Foreigners invest most in finance, retail sectors
ISTANBUL
Out of the total equity capital inflows amounting to $642 million in November, the financial and insurance activities took the forefront with $318 million, while the share of wholesale and retail trade was 14 percent, the International Investors’ Association (YASED) has said in a report.
Within the finance and insurance sector, banking investments accounted for $300 million, the report noted.
The manufacture of computers, electronic, electrical and optical equipment commanded another 7 percent share in equity capital inflows into Türkiye.
In November 2023, due to Qatar’s 47 percent share, Middle Eastern countries stood out in equity capital inflows to Türkiye with a 51 percent share, the association said.
“Qatar was followed by Germany with a share of 11 percent and the United Kingdom with a share of 7 percent in terms of equity capital inflows.”
The share of the U.S., the United Arab Emirates, the Netherlands and Ireland was 5 percent each.
In the first 11 months of last year, the share of European Union member countries was 56 percent, while the share of Middle Eastern countries was 18 percent, according to YASED.
In November last year, Türkiye attracted a total of $1.26 billion in foreign direct investments (FDI), the balance of payments data the Central Bank unveiled on Jan. 12.
“While investments rebounded to relatively elevated levels over the last two months, FDI inflows amounted to $9.2 billion in the initial 11 months of 2023, marking a 27 percent decline compared to the corresponding period in the preceding year,” the report by YASED noted.
In November, Türkiye recorded $642 million worth of FDI inflow through equity capital flow, $256 million through the sale of real estate to foreign nationals, and $410 million through debt instruments, according to the report.
“As divestment reduced overall FDI inflows by $48 million, Türkiye netted a total FDI inflow of $1.26 billion.”
Real estate sales accounted for 36 percent of the total FDI inflows for the first 11 months of 2023.
Türkiye’s current account posted a deficit of $2.7 billion in November, after two months of surpluses.
“Although the foreign trade deficit in 2023 will be $6 billion below the medium-term program forecast, we assess that the year-end current account deficit will be above the forecast,” Finance Minister Mehmet Şimşek said, commenting on the latest figures.
Weakening service revenues due to geopolitical tensions are effective in this development, he added.
The medium-term program forecasts a current account gap of $42.5 billion.
