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Foreign direct investment to Türkiye jumps nearly 90% in Q1

by Daily Sabah with AA

ISTANBUL May 15, 2025 - 2:26 pm GMT+3
Tourists and commuters cross the Bosporus on a ferry, Istanbul, Türkiye, April 23, 2025. (Reuters Photo)
Tourists and commuters cross the Bosporus on a ferry, Istanbul, Türkiye, April 23, 2025. (Reuters Photo)
by Daily Sabah with AA May 15, 2025 2:26 pm

Foreign direct investments (FDI) in Türkiye reached $3 billion (TL 116.07 billion) in the January-March period, the data from the top association showed earlier this week, reflecting a nearly 90% increase compared to a year ago, with Kazakhstan emerging as the top investor in the country in the stated period.

The amount of FDI rose by 89% year-over-year in the first quarter of the year, the International Investors Association (YASED) said in its latest report, citing the central bank data.

It said the total amount of FDIs since 2002 reached $278 billion.

During the three months, some $1.8 billion worth of investments came as capital investment, increasing 40% year-over-year. In the first three months of 2025, wholesale and retail trade had a 48% share in investment capital inflows worth $863 million.

The association said in March alone that the foreign direct investments amounted to $1 billion.

The head of the Presidential Investment and Finance Office, Ahmet Burak Dağlıoğlu, evaluated the recent figures, highlighting a positive trend with particular focus on wholesale and retail trade.

"The 89.3% increase recorded in the first quarter and the annualized figure reaching $13.1 billion are a clear indicator of investors’ confidence in the Turkish economy. The focus especially on wholesale and retail trade, manufacturing and the finance and insurance sectors reveals the diversity and resilience of our economy," Anadolu Agency (AA) quoted Dağlıoğlu as saying on Thursday.

In the written statement made by the Investment and Finance Office, it was recalled that according to the March 2025 data announced by the Central Bank of the Republic of Türkiye (CBRT), the volume of international direct investment coming into Türkiye reached the level of $3 billion in the first quarter of 2025, increasing by 89.3% compared to the same period of the previous year.

In the statement, it was stated that as of March 2025, the annualized FDI amounted to $13.1 billion and had reached its highest level since May 2023. It also said that Kazakhstan ranked first, the Netherlands second and the United States third among the countries that invested the most in Türkiye in the first quarter of the year.

According to the statement, these countries were followed by Germany, Switzerland, France, Azerbaijan, Austria, the United Kingdom and Libya, respectively.

When examined on a sectoral basis, in the first quarter of 2025, the wholesale and retail trade sector attracted the most international direct investment with a share of 48%.

The manufacturing sector ranked second with a share of 22.2%, while the finance and insurance activities sector was positioned third with a share of 9.4%.

This increase, considered a result of Türkiye's stable economic policies and strategic location, shows that the country’s appeal in the eyes of international investors is strengthening despite global economic uncertainties.

In the statement, Dağlıoğlu noted that within the scope of their vision of defining Türkiye as the “Nexus of the World,” they are positioning Türkiye "as an economic power center."

Dağlıoğlu mentioned that Türkiye has become an important actor in global value chains and is performing more strongly than other developing countries with its geostrategic location, talented human resources and developed infrastructure.

“In an environment where global direct investments fell by 8% in 2024, Türkiye demonstrated significant resilience contrary to global trends by attracting $11.7 billion in investment with a 9.8% surge. This successful performance, carried out under the leadership of our president, continues unabated in the first quarter of 2025," he said.

"The data we have regarding the first quarter of 2025 shows that we continue to obtain concrete results from our efforts. The 89.3% increase recorded in the first quarter and the annualized figure reaching $13.1 billion are a clear indicator of investors’ confidence in the Turkish economy. The focus especially on wholesale and retail trade, manufacturing and the finance and insurance sectors reveals the diversity and resilience of our economy. We expect our country’s performance in international direct investments, particularly in the area of qualified investments, to continue increasing. In the upcoming period, we will continue our efforts to improve the investment environment in line with our strategy," he added.

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  • Last Update: May 15, 2025 4:38 pm
    KEYWORDS
    turkish economy türkiye investment fdi
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