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Turkey investment strategies

Turkey has received more than $ 225 billion in foreign direct investment since 2003, but the share of foreign direct investment in Turkey has fallen sharply over the past five years. New strategy of Turkish government aims to substantially increase them. The basic idea is to present the country as an attractive place for foreign investors with a young educated population, a large domestic and foreign market, with many favorable trade agreements and conditions in nearby regions and with extensive state support for projects related to modern technologies.

The coronavirus pandemic has affected the global investment climate in the last two years. According to UNCTAD (United Nations Conference on Trade and Development), global foreign direct investment fell by 42% a year to $ 859 billion in 2020. However, the gradual recovery shows significant regional differences. Overall, foreign direct investment is expected to increase by 10-15% in 2021, compared to 2020, yet this is only a 25% drop compared to 2019. And it is not expected to return to the level of 2019 until 2022.

According to the head of the Turkish Investment Authority, Buraka Daglioglu, Turkey received almost $ 8 billion in foreign direct investment in 2020, despite the global economic impact of the coronavirus pandemic. The year-on-year decline in foreign direct investment in Turkey by 16.5% was thus lower than the global average, despite the pandemic.

Non-residents' direct capital investment in Turkey reached almost $ 5.7 billion in 2020, down $ 200 million from 2019. Italy led by $ 977 million in capital investment in Turkey, followed by $ 798 million in the United States. and the United Kingdom with $ 693 million. In 2020, the financial sector was the most preferred by foreign investors, attracting USD 1.39 billion in investment. The second most popular industry was information and communication technology at $ 1.37 billion. However, the Turkish government is not satisfied with the volume of foreign direct investment achieved, given the country's potential.

The Turkish President's Investment Office has published a "Foreign Direct Investment Strategy" for the period 2021-2023 on its website. This document set the target of increasing the share of global direct investment to 1.5%. 11 new strategies has been developed and 72 projects are going to be prepared to help increase the inflow of foreign direct investment.

The conclusions of the strategy was widely checked and corrected by Turkish Chambers Of Commerce since the early stages, therefore  the final version is considered by Turkish business organizations to be a balanced document. The Istanbul Chamber of Commerce (ITO) has prepared a "Master Plan for Investment Promotion" to help digitize the country. At the same time, it takes into account Turkey's specific environment, which is ideal for skilled foreign direct investment. The ITO said the main investment promotion activities would be carried out through Turkish embassies in countries with investment potential. Special attention will be paid to countries that already have long-term investment projects in Turkey.

The new Turkish strategy should bring simplification of access to the Turkish market to Czech companies, and increase support from the Turkish state for both - new investors and entities already operating in the market. It is also expected that the position of existing companies in negotiating loans, subsidies and supporting local authorities for their business activities will be strengthened.