Turkey Attracts Nearly $8 Billion in Foreign Direct Investment in the First 9 Months of the Year
Turkey attracted 7.67 billion USD in Foreign Direct Investment (FDI) in the first nine months of 2024. According to data prepared by the International Investors Association (YASED) based on the Balance of Payments Statistics published by the Central Bank of the Republic of Turkey (CBRT) on November 12, 2024, this figure represents an increase of 8% compared to the same period in 2023. In September 2024, FDI inflow was recorded at only 1.1 billion USD, while total inflows reached 2.8 billion USD by the end of the third quarter. Since 2002, the total value of international direct investments in Turkey has exceeded 271 billion USD, indicating an increase in the country's investment attractiveness.
Regarding the sectoral distribution of investment inflows, wholesale trade and electronics lead the way. In the first three quarters of 2024, total investment capital inflows reached 4.33 billion USD, with the highest attracting sectors being wholesale and retail trade, and the manufacturing of electronics and chemicals. Wholesale and retail trade constituted 22% of total inflows with an investment of 932 million USD. The manufacturing of computers, electrical, electronic, and optical products garnered an 11% share of capital inflows.
Other notable sectors included the manufacturing of chemicals and pharmaceuticals, finance and insurance, as well as professional, scientific, and technical activities, with respective shares of 9%, 8%, and 8% in total inflows. The diversity of sectors is viewed as an attractive feature for investors, positively contributing to Turkey’s economic dynamics.
In terms of source countries for investment, the European Union ranked first. During the period from 2002 to 2023, European Union (EU-27) countries performed a significant portion of investments in Turkey, maintaining a leading position with a 52% share in the first nine months of 2024. Non-EU European countries ranked second with an 18% contribution. In 2024, the Netherlands became the largest investor in Turkey with a 19% share, followed by Germany at 12%, the United States at 11%, Ireland at 8%, and Azerbaijan and Switzerland both at 7%. The significant role of European countries in the international investment environment has facilitated the deepening of Turkey's economic relations with Europe.