Türkiye’s strategic location and rising financial system will proceed to bolster its attraction to international buyers, in line with a senior govt on the worldwide consultancy agency Kearney.
Its strategic benefits and proximity to Europe have already helped Türkiye appeal to important overseas direct funding from nations like India, Russia, the Gulf Cooperation Council (GCC) and China, mentioned Mauricio Zuazua, the area chair for Middle East and Africa at Kearney.
Zuazua identified that Türkiye’s panorama is extremely enticing, citing its geographic place, intensive infrastructure investments, robust commerce ties with the European Union, and enormous, dynamic, and well-educated workforce.
He mentioned they inspired international companies to noticeably think about Türkiye as an funding alternative, noting that Kearney’s personal stories spotlight the nation’s growing significance.
Zuazua referenced Istanbul’s rise to rank twenty fifth out of 156 cities within the 2023 Global Cities Index, which measures how properly a metropolis attracts, retains, and generates international capital, expertise, and concepts.
“Cities that climbed in the rankings demonstrated their economic resilience despite global patterns of low growth and high interest rates,” he advised Anadolu Agency (AA).
Kearney’s newest Foreign Direct Investment Confidence Index additionally exhibits that rising markets, together with Türkiye, are strengthening their presence in international FDI rankings.
Banking, vitality, transportation
Zuazua underlined Türkiye’s stable market fundamentals and excessive progress potential, highlighting sectors equivalent to banking and monetary companies, vitality, transportation, and logistics.
He additionally famous that the quickly rising vitality sector is of explicit curiosity attributable to its crucial position in connecting the Middle East and Europe and in shaping Türkiye’s sustainable future.
“The banking and financial services, energy, and public services, as well as the transportation and logistics sectors, have been strong drivers of investment in Türkiye. The rapidly growing energy sector is particularly noteworthy, as it not only plays a key role between the Middle East and Europe but also holds the key to Türkiye’s sustainable future,” mentioned Zuazua.
In addition to those, Zuazua recognized fintech, gaming, and digital industries as extremely interesting to worldwide buyers.
He pointed to the success of Turkish tech ventures, such because the advertising software program firm Insider, which has seen 3.7-fold progress within the Middle East and Africa, demonstrating main potential.
Zuazua additionally touched on the financial alternatives created by commerce agreements such because the Comprehensive Economic Partnership Agreement between Türkiye and the United Arab Emirates (UAE).
He remarked that localization tendencies within the GCC may provide additional prospects for Turkish companies. At the identical time, Türkiye’s strengths present alternatives for GCC funding teams and sovereign wealth funds as they develop into Europe.
“The localization trend in the GCC presents opportunities for Turkish businesses, while Türkiye’s strengths offer further prospects for GCC groups and sovereign wealth funds as they expand toward Europe,” Zuazua mentioned.
Burgeoning tech ecosystem
Regarding technological developments, Zuazua pointed to profitable Turkish startups just like the fintech firm Papara and the cell gaming agency Peak Games, acquired by Zynga in 2020, as examples of the nation’s burgeoning tech ecosystem.
“The success of Insider, along with examples like Papara – a payment company that recently announced a collaboration with a U.S. fintech allowing its users to invest in U.S. stocks – and Peak Games, acquired by Zynga in 2020, illustrates what Turkish startups can achieve,” he famous.
“Türkiye is actively positioning itself as a global hub for technology startups, and initiatives like the TechVisa program are set to attract investment and help the country export its technology and solutions to surrounding markets.”
Zuazua highlighted two key drivers shaping Türkiye’s short- and medium-term financial outlook: its financial and commerce relations with close by international locations and the European Green Deal.
He defined that Türkiye’s proximity to Europe and its position in international worth chains are drawing funding from rising markets like India, Russia, the GCC, and China, along with its conventional buyers within the U.S. and the EU.
As for the European Green Deal, Zuazua famous that environmental insurance policies are more and more influencing commerce and industrial methods. With practically half of Türkiye’s exports destined for the EU, carbon discount initiatives will assist the nation preserve its market share whereas boosting its potential to draw FDI and take part in international worth chains.
“In addition to long-standing investments from the U.S. and the EU, Türkiye is attracting international direct investment from India, Russia, GCC countries, and China due to its strategic advantages in global value chains and proximity to Europe. This trend is expected to continue, supported by Türkiye’s unique geographic position and growing economy,” mentioned Zuazua.
“Within the context of the European Green Deal, climate policy is increasingly influencing trade and industrial policies. The EU represents over 40% of Türkiye’s export markets, and decarbonization will help safeguard these markets while enhancing Türkiye’s ability to attract FDI and integrate into global value chains.”
Digitalization, sustainability
Zuazua recognized digitalization and sustainability as two crucial elements, emphasizing that the power to supply progressive applied sciences will decide which economies lead within the coming many years.
The push towards a “Digital Türkiye” and the newly launched “Digital Nomad Visa” will assist appeal to expertise, whereas ongoing collaboration with the EU will grant entry to essential funding and growth initiatives, he famous.
On sustainability, Zuazua identified that transitioning to renewable vitality might be very important for Türkiye to realize its local weather targets. He additionally harassed that the nation’s FDI technique ought to deal with attracting sustainable investments to strengthen its place in worldwide worth chains.
Source: www.dailysabah.com