Posted on 04 March 2014
Turkey’s attraction to foreign investors and businesses remains strong, after figures from the Turkish Ministry of Finance revealed that foreign direct investment (FDI) into the country in 2013 totalled $12.686 billion.
Capital inflow accounted for $10.1 billion while real estate purchases by foreigners exceeded $3 billion. The European Union remained Turkey’s main source of FDI in 2013, accounting for 52 per cent of the total.
There were 2,960 new companies established by foreigners in Turkey during 2013, taking the total number of foreign-owned or partnered companies to just under 37,000. The largest group of foreign business owners in Turkey are Germans, who own more than 5,600 firms. The second largest group are British owned firms, which numbered 2,600 at the end of 2013. Most foreign-funded firms in Turkey, nearly 22,000, are based in Istanbul.
Foreign nationals acquired $3 billion worth of property in Turkey in 2013, an increase of 15 per cent compared to 2012.
Meanwhile, in February Chairman of the British Chamber of Commerce of Turkey (BCCT) Chris Gaunt recognised Turkey’s sound economic fundamentals and strong GDP, adding that British companies had no doubts about Turkey’s positive medium and long-term growth prospects.
Said Gaunt: “Turkey’s business experience in dealing with Central Asian, Middle Eastern and North African countries is an invaluable asset for the British who team up with Turkish companies to reach these markets. There exists a huge investment potential in Turkey to reach the surrounding emerging markets.”
On the flip side, Britain is one of the leading export markets for Turkey and trade volume between the two countries exceeded $14 billion in 2013.