FDI in Turkey doubles in last 5 years: Report

ISTANBUL

Investor confidence in Turkey’s economy is high with over 80 percent expecting an improvement in investment attractiveness. This is the second only to that of Brazil among major emerging markets and much higher than the 38 percent who expect improving conditions in Europe, according to Ernst & Young’s first Turkey Attractiveness Survey.

The report combines an analysis of international investment into Turkey over the past five years with a recent survey of over 200 global business leaders about their views on potential of the Turkish market.

Despite the uncertain global economic environment more than half of total respondents have expressed their intention to set up operations in Turkey within the next year and 71 percent think that Turkey’s investment attractiveness improved substantially over the last three years. A majority of investors highlighted that the current negotiations around Turkey’s accession to the EU had improved their perception of the country’s attractiveness.

Inward investment in Turkey has steadily grown since 2007. The number of projects more than doubled from 40 in 2007 to 95 in 2012, the latest data for Ernst & Young’s European Investment Monitor (EIM) showed. The EIM data highlights that, from 2007 to 2012, American companies made 28 percent of the foreign direct investment to Turkey with 86 projects.