Türkiye aims for 1.5 pct share of global FDI by 2028: Trade minister

ANKARA

Trade Minister Ömer Bolat announced plans to increase the country's share of global foreign direct investment (FDI) to 1.5 percent by 2028, building on significant growth in recent years.

"Our share in foreign investments globally was 0.2 percent in the past. We increased it to 1 percent by 2002, and our goal is to reach 1.5 percent by 2028," Bolat said at the parliament's plan and budget commission.

The minister's comments come as recent data from the International Investors Association (YASED) shows that FDI in Türkiye reached $7.67 billion in the first three quarters of 2024, an 8 percent year-on-year increase.

Bolat highlighted the country's economic progress, noting that FDI in Türkiye totaled just $1 billion between 1950-1980, rose to $15 billion from 1980 to 2002, and surged to $271 billion between 2003 and 2024.

"While the number of foreign investors in Türkiye was 5,600 until 2002, it has now grown to 83,000 direct investors," Bolat added, emphasizing the country's improving investment climate.

According to YASED, citing Turkish Central Bank figures, equity capital inflows accounted for $4.33 billion of the total FDI between January and September 2024. The wholesale and retail trade sector led with $932 million, representing 22 percent of equity inflows.

Real estate investments from foreign buyers remained a significant contributor, bringing in $2.2 billion during the nine-month period.

The Netherlands emerged as the leading source of FDI, responsible for 19 percent of total inflows, followed by Germany at 12 percent and the United States at 11 percent.

Bolat also noted improvements in Türkiye's trade balance, reporting a decrease of $27.5 billion in imports and a $35.5 billion reduction in the foreign trade deficit. The current account deficit for January–September 2024 stood at $5.3 billion, a significant improvement from previous figures.

"Türkiye is steadily increasing its share of world trade. We have raised our share in goods exports to 1.08 percent and in services exports to 1.35 percent," Bolat said, adding that total exports of goods and services have reached $375 billion.

The minister attributed the growth in foreign investment to Türkiye's economic and political stability, legal framework and overall economic growth.

"Foreign investors wouldn't come here just for our looks. They come because of our economic policy, political environment, and growth potential," Bolat remarked.