Inside Turkey's plan for world's largest startup hub at Ataturk Airport

Turkish officials are converting the abandoned Ataturk Airport into Terminal Istanbul, which they aim to make the world's largest startup and entrepreneurship hub. Around 200,000 sqm of former terminal buildings will be reconfigured into open-plan offices, co‑working space, incubation centres and accelerator programmes. The first phase opens in August with a 5,000‑sqm area planned to host 50 startups initially and to expand to about 100 by the end of the year. International partners already signed or negotiating space include Techstars, Shanghai State‑owned Capital Investment, Flat6Labs, Disrupt, Enhance Ventures and Uzbekistan's UzVC.

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"We have already signed a memorandum of understanding with Techstars, one of the world's largest organisations in the entrepreneurship sector," Erkam Tuzgen, chief executive of the Terminal Istanbul initiative, told Middle East Eye. "Techstars will also be based at Terminal Istanbul, where it will run incubation and globalisation programmes."

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, enabling direct engagement with technology startups seeking investment. Flat6Labs, one of the Middle East's largest startup ecosystem builders, has signed to join the project, and Saudi Arabia's Monshaat is negotiating a deal. Venture capital companies including Disrupt and Enhance Ventures are in discussions to establish a presence, Tuzgen added.

The conversion follows years of disuse at Ataturk since commercial operations moved to the new Istanbul Airport in 2018. The government has promoted Terminal Istanbul as more than an incubator: Tuzgen frames it as an ecosystem designed to attract local and foreign investors and to help founders access international mentorship and capital to scale into global markets. Terminal Istanbul will host international accelerator programmes and investors, and will include a one‑stop service centre for immigration, social security and taxation to streamline bureaucratic processes for companies and employees.

Legacy airport infrastructure offers particular operational advantages. The complex retains a VIP terminal that will allow private jets to land and take off adjacent to the site; investors can reportedly access parts of the complex without passing through passport control and use on‑site meeting facilities before departing. The project will also include multiple kitchens supported by the Culinary Arts Academy (MSA), focused on modern Turkish cuisine.

Supporters see geographic and cultural advantages. "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," said Raad Aljouni, a Switzerland‑based AI venture builder, who confirmed his involvement. He highlighted the project's "creative and innovative design" and Turkey's appeal as a bridge between markets.

Challenges remain: investors speaking on condition of anonymity pointed to Turkey's frequently changing regulatory environment, concerns over the rule of law and a complex immigration system. Economic headwinds persist, with annual inflation expected to remain close to 30 percent by year‑end. Tuzgen said parliament is expected to approve legislation to allow companies to be established digitally, addressing a key hurdle, and that the broader policy package includes personal tax incentives — such as a 20‑year exemption for some foreign residents — and other relief for technology startups. If the plan succeeds, Terminal Istanbul aims to position Turkey alongside cities such as Beijing, San Francisco and New York in conversations about global technology and to offer an alternative to entrepreneurs considering moves to Gulf hubs like Dubai.