https://www.investmentmonitor.ai/news/tur1. Foreign direct investment (FDI) inflows into Turkey have reached $10bn in 2023, according to the Central Bank of the Republic of Turkey (CBRT).
2. The figures released by the CBRT suggest FDI continues to pour into the country despite economic instability and a devastating earthquake that hit the southeast region of Turkey in February last year.
3. The Investment Office President A Burak Dağlıoğlu commented on the state of global investment in 2023: “Central bank policies and the current geopolitical situation have led to a decrease in global investment. We observed declines in global FDI ranging from 20% to 80% in many emerging economies, including Central and Eastern European countries (CEE) and BRICS countries. Despite challenging global conditions, exceeding $10bn in FDI volume is significant.
4. The positive signals at the beginning of 2024 indicate a promising outlook for the Turkish economy, with increased investor interest. We expect a surge in investments in 2024, indicating a positive trajectory for the months ahead.”
5. According to 2023 foreign direct investment statistics, Turkey received significant contributions from various countries, with the Netherlands, Germany, the United Arab Emirates, Qatar, Russia, France, the United Kingdom, Ireland, the United States and Switzerland among the top ten investors.
6. Breaking down the FDI by sector, 30.7% of the total investment went to manufacturing, making it the main beneficiary last year. The wholesale and retail trade industry came in second with 17.6%, followed by the banking and insurance services sector with 10.7%.
7. In evaluating Turkey’s foreign direct investment (FDI) scenario in 2024, Dağlıoğlu pointed to a considerable number of European and Gulf nations, emphasising the expanding cooperation with the Gulf region as a promising sign for investment opportunities.
8. Looking at the last ten years of data analysis, Dağlıoğlu noted: “Turkey’s prowess in attracting FDI, particularly in the manufacturing sector, across CEE, the Middle East, and North Africa (MENA) regions, stands out.
9. Turkey emerged as the top recipient of manufacturing investments, securing 21.7% of investments in CEE and MENA regions over the last decade. Additionally, Turkey has led in expansion-type investments, with a 19.1% share since 2013.”
TURKEY EYES QUALITY FDI TO DOUBLE GLOBAL SHARE BY 2028
1. Ankara has launched plans to boost the appeal of several high added value sectors in a bid to almost double its share of global foreign direct investment (FDI).
2. Turkey’s 2024–2028 strategy, which was launched on July 29, outlines plans for the country to raise its global share of FDI to 1.5% by 2028, up from a 3-year moving average of 0.85% in 2023, according to fDi’s calculation based on Unctad figures.
3. In regional terms, it aims to raise the country’s share of FDI in central and eastern Europe, the Middle East and north Africa from 9.8% in the 2004–2023 period to 12%, according to Invest in Turkey calculations based on Unctad figures.
4. The country’s FDI skyrocketed in the 2006–2008 period, when it accounted for as much as 1.3% of global FDI, Unctad figures show. Investment levels struggled to keep up in the wake of the global financial crisis and the internal challenges the country faced throughout the 2010s.
5. The country’s headline FDI stood at $10.4bn in 2023, down from $12.9bn in 2022 and far from the $22bn peak of 2007, Unctad data show.
6. The new investment strategy emphasises the role of quality FDI in raising the country’s investment profile and serving the overarching economic policy objectives. This is defined as “investments that contribute to the strong growth and sustainable development of Türkiye’s economy, accelerate its technological transformation, increase its global competitiveness, and support regional development within the country”.
7. Over the five-year period to 2028, Turkey will target a total of 120 projects in climate FDI, 240 projects in digital FDI, 360 projects in global value chain-related FDI, 270 projects in high-end services FDI, 360 projects generating high-quality jobs, and 300 projects in knowledge-intensive FDI.
Source:
https://www.investmentmonitor.ai/news/turkey-expects-a-surge-in-fdi-following-successful-year/?cf-view
https://www.fdiintelligence.com/content/news/turkey-eyes-quality-fdi-to-double-global-share-by-2028-83960
key-expects-a-surge-in-fdi-following-successful-year/
