Erdogan's critics say the political shift from the old parliamentary system, in which the prime minister was chosen by lawmakers, to the new presidency system will damage the democratic pillars in Turkey.
The president said in the previous days that there will not be any members or parliamentarians of his Justice and Development Party (AK Party) in the new cabinet, hinting that it will be made up of former politicians and bureaucrats.
The introduction of the new presidential system marks the biggest overhaul of governance since the Turkish republic was established on the ruins of the Ottoman Empire almost a century ago.
Twenty-two heads of state and 28 prime ministers and speakers of parliament and scheduled to attend the ceremony. The opposition described Monday as the day when a partisan one-man regime officially starts ruling Turkey.
Current Foreign Minister Mevlut Cavusoglu could, in theory, continue in his job but reports have said Erdogan may choose his spokesman, Ibrahim Kalin, or even spy chief Hakan Fidan to succeed him.
Mr Erdogan has largely ruled by fiat since 2016, when he imposed a state of emergency on the country in response to a failed coup attempt against him.
Erdogan is expected to name a streamlined cabinet of 16 ministers on Monday evening after a ceremony at the presidential palace for more than 7,000 guests, including Venezuelan President Nicolas Maduro, Russian Prime Minister Dmitry Medvedev and Sudan's President Omar Hassan al-Bashir, who is wanted for war crimes by the International Criminal Court. Erdoĝan has repeatedly clashed with strategic allies such as the United States and the European Union in recent years over the war in Syria, Turkey's accession to the EU, human rights abuses by Ankara, Europe's failure to support Turkey during the coup attempt, and rising Islamophobia in Europe.
Inflation surged last month to more than 15 percent, its highest level in more than a decade, despite interest rate hikes of 500 basis points by the central bank since April. The lira has also fallen by a fifth in value against the dollar this year.