Automotive Exports September 2023

Türkiye’s 2023 H1 sees $4.8B in
foreign direct investments
Türkiye received foreign direct investments
(FDI) worth $4.8 billion (TL 125.9 billion)
in the first half of 2023, said the head of
Türkiye’s International Investors Association
(YASED).
Some $2.5 billion of these investments
were mergers, acquisitions or capital
inflows, Engin Aksoy, the chairperson of the
association told Anadolu Agency (AA).
“Based on the results of our PULSE survey
conducted with YASED top executives
for the June period, we estimate that
macroeconomic stability and potential
improvements in the regulatory framework
could trigger an additional investment
inflow of at least $7.1 billion in the next six
months,” he noted.
Recalling Türkiye’s target to take a share
of 1.5% from global direct investments, he
said the current situation is now below its
potential.
Aksoy highlighted that since 2002,
European Union countries have taken the
lead with a 59% share in all investments
coming to Türkiye, and this trend has
continued in the first six months of this
year. The EU countries’ share in foreign
direct investments during the first sixmonth
period was at 56%, Aksoy said.
“Among countries, the Netherlands
accounted for 23% of total investment
capital inflows, followed by Russia with
15%, the United Arab Emirates (UAE) with
13%, Germany with 7% and Ireland with
7%. Sectors such as wholesale and retail
trade and electricity production stood out
in the investment capital inflows of the first
six months of 2023. In addition to these
sectors, investment inflows in the field of
information and communication, which
was prominent last year, also continued,”
Aksoy explained.
Comparing Türkiye to countries like
Poland and Hungary, Aksoy noted that
Türkiye is still attractive due to its tax
incentives compared to other countries.
Additionally, he mentioned that while
Türkiye has not fully utilized its potential, it
holds advantages in areas such as human
resources and infrastructure.
Aksoy stated that as YASED, they
consider the two main factors that play
the most important role in increasing
Türkiye’s competitiveness in terms of
international direct investments are the
provision of a predictable regulatory
framework based on the rule of law and
macroeconomic stability with the vision
of moving the country to the group of
high-income countries. In addition to these
prerequisites, Aksoy mentioned other
topics that are part of the current dynamics
of the global competitive environment
including integration into global supply
chains, achieving digital transformation,
adopting sustainable development and
enhancing human capital.
“I would also like to express that the
members of YASED, which represents
Türkiye’s companies, will continue to
contribute to our country’s sustainable
development with high-value investments,
and any improvement in the investment
environment will result in a net increase in
both existing and new investments.”
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