Last Updated on 3 марта, 2025 by Ideal Editor
Turkey’s Foreign Direct Investment Surges to $11.3 Billion in 2024, Defying Global Decline
Turkey has once again solidified its position as a prime destination for foreign direct investment (FDI) in 2024, attracting an impressive USD 11.3 billion in inflows. According to the Central Bank of the Republic of Turkey (CBRT), this represents a 5.6% year-on-year increase, defying global economic uncertainties and a sharp downturn in FDI experienced by other economies across Europe and beyond. This remarkable performance underscores Turkey’s foreign direct investment continued appeal as a strategic investment hub, offering global investors a diversified economy, modern infrastructure, and favorable policy reforms.
Key Highlights of Turkey’s FDI Performance in 2024
Resilient Growth Amid Global Decline
In an era marked by global economic headwinds, Turkey stands out as a rare success story. While global FDI flows contracted by 8% in 2024, Turkey’s inflows grew by 5.6% compared to 2023. The resilience of Turkey’s investment climate highlights the country’s progressive policy reforms, dynamic industrial base, and its crucial role as a bridge between Europe, Asia, and the Middle East.
In contrast, major European economies saw steep declines in FDI inflows:
- Germany – FDI dropped by 60%.
- Poland – FDI contracted by 60%.
- Italy – FDI fell by 35%.
- Spain – FDI declined by 13%.
- France – FDI decreased by 6%.
Turkey’s stability and proactive investment policies have made it a beacon of opportunity, especially in the face of global economic volatility.
Top Source Countries Driving FDI Inflows
A diverse range of investors contributed to Turkey’s robust FDI inflows in 2024, reflecting growing international confidence in the Turkish market.
The top investors include:
- The Netherlands – 23.6% of total FDI
- Germany – 11.5%
- United States – 10.3%
- Ireland
- Azerbaijan
- Switzerland
- United Kingdom
- United Arab Emirates (UAE)
- France
- Norway
This geographical diversity underscores Turkey’s broad-based appeal, attracting capital from both traditional European partners and emerging regional investors.
Key Sectors Attracting Foreign Investment
1. Manufacturing – $2.3 Billion (34.5% of Total FDI)
The manufacturing sector maintained its position as the top investment destination, receiving USD 2.3 billion in FDI in 2024. This 32.5% year-on-year growth highlights Turkey’s competitive edge as a global manufacturing hub, offering investors:
- Modern industrial zones
- Skilled workforce
- Cost-competitive production environment
- Access to European and Middle Eastern markets
With supply chain diversification becoming a global priority, Turkey’s proximity to key consumer markets has further enhanced its attractiveness for manufacturers seeking resilient production locations.
2. Wholesale and Retail Trade – 25.3% of Total FDI
Turkey’s dynamic domestic market and growing middle class continued to drive strong investment flows into the wholesale and retail sector. Foreign brands, e-commerce platforms, and logistics providers are increasingly leveraging Turkey’s digital transformation and urbanization trends to expand their footprint.
3. Transport and Logistics – 7.2% of Total FDI
Investment in transportation infrastructure and logistics networks continued to rise, benefiting from Turkey’s strategic location at the crossroads of Europe, Asia, and Africa. Investors are attracted by:
- Growing export volumes
- Modernized ports and rail networks
- Free trade zones offering competitive incentives
Why Turkey Defies the Global FDI Downturn
1. Structural Reforms and Investor-Friendly Policies
Over the past decade, Turkey has implemented a series of structural reforms aimed at improving the business environment and boosting investor confidence. These include:
- Simplified business registration processes
- Enhanced investment incentives across strategic sectors
- Streamlined permitting and licensing systems
- Sector-specific tax breaks and subsidies
2. Geopolitical and Economic Strategic Location
Situated at the convergence of Europe, Asia, and the Middle East, Turkey offers unparalleled market access to:
- Over 1.5 billion consumers within a 4-hour flight radius
- Key global supply chains serving automotive, textiles, electronics, and food industries
This unique positioning enhances Turkey’s value proposition for companies looking to diversify operations amid rising global supply chain risks.
