Russian Prime Minister Dmitry Medvedev will attend, in a new sign of the warm ties between Ankara and Moscow, as well as Venezuelan President Nicolas Maduro, regarded with disdain by Washington but an ally of Erdogan.
In one of three presidential decrees issued in the government's Official Gazette on Tuesday, it was announced that the president would appoint the central bank governor, deputies and monetary policy committee members for a 4-year period.
Crowds cheered Erdogan along his convoy's route as he made his way to the inauguration ceremony. A special one lira coin (less than 25 USA cents) was minted for guests with the image of the presidential palace, dated July 9, 2018.
"Erdogan, 64, says a powerful executive presidency is vital to drive economic growth, ensure security after a failed 2016 military coup and safeguard Turkey from conflict across its southern border in Syria and Iraq".
Before Erdogan took oath for a new term in office, the government removed a clause that had stated the central bank governor was appointed by cabinet decision for five years, and could be re-appointed.
The changes are the result of a bitterly fought referendum in 2017, where Mr Erdogan campaigned for a Yes vote and won narrowly amid allegations of vote rigging.
No major Western leader featured on a list of 50 presidents, prime ministers and other high-ranking guests published by state news agency Anadolu.
On the eve of Monday's inauguration authorities dismissed more than 18,000 state employees - a lot of them from the police and army - in what the government said would be the final decree under emergency rule imposed following a failed 2016 coup. The issue is still polarizing in Turkey.
Syria thwarts Israeli strike on Quneitra
Israel captured much of the strategic plateau in the 1967 war with Syria and annexed it in a move not recognised internationally. The military quickly recovered the fragments of the drone in an area south of the lake. "We'll see", he said.
"A partisan one-man regime starts officially today", said the opposition Cumhuriyet newspaper.
Erdogan referred to the principles of Mustafa Kemal Ataturk, the founder of the modern Turkish Republic.
But the pro-government daily Yeni Safak hailed it as an "historic day", saying: "One page is closing in Turkish history and a new page is opening".
Erdogan has prevailed in a dozen local, parliamentary and presidential elections. The only European Union leaders are set to be Bulgarian President Rumen Radev and Hungary's strongman Prime Minister Viktor Orban.
The AK Party took 42.5 percent in the parliamentary polls, also conducted on June 24, while its ally, the far-right National Movement Party (MHP), got 11.1 percent, enabling the two parties' bloc to secure a majority in parliament.
First Vice-President Fuat oktay, a former adviser to ex-Prime Minister of Binali Yildirim, the Minister of defence, former chief of the General staff of Turkey Hulus ACAR.
The new Turkish parliament has 600 MPs, up from 550 lawmakers previously, who were sworn in Saturday.