focus.