Throughout history, Turkey was positioned in a perfect place where it strategically unites Europe, Asia and the Middle East. It was always known for the place to do business. Even at one point Istanbul (Constantinople) was considered as the 2nd Rome and the richest city in the world.
Since 2020, Turkey has shown faster recovery in comparison to many of the other countries and due to its logistical structure, ease of doing business and the welcoming government the number of the Foreign Investments have increased in the country.
The more popular Turkey as a brand becomes in Asia and African countries the more likely investments will increase in this country. Turkey will return to its glorious past as the place of the future growth for various corporations and this has been proven by the interests shown by the likes of IKEA and many other large corporations.
What countries are investing in Turkey?
If we are looking at the country’s investment, this is led by the UK followed by the USA, The Netherlands, Switzerland, UAE, Germany, Luxembourg, South Korea and Japan with Ireland being in the top 10 countries that invest. This means that the highest amount of FDI comes from the European countries, followed by Asia and the United States.
The main countries that are investing in Turkey are largest financial hubs in Europe and Asia, therefore if this trend continues these investments will be followed by the typical relocation of the working migrants from those countries to make sure that their countries investments are safe and sound.
What are the countries mainly investing in?
The biggest investments come into manufacturing, production, transportation, chemicals, computers, electronics, optical equipment and food and beverage. This shows how diverse the economic structure in Turkey is. For European countries, Turkey is a known place for travel and manufacturing. The combination of the two helps those travelers to combine business with pleasure.
According to the Turkish Presidency Investment Office, 30% of the investments have also come through mergers and acquisitions via purchasing of stocks. This trend will further strengthen the view of the future growth and most importantly for us it would mean that more people will look at moving to Turkey to make their new home.
Why are the countries investing in Turkey?
As discussed in the previous article, the main components that the people make decisions would be based on socio – economic, politically – demographic and environmental. Turkey has the greatest opportunity from all of those perspectives. The political party is stable, the economy is close to a trillion dollars in GDP while environmental disasters are at absolute minimum.
The other significant point of why there is a surge of the foreign direct investment inflow into the country is the logistical access. Western Turkey has very modern railroads and transitional roads that lead directly into any of the European countries, while the Eastern side borders the Middle East and has access to the Asian continent. On the Eastern side there are currently large investments that are made by the government to build the same level of access that the Western side enjoys.
What is the internal investment by the Turkish Government?
According to the Anadolu agency, Among sectors, the largest number of projects (946) was in education, followed by 756 in other public (social and economic) projects, 469 in transportation and communication, 291 in agriculture, 211 in health, 125 in energy, 97 in manufacturing, 95 in residential, 55 in tourism, and 46 in mining.
By money allocated, the transportation and communications sector will take the lion’s share with 42.47 billion Turkish liras ($5.7 billion), followed by education with 19.83 billion ($2.66 billion). By institution, the country’s Transport and Infrastructure Ministry will take the largest share of the investments with 15.1 billion Turkish liras ($2.02 billion), followed by the State Hydraulic Works with 13.5 billion Turkish liras ($1.8 billion), and the Highways Directorate with 13.1 billion Turkish liras ($1.75 billion).
The overall investment commitment by the government is close to $400 bn USD and they are divided in the following allocations: