The inflow of international direct investment (FDI) into Turkey amounted to $3.8 billion in the first five months of this year.
Following the release of the Balance of Payments statistics by the Central Bank of the Republic of Turkey, the International Investors Association (YASED) published its Bulletin on International Direct Investments for May.
According to the bulletin, Turkey received $1 billion and 74 million in international direct investment in May.
In the first five months of this year, the total amount of FDI in Turkey decreased by 15% compared to the same period in 2023, totaling $3.8 billion. Since 2002, the total value of FDI inflows into Turkey has exceeded $267 billion.
Out of the investments in May, $590 million was in the form of capital investment, while $303 million came from debt instruments and $189 million was generated from the sale of real estate to foreigners. The total FDI inflow of $1 billion and 74 million was impacted by an outflow from investment liquidations valued at $8 million in the same month.
HIGHEST INVESTMENTS IN TRANSPORTATION
In the capital investment inflow of $590 million in May, the transportation and storage services sector accounted for 42% with an investment of $247 million. The manufacturing of computers, electrical, electronic, and optical products, as well as agriculture, forestry, and fishing, contributed with shares of 10% and 9%, respectively, surpassing their cumulative performances.
NORWAY AT THE TOP
In May, EU-27 countries accounted for 44% of the FDI into Turkey. Moreover, other European countries that are not EU members made up the highest investment region in Turkey with a 45% share.
Norway led the way with an investment of $229 million, holding a 39% share, followed by the Netherlands with 18%, the Czech Republic with 8%, Sweden with 5%, and Azerbaijan with 4%.
During the January to May period, the top three countries investing the most in Turkey were the Netherlands with a 20% share, the United States with 16%, and Norway with 10%.
According to the United Nations Conference on Trade and Development (UNCTAD) World Investment Report for 2024, the global volume of international direct investment (FDI) decreased by 2% to $1.33 trillion in 2023.
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.
