$11.3B in foreign direct investment flows into Turkish economy in 2024

Türkiye attracted $11.3 billion in Foreign Direct Investment (FDI) in 2024, maintaining its appeal to international investors despite challenges in the global investment landscape, the Turkish International Investors Association (YASED) reported on Feb. 13.

According to a statement from the Presidency of the Republic of Türkiye Investment Office, Türkiye has retained its position as a stable and competitive market for international investors during a period of subdued global investment flows.

The latest balance of payments data released by the Central Bank of the Republic of Türkiye (CBRT) showed that FDI inflows rose 5.6% in 2023 compared to the previous year, reaching $11.3 billion.

The diversification of capital inflows and the composition of investments contributed to the country’s economic resilience.

The Netherlands topped the list with a 23.6% share of total FDI, followed by Germany at 11.5% and the United States at 10.3%. Other notable sources included Ireland, Azerbaijan, Switzerland, the United Kingdom, the United Arab Emirates, France, and Norway.

Manufacturing sector leads foreign direct investment inflows

From a sectoral perspective, manufacturing attracted the highest amount of FDI in 2024, with $2.3 billion in investments.

The manufacturing sector accounted for 34.5% of total FDI, followed by wholesale and retail trade at 25.3%, and transportation and storage at 7.2%. The manufacturing sector saw a 32.5% year-on-year increase in FDI, reaffirming its leading position in Türkiye’s investment landscape.

Meanwhile, a report published last month by the United Nations Conference on Trade and Development (UNCTAD) revealed that global FDI flows declined by 8% in 2024.

In Europe, FDI flows dropped by 45%, with Germany and Poland experiencing a 60% decrease, Italy 35%, Spain 13%, and France 6%.

‘Türkiye stands out positively among regional peers’

Ahmet Burak Daglioglu, head of the Presidency of the Republic of Türkiye Investment Office, commented on the performance, emphasizing the country’s ongoing structural reforms to enhance its investment environment.

“When we look at the data released by the Central Bank, we see that Türkiye has positively differentiated itself from its regional peers in terms of foreign direct investment,” Daglioglu said.

He noted that several global factors—such as sluggish trade growth, high inflation, rising interest rates, protectionist policies in trade and investment, geopolitical tensions, and economic fragmentation—have hindered many countries’ ability to attract investments. Despite these challenges, Türkiye’s performance stood out, he pointed out.

Daglioglu also highlighted the positive outlook for 2024. “Our structural reforms, strategic geographic location, and strong production infrastructure lead us to expect a notable increase in foreign direct investment,” he added.