The entry of international direct investment (IDI) into Turkey reached 4.7 billion dollars in the first six months of this year.
The International Investors Association (YASED) published the Bulletin of International Direct Investments with statistics from the Central Bank of the Republic of Turkey, following the announcement of the Balance of Payments figures.
According to the report, Turkey received 4 billion 692 million dollars worth of IDI in the first six months of the year.
While there was a 5% decrease compared to the same period in 2023, the IDI attracted in the first half of 2024 accounted for 28% of the current account deficit for that period.
Since 2002, the total value of incoming IDI to Turkey has exceeded 268 billion dollars.
Of the investments made in the first six months, 2 billion 846 million dollars were in the form of investment capital, while 1 billion 535 million dollars came from foreign nationals purchasing real estate, and 754 million dollars originated from debt securities.
With the downward impact of investment liquidations valued at 443 million dollars during the same period, the total IDI entry in the first six months of the year was 4 billion 692 million dollars.
SECTORS WITH THE MOST INVESTMENT
In the first half of 2024, total investment capital inflows amounted to 2 billion 846 million dollars, with the “Wholesale and Retail Trade” sector receiving 664 million dollars, accounting for a 23% share.
Financial activities attracted 12% of the investment capital inflows during the same period. Of the 346 million dollars in investments within the sector, 274 million dollars were associated with financial services other than banking and insurance.
Other sectors that received the most investment were “Transport and Storage” with an 11% share, “Manufacturing of Computers, Electrical, Electronic and Optical Products” with a 9% share, and “Mining and Quarrying” with a 6% share.
NETHERLANDS AT THE TOP
The Netherlands, the USA, Germany, Ireland, Norway, and the United Kingdom were recorded as the countries that attracted the most investment capital to Turkey in the first six months.
European Union (EU) countries, which historically accounted for 59% of investments from 2002 to 2023, held a 51% share during this period. Non-EU European countries, the second-largest investors for the 2002-2023 period, accounted for 21% of investment during the same timeframe.
In the first half of 2024, specifically by country, the Netherlands held the largest share at 20%, followed by the USA at 13%, Germany at 10%, Ireland at 9%, and Norway and the United Kingdom at 8% each.
Source
Arwen Volkov, A graduate of the University of St. Gallen in Switzerland with a degree in International Finance, Arwen specializes in sustainable finance and green investments. She began her career at an investment bank in London, where she developed financing models for environmentally friendly projects. Known for her analytical and strategic thinking skills, Arwen is a sought-after financial consultant. In her spare time, she mentors fintech startups, contributing to their growth strategies. She is also a nature enthusiast and an amateur photographer.
