Turkey has potential to increase FDI inflow three-fold: Association
AA photoTurkey currently attracts around 1 percent of global foreign direct investment (FDI) but it has the potential to increase this share three-fold, International Foreign Investors Association of Turkey (YASED) head Ahmet Erdem has said in an interview with Anadolu Agency.
“Turkey’s share is currently around 1 percent of the global FDI flow. As YASED members, we believe our country has the potential to increase this figure three-fold as we have a number of advantages to lure further foreign investment, such as a young population. We may need something more to raise the workforce to a higher quality, but our country has the necessary infrastructure and resources to do this,” Erdem said.
He stressed that a series of extensive legal and administrative reforms must be enacted as soon as possible in order to make Turkey more competitive in the global economy.
Turkey ‘reached last year’s FDI figure in just nine months’
FDI into Turkey was $12.1 billion in 2014, making the country the 22nd most popular spot for investors in the world, according to data from the United Nations Conference on Trade and Development (UNCTAD).
Erdem noted that the global FDI flow has decreased by around 16 percent this year compared to last year, but Turkey has not suffered such a drop.
“On the contrary, the FDI inflow to Turkey has increased so far this year. A total of $12.6 billion of foreign direct investment poured into Turkey in the first nine months of 2015. This is very close to the amount that Turkey attracted over the whole course of 2014. This shows the high potential that Turkey has to lure further FDI,” he added.
“Turkey’s ability to boost the FDI inflow will depend on its steps to be taken to enhance the rule of law, to increase predictability, and to make tax and economic reforms. Taking such steps, there will not be any obstacle to Turkey attracting further FDI,” the YASED head stated.
Erdem also emphasized that maintaining political stability after the Nov. 1 elections would positively affect the FDI inflow to the country.
Separately, he noted that a total of 1.9 million new jobs had been created over the last decade through foreign direct investments to Turkey, according to a YASED study.