It has been reported that Turkey’s International Direct Investment Strategy will present a roadmap for the country in the field of international direct investments (FDI) at a time when the global economy and investment mobility are being restructured and predictability is decreasing.
The Presidential Investment Office has published the “2021-2023 Turkey International Direct Investment Strategy”.
In the strategy, it was stated that FDIs are one of the most important complementary elements of industrial, trade and fiscal policies.
In the strategy, which is pointed out that the competition for attracting investments between countries is increasing day by day during the transformation and uncertainty process in the world economy in the recent period, a target-oriented FDI Strategy is adopted in 2023 in order to bring in the value-added, information-intensive and qualified employment investments that Turkey needs in this process. It was emphasized that it will make significant contributions to the achievement of the targets for the year.
In terms of the nature of the Turkish FDI Strategy, its targets and the strategies developed to achieve these goals, it is compatible with the 11th Development Plan (2019-23), the New Economy Program (2020-22), the 2023 Industry and Technology Strategy and the 2023 Turkey Export Strategy and Action Plan. In the document, which draws attention to the fact that it is complementary to these basic policy documents, “The Strategy provides a roadmap in the field of international direct investments to Turkey at a time when the global economy and investment mobility are restructured and predictability is decreasing.” statements were included.
In the document, which pointed out that the strategy aims to increase Turkey’s FDI performance in this period both in terms of quantity (share from the global FDI market) and quality (added value of the investment), the strategy in this direction is “investor-focused”, “specialized for qualified FDI”, “collaboration”. It was noted that it was developed on the basis of three basic principles, namely “the common mind that stands out with coordination and
In the document, the strategy preparation process, “The Global and Regional FDI Market and Analysis of Key Trends and Expectations Regarding the Future of the Market”, “A Comparative Analysis of Turkey’s FDI Performance and Turkey’s Investment Environment with Selected Countries”, “Qualified FDI Definition for Turkey, Targets, Strategies and Actions”. It was informed that it consisted of three main stages.
As a result of the studies, the main findings that guide the strategy are listed as follows:
“Global and regional market trends point to a more competitive market structure than ever for the medium-term future of FDI. Turkey has previously been in Turkey, both in Central and Eastern European countries, as well as in Germany, the USA, China, the United Kingdom and Italy, in the shrinking FDI market. Global trends have changed the investment decision criteria of international companies and the relative weights of these criteria. During the strategy period, dynamically monitoring the needs of investors and the investment decision criteria that change on a global scale and implementing the necessary regulations. will be decisive in its performance.”
On the other hand, in the strategy, which pointed out that Turkey is an important investment destination in its region for high-tech services and manufacturing investments, it was stated that two key factors are critical for the country to maintain its current performance and increase its market share in information-intensive, high value-added investments.
In the strategy, where the first of these is to shape the support mechanisms with investor feedback and the second is to develop the investment environment in a way that facilitates investment decisions, the business environment, regulatory framework and supplier infrastructure are “Sustainable Development Goals” in order for Turkey to maintain and strengthen its competitiveness in production and export-oriented international direct investments. It was emphasized that it is critically important to harmonize it with the
Emphasizing that the expected shortening trends and regionalization scenarios in global supply chains (KTZ) create windows of opportunity for Turkey in the medium and long term, it was stated that the country’s role as the production and distribution base of its region is expected to strengthen in the new period.
Emphasizing that Turkey’s geostrategic location, established production capacities of international companies, strong human resources and supplier infrastructure, it offers investors a safe harbor that will enable them to establish and expand their value chains.
“Three main windows of opportunity come to the fore that will strengthen the role of the region as a production and distribution base that the transformation in KTZ promises to Turkey. First, multinational manufacturing sector companies that do not currently have production in Turkey invest in Turkey, and secondly, the existing investor’s operations with expansion type investments Turkey’s growth and diversification by turning to higher value-added activities and thirdly, the investments in Turkey by companies that are suppliers of existing investors abroad.Turkey is the country with the highest performance in expansion-type investments in its region.The positive perception Turkey has in the eyes of existing investors, the country in its region Supporting existing investors to expand their investments in our country and move towards higher value-added areas with approaches that put investor satisfaction in the focus during the strategy period is critical for Turkey’s FDI performance. is a rope. Increasing competitiveness in the global and regional FDI market reinforces the need for countries to focus and prioritize FDI.”
11 strategies and 72 actions designed
In the strategy, 7 qualified international direct investment profiles were determined in accordance with Turkey’s definition of qualified FDI. The expected contraction in the global FDI market in the 2021-2023 period, the transformation pressure in the STZ, and the issues within the framework of climate and sustainability concerns were gathered under 4 horizontal axes. Investments deemed to be compatible with these were also considered as qualified FDI.
While the strategy is designed in a structure that prioritizes investments suitable for qualified FDI profiles, but does not exclude other investments, the main target is determined as “to increase Turkey’s share in the global FDI market to 1.5 percent by 2023, by increasing its performance, specifically for qualified FDI profiles”.
11 strategies that will help Turkey reach this goal and 72 actions under these strategies were designed together with relevant public institutions and private sector representatives.
