Türkiye as innovation hub to continue to draw large investments

ANKARA- Anadolu Agency

Türkiye will continue attracting large investments as the country becomes a hub of digitalization and innovation due to its economic policies and developments in technology, logistics, production, and more key areas for innovation.

Türkiye was the only country whose Fitch Ratings, Moody’s, and S&P credit ratings increased this year.

Burak Dağlıoğlu, president of Türkiye’s Investment Office, told Anadolu Agency that the foreign direct investments (FDIs) to Türkiye since 2003 totaled more than $272 billion.

Dağlıoğlu stated that Türkiye attracted large investments from many countries, most notably from China, as China came to the fore worldwide as a major investor.

Despite large Chinese investments in Türkiye, he said that it is still limited, and Türkiye can attract more investments, particularly in the automotive sector and other tech domains.

“We talk about the developments in Türkiye one-on-one with investors at the investment meetings we organize in other countries,” Dağlıoğlu said.

“New projects are exciting, and we believe Türkiye will become a global economic powerhouse in the next century and we believe companies with international capital can contribute to our vision,” he added.

The total reserves of Türkiye’s Central Bank (TCMB) increased to $92.4 billion this year, while the country’s five-year credit default swap (CDS) declined, leading to easier access to financing with decreased costs and satisfying foreign investors.

Türkiye is working toward strengthening its position as a hub with new transportation corridors and a center of attraction for investments.

The number of international firms operating in Türkiye was approximately 5,600 in 2002, this figure has now reached over 82,000.

While FDI flows declined worldwide, Türkiye’s inflow climbed 12 percent last year, according to the Organization for Economic Cooperation and Development (OECD).

Türkiye ranked fourth in Europe with 375 greenfield FDI projects last year, right after France, the U.K. and Germany, the European Attractiveness Survey 2024 report showed.

Türkiye attracted $8.5 billion worth of FDIs from January to October, the International Investors Association (YASED) said in a report earlier this month.

During October, the amount of FDI inflows into the country totaled $770 million.

In the first 10 months of the year, there was a 1 percent decline compared to the same period of 2023, while the total value of FDI inflows to Türkiye since 2002 exceeded $272 billion.