A significant increase in the flow of foreign investments have been observed in Turkey in 2021, in a rebound that even surpassed pre-coronavirus pandemic levels, a senior official said Saturday.
Foreign direct investment (FDI) jumped 81% year-over-year last year to $14.2 billion, said Burak Dağlıoğlu, the head of Presidential Investment Office.
“This figure is higher than the FDI inflows that have arrived in our country since 2016,” Dağlıoğlu told Anadolu Agency (AA).
The figure is up about $8 billion in IDE in 2020, marked by a global economic fallout from the pandemic. Dağlıoğlu said investments fell by 18% in 2020, compared to 35% decline on the global level.
Global FDI fell to around $929 billion in 2020, according to the United Nations Conference on Trade and Development (UNCTAD). But flows rebounded strongly to around $1.65 trillion in 2021, a 77% year-over-year surge, says UNCTAD last month.
Turkey seems to have also exceeded the annual average of IDE entry in the years before the outbreak, Dağlıoğlu said.
Output lag
The country last year was particularly noted car many companies announced plans at move part of their production in Turkey to minimize problems with global supply chains and increased shipping costs.
Straddling Europe and the Middle East, Turkey says he is well placed to take advantage changes at global supply chains. And his strategy location and a strong manufacturing base are considered a plus.
The disturbances of the global economy during the pandemic has upended supply chains across continents, leaving the world short of a plethora of goods and services of car from spare parts and microchips to container ships that transport goods across the seas.
“Our country is strengthening its position in global supply chains and international investors increase their assets in Turkey,” Dağlıoğlu said.
First British investor
About 60% of IDEs in 2021 came from Europe, he noted, with Accounting Asia for 24% and the Americas for 16%.
UK was Turkey’s number one investor last year, he noted, followed by the United States, the Netherlands, Switzerland, the United Arab Emirates (UAE), Germany, Luxembourg, South Korea, Japan and the Ireland.
“Wholesaler and retailer trademanufacturing industry, information and communications technologies, financial services and transport-storage activities were among the sectors that received the most investment,” Dağlıoğlu said.
“Wholesale and retail trade trade compound sector of investments in our success technology startups operating in this area,” he added. “Looking at the subdivisions of manufacturing, which is another important sector in investments, on sees that the production of transport vehicleschemical, computer, electronic and optical equipmentfood and beverages stood out.”
Mergers and Acquisitions (M&A) in Turkey totaled TL 42.6 billion in 2021 in in addition to the seven privatization deals that totaled TL 95 billion, the Competition Council (RK) said last month.
Most offers took place in the electricity production and distribution sector, followed by the plastic packaging production sector, board noted.
Dağlıoğlu said there were 309 M&A transactions in 2021, 50% of which constituted purchases of actions in local companies by foreign entities and was considering an investment of about 22 billion TL.
Lifting share in global IDE
“Turkey attracts significant investment from global players thanks to son business spirit business culture, young and tech-savvy populationtalented pool of engineers and competitive products and services,” he said.
“Our ecosystem received approximately $1.6 billion in 294 investment rounds in start-up investments. With this amount Turkey has become one of the 10 most invested Europeans countries,” he added.
“International investors have participated in 44 of the investment 294 rounds while they counted for 89% of investment global amount.”
“Startups that rapidly increase their scale in areas such as e-commerce, financial technologygaminglogistics technologieslife and deep sciences technologies will be complete significant investment rounds in years to come,” Dağlıoğlu noted.
Turkey aims to raise son share in global FDI at 1.5%, according to the government’s Foreign Direct Investment Strategy Document for 2021-2023.
The country share in global FDI increased by around 1% in 2020, while it was around 0.6% the previous year.
