Türkiye's October 2023 FDI Showcases Surge and Diverse Investment Patterns

​In the dynamic landscape of foreign direct investment (FDI), Türkiye showcased a promising trend in October 2023, with a noteworthy increase in total FDI reaching USD 1.1 billion, marking a 3 percent surge year-on-year.
Breaking down the October FDI inflows, equity capital took the lead with USD 620 million, constituting 52.2 percent of the total. Other capital, representing inter-company loan transactions, came in second with USD 345 million (29 percent), while real estate attracted USD 223 million, contributing 18.8 percent to the total.
Looking into the sectoral distribution, industrial sectors emerged as the primary beneficiary, securing USD 321 million (48.3 percent), followed closely by the services sector with USD 343 million (51.7 percent).
The surge in FDI revealed intriguing patterns when broken down by sub-sectors. The energy sector accounted for the lion's share, attracting a substantial USD 182 million, underscoring a strategic focus on Türkiye's energy landscape. The manufacturing sector followed closely behind, with USD 137 million, emphasizing the robustness of Türkiye's industrial base. The transportation and storage sector claimed the third place with a notable injection of USD 96 million, signaling potential growth in logistical infrastructure.
In a broader geographical context, Europe emerged as a dominant force, commanding a significant share of Türkiye's FDI landscape with a staggering USD 522 million, translating to 78.6 percent of the total inflows in October. Asia followed suit with USD 129 million (19.4 percent), showcasing sustained interest and investments from Eastern markets. Meanwhile, America, while contributing a modest USD 12 million (1.8 percent), signified a presence in Türkiye's investment portfolio.
At the country level, France emerged as a key player, leading the pack with investments totaling USD 166 million, constituting 25 percent of Türkiye's total FDI for October. The Netherlands closely followed, injecting USD 139 million (20.9 percent), exemplifying the diversified sources of investment. The UAE secured the third position with USD 105 million (15.8 percent), reflecting the continued interest from Middle Eastern investors in Türkiye's economic landscape.
The latest figures underscore the dynamic nature of Türkiye's FDI landscape, with varied contributions from sectors and regions, emphasizing the country's continued appeal to international investors despite challenges in the broader economic agenda.
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Türkiye; FDI; Investment