Business association aims to raise FDI into Turkey

Business association aims to raise FDI into Turkey

ISTANBUL - Hürriyet Daily News
Business association aims to raise FDI into Turkey

The board of YASED (International Investors Association), headed by Serpil Timuray (3rd L), is seen. Company photo

Turkey’s International Investors Association (YASED) aims to increase Turkey’s share in drawing foreign direct investment (FDI) from one percent to three percent, in parallel with Turkey’s goal to become one of the ten largest economies until 2023.

“The tenth country in the FDI ranking draws between $40 billion and $50 billion a year. It conducted us to upgrade Turkey’s FDI, which was $12.4 billion last year, share from one percent to three percent in the world,” said Serpil Timuray, the chairperson of YASED during a press event for YASED Strategic Program 2013-2014 yesterday.

Turkey was the 23rd country in FDI ranking in 2011 with a $15.9 billion foreign direct investment, said Tankut Turnoğlu, a board member, adding that their target was to catch up with Singapore, which ranked sixth with $64 billion making 4.2 percent share of the total two years ago.

Timuray stated that Turkey became the 13th countries in FDI list last year from 23rd, according to an international consultant company. Akın Kozanoğlu, the deputy chairman, revealed that FDI from European countries made 77 percent, the Middle East, Gulf and Asian countries made 18 percent and the United States mad 5 percent of the total FDI last year, which worth $12.4 billion. Kozanoğlu added that 43 percent of these FDI made in manufacturing sector, 14 percent in finance sector and 13 percent in construction.

Int’l capital stock rises tenfold in a decade

Timuray said Turkey’s international capital stock increased from $18 billion in 2002 to $180 billion last year, with a tenfold rise in a decade. The number of foreign capital companies increased from 10,000 in 2005 to 30,000 last year, she added. In İSO500 list (top 500 companies in Turkey listed by Istanbul Chamber of Industry) there are 140 international companies that make 44 percent of the total exports, 30 percent of direct sales and 28 percent of the employment.

YASED, which has 225 members and all of them are foreign capital companies, determined five strategic priorities during 2013-2014 period in order to rise Turkey’s FDI share to three percent. Timuray said they would play a prominent role in establishing an investment environment which would have legal and administrative regulations at international standards to make investments sustainable and competitive, tell the public the contribution of FDI to Turkish economy, produce strategic suggestions to increase investments for research and development centers and to create labor force that have global qualifications, they would lead to transform Turkey into a regional hub for administration, production, service and logistics.