According to the International Investors Association (YASED), based on data from the Central Bank of Türkiye (TCMB) published on February 13, 2025, Türkiye received $11.3 billion in Foreign Direct Investment (FDI) in 2024.
Türkiye’s FDI Inflows Grew by 5.6% in 2024
In December 2024, Türkiye attracted $1.972 billion in FDI, bringing the total annual inflow to $11.3 billion, reflecting a 5.6% increase compared to 2023. Since 2002, total FDI inflows to Türkiye have exceeded $274 billion.
Of the $1.972 billion in December 2024, $1.221 billion came from equity investments, while $499 million was from debt instruments, and $255 million resulted from real estate sales to foreigners. Investment liquidations had a negative impact of $3 million on the overall FDI figure for the month.
Retail and Tech Industries Led Türkiye’s FDI Inflows in 2024
Among the $6.691 billion in equity investment inflows in 2024:
- $1.692 billion (25%) went to Wholesale and Retail Trade, making it the top sector.
- 10% of investments were directed to Computer, Electrical, Electronic, and Optical Product Manufacturing.
- 9% was invested in the Chemical, Pharmaceutical, and Basic Chemical Products Manufacturing sector.
In December 2024, leading sectors for investment included:
- Wholesale and Retail Trade (46%)
- Food, Beverage, and Tobacco Manufacturing (11%)
- Computer, Electrical, Electronic, and Optical Product Manufacturing (7%)
- Chemical and Pharmaceutical Manufacturing (6%)
- Professional, Scientific, and Technical Activities (5%)
Top Foreign Investors: Netherlands, Germany, U.S., Ireland, and Azerbaijan
From 2005 to 2023, 58% of total FDI into Türkiye came from EU-27 countries, a trend that continued in 2024 with a 55% share. Non-EU European countries, which accounted for 14% of FDI from 2005-2023, represented 15% of 2024 investments.
In December 2024, the leading sources of FDI inflows were:
- Netherlands (41%)
- United Arab Emirates (15%)
- Ireland (8%)
- United States (7%)
- Germany (5%)
Global FDI Trends: Decline Outside of Conduit Economies
According to UNCTAD’s Global Investment Trends Bulletin No. 48, published on January 20, 2025, global FDI reached an estimated $1.4 trillion in 2024, reflecting an 11% increase from 2023. However, excluding conduit economies in Europe, total global FDI actually declined by 8%.
The report highlights a decrease in international project finance for infrastructure, which is critical for Sustainable Development Goals (SDGs) in developing economies. Meanwhile, mega projects in semiconductors, data centers, and AI-driven industries surged in developed countries, reflecting the impact of rising artificial intelligence technologies on global investment flows.
Source: Foreks/ Prepared by: İlayda Gök