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Turkey ups FDI forecast to $14bn after FATF removal

By Pramod Kumar
Turkey's Togg transition concept electric vehicle. The government has offered $5bn in incentives for the EV industry and $4.5bn to develop battery production Reuters/Steve Marcus
Turkey's Togg transition concept electric vehicle. The government has offered $5bn in incentives for the EV industry and $4.5bn to develop battery production

Foreign direct investment (FDI) in Turkey is expected to reach $12-14 billion in 2024, compared to $10 billion in 2023, following the country’s removal from the Financial Action Task Force (FATF) ‘grey list’.

Foreign investment has increased following removal from the Paris-based watchdog’s list and subsequent improvements in the country’s credit rating, Turkey’s investment office president, Burak Daglioglu, told Reuters.

More Chinese companies are likely to invest in the automotive sector especially after electric vehicle (EV) maker Byd announced plans to construct a $1 billion plant in Turkey.

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Daglioglu said talks were ongoing on “greenfield” investments that, if the deals are finalised, could be worth $1 billion each.

Additionally, a data centre investment is expected by year-end, the report said without giving more details.

In February, Edgnex, a data centre subsidiary of Dubai real estate developer Damac, established a joint venture with Vodafone Turkey to build its first data centre in the Turkish city of Izmir at an estimated cost of $100 million.

The official said that the second half of the year will draw more investments, expecting a positive momentum in 2025.

Turkey received FDIs of $4 billion in the first five months, the report said.

Last month, Ankara committed up to $30 billion to attract foreign tech investors and bolster its domestic technology sector.

The government offered $5 billion in incentives for the electric vehicle industry and $4.5 billion to develop battery production, which is intended to fuel domestic EV output to 1 million units annually.

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