Growing Turkish market attracts British investors

ISTANBUL - Anatolia News Agency

The file picture shows high-rise housing developments in Istanbul’s Ataşehir ditrict. Turkish construction sector increasingly attracts foreign capital. Hürriyet photo

In the first six months of 2012, foreign direct investment (FDI) in Turkey rose 21 percent to $8.2 billion. Britain was the FDI leader with $1.9 billion.

Britain’s acting consul general in Istanbul, Syed Shah, spoke to Anatolia news agency regarding British firms exploring the Turkish market and their investments.

In addition to Turkey’s EU candidacy and membership in the G-20, Shah said Turkey played an important economic role both in the region and globally. “Turkey’s economic performance has captured the attention of British firms and has sparked their interest in Turkey.”

He said the dynamic Turkish market offers major opportunities for British firms and influences bilateral economic and commercial relations.

He added that Britain’s interest in Turkey came from the countries’ strategic partnership as well as having close ties in certain sectors and having an effective working relationship.

A recent example of British interest in Turkey was Bancroft’s latest invetment. Bancroft Private Equity, a British investment fund, acquired 75 percent of shares in Graniser, a local granite producer, for $75 million in early June. It was the fourth investment of Bancroft in Turkey, according to Bancrof Turkey Chairman Levent Aydınoğlu.

Turkey, a primary market

UK Trade & Investment has listed Turkey as being one of their 20 primary markets, he said.
Shah said Britain is the world’s sixth largest economy and ranks among the top 10 producers in the world.

“With the benefit of the increasing number of structural reforms, Turkey’s powerful economy and bilateral relations encourage investments and cooperation in the finance, services, energy, transportation, education and retail industries. Turkey’s geopolitical importance also draws Britain’s attention. Turkey is a bridge to Europe, the Middle East, Central Asia and North Africa, so these markets also offer opportunities for Turkey and Britain.”

Shah said that in 2011, 90 percent of Turkish-citizen applicants were granted British visas. He said they were working on special projects in order to ease the process of visa applications by Turkish firms, representatives of the government and academics. eanwhile, the chief executive officer (CEO) of the Foreign Economic Relations Board (DEİK), Rona Yırcalı, said Britain came in second behind world leader U.S. in investments. Noting Britain’s nearly $2 trillion of foreign investment stock, Yırcalı said, “Sixty percent of this stock is in Europe, 25 percent of it is in North America and 10 percent of it is in the Pacific.”

British firms’ decisions are related to the capacity of the Turkish domestic market, growth strategies and the correct re-export capacity to Eurasia and the Middle East.

UK Trade & Investment works with UK-based businesses to ensure their success in international markets and encourages overseas companies to look to the U.K. as their global partner of choice.