By Anadolu Agency
October 15, 2024 2:57 pmISTANBUL
Türkiye’s “strategic location and growing economy” are attracting foreign direct investments (FDI) from Russia, the Gulf Cooperation Council (GCC) states, and China due to its global value chains and proximity to Europe, according to Mauricio Zuazua, regional chair for the Middle East and Africa at investment firm Kearney.
Speaking to Anadolu, Zuazua emphasized that companies should take note of Türkiye’s growth and “give it serious consideration as an investment opportunity.”
“Istanbul gained three places to rank at (number) 25 of 156 cities on our 2023 Global Cities Index, which quantifies the extent to which a city can attract, retain, and generate global flows of capital, people, and ideas,” he said.
“Cities climbing on the index have proven economically robust amid worldwide patterns of low growth and high interest rates. In terms of FDI, our latest FDI Confidence Index shows that emerging markets, including Türkiye, are continuing to build their presence on the list,” he added.
Türkiye’s market fundamentals: Strong and showing potential
Zuazua stated that Türkiye’s various sectors have demonstrated significant growth potential in recent years.
“Banking and financial services, energy and utilities, transportation, and logistics are also strong and have brought a host of global names to invest in Türkiye,” he noted.
He mentioned that more than 80 private sector firms in manufacturing and consumer retail sectors report annual net sales exceeding $1 billion.
“The rapidly growing energy sector is particularly interesting as it not only plays a crucial role between the Middle East and Europe, but it also holds the key to Türkiye’s sustainable future; in addition to manufacturing, retail, logistics, and energy, the fintech, gaming, and digital industries are most attractive to foreign investors,” he added.
He highlighted the success of the Turkish tech startup Insider, which achieved 3.7 times growth in the Middle East and Africa, suggesting “solid potential.”
“There are opportunities for bilateral trade, for example the Comprehensive Economic Partnership Agreement between Türkiye and the UAE. The trend toward localization in the GCC will also provide opportunities for Türkish businesses, while Türkiye’s strengths will provide opportunities for GCC groups and sovereign wealth funds as they grow into Europe,” said Zuazua.
Continued investments due to Türkiye’s unique strategic position, growing economy
Zuazua noted that Türkiye’s digitalization efforts and advancements in the tech industry have proven fruitful.
“We have seen many examples of what Turkish start-ups are capable of, such as Insider’s success, the payments firm Papara which recently announced a tie-up with a US fintech that will allow its users to invest in US stocks and Peak Games, which was acquired by Zynga in 2020,” he said.
“Türkiye is working to become one of the world’s centers for technology venture companies, and initiatives like the Tech Visa program will enable it to attract investment and export technology and solutions to its surrounding markets,” he added.
Zuazua identified near-shoring and the European Green Deal as the two main drivers creating short- and medium-term opportunities for Türkiye.
“In addition to longstanding investment from the US and EU, Türkiye has been attracting FDI from India, Russia, the GCC, and China due to its advantages in global value chains and proximity to Europe — this will continue thanks to Türkiye’s unique strategic position and growing economy,” said Zuazua.
Regarding the European Green Deal, he stated that since the EU comprises 40% of Türkiye’s export markets, decarbonization will ensure ongoing trade with the EU and increase FDI opportunities.
Zuazua pointed out that two key factors will influence Türkiye’s development as an investment destination: digitalization and sustainability.
“The ability to produce innovative technologies will define who leads tomorrow’s highly competitive economies (and ) Digital Türkiye is an important enabler of this transformation, and the new Digital Nomad Visa will help attract technology talent. Continued cooperation between Türkiye and the EU will be highly beneficial, providing access to funding and critical development projects,” he said.
“Achieving sustainable, inclusive growth is a huge challenge and an opportunity, (as) the shift to renewable energies will play a fundamental role in achieving Türkiye’s climate ambitions, while the FDI Strategy’s focus on attracting sustainable investments will continue to embed its position in international value chains,” he added.
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