Turkey attracts $12.6 billion FDI, down 4 percent

Turkey attracts $12.6 billion FDI, down 4 percent

Turkey attracts $12.6 billion FDI, down 4 percent

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Turkey received foreign direct investment (FDI) of $12.6 billion in 2013, a drop of 4.1 percent compared to 2012, according to data released by the Economy Ministry.

While the capital inflow the country attracted reached $10.1 billion, the energy sector has emerged as the largest recipient of foreign capital with $2.55 billion. Of the cash inflow, around $3.7 billion of the capital inflow entered the country through operations of intermediary financial institutions.

The ministry data also revealed the European Union to be the main source of money flowing to Turkey, with 52 percent of the capital coming from members of the 17-nation bloc.

The data also indicated 2,960 foreign-funded new companies were established in Turkey last year, down from the 3,703 companies registered in 2012. Almost 37,000 companies operating in Turkey were funded by foreign capital as of December 2013, figures also showed.

The most populous city of Turkey, Istanbul, got the lion share of the foreign-funded businesses, with nearly 22,000 of them operating in the city.

While the Turkish capital of Ankara hosts 4,046 foreign companies, the country’s largest sea resort Antalya is home to 2,279. The report also said that of the total number of foreign-funded companies in 2013, 5,651 were German-funded and 2,635 were financed by the U.K.