3. Strong Industrial and Digital Infrastructure
From advanced manufacturing zones to high-speed logistics corridors, Turkey’s infrastructure investments have strengthened its industrial capacity and digital economy. Coupled with its robust e-commerce sector and thriving fintech ecosystem, Turkey has evolved into a regional innovation hub, attracting both greenfield investments and technology partnerships.
Investment Office President Ahmet Burak Dağlıoğlu expressed optimism for 2025, citing:
- Ongoing economic reforms
- Planned infrastructure megaprojects
- Expanding free trade agreements
- New incentives for high-tech and renewable energy sectors
«With ongoing reforms and our strategic positioning, we anticipate a substantial increase in FDI. These developments will further solidify Turkey’s status as a premier global investment hub and a critical node in the world economy,» Dağlıoğlu stated.
Focus on Sustainability and Innovation
As global investors prioritize sustainability and innovation, Turkey’s emerging green economy and tech-friendly policies are expected to drive new investments into:
- Renewable energy
- Electric vehicles
- Smart manufacturing
- Digital services
- Circular economy projects
Turkey’s Rising Investment Appeal
Despite global economic uncertainties and declining FDI trends in Europe and other key regions, Turkey’s USD 11.3 billion in FDI inflows in 2024 highlights its enduring appeal as a resilient, diverse, and investor-friendly economy. With stronger industrial infrastructure, forward-looking reforms, and deepening global economic integration, Turkey is well-positioned to attract even higher levels of foreign direct investment in 2025 and beyond.
For global investors seeking strategic market access, competitive production environments, and government-backed incentives, Turkey offers unparalleled opportunities. As the country continues to evolve as a regional investment hub, its role in global supply chains, trade corridors, and innovation ecosystems will only grow stronger.
Key Takeaways on Turkey’s Foreign Direct Investment.
- USD 11.3 billion in FDI in 2024
- 5.6% annual growth despite global downturn
- Top sectors: Manufacturing, Retail, Transport
- Key investors: Netherlands, Germany, U.S., UAE
- Positive outlook for 2025 with more reforms ahead
Frequently Asked Questions (FAQs)
Why did Turkey’s Foreign Direct Investment (FDI) increase in 2024 despite global economic challenges?
Turkey’s FDI rose by 5.6% in 2024, largely due to structural economic reforms, its strategic location between Europe, Asia, and the Middle East, and a diversified economy. Global investors view Turkey as a reliable investment destination thanks to competitive costs, modern infrastructure, and access to over 1.5 billion consumers within a 4-hour flight radius.
Which countries were the top investors in Turkey in 2024?
The top foreign investors in Turkey during 2024 were:
- The Netherlands (23.6% of total FDI)
- Germany (11.5%)
- United States (10.3%)
Other significant contributors included Ireland, Azerbaijan, Switzerland, the United Kingdom, the UAE, France, and Norway.
What sectors attracted the most foreign investment in Turkey in 2024?
The manufacturing sector led FDI inflows, attracting $2.3 billion and accounting for 34.5% of total foreign investment.
Other key sectors were:
- Wholesale and retail trade (25.3% of FDI)
- Transport and logistics (7.2% of FDI)
These industries benefited from Turkey’s modern industrial zones, logistics infrastructure, and growing consumer market.
How does Turkey’s FDI performance compare with other countries in 2024?
While global FDI flows declined by 8% in 2024, Turkey achieved growth of 5.6%. In contrast, Germany and Poland saw FDI drop by 60%, while Italy, Spain, and France also experienced significant declines. Turkey’s ability to attract FDI despite these trends highlights its resilience and growing appeal to global investors.
What is the outlook for Foreign Direct Investment in Turkey in 2025?
Turkey anticipates further growth in FDI in 2025, driven by:
- Ongoing economic reforms
- Expanded free trade agreements
- New incentives in high-tech and renewable energy sectors
- Infrastructure megaprojects
Investment Office President Ahmet Burak Dağlıoğlu expects Turkey to solidify its position as a premier global investment hub in the coming years.
