Türkiye’s efforts to attain financial stability and supporting reforms may unlock an extra $13.5 billion (TL 475.94 billion) in funding within the subsequent six months, doubtlessly boosting the nation’s share of world investments to 1.5%, in response to Engin Aksoy, head of the Turkish International Investors Association (YASED).
Aksoy stated U.S. President-elect Donald Trump’s deliberate tariff hikes might exacerbate structural issues in China, prompting shifts in commerce insurance policies.
“The (Mario) Draghi report on the future of European competitiveness shows that the EU is lagging behind and the region needs a transformation, and in such a fragile and unpredictable environment, Türkiye may have many opportunities,” he informed Anadolu Agency (AA) on Monday.
Aksoy highlighted components like nearshoring and friendshoring – the place nations prioritize working with close by allies – as key to Türkiye’s funding potential.
“There are two important conditions to be met before seizing this potential; the first is building macroeconomic stability and the second is establishing frameworks to regulate the country’s sectors to create a platform of predictability,” he stated.
Türkiye presently holds about 0.8% of world investments, and YASED goals to spice up that share to 1.5%.
“Approximately $11 billion of investment in Türkiye is expected for 2024, but this figure falls short of what we want, and we believe we can reach $20 billion,” he added.
Aksoy confused that reaching the 1.5% goal requires swift reforms to speed up enhancements within the funding setting.
“For this, reform steps need to be taken quickly. Consultation mechanisms have started working on many issues. The Coordination Council for the Improvement of the Investment Environment is meeting. We are discussing many issues there. Some issues have been included in the Medium Term Program (MTP). Actually, all issues have been included. But here, steps need to accelerate,” he defined.
Moreover, he stated that just about two-thirds of Türkiye’s international investments come from the EU and Britain, underscoring the nation’s sturdy commerce ties with Europe.
Drawing consideration to the truth that Türkiye attracts funding from everywhere in the world, he additional famous: “There have been some recent examples; Türkiye has also received investment from Asia.”
“International firms have representative offices, factories, research and development centers, and other investments in Türkiye, and these firms want to invest more, and their executives in Türkiye act like investment ambassadors,” he stated.
Reiterating the necessity to improve the share of world investments, he stated they goal to see regulatory adjustments to convey stability and predictability for a few years forward, not simply each day or month-to-month adjustments.
“From now, the long-term framework needs to be clearly drawn,” he added.
Green and digital transformation
Aksoy additionally recognized digital and inexperienced transformation, together with electrical energy, as focal areas for the approaching yr.
“Türkiye has the potential to receive significant amounts of investment in many areas, and we have been receiving investments in retail and the automotive sector is already quite large, but the coming days will be characterized by investments in green and digital transformation, just like around the world,” he stated.
“The economic administration’s steps towards combating inflation will maintain the positive outlook and improve the outlook, but we still have a long way to go, and the fight against inflation should include structural reforms, and I think we’ll be getting there this year,” he added.
Source: www.dailysabah.com