TÜRKİYE: STRENGTHENING ITS POSITION ON THE GLOBAL INVESTMENT MAP

Global foreign direct investment (FDI) flows have become increasingly selective in recent years amid rising geopolitical uncertainties, supply chain disruptions, and the acceleration of green and digital transformation. In this evolving landscape, international investors are turning not only to fast-growing markets, but also to economies that offer resilience, accessibility, and long-term predictability. Within this context, Türkiye stands among the countries that are steadily reinforcing their position on the global investment map. Over the past 23 years, total FDI inflows into Türkiye have reached approximately USD 288 billion, marking one of the clearest indicators of this transformation. Türkiye’s share of global FDI, which stood at 0.3% in 2003, has increased to nearly 1% today. Looking ahead, we aim to raise Türkiye’s share of global FDI to 1.5%. Even in 2025, when global investment volumes remained subdued, FDI inflows to Türkiye increased by 12.2% year-on-year, reaching USD 13.1 billion. This performance clearly demonstrates the country’s resilience to cyclical global fluctuations. The geographical distribution of investment sources further supports this outlook. Between 2003 and 2025, 69.3% of FDI into Türkiye originated from Europe, 14.3% from Asia, 8.1% from North America, 7.1% from Gulf countries, and 1.1% from other regions. This diversified structure reflects a balanced and inclusive investment profile, free from dependence on a single geography.

INTERNATIONAL INVESTOR PERSPECTIVE

For international direct investors, country selection is increasingly based on measurable indicators and long-term structural factors. While market size and cost advantages remain important, regulatory predictability, transparency of the legal framework, and effective coordination among public institutions have become decisive factors in investment decisions. In this regard, Türkiye distinguishes itself through both scale and access capacity. With a population exceeding 86 million and a dynamic domestic market, the country offers a solid demand base for investors. Through the Customs Union, free trade agreements, and advanced logistics infrastructure, Türkiye provides direct access – within a four-hour flight radius – to an economic area worth USD 32.1 trillion and a population of 1.3 billion. This multilayered access capacity positions Türkiye not merely as a market, but as a regional and global hub for management and production operations. Human capital stands at the center of this equation. With nearly half of the population under the age of 35 and approximately 900,000 graduates entering the labor force each year, Türkiye offers a strong and renewable talent pool. This structure provides a scalable and sustainable operational environment, particularly for international investors active in technology, engineering, and service sectors.

PROMINENT SECTORS AND INVESTMENT TRENDS

The sectoral distribution of FDI into Türkiye reflects a more balanced and diversified economic structure. In 2025, wholesale and retail trade ranked first in terms of actual capital inflows, reaching USD 3.05 billion, while the manufacturing sector maintained its steady performance with USD 3.02 billion. During the same period, investments in the information and communication sector increased nearly fivefold compared to the previous year, surpassing USD 1.3 billion. From a long-term perspective, the sectors attracting the highest levels of investment between 2003 and 2025 were finance (28.76%), manufacturing (25.02%), wholesale and retail trade (11%), and energy (9.64%). This distribution underscores Türkiye’s capacity to offer a robust and multidimensional investment ecosystem across both production and services. Greenfield investment projects further support this transformation. The agro-food sector doubled its project count from 33 in 2024 to 68 in 2025, reaching the top position. Software and IT services projects increased from 21 to 41 during the same period. The industrial machinery and equipment sector reached 39 projects, while renewable energy investments rose from 19 to 29 projects, indicating a strong upward trend. These figures are based on announced investment projects; therefore, realization rates may vary across individual projects.

TÜRKİYE’S STRATEGIC TRANSFORMATION: A VISIONARY INVESTMENT ENVIRONMENT

The year 2026 will mark an important milestone for Türkiye, not only in terms of economic growth but also through global partnerships and international events. This year, the Investment and Finance Office will participate in more than 200 events worldwide. For the first time, GITEX Ai will be hosted in Türkiye, highlighting the country’s strategic importance in artificial intelligence, technology, and digital transformation. Furthermore, globally significant events such as the 36th NATO Summit, the International Astronautical Congress, and COP31 will take place in Türkiye, reinforcing the country’s leadership in global diplomacy and cooperation. In celebration of the 20th anniversary of the Investment and Finance Office, roadshows and receptions will be held in 20 cities worldwide to promote Türkiye’s investment opportunities to a broader global investor base. These initiatives will foster not only stronger economic ties but also deeper international partnerships and trade networks.

Technology, entrepreneurship, and financial investments occupy a central role in this transformation. Through strategic steps in these areas, Türkiye continues to attract the attention of international investors. The rapid development of the digital and technology ecosystem further strengthens the country’s position as an attractive hub for new investments. The entrepreneurial ecosystem offers a dynamic platform that channels both domestic and global investors toward innovation-driven projects. Türkiye’s contribution to global supply chains further enhances its critical role in the global economic system. With its advanced logistics infrastructure and strategic geographic location, the country is emerging as a central node in regional and global supply chains. This demonstrates that Türkiye is not only an investment destination but also a strong and sustainable player in the global supply chain ecosystem.

PUBLIC POLICIES AND STRATEGIC APPROACHES SUPPORTING TÜRKİYE’S INVESTMENT ENVIRONMENT

One of the fundamental factors enabling this positive outlook is the design of public policies that actively support the investment environment. Under the leadership of our President, the vision of transforming the “Türkiye Century” into the “Investment Century” constitutes the strategic framework of this approach. The objective is not merely to attract more investment, but to secure higher-quality, technology-oriented investments that generate long-term value. Regulatory reforms such as the new Investment Incentive System, the Climate Law, and the Emissions Trading System aim to align Türkiye’s investment climate with global sustainability and technology standards. In this framework, the role of the public sector is positioned not as directive, but as enabling, creating a predictable and confidence- based environment that unlocks private sector dynamism. Türkiye’s narrative as the “Nexus of the World” finds tangible expression in this context. The country is not merely a geographic crossroads; it is a multidimensional investment hub where capital, production, talent, and ideas converge. This data-driven transformation positions Türkiye as a permanent, reliable, and strong actor on the global investment map.