New Incentives Bring New Wave of FDI to Turkey

The latest round of investment incentives has paid off in Turkey, as according to reports another wave of major investment is headed for the strategically important emerging market.

İlker Aycı, President of the Investment Support and Promotion Agency of Turkey (ISPAT) told a press conference that a big North American firm is planning to invest heavily in Turkey within the next few weeks. Naming no names Ayci also said that European small and medium-sized enterprises (SMEs) were showing significant interest in Turkey.

“[The North American firm] is active in the manufacturing sector and the total investment will be close to that of Sumitomo’s investment amount,” he said. Sumitomo, the Japanese tyre manufacturer has just announced that it will be investing $400 million in a factory in Çankırı

According to Ayci Turkey received $8.9 billion in foreign direct investment (FDI) in the first seven months of this year, which is unfortunately 6% lower than last year, which broke records. However, it is about the same level as Turkey received during the same period in 2010. Ayci said that 133 projects from abroad were registered in the first six months of the year and that 26 had been registered in July alone.

“With the new incentive scheme in June, this trend has been moving upward. Of the total $2 billion in investment documents, $550 million were received in July, indicating an upward trend,” Aycı said.
With regard to European SMEs, Aycı explained that ISPAT was focusing especially on this segment and holding meetings with European SMEs to outline opportunities in Turkey, including the various incentives. “We have begun to see results,” he said.

Ayci also hinted that one of two Chinese solar power companies could also be investing in Turkey in the near future, while ISPAT will continue to focus on increasing investment from that region, from Africa and from the Gulf states.