Turkey expects increase in FDI, focuses on automotive, data centers
(MENAFN) Turkey is projecting a significant increase in foreign direct investment (FDI) this year, estimating a rise to between USD12 billion and USD14 billion, up from approximately USD10 billion last year. Burak Daglioglu, head of the presidential investment office, highlighted the country's strategic focus on attracting investments in the automotive sector and data centers. This optimism is bolstered by Turkey’s recent removal from the Financial Action Task Force's "grey list," which monitors financial crimes, and an improved credit rating, both of which have heightened foreign investor interest.
The country’s automotive industry, in particular, is expected to see substantial inflows. Chinese firms are anticipated to introduce two new investment packages following BYD's announcement in July of a USD1 billion investment to establish a factory in Turkey. Additionally, the data center sector is projected to attract new investments by the end of the year. Daglioglu expressed confidence that the second half of the year will be notably more active in terms of investment, with an even more positive outlook anticipated for 2025.
Foreign direct investment in Turkey totaled USD4 billion during the first five months of the year. Daglioglu noted that investors are keenly watching inflation trends and geopolitical developments, which have introduced some uncertainty. He also mentioned ongoing negotiations for new investments, each potentially worth USD1 billion, and acknowledged the competitive landscape Turkey faces with Central and Eastern European countries for these opportunities.
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