Foreign direct investment projects in Turkey see fivefold increase in a decade

DAILY SABAH WITH AA
ISTANBUL
Published 07.06.2017 00:17
Updated 07.06.2017 00:18

The number of foreign direct investment (FDI) projects in Turkey has increased almost five-fold in the last decade, according to the EY's European Attractiveness Survey 2017. Conducted through interviews with 505 executives worldwide, the survey revealed that the number of FDI projects in Turkey increased 3 percent from the previous year, reaching 138 in 2016. Back in 2006, however, there were only 28 projects.

While 2,971 new jobs were created through these projects in 2015, this figure increased by almost 142 percent last year to reach 7,179, adding 4,208 new jobs to the market in a year.

According to the EY's European Attractiveness 2017 Survey, the number of foreign direct investments made in Europe reached a record high with 5,845 projects increasing 15 percent in 2016 compared to the previous year. New employment created in the same period, thanks to the said investments, climbed 19 percent throughout the region, reaching 259,673 in total.

Turkey attracts foreign investors in every period

Müşfik Cantekinler, head of the EY Turkey Corporate Finance Department, stated that the increase in the number of new jobs is noteworthy, adding that employment is one of the most important issues in Turkey while the continuation of foreign investments is very valuable in this respect. Cantekinler said that they expect the number of projects to continue to increase in the coming years.

"Turkey's young population, consumer spending habits, entrepreneurial culture and geographical location are attractive for foreign investors in every period," he went on to note.

"If these elements are supported by economic growth and proper investment policies, foreign investments will continue to increase."

Meanwhile, earlier reports confirmed that Turkey's FDI rate increased by 43 percent in the first three months of this year compared to the same period last year, reaching around TL 6 billion ($18.5 billion).

According to the Central Bank of the Republic of Turkey (CBRT), the FDI volume increased by 43 percent to reach almost TL 6 billion ($18.5 billion) in the first quarter of this year. In contrast, this amount was TL 4.19 billion ($12.5 billion) in the same period last year.

Meanwhile, the U.K., Germany and France became the top three countries attracting the largest FDI volume in Europe, as 51 percent of all projects in Europe were carried out in the U.K. (1,144), Germany (1,063) and France (779).

Spain maintained its fourth place with 308 projects and Poland rose to fifth place with 256 projects. Among the top three, France recorded the highest increase in the number of projects with 30 percent, followed by Germany with an increase of 12 percent and the U.K. with 7 percent.

Sweden, Italy and the Czech Republic were the best performing countries in terms of increase in FDI projects. The number of projects rose to 90 in Sweden with an increase of 76 percent, while in Italy that number increased by 62 percent to reach 89 and in the Czech Republic which saw an increase of 57 percent reaching 110. On the other hand, the number of FDI projects in the Netherlands and Belgium declined by 5 percent while Switzerland saw a decline of 2 percent last year.

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