A resilient, fast-growing economy, Türkiye offers business-friendly policies, a deep talent pool, and global market access at the nexus of Europe, Asia, and Africa to attract sustainable foreign direct investments (FDI). With its geostrategic location, manufacturing capabilities, young and dynamic population, and developed logistics infrastructure, Türkiye has become a regional powerhouse where manufacturing activities of multinationals are supported by R&D centers, design teams, procurement offices, logistics hubs, and regional management centers. Today, almost 80,000 international companies operate in Türkiye.
Thanks to the strong political will under President Recep Tayyip Erdoğan's leadership, as well as Türkiye's economic performance and top-notch value propositions, cumulative FDI inflows to Türkiye have exceeded USD 250 billion since 2003, up from USD 15 billion in the previous three decades until 2002. Since 2003, the top four sectors in FDI inflows have been financial services, manufacturing industries, energy, and information & communication technologies (ICT).
Türkiye's economic performance during the pandemic and global financial crisis proved that its diversified economy is robust and resilient. Türkiye is the world's 11th
largest economy in terms of purchasing power parity (PPP) as of 2021, with an average annual growth rate of 5.4 percent from 2003 to 2022. Türkiye's share in global FDI rose to 1 percent after 2003, up from 0.2 percent in the 1990-2002 period. With the brand new “FDI Strategy (2021-2023)" published in the Official Gazette on June 22, 2021, Türkiye put forth its objective to expand its share in global FDI to 1.5 percent by increasing its market share in quality FDI profiles. Investments that support technological transformation, create quality jobs, and support current account balance in Türkiye are highly prioritized. The production, investment, employment, and export oriented “Türkiye Economy Model" unveiled by President Erdoğan also attaches utmost importance to high quality FDI projects.
Thanks to many successful international and domestic investors, Türkiye is seamlessly integrated with global supply chains (GVCs). As “Invest in Türkiye", our goal is to attract value-added and technology-intensive investments that will cement and propel Türkiye's position in GVCs. Among the priority sectors we support are e-mobility, life sciences, energy storage, chemicals, ICT, machinery, advanced manufacturing, defense & aerospace, and agrofood.
Over the last decade and particularly post-pandemic, Türkiye has proven to be a resilient player in GVCs, with multinational corporations shoring up their presence in the country in line with their nearshoring, regionalization, and diversification strategies. Given its strategic location that connects three continents, Türkiye is strengthening its position as a powerhouse in the search for alternatives to the East Asia-based production network.
Türkiye strengthened its GVC integration through targeted strategies, rational trade, and investment policies. In exports, for instance, Türkiye has not only diversified its product range and export markets, but it also increased the sophistication of its exported products portfolio. According to a World Bank flagship report, Türkiye has successfully moved up the value chain and has recently joined the advanced manufacturing and services grouping, from the limited manufacturing group. As a result of its upward progression in the GVCs, Türkiye's export composition has also shifted toward higher value-added products, particularly in medium-high tech manufacturing.
Turkish exports reached USD 255 billion in 2022, the highest annual merchandise exports figure in the Republic's history. Investors producing in Türkiye continue to ship their products all around the world, thanks to strong logistics facilities and trade relations, as Türkiye is a member of the EU Customs Union and has an extensive network of free trade agreements with more than 20 countries.
Fueled by an entrepreneurial business culture, young and tech-savvy population, and a skilled engineer pool, Turkish startups raised USD 1.6 billion in funding in 2022. Türkiye claimed a spot among the top ten investment recipients in Europe. More to that point, Türkiye's ecosystem has raised three unicorns and two decacorns in grocery delivery, gaming, and SaaS verticals since 2020. Istanbul ranked 6th
among European cities in terms of early-stage investments in 2022, and 2nd
city in the gaming vertical in Europe. We invite international financial investors to participate in the next success stories and yield high returns by investing in Turkish tech startups, directly or through venture capital (VC) funds.
Türkiye has redefined its economic development policy to align with the UN's Sustainable Development Goals (SDGs) and is actively engaged with the international community to achieve these objectives. Türkiye is committed to the Paris Climate Agreement, aiming to reach net zero emissions by 2053. Under the leadership of President Erdoğan, Türkiye seeks a sustainable transition that maximizes opportunities for individuals and communities alike. To this end, policies that promote innovation in areas such as electric vehicles, energy storage, and digital technologies will be critical in the coming years.
We, as Invest in Türkiye, prioritize and substantially support investments that contribute to specific SDGs. So, while prioritizing quality FDI, we have made SDGs one of the main pillars of Türkiye's FDI strategy, and we are conducting studies to boost business climate and the regulatory framework compliance with SDGs and the European Green Deal.
As a result of these efforts, impact investments have become a priority for the local and international business communities in Türkiye. It is a well-known fact that sustainability is a collective movement; it is only by acting together as a community that we may bring this pursuit to fruition. Our “ESG CEO Pulse Report", published jointly with Bain & Company , as well as "The Impact Investing Ecosystem in Türkiye" and the “SDG Investor Map Türkiye" reports, prepared in cooperation with the United Nations Development Programme (UNDP), create a roadmap for our goal of a more sustainable Türkiye.
I would like to highlight our key message:
Driven by its strengthened organizational structure and lean business processes, Invest in Türkiye will continue to beef up its strategic partnership with investors and collaboration with stakeholders. As the global economy undergoes a radical transition and global economic hubs shift, we are cognizant that we must work relentlessly to meet our targets for 2023, the centennial of the Republic of Türkiye. To this end, we will all continue to work with diligence and renewed vitality for a vibrant start and enhanced resilience in Türkiye's new century.