Sabah – The location of choice for international investors looking for growth in a stable and prudently managed economy with a large population, Turkey will shine even brighter in the coming decade as the country walks towards its ambitious goals set for the centennial of the republic in 2023.
The country plans to reach a GDP level of USD 2 trillion by 2023, from the current level of USD 772 billion, with foreign direct investments (FDI) amounting to 4 percent of the total GDP, according to the head of the country’s official investment agency. “Turkey will be attracting USD 80 billion of FDI per year in 2023.”, Ilker Ayci, the President of the Investment Support and Promotion Agency of Turkey (ISPAT), said in an interview, predicting that the country will rank among the top 8 FDI recipient countries by its centennial.
“Istanbul’s claim to be an international financial center is getting stronger as we are witnessing more and more financial institutions either applying for a banking license or opening a representative office in Turkey.” Ayci remarked about Turkey’s financial capital becoming a global hub of finance and commerce in the near future. Japanese, Russian, Lebanese and other lenders have entered Turkey’s banking market in recent years by acquisitions or setting up their own branches.
Credit rating agency Fitch Ratings upgraded Turkey’s sovereign credit rating to “investment grade” last month, raising the prospects for increased amounts of FDI in the medium and long term.
Turkey attracted USD 15.9 billion of FDI in 2011, a 76 percent increase over the previous year. Despite the drop in global FDI inflows in the January-June period, Turkey attracted 20.8 percent more foreign investments in the first half of 2012 over a year earlier, entering the top 20 of FDI recipient countries with over USD 8 billion of FDI, according to United Nations Conference on Trade and Development’s (UNCTAD).