Türkiye has the potential to attract more than $30 billion in foreign direct investment annually; however, reaching that level by 2026 will depend on maintaining policy stability, implementing reforms and strengthening investor confidence, according to a sector representative.
Tolga Demirözü, chair of the Istanbul-based International Investors’ Association (YASED), told state-run Anadolu Agency that Türkiye drew $11.6 billion in foreign direct investment, up 35 percent year-on-year, but still below its estimated 1.5 percent potential share of global foreign direct investment.
He said tighter monetary policy, fiscal discipline and an improved communications strategy introduced in March 2024 have helped improve Türkiye’s risk perception, boosting investor confidence in the country’s Medium-Term Program targets.
“Progress in green transformation and digitalization positively impacted investor expectations and encouraged direct investments,” Demirözü said. “But while investor appetite recovered throughout the year, cautious optimism still remains — ensuring stability in the disinflation process and the continuity of structural reforms are key.”
He added that maintaining investor confidence requires concrete policy steps across all areas through public–private cooperation.
Demirözü said reforms such as modernizing the Customs Union, accelerating free trade negotiations with EU partner countries and harmonizing with the Union Customs Code could improve competitiveness, but warned that the EU’s “Buy European” push creates uncertainties in some sectors.
“The possibility of Türkiye’s exclusion from the regulation on green transformation of vehicle fleets is a significant risk,” he said, noting that YASED continues to discuss the issue with relevant parties.
Demirözü said around 58 percent of the foreign direct investment in Türkiye between 2003 and 2024 came from EU member states. From January to October 2025, the bloc’s share increased to 65 percent.
