Dear Valued Visitors,
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, more than 82,500 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 260 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, wholesale and retail trade.
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 2023, with an average annual growth rate of 5.4 percent from 2003 to 2023. Türkiye's share in global FDI rose to 1 percent after 2003, up from 0.2 percent in the 1990-2002 period.
Efforts will continue to ensure that this performance maintains its momentum in the coming period. To this end, the Investment Office unveiled the Türkiye Foreign Direct Investment (FDI) Strategy (2024-2028). Developed with contributions from all our stakeholders and aligned with Türkiye's other national strategies, including the 12th Development Plan, this strategy aims to attract high-value investments. It prioritizes green and digital transformation, high technology, the generation of high-quality employment, and sustainability-oriented investments in Türkiye.
Türkiye is seamlessly integrated with global supply chains (GVCs) thanks to many successful international and domestic investors. 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 and 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 key alternative to the East Asia-based production network.
Türkiye solidified its GVC integration through targeted strategies, rational trade, and investment policies. In exports, Türkiye has not only diversified its product range and export markets but also increased the sophistication of its exported products portfolio. According to a World Bank flagship report, Türkiye successfully moved up the value chain, joining the advanced manufacturing and services group from the limited manufacturing group. As a result of its upward progression in the GVCs, Türkiye's export composition also shifted toward higher value-added products, particularly in medium-high tech manufacturing.
Turkish exports climbed to USD 256 billion in 2023, the highest annual merchandise exports figure in the Republic's history. Investors with production bases in Türkiye continue to ship their products all around the world, benefitting from 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 30 countries.
Fueled by an entrepreneurial business culture, a young and tech-savvy population, and a skilled engineer pool, Turkish startups raised USD 4 billion in funding in the last three years. Türkiye claimed a spot among the top ten investment recipients in Europe. More to that point, Türkiye's ecosystem has raised seven unicorns in grocery delivery, gaming, FinTech, 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 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 Recep Tayyip Erdoğan, Türkiye seeks a sustainable transition that maximizes opportunities for individuals and communities alike. To accomplish this, 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. 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.
To evaluate the possible contributions of each project to the UN's SDGs, we have developed an SDG Scoring Mechanism (SSM) that assesses the contribution of investments to sustainable development goals through a detailed preliminary evaluation. The SSM identifies the most sustainable and effective investment projects, prioritizing their attraction to Türkiye and expediting their investment processes.
This SSM methodology has been recognized as a good practice example by numerous international organizations. Most recently, on October 16, 2023, at the World Investment Forum hosted by the United Nations Conference on Trade and Development in Abu Dhabi, it was honored with the “UN Excellence Award for Investment Promotion in Energy Transformation."
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, create a roadmap for our goal of a more sustainable Türkiye.
Dear Visitors,
I would like to highlight our key message: Empowered by its robust organizational structure and lean business processes, Invest in Türkiye is committed to strengthening strategic partnerships with investors and fostering close collaboration with stakeholders. Under the Türkiye Century vision presented by President Recep Tayyip Erdoğan, our goal is to elevate Türkiye from a regional economic hub to a global powerhouse. In pursuit of this goal, we will persistently work with dedication to ensure a prosperous future for Türkiye in its new century.