Turkey is forecasting a significant increase in foreign direct investment (FDI) to $12-14 billion in 2024, up from $10 billion in 2023. This increase follows the country's removal from the "grey list" of the Financial Action Task Force (FATF) and a subsequent upgrade in its credit rating.
Burak Daglioğlu, the president of Turkey's Investment Office, stated that the volume of foreign investments has risen after these changes, and more Chinese companies, in particular, are expected to invest in the automotive sector. Electric vehicle manufacturer BYD has announced plans to build a $1 billion factory in Turkey, demonstrating growing interest in investments.
Negotiations are ongoing for projects that could each amount to $1 billion if deals are finalized. Investments in data centers are also anticipated by the end of the year. For example, in February, Edgnex, a subsidiary of Dubai-based developer Damac, formed a joint venture with Vodafone Turkey to build its first data center in the Turkish city of Izmir, costing approximately $100 million.
Daglioğlu also mentioned that more investments are expected in the second half of the year, which will continue the positive trend into 2025. In the first five months of 2024, Turkey received $4 billion in FDI.
As part of its strategy to attract foreign investments, the Ankara government has allocated up to $30 billion for the development of the technology sector and support for domestic tech production. Of this amount, $5 billion is earmarked to stimulate the electric vehicle industry, and $4.5 billion for battery manufacturing, which is expected to increase electric vehicle production in Turkey to 1 million units per year.
