Gulf funds to Turkey to keep flowing

ANKARA-Reuters

Finance Minister Şimşek says Turkey’s reforms are attracting foreign funds. DHA photo

The inflow of funds to Turkey from the Gulf and other regions will be strong, Finance Minister Mehmet Şimşek told Reuters, adding that the amount of financial resources the Gulf region would yield would be too much for the region to absorb.

“If oil prices maintain their current levels for the next 10 years, the Gulf countries will run a surplus of about $5 trillion. Those financial resources are too much to be invested only in the stock and equities of developed countries,” Şimşek said.

There is a high possibility some of those funds will go to developing countries like Turkey that are in need of funds, have a high growth potential and present very appealing investment opportunities, he added.

Reforms attract funding
“I think with recent reforms we have carried out, [the inflow of the funds] will increase. Especially the new Turkish Commercial Code is an important step […] I see that the possibility of foreign firms to establish partnerships with Turkish firms is high,” he said.

Noting that a substantial amount of global capital came to Turkey last year despite the European debt crisis, he said, “It is likely that inflow of funds from the Gulf and other regions to Turkey will stay strong this year and in the upcoming period.”

The government expects the growth of domestic demand to come down to reasonable levels and the growth of the economy will be based on healthier fundamentals, he also said.