Swiss companies put Türkiye on their investment radar

ISTANBUL

The number of Swiss companies inquiring about Türkiye has increased over the past two months, Roland Brun, Deputy Consul General in Istanbul, has said, adding that some new investments may be in the pipeline this year.

Presently, there are more than 300 Swiss companies operating in Türkiye with a total investment stock of $10 billion.

“I have been receiving many questions from Swiss small and medium-sized companies, which play an important role in the Swiss economy. They are demanding information about Türkiye,” Brun told daily Hürriyet.

The demand for investment in Türkiye has risen by 30 percent this year, Brun added. “They [Swiss companies] want to enter the Turkish market.”

There is a growing interest from Swiss firms in the Turkish tourism sector, he said, noting that there are daily 20 flights between Türkiye and Switzerland.

New investments by Swiss companies, especially in financial services, food production and construction, may materialize by the end of this year, according to Brun.

Swiss companies are now putting Türkiye back on their radar after the credit rating companies have lifted Türkiye’s rating and the country’s CDS has fallen around 250 basis points as well as the government’s determination to implement the economic program, said Arpat Şenocak from the Swiss Chamber of Commerce in Türkiye.

Some Swiss companies are inquiring about greenfield investments while the companies, which are already doing business in Türkiye, plan expansion investments as the economic outlook has improved, according to Şenocak.

“They have plans to increase capacity and establish new facilities,” he said, adding that more talks are also taking place on mergers and acquisitions.

The bilateral trade between Türkiye and Switzerland has hovered around $3 billion for 10 years but gathered pace four years ago, rising 40 percent, according Şenocak.

The bilateral trade volume is expected to grow from $17 billion last year to $20 billion, he noted.

Switzerland-based companies employ 30,000 people in Türkiye, said Şenocak.

There has been “unprecedented” influx of foreign capital into Türkiye, Finance Minister Mehmet Şimşek told private broadcaster NTV in an interview on June 3.

The government's medium-term economic program was working better than expected,” said Şimşek.

According to a report by the International Investors’ Association (YASED), Türkiye attracted $336 million in Foreign Direct Investment (FDI) in March, contributing to a total FDI inflow of $1.5 billion for the first quarter of 2024.

During the first quarter of 2024, the European Union (EU-27) countries continued to be the primary source of FDI equity inflows to Türkiye, constituting 58 percent of the total.

Among the top sources of FDI equity inflows to Türkiye, the Netherlands accounted for 25 percent of the total, followed by the United States at 21 percent, and Germany at 12 percent, said the association.