The Turkish Presidency’s Investment Office published the country’s strategy document for attracting international direct investments for the period (2024-2028).
The document “Turkey’s International Direct Investment Strategy” was prepared with the aim of outlining and guiding Turkey’s international direct investment policy.
The main goal of the strategy is to increase Turkey’s share of the international direct investment pie through quality projects and raise it to 1.5 percent by 2028.
Turkey also aims to have a 12 percent share of international direct investment flows coming to its wide competitive area by 2028.
The circular on Turkey’s International Direct Investment Strategy for the period 2024-2028 was published in the Official Gazette.
According to the strategy document prepared by the Presidency’s Investment Office, Turkey, with its dynamic and strong economy, is an important attraction center for international direct investments.
It also facilitates companies’ access to global markets thanks to its strategic geographic location at the intersection of Europe, Asia and Africa and its world-class transportation infrastructure.
Turkey also provides the qualified workforce companies need through its vast skills pool and supports the competitiveness of all sectors.
Turkey has been improving its business and investment environment through the “investor-friendly” reforms it has implemented in the last 21 years, investments in its infrastructure and superstructure and attractive incentives, and has become one of the leading destinations for international direct investments.
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Thanks to its rising economic performance in the period 2003-2023 and the high-value proposition it offers to investors, Turkey has achieved a significant acceleration in international direct investment inflows and ranked second in its region with a total international direct investment of $262 billion.
With the number of multinational companies it hosts increasing from 5,600 to over 80,000 in the same period, Turkey has become a regional economic center that supports the productive activities of these companies with its R&D centers, design teams, logistics bases and management centers.
Turkey aims to continue its increasingly successful performance in the new period and transform from a regional economic center to a global economic powerhouse.
In this context, Turkey’s International Direct Investment Strategy (2024-2028) was prepared to outline the general framework of the country’s policy in this regard and guide investments.
– “Roadmap” for Attracting Quality International Direct Investment
Turkey’s International Direct Investment Strategy was prepared as a “roadmap” for all stakeholders in the ecosystem in order to accelerate the attraction of quality international direct investments to the country, which Turkey needs in a period when the global economy is being reshaped and uncertainty is increasing.
In developing the strategy, a data and evidence-based approach was adopted, taking into account the priorities stated in Turkey’s basic policy documents and global trends in international direct investments with a focus on sustainable development and taking into account the contributions and guidance of relevant stakeholders.
– Green transformation and digital transformation are among the most important determinants of international direct investment flows
In the analysis conducted within the scope of the strategy, it was found that the disruptions in global supply chains and the geopolitical tensions resulting from the Covid-19 pandemic have significantly affected international investment expectations around the world.
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In addition, factors such as proximity to raw materials and markets, diversification of production and supply chains from friendly countries have become more important in the investment decisions of global companies.
Phenomena such as green and digital transformation have also become among the most important determinants of international direct investment flows. In addition, while the new technologies that have recently emerged and the qualified service inputs that have developed as a result are transforming the manufacturing industry, service inputs are now an important element in production processes in addition to raw materials and intermediate goods.
These developments are changing not only the structure of international direct investment projects, but also the expectations of host countries. This situation, which causes the restructuring of supply chains geographically and qualitatively, on the one hand, creates important opportunities for leading countries in the field of international direct investment such as Turkey, and on the other hand, increases global competition in attracting investments.
Turkey, thanks to its production capabilities, qualitative human resources, proximity to advanced markets and global integration, is one of the countries that can benefit from this remarkable transformation process in the global economy.
– 8 priority areas for qualitative international direct investments
The focus of the strategy document that will serve Turkey’s long-term development goals is to attract qualitative international direct investments to Turkey that are high added value, sustainable, support digital transformation, rely on high technology and provide high-quality job opportunities.
In light of the analysis conducted, 8 qualitative international direct investment files were prioritized in the strategy, namely; “Climate-friendly investments”, “digital investments”, “global supply chain-oriented investments”, “knowledge-intensive investments”, “investments that provide quality job opportunities”, “value-added services investments”, “quality financial investments”, and “investments that support regional development”.
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During the strategy period, activities aimed at further attracting investment projects suitable for these areas to Turkey will be implemented.
– Establishing a policy framework consisting of 6 axes
The main goal of the strategy is to increase Turkey’s share of the FDI “pie” through quality FDI projects and increase it to 1.5 percent in 2028.
To achieve this goal, Turkey should increase its performance in attracting quality FDI, and it is important to obtain a greater share of FDI in the region.
For this reason, Turkey aims to obtain a 12 percent share of FDI flows coming to its highly competitive region by 2028.
In addition, the number of projects to be specifically attracted to the FDI document and the regional share targets during the strategy period have been determined.
In order to achieve these goals, a policy framework consisting of 6 axes was established in the strategy: “Competitiveness of the Investment Environment”, “Green Transformation”, “Digital Transformation”, “Global Supply Chain”, “Qualified Human Resources” and “Communication and Promotion”.
A total of 32 policies were subsequently developed within these files.
While preparing the relevant files and topics and the policies developed in line with them, compliance with other basic strategy documents of Turkey, especially the 12th Development Plan, was taken into consideration.
The projects and activities to be implemented within the scope of the strategy will be implemented within the framework of annual action plans designed in coordination with the 32 relevant policies.
81 measures have been included in the 2024 Action Plan, and these action plans will be implemented effectively in cooperation with the institutions and organizations concerned with international direct investments.
