Inversió estrangera directa (IED) a Turquia

FDI in Figures

According to UNCTAD's World Investment Report 2024, FDI inflows to Türkiye stood at USD 10.4 billion, compared to 13.4 billion one year earlier. Nevertheless, the country attracted the largest share of manufacturing projects in West and Central Asia. At the end of the same period, the total stock of FDI reached USD 156.5 billion. Based on the balance of payments data from the Central Bank of the Republic of Türkiye (CBRT), the country saw significant contributions from various countries, with the top 10 investors being the Netherlands, Germany, the UAE, Qatar, Russia, France, the UK, Ireland, the US, and Switzerland. By sector, manufacturing was the leading recipient, attracting 30.7% of total investment. The wholesale and retail trade sector followed with 17.6%, while finance and insurance services accounted for 10.7%. The latest available data from the OECD show that, in terms of stocks, the main investing countries are Germany (12.8%), the Netherlands (12.2%), Russia (6.9%), the United States (6.0%), the United Kingdom (5.1%), and Qatar (4.9%). The majority of foreign investments are directed towards manufacturing (38.2%), wholesale and retail trade; repair of motor vehicles and motorcycles (21.6%), financial and insurance activities (16.4%), electricity, gas, steam and air conditioning supply (9.4%), mining and quarrying (3.9%), information and communication (3.5%), and transportation and storage (2.4%). According to preliminary figures from the Central Bank, FDI inflows totalled USD 11.3 billion in 2024.

Türkiye’s investment climate is positively influenced by its favourable demographics and strategic geographical position, providing access to multiple regional markets, and has one of the most liberal legal regimes for FDI among OECD members. The country has adopted a series of legislative reforms to facilitate the reception of foreign investment, such as the creation of the Investment Office of the Presidency of the Republic of Türkiye, a showcase of the efforts undertaken to attract foreign operators. FDI inflows improved in the light of the development of public-private partnerships for major infrastructure projects, the measures to streamline administrative procedures and strengthen intellectual property protection, the end of FDI screening and the structural reforms carried out as part of the EU accession process. There are no general restrictions on foreign ownership or control. However, foreign investors in certain sectors are under growing pressure to partner with local companies and transfer technology. These localization requirements are often included in government tenders, effectively mandating a local partner and some local production. All investors, regardless of nationality, encounter similar challenges: macroeconomic instability, excessive bureaucracy, a slow judicial system, relatively high and inconsistently applied taxes, and frequent changes in the legal and regulatory framework. Although the government aims to enhance the investment climate, progress on structural reforms to establish a more transparent, fair, and modern business environment has been slow. Moreover, the country is exposed to the conflicts in the Middle East. Overall, Türkiye has a favourable business climate, ranking 53rd in the World Competitiveness Ranking 2024. It is also at the 102nd spot out of 184 countries in the latest Index of Economic Freedom.

What to consider if you invest in Türkiye

Strong Points

Advantages for FDI in Turkey:

• Turkey's repeated attempts to join the European Union have helped to establish European regulations and trade standards, which have substantially liberalised the economy. 
• The Government is working to attract FDI into technology, textiles, services (health, education, public transport), telecommunications, shipbuilding, electronics and bio-technologies. 
• Because of its demographic vitality, the country has a developing young middle class population with increased purchasing power and orientation towards consumption. 
• The relatively low cost of labour
• Turkey has a strategic geographical location that allows it to be a regional hub between Europe, Asia and the MENA economic zone.  
• The Turkish market counts 85.3 million consumers

Weak Points

Some of the disadvantages for FDI in Turkey include:

• A bureaucracy that may be cumbersome to navigate
• Frequent changes in the legal and regulatory environment
• Strong dependence on exports and hydrocarbon imports
• Exchange rate uncertainty and the consequences of a public debt constantly rising
• Elevated regional geopolitical risks
• Currency plunge and high inflation

Government Measures to Motivate or Restrict FDI

The Turkish Government has played a large role in initiatives to make the country a more attractive destination for foreign investment and business operations. The Turkish government offers a comprehensive investment incentives program: general, regional, strategic and project-based investment incentives.

Turkey’s incentives program provides the following benefits to investors: corporate tax reduction; customs duty exemption; value added tax (VAT) exemption and VAT refund; employer’s share social security premium support; income tax withholding allowance; land allocation; and interest rate support for investment loans.

The incentives program gives priority to high-tech, high-value-added, globally competitive sectors and includes regional incentive programs to reduce regional economic disparities and increase competitiveness. Other primary objectives are to reduce the current account deficit and unemployment, increase the level of support instruments, promote clustering activities, and support investments to promote technology transfer.
Foreign firms are eligible for research and development (R&D) incentives if the R&D is conducted in Turkey.
Turkey is seeking to foster entrepreneurship and small and medium-sized enterprises (SMEs). Through the Small and Medium Enterprises Development Organization (KOSGEB), the Government of Turkey provides various incentives for innovative ideas and cutting-edge technologies.
Turkey’s Scientific and Technological Research Council (TUBITAK) has special programs for entrepreneurs in the technology sector, and the Turkish Technology Development Foundation (TTGV) has programs that provide capital loans for R&D projects and/or cover R&D-related expenses.

More detailed information can be found at the Presidency of the Republic of Turkey Investment Office website.

Bilateral investment conventions signed by Türkiye

Turkey has signed several bilateral investment treaties (BITs). To see a list of participating countries, consult UNCTAD website.