Reforms, predictability crucial for growth, says head of investors association
Türkiye's efforts to achieve economic stability could unlock $13.5 billion in the next six months, potentially boosting the country's share of global investments to 1.5%, according to Engin Aksoy, head of the Turkish International Investors Association (YASED).
Aksoy said U.S. President-elect Donald Trump's planned tariff hikes may exacerbate structural problems in China, prompting shifts in trade policies.
“The (Mario) Draghi report on the future of European competitiveness shows that the EU is lagging behind and the region needs a transformation, and in such a fragile and unpredictable environment, Türkiye may have many opportunities,” he said.
Aksoy highlighted factors like nearshoring and friendshoring, where countries prioritize working with nearby allies, as key to Türkiye's investment potential.
“There are two important conditions to be met before seizing this potential; the first is building macroeconomic stability and the second is establishing frameworks to regulate the country's sectors to create a platform of predictability,” he said.
-Ambitious investment goals
Türkiye currently holds about 0.8% of global investments, and YASED aims to boost that share to 1.5%.
“Approximately $11 billion of investment in Türkiye is expected for 2024, but this figure falls short of what we want, and we believe we can reach $20 billion,” he added.
Aksoy stressed that achieving the 1.5% target requires swift reforms to accelerate improvements in the investment environment.
Nearly two-thirds of Türkiye's foreign investments come from the EU and Britain, he said, underscoring the country's strong trade ties with Europe.
“International firms have representative offices, factories, research and development centers, and other investments in Türkiye, and these firms want to invest more, and their executives in Türkiye act like investment ambassadors, which is why we aim to see regulatory changes to bring stability and predictability for many years ahead, not just daily or monthly changes,” he said.
-Green and digital transformation priorities
Aksoy identified digital and green transformation, along with electricity, as focal areas for the coming year.
“Türkiye has the potential to receive significant amounts of investment in many areas, and we have been receiving investments in retail, and the automotive sector is already quite large, but the coming days will be characterized by investments in green and digital transformation, just like around the world,” he said.
“The economic administration's steps towards combating inflation will maintain the positive outlook and improve the outlook but we still have a long way to go, and the fight against inflation should include structural reforms, and I think we'll be getting there this year,” he added.
