Investment Outlook After Credit Rating Upgrade
Burak Dağlıoğlu, the President of the Presidential Investment Office, noted that following Turkey’s credit rating upgrade and exit from the gray list, there has been concrete interest from foreign investors over the past two months. He stated that they expect the international direct investment (FDI) amount, which was $4 billion in the first five months, to reach between $12 to $14 billion by the end of the year.
New Investments from China
Dağlıoğlu indicated that after the major electric vehicle manufacturer BYD announced its investment in Turkey, there could be two additional automotive factory investments from China. He also mentioned that a new data center investment might be made by the end of this year.
Positive Predictions for the Second Half of the Year
In an interview with Reuters, Dağlıoğlu stated, “We see that the second half of this year could be more vibrant in terms of investment movements, but there is a much more positive outlook for 2025. We have plans for investment announcement ceremonies or groundbreaking events in the autumn months, but our expectations for 2025 are even greater.”
Potential AI Data Center Investment
Dağlıoğlu pointed out that Turkey has accounted for an average of 0.9% of global foreign direct investment over the past twenty years. He expressed the aim to gradually increase this rate to 1.5% in the medium term.
When asked what these rates would correspond to, he replied that they aim for the level of direct investment to rise to $15-20 billion annually by the end of a four-to-five-year period that coincides with the completion of the 12th Development Plan covering the years 2024-28.
Dağlıoğlu mentioned that Turkey could attract a data center investment by the end of the year, stating, “We need to establish AI and data centers that will support AI in this geography. We want to secure those investments, and I hope we can share some good news towards the end of the year.”
Investments in New Vehicle Factories
In response to questions about the status of negotiations with Chinese car manufacturers Chery and SAIC regarding their production facilities, Dağlıoğlu remarked, “Negotiations are ongoing, but their pace and content may vary. Therefore, there is a time difference, but we are on the right track. Things are progressing positively.”
He recalled that the negotiations are being conducted with the Ministry of Industry and expressed optimism about the investment discussions with the two manufacturers, stating, “I am very positive; I wouldn’t be surprised if we win both of the ongoing negotiations.”
He indicated that the negotiations are progressing with ‘greenfield’ projects, meaning factories that will be built from scratch. If realized, each of these factories would represent at least a one billion dollar investment, similar to other newly established automotive factories.
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.
