In the postwar Middle East, Turkey takes center stage

Turkey is seeking to surpass Bahrain as the major offshore banking center and become a regional economic power. Turkey expects U.S., Japanese, Western European, and pro-Western Arabian investment and loans because of its pro-U.S. stand during the Gulf War. Turkey has liberalized regulations and plans to establish free-trade zones to attract offshore banks from the Gulf and foreign investment. Turkey's success in becoming the Middle East's offshore banking center and attracting foreign investment depends on its ability to turn around its economy, control inflation, increase exports, maintain high growth rates, and build up foreign exchange reserves. Turkey also expects to be in a better position for acceptance into the European Community.