An impressive inflow of Foreign Direct Investment (FDI) has been reported for Türkiye in 2023, as revealed by the Central Bank of the Republic of Türkiye (CBRT). The data for December 2023 showcases Türkiye's appeal to global investors, with a total FDI inflow reaching USD 10.6 billion for the year.
According to FDI statistics for 2023, Türkiye witnessed significant contributions from various countries, with the top 10 investors including the Netherlands, Germany, the UAE, Qatar, Russia, France, the United Kingdom, Ireland, the United States, and Switzerland.
Breaking down the FDI by sector, the manufacturing sector emerged as the primary recipient, attracting 30.7 percent of the total investment. Following closely, the wholesale and retail trade sector secured 17.6 percent, while the finance and insurance services sector accounted for 10.7 percent.
Investment Office President A. Burak Dağlıoğlu reflected on the global investment landscape in 2023, citing factors such as central bank policies and geopolitical tensions as contributing to a contraction in global investments. Dağlıoğlu said, “We observed declines in global FDI ranging from 20 percent to 80 percent in many emerging economies, including Central and Eastern European countries (CEE) and BRICS countries. Despite challenging global conditions, exceeding USD 10 billion in FDI volume is significant. The positive signals at the beginning of 2024 indicate a promising outlook for the Turkish economy, with increased investor interest. We expect a surge in investments in 2024, indicating a positive trajectory for the months ahead."
Assessing Türkiye's FDI landscape for 2023, Dağlıoğlu noted the significant involvement of European and Gulf countries, highlighting the growing collaboration with the Gulf region as a positive indicator for investment prospects.
Analyzing data from the past decade, Dağlıoğlu noted, “Türkiye's prowess in attracting FDI, particularly in the manufacturing sector, across CEE, the Middle East, and North Africa (MENA) regions, stands out. Türkiye emerged as the top recipient of manufacturing investments, securing 21.7 percent of investments in CEE and MENA regions over the last decade. Additionally, Türkiye has led in expansion-type investments, with a 19.1 percent share since 2013."