Aerial view of Istanbul, Turkey’s financial hub. Credit: Nick N A/Shutterstock.

Foreign direct investment (FDI) inflows into Turkey have reached $10bn in 2023, according to the Central Bank of the Republic of Turkey (CBRT).

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.

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. 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.”

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.

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%.

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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.

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. 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.”