‘Türkiye has potential to attract more foreign investments’

ISTANBUL

Global economic and political developments are expected to trigger wars and disrupt global supply chains, but Türkiye can capitalize on the opportunities by enhancing its competitiveness, Engin Aksoy, chair of the International Investors’ Association (YASED) has said.

In the first 11 months of 2024, Türkiye drew $9.6 billion in foreign direct investments (FDI) while the whole year figure is expected to around $11 billion, Aksoy told reporters in a meeting where he reflected on Türkiye’s FDI outlook.

He noted that Türkiye aims to increase its share in global FDI to 1.5 percent, which corresponds to some $20 billion in the current conditions.

“Most of YASED members believe that if macroeconomic stability and predictability increase, investor confidence will grow and Türkiye could attract an additional $13.5 billion in investment in 2025,” Aksoy said.

The Trump administration has been taking some tariff measures, Aksoy noted. “This year, the tariffs the U.S. imposes on different countries can create opportunities for us to increase our market share in the U.S.”

“At the same time, in the face of the tariffs slapped by the U.S., China may turn to alternative markets, and China may emerge as a stronger competitor in the markets we are in,” Aksoy said.

Global economic and political developments will trigger trade wars and global supply chain disruptions, Aksoy furthered, adding that Türkiye can take advantage of the opportunities that the period will create by increasing its competitiveness.

“It is important that we have a tax and incentive legislation that strengthens competitiveness,” he said.

Citing the results of YASED’s Pulse survey, conducted among CEOs, Aksoy noted that 85 percent of participants see inflation as the main risk, while concerns over FX rates have diminished.

Some 48 percent of respondents said they would continue to grow in the next six months, he added.

“This positive outlook is reflected in many parameters ranging from export revenues to labor force size,” Aksoy furthered.

CEOs expect Türkiye to continue to grow faster than the global economy, but slightly lower growth rates are projected for the Turkish economy in 2025 compared to 2024, he said.

According to the latest data available, Türkiye attracted $1.1 billion in FDI in November 2024. From January to November, FDI inflows amounted to $9.6 billion, marking a 3 percent increase from the same period of the previous year.

Since 2002, Türkiye has attracted a total of $273 billion in foreign direct investments.