After the Kovid-19 outbreak, international companies affected by the Russia-Ukraine war turned their routes to Turkey, which is seen as the "safe harbor of the region" and "trade base". Especially the US companies, which are in the second place in international capital investments to Turkey, focused on mutual visits in order to cooperate by seeing the investment opportunities in the country on the spot.
The COVID-19 outbreak brought about a change in the investment policies of countries and companies. Many companies have started to shift their investments in the Far East to countries including Turkey, taking into account such reasons as investment opportunities, energy prices, transportation fees, and workforce environment. The outbreak of the Russia-Ukraine war in the period when the effects of the epidemic began to diminish, led to a change in investment plans. The world's leading companies, which support the sanctions imposed on Russia by many countries and organizations, either suspended their activities in Russia or withdrawn from this market and sought alternatives.
Despite withdrawing from Russia, international companies looking for a safe and stable address to coordinate their operations and investments in the region started to turn to Turkey, taking into account the business environment.
Seeking cooperation and investment through visits
The Americans stand out among the investors whose interest in Turkey is intensified. Following the news that the US Ambassador to Ankara Jeff Flake had addressed Turkey to 5 thousand US companies that were preparing to leave Russia, the eyes focused on the planned visits from this country. Representing American companies, Vice President of the US Chamber of Commerce Myron Brilliant will hold talks in Turkey with the accompanying delegation as of today. In the event, which will be hosted by AmCham Turkey, which represents 110 US-based companies with an investment of approximately 50 billion dollars in Turkey, investment opportunities in Turkey will be explained to Brilliant and the business people that will accompany it. It was learned that the delegation, which plans to meet with some ministers and representatives of the business world, will focus on investments in some regions.
Within the framework of the target of 100 billion dollars trade volume between Turkey and the USA, various activities were organized and mutual investments were focused on. "Commercial Diplomacy Events" were organized in the USA under the coordination of the Presidency's Directorate of Communications and the Turkish Exporters Assembly (TIM). A delegation consisting of senior officials, members of parliament and business people from Turkey went to the USA. Within the scope of the visit, which is planned to last until March 18, the delegation starts its commercial and diplomatic contacts in Washington and New York, while also holding talks on bilateral economic relations. It is envisaged that these initiatives will further strengthen and increase economic relations such as exports and investments between the two countries.
International direct investments to Turkey exceeded 240 billion dollars
According to the compilation made by the AA correspondent from the data of the Ministry of Industry and Technology and the Presidential Investment Office, the international net direct investment inflow in Turkey was only at the level of 15 billion dollars until 2002. This figure exceeded 240 billion dollars by the end of 2021.
As of the end of last year, while the international capital investment inflow in the country reached 174 billion 212 million dollars, capital investments of US companies constituted 14 billion 97 million dollars, which corresponds to 8.1 percent of this. Thus, US companies ranked second after the Netherlands in capital investments in Turkey. As of 2021, Dutch companies' capital investment in Turkey amounted to 27.4 billion dollars.
The number of foreign companies operating in Turkey reached 76,737 by the end of 2021. 2 thousand 30 of these companies were US companies.
After Russia's attack on Ukraine, Ford, Boeing, General Motors, ExxonMobil, FedEx, Ford, Nike, Adidas, McDonald's, KFC, Starbucks, Coca-Cola, PepsiCo, Airbnb, Netflix, Visa, Mastercard, American Express, Apple, Many US-based international companies such as Levi's and Walt Disney announced that they suspended their activities in Russia, and Goldman Sachs announced that it would exit Russia. These companies are also reviewing investment opportunities in Turkey, as in various countries in the region.
Considering the effects of the Kovid-19 outbreak on trade, international companies, including Swedish furniture company IKEA, Polish ready-made clothing company LLP, German pharmaceutical company Boehringer Ingelheim and Belgian packaging company DW Reusables, had previously announced their plans to shift their investments to Turkey.
Turkey is an attractive production center with its location and human resources.
Turkey has managed to attract the attention of many international investors with its impressive growth performance and the structural reforms it has implemented in the last 10 years. The country became the 9th most sought-after international direct investment (FDI) destination across Europe in 2020. In addition, Turkey stood out as the third most preferred FDI destination among developing European countries in 2019, and ranked second after Poland with a 16 percent share in 2020.
In Turkey, Turkish financial institutions, especially banks, are among the institutions with the strongest information technology in the world. Blue and white collar manpower with high skills at all levels, capable of producing the most complex industrial products, including spacecraft and aviation, is one of the strongest areas of Turkey, where it is possible to carry out almost all transactions safely online.
Providing significant incentives to both national and international investors, Turkey's strategic location stands out as one of the most important advantages it offers to international investors.
In addition, the fact that 1.3 billion people and an economy of 26 trillion dollars can be reached in the important centers of Europe, North Africa, the Gulf Region and Central Asia within a 4-hour flight distance makes Turkey an important production and management base.
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