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Türkiye: A thriving hub for foreign investment and economic growth | Türkiye emerges as a magnet for foreign investments


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Türkiye has turn into a focus for worldwide direct investments on account of its financial steps and political stability, attracting main international firms equivalent to Alibaba, Amazon, Huawei, and PepsiCo.

While there was a decline in worldwide direct investments globally in current instances, Türkiye has stood out positively with its financial reforms and supplied alternatives.

According to OECD knowledge, investments within the first six months of this yr decreased by 36% globally in comparison with the earlier yr, 86% within the European Union (EU), 38% within the G20, and 42% within the OECD. In the second quarter of 2023, in comparison with the earlier quarter, investments decreased by 38% globally, 153% within the EU, 33% within the G20, and 58% within the OECD.

In Türkiye, the affect of those developments in worldwide direct investments has been much less pronounced. In the primary half of this yr, such investments decreased by 33% in comparison with the identical interval final yr. In the second quarter of this yr, it declined by 13% in comparison with the primary quarter.

In the final 20 years, the financial steps and political stability taken in Türkiye have influenced the route of worldwide direct buyers. While $15 billion in worldwide direct funding was attracted from 1973 to 2002, the entire funding quantity has exceeded $255 billion since 2003. Before 2003, Türkiye, with a median of $1 billion per yr, accounted for 0.2% of the worldwide worldwide direct funding pie. However, from 2003 to 2022, with an annual common of $13 billion, it held a 1% share.

In 2002, over 5,600 worldwide firms have been working, and by 2023, this quantity exceeded 80,000. In the primary 9 months of this yr, 93 new funding initiatives have been initiated, with transportation and storage rating first with 17 initiatives and the commercial tools sector second with 9 initiatives.

Software and IT, meals and beverage, chemical substances, automotive tools, ceramics and glass, plastics, and business companies have been highlighted as distinguished sectors. In phrases of exercise varieties, manufacturing led with 40 initiatives, adopted by gross sales and advertising with 30 initiatives, R&D with 8 initiatives, regional administration facilities with 4 initiatives, and business companies with 3 initiatives.

The United States, Germany, France, Italy, China (together with Hong Kong), Japan, the Netherlands, and the United Arab Emirates have been among the many distinguished international locations in these investments.

Moreover, there are 17 worldwide direct funding initiatives introduced for the long run in Türkiye. Transportation and storage, software program and IT, communication and electronics are distinguished among the many introduced new investments.

Major firms carefully monitor Türkiye this yr as nicely. In the primary 9 months, Chinese e-commerce large Alibaba introduced investments exceeding $1 billion with logistics facilities to be established at Istanbul Airport and an information middle in Ankara.

Qatar Investment Authority and Esas Holding’s enterprise capital arm Esas Ventures will make investments $105 million in Insider, a synthetic intelligence advertising platform.

German DHL Group, one of many main manufacturers within the transportation and storage sector globally, acquired 100% of the shares of MNG Kargo, considered one of Türkiye’s main firms within the transportation and cargo sector. FedEx introduced that it’s going to construct a brand new international air transit facility at Istanbul Airport. Amazon opened its logistics middle in Tuzla with a $100 million funding, offering employment for 800 individuals.

The funding, anticipated to achieve a complete worth of seven billion Turkish liras, with Toyota‘s first battery and rechargeable hybrid automobile manufacturing facility in Europe, was established in Sakarya. Ford started manufacturing of the primary totally electrical model of the world’s most most well-liked industrial automobile mannequin Transit (Ford E-Transit) at Ford Otosan‘s Gölcük manufacturing facility. French Valeo, a producer of spare elements for the automotive sector, introduced that it’s going to increase its facility in Bursa. Russia’s main oil and pure gasoline firm Tatneft acquired Aytemiz Akaryakıt for $320 million.

PepsiCo launched the “Design and Innovation Center,” main design-focused innovation initiatives. Chinese expertise firm Huawei applied its first native cloud service in Ankara.

Amadeus, Europe‘s journey expertise firm, and Saint-Gobain, working in sustainable and light-weight development, have been among the many firms investing in Türkiye.

Source: www.anews.com.tr

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