12/18/2007

FDI boosts Turkish economy and this in turn favors the FDI inflow

Turkish economy continuously grows for the last 22 quarters and this includes the foreign capital based in Turkey. Automotive industry is the lead in FDI inflow and among the foreign capital companies Toyota Automotive achieved the fastest growth. The company achieved a growth rate of 600% in the last 5 years but Toyota was not the only company benefiting from the economic growth. Honda, Lafarge, Nexans, Termo Teknik, Dow Turkey, Progıda, Autoliv, Turk Prysmian have all increased their turnover by 200% and this record growth also improved their position in the global network. In fact liaison offices and headquarters operating in Turkey gained global prestige and became critical for the international operations. Here are the some examples on how the direct investors operate in Turkey. Fiat Auto plans to sell 3.5 million vehicles worldwide in 2010 and Fiat Auto CEO Sergio Marchione is determined to use Turkey to achieve that goal: “Turkey will make an important contribution to help us to realize our vision.” The same point is also valid for the Fortis CEO Jean-Paul Votron. He says that since the acquisition of Dışbank they opened a new branch office nearly every week: “Be it global crisis or something else. We will never leave Turkey under any circumstances. In fact we shall increase our investments and achieve a faster growth rate.” Ökonom Anton Weinmann, CEO of the Man Turkey adds: “We need to invest more in this country and we shall continue to invest in Ankara.” CEO of the Daimler Crysler AG and head of Mercedes-Benz Cars Dieter Zetsche says that their total investment in Turkey now is close to 500 million Euros. Dieter is also pleased to state that Mercedes-Benz Turkey contributes to their global sales on a large scale and buses manufactured in Turkey constitutes 40% of Mercedes-Benz’s total sales for this segment. Turkish economy began to grow in 2002 and it is expected that it will grow by 5% in 2007. Experts believe that this will continue in the next year albeit a bit slowly. One of the main factors of said process is the foreign capital investing in Turkey. The local Capital500 and ISO500 researches indicate that many companies with foreign capital rate of 51% or more show a growth of at least 100% between 2002 and 2006.

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