Turkey has attracted almost $165 billion (TL 1.20 trillion) in foreign direct investments (FDI) since 2003, nearly one-third of which came from the Netherlands, the U.S. and the U.K., according to official data.
The country has strengthened its position in attracting FDIs from all over the world, thanks to its geographical position, strategy and the long-term opportunities it offers investors. Turkey became a top destination for foreign investors thanks to its proximity to Europe and the Middle Eastern markets. FDIs, which had seen only million-dollar levels until the 2000s, saw a rapid increase with the beginning of the decade.
Turkey has received over $164.6 billion FDIs in the last 18 years, an Anadolu Agency (AA) report said Thursday, citing the Central Bank of the Republic of Turkey (CBRT) data. The country attracted a record $19.1 billion investments in 2007, marking the highest figure in history.
Europe has always taken the lion’s share of FDIs in Turkey, the share of which has hovered between 60% and 87%. Over the past 18 years, FDIs coming from Europe have totaled around $120.1 billion. It was followed by Asia with $29 billion and the Americas with $14.3 billion.
The Netherlands, Turkey's largest investment partner, has invested in the country in many areas, including ports, logistics, real estate, construction, agriculture, aviation, food, electronics, automotive, subindustries and health tourism in the last 18 years.
The total FDIs from the Netherlands amounted to $26.2 billion with a share of 16%. The country has ranked first in terms of FDIs in Turkey eight times, including the last four years. It made a $1.2 billion investment in Turkey last year and $396 million during the first nine months of this year.
The U.S. ranked second with a $12.9 billion investment in 18 years in different sectors, including finance, food and technology. The largest investment from the country came in 2007 for the banking sector. The U.S. invested a total of $4.2 billion in Turkey that year and increased its investments gradually over the following years, pushing its total share to 7.8% in the last 18 years.
The U.K. ranked third for the most FDIs in the last 18 years with $11.6 billion in total. In 2012, it was the top investor country with $2 billion. The sectors that Britain has mostly invested in, include infrastructure, energy, food, tourism, finance and telecommunications. Its share in the total investment in the last 18 years was at 7.1%.
Meanwhile, Austria was also among the countries that boosted its investments in Turkey gradually from 2006. It was the top investor country three years in a row in 2009, 2010 and 2011. Austria invested $1 billion in 2009, $1.6 billion in 2010 and $2.4 billion in 2011, mainly in wholesale, retail and the energy sector.
FDIs from Germany, a country that shares a long history of economic and political relations with Turkey, have also increased. German companies, which invest in many fields, from automotive to industry, energy and petrochemicals, have preferred Turkey as a regional base.
Germany, which ranked fifth with $10.1 billion worth of investments in the last 18 years was the top investor country in 2013 with FDIs worth $2 billion.
Luxembourg, Spain, Belgium, France and Azerbaijan are also among the top 10 countries that invest in Turkey. Meanwhile, Italy ranked first in the nine months of this year with $966 million.
Gulf countries
Gulf countries' investment in Turkey totaled around $11.4 billion in the last 18 years, while the highest figures were recorded in 2005, 2006 and 2008 with $1.7 billion, $1.8 billion and $2 billion, respectively.
Among those countries, the United Arab Emirates (UAE) made the most of investments in Turkey at $4.3 billion. With $2.7 billion, Qatar ranked second among the Gulf countries and 17th overall.
The finance and insurance sectors took the lion’s share in FDIs in the last 18 years with $54.2 billion. Energy, informatics, communication, wholesale and retail trade, and food sectors followed the finance sector with investments worth $18.1 billion, $14.4 billion, $11.1 billion and $9.3 billion, respectively.
The finance sector’s total share in the period was at 33%.