In the dynamic environment of foreign direct investment (FDI), Turkey showed a promising trend in October 2023; There was a significant increase in total foreign direct investment, reaching 1.1 billion US dollars, an increase of 3 percent on an annual basis.
When October foreign direct investment inflows were examined, equity capital ranked first with 620 million dollars, accounting for 52.2 percent of the total. Other capital representing intercompany loan transactions ranked second with $345 million (29 percent), while real estate accounted for 18.8 percent of the total with $223 million.
Looking at the sectoral distribution, industrial sectors were the main beneficiary with US$ 321 million (48.3 percent), followed by the services sector with US$ 343 million (51.7 percent).
The increase in foreign direct investment revealed interesting patterns when broken down by subsectors. The energy sector took the lion’s share, generating a significant revenue of US$182 million, underlining the strategic focus on Turkey’s energy environment. The manufacturing sector follows closely with 137 million US dollars, highlighting the solidity of Turkey’s industrial base. The transportation and warehousing sector ranked third with a significant investment of US$ 96 million, signaling the potential growth in logistics infrastructure.
In a broader geographical context, Europe has emerged as a dominant force, accounting for a significant share of Turkey’s foreign direct investment landscape with a staggering US$522 million, accounting for 78.6 percent of total inflows in October. Asia followed suit with US$129 million (19.4%), showcasing continued interest and investment from Eastern markets. Meanwhile, America made a modest contribution of $12 million (1.8 percent) and was also included in Turkey’s investment portfolio.
At the country level, France emerged as a key player, leading with investments worth US$166 million, accounting for 25 percent of Turkey’s total foreign direct investment for October. The Netherlands followed closely, injecting US$139 million (20.9 percent), exemplifying diversification of investment sources. The UAE took third place with US$105 million (15.8%), reflecting the continued interest of Middle Eastern investors in Turkey’s economic environment.
The latest figures underline the dynamic nature of Turkey’s foreign direct investment environment, with a range of contributions from sectors and regions, and highlight the country’s continued attractiveness to international investors despite challenges to the wider economic agenda.
