Foreign Direct Investment to Turkey in 2015

Foreign Direct Investment to Turkey in 2015

In the last decade, Turkey has shown enormous effort into creating valuable market for investors. In the first two months of 2015, Turkey has received 2.7 billion US Dollars ($954 million in February and $1.757 billion in January) as foreign direct investment (FDI).

Even though GCC (Gulf Cooperation Council) Countries have increased their investments in Turkey, seventy percent of the total direct foreign investment is still coming from European Union according to the report published by the Turkish Economy Ministry.

Many authorities expected lower investment rates to Turkey due to upcoming elections this year; however, Turkey has proven that its business environment is one of the most attractive within developing countries.

There are over 40.000 companies with international headquarters that run business in Turkey and nearly 25.000 of them operating their businesses in the Istanbul estate market which is the largest market within Turkish cities.

FDI Inflow to Turkey by Year

 

USD million

 

2010

2011

2012

2013

2014

FDI Total (Net)

9,099

16,176

13,282

12,457

12,530

 Equity Investments (Net)

6,221

14,146

10,126

9,298

8,445

  • Inflows

6,256

16,137

10,759

9,866

8,699

  • Liquidation Outflows

35

1,991

633

568

254

 Intra -ompany Loans*

384

17

520

110

-236

Real Estate (Net)

2,494

2,013

2,636

3,049

4,321

 

*Loans that companies with foreign capital are given by foreign partners

Source: Central Bank of the Republic of Turkey

 

FDI Inflow to Turkey by Sector

 

During the last five years, the intermediation and manufacturing sectors have attracted the highest amount of FDI.

 

USD million

Sectors

2010

2011

2012

2013*

2014*

Agriculture

81

32

43

47

61

Agriculture, forestry and fishing

81

32

43

47

61

Industrial sectors

2,887

8,038

5,480

4,819

4,666

Mining and quarrying

136

146

213

242

449

Manufacturing

924

3,597

4,343

2,207

2,891

  • Manufacture of food products, beverages and tobacco

124

650

2,201

400

557

  • Manufacture of textiles and textile products

94

148

376

60

139

  • Manufacture of leather and leather products

0

0

0

0

1

  • Manufacture of wood and wood products

1

0

84

3

0

  • Manufacture of pulp, paper and paper products; publishing and printing

18

74

12

107

90

  • Manufacture of coke, refined petroleum products and nuclear fuel

3

1,255

179

236

100

  • Manufacture of chemicals, chemical products, basic pharmaceutical products and materials

120

348

579

272

495

  • Manufacture of rubber and plastic products

7

128

486

168

75

  • Manufacture of other non-metallic mineral products

54

37

10

29

158

  • Manufacture of basic metals and fabricated metal products

213

292

101

100

129

  • Manufacture of machinery and equipment n.e.c.

64

76

32

5

4

  • Manufacture of computers, electronic-electrical and optical equipment

177

464

143

607

918

  • Manufacture of transport equipment

38

93

121

97

124

  • Manufacturing n.e.c.

11

32

19

123

101

Electricity, gas, steam and air-conditioning supply

1,824

4,293

924

2,334

1,323

Water supply, sewerage, waste management and remediation

3

2

0

36

3

Services

3,288

8,067

5,236

5,000

3,972

Construction

310

301

1,427

178

232

Wholesale and retail trade

435

709

221

377

1,165

Transportation and storage

183

222

130

300

136

Accommodation and food service activities

113

122

16

59

20

Information and communication services

36

36

133

110

212

Financial and insurance activities

1,621

5,883

2,084

3,415

1,535

  • Financial service activities (banks)

835

4,745

1,500

1,608

1,018

  • Insurance, reinsurance and pension funding (except compulsory social security)

766

882

348

1,538

120

  • Activities of holding companies

10

170

176

229

262

  • Other activities auxiliary to financial services

10

86

60

40

135

Real estate activities

241

300

173

128

227

Professional, scientific and technical activities

94

103

78

87

94

Administrative and support service activities

17

55

234

175

93

Public administration and defense, compulsory social security

0

0

0

0

0

Education

17

68

60

2

0

Human health and social work activities

112

232

546

106

200

Arts, entertainment and recreation

62

13

81

5

2

Other service activities

47

23

53

58

56

Activities of households as employers; undifferentiated goods–and-service-producing activities of households for own use

0

0

0

0

0

Activities of extra-territorial organizations and bodies

0

0

0

0

0

Total

6,256

16,137

10,759

9,866

8,699

 

(*) Provisional

Source: Central Bank of the Republic of Turkey

 

Geographic Breakdown of FDI Inflow to Turkey

The majority of FDI inflows to Turkey come from Europe, North America, and the Gulf countries.

 

USD million

 

2009

2010

2011

2012

2013*

2014*

Europe

5,248

4,939

12,588

7,925

6,400

6,566

Developed Europe

4,942

4,737

11,495

7,303

5,272

5,512

EFTA countries

281

197

323

592

234

324

Other European countries

25

5

770

30

894

730

Africa

2

0

0

0

221

42

North Africa

1

0

0

0

0

0

Other African countries

1

0

0

0

221

42

America

331

384

1,485

491

343

325

North America

312

378

1,423

471

342

325

Central America

12

0

57

16

1

0

South America

7

6

5

4

0

0

Asia     

673

928

2,055

2,337

2,899

1,766

Near and Middle Eastern countries

361

473

1,558

1,593

2,286

1,231

Arabian Gulf countries

209

388

195

940

880

425

Other Near and Middle Eastern countries

78

45

1,359

653

1,406

788

Other Asian countries

312

455

497

744

613

535

Oceania and polar regions

12

5

9

6

3

0

Unclassified

0

0

0

0

0

0

Total

6,266

6,256

16,137

10,759

9,866

8,699

 

(*) Provisional

Source: Central Bank of the Republic of Turkey

Source:
http://www.invest.gov.tr/EN-US/INVESTMENTGUIDE/INVESTORSGUIDE/Pages/FDIinTurkey.aspx

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