4/5/2011

New wave of foreign investments to make splash in Turkey

Hurriyet Daily News - Turkey could see a wave of foreign direct investment from 70 international companies seeking growth and profitability in the wake of the global recession in the next year, according to Turkish-language magazine Capital.

These investments may total USD 12.5 billion, the magazine reported, quoting a recent report by BCG Partners. Turkey saw USD 8.9 billion in FDI last year.

According to the report, 80 percent of this FDI is expected to come from greenfield investments and merger and acquisition transactions.

While the share of greenfield investments among foreign capital inflows did not exceed 20 percent in previous years, this figure is expected to reach 40 percent in 2011.

Mergers and acquisitions in the Turkish market are expected to exceed USD 30 billion this year. “With a healthy privatization process, we forecast the volume of mergers and acquisitions to exceed USD 30 billion,” Kerim Kotan, managing director at Pragma Corporate Finance, told Capital.

Some of these nearly 70 investors are ready to enter the domestic market while others are seeking partnerships and still others are observing the market.

The retail, energy, pharmaceuticals and food sectors are forecast to drive a large portion of these investments.

A great number of brands planning to enter the Turkish market via shopping centers opening within the next year will power the growing retail sector.

The magazine cites various experts in international finance and consultancy services, listing Turkey’s rapidly expanding economy, strong domestic market, availability of a skilled labor force and the easy access to nearby markets as key contributors to the country’s investor appeal.
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