During the recent 72nd United Nations meeting in New York, Turkey’s president Recep Tayyip Erdogan met with key representatives of more than 70 top level USA and global companies. Companies like Boeing, Blackstone, Pepsi and Coca-cola were just a few of the names from various industry sectors including food, energy, pharmaceuticals and aviation.
Organised by ISPAT (Investment Support and Promotion Agency of Turkey,) the meeting’s aim was to increase foreign direct investment into Turkey. Among points that Recep Tayyip Erdogan laid out, were recent economic reforms, critical developments in the Turkish economy and investment incentives and opportunities.
The US is one of many countries Turkey is courting to increase foreign direct investment. In the last two years, they have cemented a highly lucrative relationship with Qatar, which has not only seen direct investment into Turkey, but also a wealth of projects in Qatar contracted out to major Turkish construction companies. Recep Tayyip Erdogan has also been courting African leaders, of which some countries are showing a promising turn in economic achievements.
Emphasising a reform package that they rolled out, a few months previously, Recep Tayyip Erdogan also stated Turkish law adheres to international legislation with regards to property rights, and 100% support, as well as various incentives, are available to foreign investors looking to Turkey.
Turkey year on year has been showing an annual GDP growth of 5.6% since 2003, but despite an already favourable record, the Turkish government shows no sign of slowing down when it comes to making the Turkish economy the best in the world.
The meetings coincided with adverts in two leading US newspapers, namely the New York Times and Wall Street Journal. Mentioning that 1750 companies with US capital were working in Turkey, the advert also featured vital demographics of Turkey, cited the country’s young and educated population, emphasised the strategic location of Turkey and low taxes, before finally finishing with a message for US investors to look at Turkey.
According to stats provided by ISPAT, foreign direct investment reached its peak in 2007, but since then has shown up and downs. Surprisingly, 2016 that was the year of Turkey’s coup was not the lowest year for FDI. This was in fact 2009 when the global financial crises happened, and foreign investment dipped to 8.6 billion USD from its earlier record high of 22 billion USD.
Two critical industries for foreign investment are manufacturing and services, but Turkey also emphasises its real estate market as one of the most promising in Europe. Having embarked on a significant infrastructure modernisation plan, the housing market has seen a boost in construction and affordable payment terms for foreign property buyers.
This has also been linked to various incentives such as V.I.P citizenship for real estate investors buying property of a specific value, although industry rumours suggest the investment level could likewise drop after calls from experts. Read more about that here.