Turkey continues to be one of the favorite countries with the advantages for foreign investors with sustainable development initiatives. Thanks to the addition of a large internal domestic market, geographic location, young population and stability in fast-growing economies shows a positive trend for investments by foreign companies in Turkey. As a result of that, Turkey has become the center of attraction of foreign investors with the 2000s. You will find information that is wondering about investing in foreign companies in Turkey.
Adventure of Foreign Investment Companies in Turkey
Turkey has made remarkable economic growth during the 1980s. The interest of foreign companies to invest in Turkey rather have started with the end of the ’90s and experienced as of the beginning of the 2000s has gradually increased along with evaluating new opportunities overcome the economic crisis. In 2007, the amount of foreign direct investment to Turkey reached more than 22 billion USD level. Although there was a deceleration in the momentum with the economic crisis in 2008, the increase started to continue again thanks to the recovery of the economy and indicators as of 2011. According to Central Bank data, Turkey, in 2015, has managed to take 1% of global investment. This rate corresponds to approximately 17.1 billion USD. In 2016, this direct investment inflow decreased to 12.1 billion USD. The real estate sector stood out with a 26% share in the total investment inflow to Turkey in 2016, it has continued to follow the manufacturing sector with 22% share.
Turkey İS Europe’s 7th most popular destination of foreign direct investment in 2019. Accordingly, it has a 4% share in foreign direct investments and reached its highest level ever and broke its own record. Finance and insurance has taken first place in the list of the service sector. The finance and insurance sector held 34% of foreign companies, while the manufacturing and energy sectors attracted 24.1% and 11.7% of total foreign direct investments, respectively.
Which Countries Made Investment to Turkey ?
A large part of European companies investing in Turkey over the last year, while North America and the Gulf countries, the share of Asian countries is increasing significantly. International capital investments were made by European companies at a rate of 68% between 2012 and 2016. While 24% of companies are in Asia, 7% are from America. The most foreign investor companies investing in Turkey are, respectively, from the Netherlands, Britain and Germany. When analyzed the 100 largest foreign companies investing in Turkey, there are 15 German, 12 United States, 6 Dutch and British companies.
According to the data released by the Turkey Union of Chambers and Commodity Exchanges, the number of companies established in Turkey in 2019 in partnership with local and foreign capital is 12.000. It is stated that the capital of these companies comes mainly from Iran, Syria and Saudi Arabia. According to the statistics of TOBB, the total capital of companies is approximately one billion dollars and 5.7 billion Turkish liras. While the total capital of the companies established in Istanbul at the summit in this area reaches 3.4 billion liras, Manisa, which Volkswagen plans to invest with 952.7 million liras, is in the second place. The share of foreign capital in these companies is 83.25%. 8288 of foreign joint stock companies and limited companies were established in Istanbul, 705 in Antalya, 589 in Ankara and 504 in Gaziantep.
The high growth rate is expected to increase further. In order to provide a reliable investment environment and to improve the current environment, many governments and associations, especially the Ministry of Economy, as well as related state instutitions, are working hard.