Türkiye eyes $13.5 billion: Stability and investment ahead

Türkiye’s efforts to achieve economic stability could unlock $13.5 billion in the next six months, potentially boosting the country’s share of global investments to 1.5 percent.

According to Engin Aksoy, head of the Turkish International Investors Association (YASED), the positive shift could take shape as US President-elect Donald Trump’s planned tariff hikes may exacerbate structural problems in China, prompting shifts in trade policies.

He added that the Mario Draghi report on the future of European competitiveness shows that the EU is lagging behind. "The region needs a transformation, and in such a fragile and unpredictable environment, Türkiye may have many opportunities,” he stressed.

Aksoy highlighted factors like nearshoring and friendshoring, where countries prioritise working with nearby allies, as key to Türkiye’s investment potential.

“There are two important conditions to be met before seizing this potential; the first is building macroeconomic stability, and the second is establishing frameworks to regulate the country’s sectors to create a platform of predictability,” he said.

Ambitious investment goals

Türkiye currently holds about 0.8 percent of global investments, and YASED aims to boost that share to 1.5 percent.

“Approximately $11 billion of investment in Türkiye is expected for 2024, but this figure falls short of what we want, and we believe we can reach $20 billion,” Aksoy said.

“International firms have representative offices, factories, research and development centres, and other investments in Türkiye, and these firms want to invest more, and their executives in Türkiye act like investment ambassadors, which is why we aim to see regulatory changes to bring stability and predictability for many years ahead, not just daily or monthly changes,” he added.

Green and digital transformation priorities

Aksoy identified digital and green transformation, along with electricity, as focal areas for the coming year.

“Türkiye has the potential to receive significant amounts of investment in many areas, and we have been receiving investments in retail, and the automotive sector is already quite large, but the coming days will be characterised by investments in green and digital transformation, just like around the world,” he said.

“The economic administration’s steps towards combating inflation will maintain the positive outlook and improve the outlook, but we still have a long way to go, and the fight against inflation should include structural reforms, and I think we’ll be getting there this year,” he added.