Turkey – The Turkish Presidency’s Investment Office has 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 international direct investment through quality projects, raising it to 1.5 percent by 2028.
Turkey also aims to have a 12 percent share of international direct investment flows into its vast competitive region by 2028.
The Official Gazette published the circular regarding Türkiye’s International Direct Investment Strategy for the period 2024-2028.
According to the strategy document prepared by the Presidency’s Investment Office, Turkey, with its dynamic and strong economy, is an important attraction for international direct investments.
It also facilitates companies’ access to global markets thanks to its strategic geographical location at the intersection of Europe, Asia and Africa and world-class transportation infrastructure.
Turkey also provides the qualified workforce that companies need through its wide 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 past 21 years, investments in its infrastructure and superstructure, and attractive incentives, and has become one of the leading destinations for international direct investments.
With 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 FDI inflows and ranked second in its region with a total FDI of $262 billion.
With the number of multinational companies it hosts increasing from 5,600 to more than 80,000 in the same period, Turkey has become a regional economic hub that supports the production activities of these companies through 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 to guide investments.
– A “roadmap” to attract qualitative international direct investments
Turkey’s FDI Strategy is designed to serve as a “roadmap” for all stakeholders in the ecosystem in order to accelerate the attraction of quality FDI to the country, which Turkey needs in a period of reshaping the global economy and increasing uncertainty.
While developing the strategy, a data and evidence-based approach was adopted, taking into account the priorities contained 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 resulting geopolitical tensions in the wake of the Covid-19 pandemic have significantly impacted the outlook for international investments around the world.
In addition, factors such as proximity to raw materials and markets, diversification of production and supply chains from friendly countries, and the availability of raw materials and markets are becoming more important in the investment decisions of global companies.
Phenomena such as the green and digital transformation have also become important determinants of FDI flows. Moreover, while 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 component of production processes, in addition to raw materials and intermediate goods.
These developments not only change the structure of IDI projects but also the expectations of host countries. This situation, which causes a geographical and qualitative restructuring of supply chains, on the one hand, creates important opportunities for leading IDI countries such as Turkey, and on the other hand, increases global competition in attracting investments.
Turkey, with its productive capacities, 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, which will serve Turkey’s long-term development goals, is to attract quality international direct investments to Turkey that are high-value added, sustainable, support digital transformation, rely on high technology, and provide high-quality job opportunities.
In light of the analysis conducted, 8 specific international direct investment files were prioritized in the strategy: “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”.
During the strategy period, activities will be implemented to further attract investment projects suitable for these areas to Türkiye.
– Establishing a policy framework consisting of 6 axes
The main goal of the strategy is to increase Turkey’s share of the international direct investment “pie” through quality international investment 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 have a 12 percent share of international direct investment flows into its highly competitive region by 2028.
In addition, the number of projects to be specifically attracted to the FDI document and regional quota targets during the strategy period were determined.
In order to achieve these goals, a policy framework was created consisting of 6 axes 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 under 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 that will be implemented within the scope of the strategy will be implemented within the framework of annual work plans designed in coordination with the 32 relevant policies.
81 actions are included in the 2024 Action Plan, and these action plans will be effectively implemented in cooperation with institutions and organizations concerned with international direct investments.
Anatolia
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2024-07-29 16:00:08
