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In this page: FDI in Figures | Why You Should Choose to Invest in Turkey | Procedures Relative to Foreign Investment | Investment Opportunities


FDI in Figures

According to the UNCTAD 2013 World Investment Report , Turkey is the largest recipient of FDI in West Asia, leaving behind Saudi Arabia. The country has adopted a series of legislative reforms to facilitate the reception of foreign investment (tax exemptions and other incentives), such as the creation of Investment Support and Promotion Agency of Turkey (ISPAT), a showcase effort undertaken to attract foreign operators. Political stability and economic performance which followed the 2001 crisis led to a surge in FDI inflows, until they dried up as an effect of the global financial crisis. FDI was been very dynamic in 2011, partially because of the development of public-private partnerships for major infrastructure projects and measures such as administrative streamlining, strengthening intellectual property rights, putting an end to FDI screening and carrying out structural reforms with a view to the country's future accession to the EU. However, FDI again slowed down in 2012 as a reaction to the euro zone crisis. In 2013, they increased to 10.1 billion USD, a decrease of 5.3% compared to 2012.


Country Comparison For the Protection of Investors

  Turkey Eastern Europe & Central Asia United States Germany
Index of Transaction Transparency* 9.0 7.0 7.0 5.0
Index of Manager’s Responsibility** 4.0 5.0 9.0 5.0
Index of Shareholders’ Power*** 6.0 9.0 5.0
Index of Investor Protection**** 5.7 5.9 8.3 5.0

Source: Doing Business - Last Available Data.

Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.

Foreign Direct Investment 201120122013
FDI Inward Flow (million USD) 16,17113,22412,866
FDI Stock (million USD) 136,449187,387145,467
Performance Index*, Ranking on 181 Economies 88--
Potential Index**, Ranking on 177 Economies 7--
Number of Greenfield Investments*** 153142141
FDI Inwards (in % of GFCF****)
FDI Stock (in % of GDP) 17.623.817.6

Source: UNCTAD - Last Available Data.

Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.

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Why You Should Choose to Invest in Turkey

Strong Points
- A geographical strategic location;
- A well developed industrial basin;
- A country whose calling is to join the EU club by 2015-2020;
- A rapidly developing consumer middle class;
- A Flexible labor law, which favors investment and low labor costs;
- A sustained growth influenced by a modern and dynamic private sector;
- A strong increase in productivity in recent years;
- A legal framework close to European standards and favorable to investment.
Weak Points
- An excessive bureaucracy;
- A slow judicial system;
- Expensive taxes;
- Local governments sometimes unpredictable;
- Frequent change in the legal and regulatory environment;
- The slowing down of economic and political reforms observed;
- A strong dependence on hydrocarbon imports and on exports;
- An uncertainty regarding the exchange rate;
- A disturbing deficit of the balance of current payments;
- Insufficient and sometimes obsolete, infrastructures;
- An informal sector difficult to reduce.
Government Measures to Motivate or Restrict FDI
Since 2003, investors are no longer obliged to acquire a minimum interest.
Nevertheless, the government encourages investments in the form of Build Operate Transfer (BOT) (law n° 4283 of 16 July 1997). It favors investments in the High Tech, textiles, services (health, education, transport), telecommunications, shipbuilding, electronics and biotechnologies sectors. Export-oriented projects are also promoted.
Decree n° 24 810 of 9 July 2002 defines public aid for investment.
The Parliament amended the Law of Obligations and passed a new Commercial Code in early January 2011 (effective in July 2012). These major structural reforms are expected to create a more transparent, equal, fair and modern investment and business environment.
In early January 2012 a new law has been drafted that aims to be more flexible in allowing international companies to purchase real property.
Bilateral Investment Conventions Signed By Turkey
Turkey has signed bilateral conventions with 81 countries. Sixty-five of these agreements are in force and 16 of them are in the ratification process. In the Mediterranean basin, Turkey has signed bilateral conventions with Algeria, Egypt, Israel, Spain, Greece, Lebanon, Morocco, Portugal and Tunisia. 44 conventions can be downloaded on the UNCTAD website: click here to download these conventions. They define the framework of protection for foreign investment in Turkey for each of the signatory countries.

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Procedures Relative to Foreign Investment

Freedom of Establishment
Acquisition of Holdings
Obligation to Declare
Foreign investors only have to inform the General Directorate of Foreign Investment (GDFI) through the under-secretariat of State to the Treasury.
Competent Organization For the Declaration
Turkish Treasury
Requests For Specific Authorizations
In some sectors considered to be strategic such as petroleum, the media (radio and TV) and tourism, acquisitions are limited to a certain amount (law n° 6326 of 1954).

Learn more about Foreign Investment in Turkey on, the Directory for International Trade Service Providers.

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Investment Opportunities

Investment Aid Agency
Invest in Turkey
Tenders, Projects and Public Procurement
IHALE, Public Procurements
Tenders Info, Tenders in Turkey
Globaltenders, Tenders & Projects from Turkey
DgMarket, Tenders Worldwide
Other Useful Resources
Turkish Investment support and Promotion Agency

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Learn more about Investing in Turkey on, the Directory for International Trade Service Providers.

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Last Updates: October 2014