ISTANBUL: Turkey attracted $12.1 billion in foreign direct investment (FDI) in 2016, higher than expected in light of the latest developments in both Turkey and the surrounding region, a top association announced on Feb. 24. “Turkey saw a $12.1 billion FDI inflow in 2016. This was a higher-than-expected figure considering the latest developments both in Turkey and the surrounding region,” said the head of the International Investors Association (YASED), Ahmet Erdem, in a speech at the association’s 36th Ordinary General Assembly. He said the FDI inflow accelerated at the end of the year, which was another positive development. “We need to work together to make this trend permanent and raise efficiency. We, as YASED members, are aware of Turkey’s potential, and we believe that the share of Turkey in global FDI could increase to 3 percent,” added Erdem.
Turkey was the 20th most popular destination for FDI inflow in 2015, rising two spots from its 22nd ranking the previous year, an international report showed on June 21, 2016. Turkey saw an FDI inflow worth $16.5 billion in 2015, a 36 percent increase from the previous year, rising by four points to eighth among emerging markets, according to the latest World Investment Report 2016 by the United Nations Conference on Trade and Development (UNCTAD). Turkey took a 1 percent share of the entire FDI flow in 2015.
Erdem said the FDI inflow into Turkey was around $1 billion to 2 billion in 2002, and increased to today’s levels thanks to the realization of a number of key required reforms and the EU membership process. “Turkey lured $175 billion FDI since 2005 in total, equaling an average of $14.5 billion on annual basis,” he said, adding that the global FDI inflow was expected to decrease 13 percent in 2016, according to preliminary data from the UNCTAD report. Turkey reached the highest FDI inflow in 2007 with a $22 billion inflow. Economy Minister Nihat Zeybekci said the government aimed at growing the country’s GDP by attracting more FDI.
“Turkey needs foreign investment. This is a must for Turkey to grow. Turkey needs to grow an average of 6 percent annually in a sustainable manner. We must lure more FDI to achieve these growth levels,” he said. Zeybekci said Turkey had enacted many legal regulations to attract more FDI. “I am hereby calling for you, the representatives of international companies, to voice that you need to pour more money into Turkey. We are ready to offer all support,” he added. According to the association’s 2016 activity report, Turkey lured $4.1 billion in FDI to the services sector, $3.8 billion to the real estate sector, $2.5 billion to the industrial sector, 26 million to the agricultural sector and $2.1 billion to other sectors, Reuters has reported.
