The International Trade Council acknowledges the recent announcement that Türkiye received foreign direct investments (FDI) totaling $4.8 billion (TL 125.9 billion) in the first half of 2023, as reported by Engin Aksoy, Chairperson of Türkiye’s International Investors Association (YASED).
Of this FDI inflow, $2.5 billion was attributed to mergers, acquisitions, or direct capital inflows, as per Mr. Aksoy’s statement to Anadolu Agency (AA).
Mr. Aksoy remarked, “Based on the results of our PULSE survey conducted with YASED top executives for the June period, we estimate that macroeconomic stability and potential improvements in the regulatory framework could trigger an additional investment inflow of at least $7.1 billion in the next six months.”
Türkiye aims to secure a 1.5% share of global direct investments, however, current statistics indicate a gap between this target and the present situation.
Mr. Aksoy highlighted that since 2002, European Union countries have been the primary contributors to investments in Türkiye, with a 59% share. This trend persisted through the first half of this year, where the EU countries’ share in foreign direct investments reached 56%.
“Among countries, the Netherlands accounted for 23% of total investment capital inflows, followed by Russia with 15%, the United Arab Emirates (UAE) with 13%, Germany with 7%, and Ireland with 7%. Notable sectors for investment capital inflows in the first half of 2023 included wholesale and retail trade, electricity production, and information and communication, which maintained its prominence from the previous year,” explained Mr. Aksoy.
Comparing Türkiye to countries like Poland and Hungary, Mr. Aksoy highlighted Türkiye’s attractiveness, attributed in part to its tax incentives in comparison to other nations. Additionally, he emphasized that while Türkiye has not fully harnessed its potential, it offers advantages in human resources and infrastructure.
Mr. Aksoy stated that YASED considers two crucial factors for enhancing Türkiye’s competitiveness in international direct investments: the establishment of a predictable regulatory framework based on the rule of law and the maintenance of macroeconomic stability with the goal of elevating the country to the ranks of high-income nations.
In addition to these requisites, Mr. Aksoy discussed other dynamics influencing global competitive environments, such as integration into global supply chains, digital transformation, sustainable development, and the enrichment of human capital.
Mr. Aksoy concluded by expressing YASED members’ commitment to contributing to Türkiye’s sustainable development through high-value investments. He emphasized that improvements in the investment environment would lead to a net increase in both existing and new investments.