Turkey's Rise as an Innovation Hub
Turkey is set to continue attracting significant investments as it solidifies its position as a hub for digitalization and innovation. This is largely due to the country's effective economic policies and advancements in crucial areas like technology, logistics, and production.
Positive Credit Ratings and Foreign Direct Investments
Turkey stands out as the only country this year to have its credit ratings from Fitch Ratings, Moody’s, and S&P upgraded. This positive outlook has translated into over $272 billion in foreign direct investments flowing into the country since 2003.
China's Growing Investments in Turkey
Notably, Turkey has been successful in attracting substantial investments from various countries, with China emerging as a key investor. While Chinese investments in Turkey are significant, there is still untapped potential, especially in sectors like automotive and technology.
Turkey's Vision for Global Economic Power
Burak Dağlıoğlu, the president of Turkey’s Investment Office, envisions Turkey becoming a powerhouse in the global economy. With ongoing developments and strategic initiatives, Turkey aims to leverage international capital to fuel its growth and innovation agenda.
Strengthening Financial Position and Investor Confidence
Turkey's Central Bank reserves have soared to $92.4 billion, bolstering investor confidence. Additionally, the country's improved credit default swap rates have made financing more accessible and cost-effective for foreign investors.
Surge in International Companies Operating in Turkey
The number of international firms operating in Turkey has experienced a remarkable surge, growing from approximately 5,600 in 2002 to over 82,000 presently. This influx underscores Turkey's attractiveness as a business destination.
Turkey's Resilience Amid Global Trends
Despite a global decline in foreign direct investments, Turkey witnessed a 12 percent increase in inflows last year, as highlighted by the OECD. This resilience was further evident as Turkey ranked fourth in Europe for greenfield FDI projects in 2024.
Continued Growth in Investments
Recent reports indicate that Turkey attracted $8.5 billion in foreign direct investments from January to October, showcasing sustained investor interest. In October alone, the country received FDI inflows amounting to $770 million.
Steady Inflow of Foreign Investments
While there was a slight 1 percent decline in FDI compared to the same period in 2023, Turkey's cumulative FDI inflows since 2002 have surpassed $272 billion. This trend underlines Turkey's enduring appeal to international investors.
