|Date:||Thursday, January 12, 2023|
Foreign direct investments in Turkey in 2021 achieved a record high since 2016, by recording “0.
The flow of foreign direct investment in Turkey increased by 81%
In 2021, foreign direct investments in Turkey reached a record high since 2016, with an increase of 81 percent, reaching $14.2 billion.
This came in a statement by the head of the Investment Office of the Presidency of the Republic, Burak Daglioğlu, to Anadolu Agency, in which he talked about foreign direct investments in Turkey, the expectations for the current year, and Turkish promises to foreign investors for 2023.
Daglioglu explained that foreign direct investment in the world witnessed a 35 percent decline in 2020, affected by the Corona pandemic, while Turkey recorded the most moderate decline in the world by 18 percent.
He added that according to the first report of the United Nations Conference on Trade and Development "UNCTAD" for the year 2021, the volume of global foreign direct investment increased by 77 percent compared to 2020, while it reached a record number in Turkey, with an increase of 81 percent, recording 14.2 billion dollars.
"This amount is the highest foreign direct investment flow that Turkey has recorded since 2016," Daglioğlu said.
He explained that the geographical distribution of incoming foreign direct investment was 60 percent from Europe, 24 percent from Asia, and 16 percent from America.
He pointed out that the countries that occupied the top ten positions in foreign direct investment in Turkey are the United Kingdom, the United States, the Netherlands, Switzerland, the United Arab Emirates, Germany, Luxembourg, South Korea, Japan and Ireland.
The sectors most attractive to foreign investment were retail and wholesale trade, manufacturing industries, information and communication technology, financial services, and transport and warehousing activities.
Other sectors also had a good share in foreign direct investments, such as chemicals, computers, electronic and electrical equipment, and food and beverages.
** 309 Mergers and Acquisitions took place in Turkey during 2021
On purchases and acquisitions, Daglioğlu stated that 309 merger and acquisition deals took place in Turkey during 2021, and that 50 of these transactions included the purchase of local shares by international companies, with a value of 22 billion liras (about 1.6 billion dollars).
He emphasized that with its entrepreneurial work culture, young technological expertise, talented engineers, and competitive products and services, Turkey is attracting significant investments from global investors.
He pointed out that Turkey has become one of the ten European countries with the most short-term investment thanks to its investment system, as it attracted about 1.6 billion dollars in investments out of 294 investment rounds.
** Turkey will continue to make investments
Daglioğlu stressed that Turkey's goal within the framework of the strategic document for the period 2021-2023 is to increase its share of global foreign direct investment by 1.5 percent.
He added that Turkey's foreign direct investment document defines foreign direct investment as investments that support technological transformation, employment and current account balance.
The new economic model in Turkey focuses on production, investment, employment and export, and attaches great importance to foreign direct investment.
Daglioğlu explained that Turkey is working to strengthen its position in global supply chains, and international investors are working to increase their presence in Turkey from this perspective.
As a regional center for research and development, production, logistics, training and management, Turkey will continue to attract investments focused on exports of goods and services.
It also continues to focus on investing in technology start-ups, in addition to completing major investment rounds in the coming years in e-commerce, fintech, online games and logistics technologies.
** Turkey is a production, export and research and development center in the region
Regarding Turkey's standing in the eyes of international investors, Daglioğlu said, "For an executive of a large international company, Turkey is the only country with wide geographical diversity from Germany to China, depth and efficiency in production."
"Turkey has reached this position through reforms, investments in infrastructure and superstructure, investor-friendly policies and training investments for talented people during the past 20 years under the leadership of President Erdogan," he continued.
He pointed out that Turkey, thanks to its effective trade diplomacy, provides opportunities for investors to reach wide geographical areas through the free trade agreements it has signed and logistical networks.
International companies view Turkey as a production, export, R&D and logistics hub in the region and develop their business plans accordingly.
** Turkey is one of the most liberal countries in terms of investment environment
Daglioğlu explained that Turkey, with its strong, resilient and fast-growing economy, provides access to global markets with its cross-site with Europe, Asia and Africa, as well as investor-friendly policies through which it attracts sustainable international direct investment.
He added that Turkey always keeps its doors open to all investors who want to invest with the slogan "Profit together".
"Turkey promises investors a friendly business environment. It supports this promise with the successful reforms it has implemented under its strong political leadership since 2003, and is rapidly continuing its reforms," he added.
He explained that according to the ease of doing business index of the World Bank Group, Turkey ranked 93rd out of 155 countries in 2006, rose to 69th in 2017, and 33rd out of 190 countries in 2020.
He added that Turkey is one of the most liberal countries in terms of the investment environment, noting that the decrease in regulations restricting investments from 0.283 points in 2003 to 0.059 points in 2020, according to a report by the Organization for Economic Cooperation and Development, Turkey thus provides a liberal investment environment more than the economies of developing countries.
** Turkey is a reliable and permanent supply base for investors
In his speech, Daglioğlu said that an important element in Turkey's economic success story is that Turkey strengthens its position through integration into global supply chains.
He added that Turkey brought in international suppliers, developed its local companies, and then exported them to various institutions around the world.
He explained that international companies not only produce in Turkey, but also carry out pre-production functions such as research and development, design and testing, and use Turkey as a regional base for functions such as logistics management, training centers and management activities, which are post-production operations.
He stressed that what proves that Turkey is a reliable and permanent supply base for all investors, is the great activity of international companies in Turkey during the pandemic.
Daglioğlu added that Turkey's economy has achieved great transformations in the past, and today it promises to keep pace with digital transformation and sustainability.
He indicated that international investors are implementing green manufacturing practices in many sectors in Turkey, and have also developed logistics processes that reduce carbon emissions, in addition to implementing comprehensive measures with regard to women's employment.
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