Posted by meb at May 3rd, 2007

Turkey’s economic growth and stability over the last half decade is continuing to attract foreign investors. Foreign direct investment, which topped $20 billion last year, stood at $12 billion in the first three months of 2007 alone. According to Turkish Treasury data regarding foreign direct investment, foreign companies prefer to establish facilities in touristy areas. As far as established companies are concerned, Istanbul is the leading city in Turkey, followed by Antalya. While Izmir, Muğla and Ankara are within the top five, cities like Kocaeli, Bursa, Konya and Kayseri are at the bottom of the list. Since 1954, 8,618 companies have been established in Istanbul and 1,833 in Antalya. Only 188 companies were established in Kocaeli, one of Turkey’s biggest industrial cities.

Foreign industries that invested the most in Turkey were for transportation, financing, financial intermediary institution activities, construction, real estate subleasing, production, food items, beverage production, chemical production, electricity, natural gas and water. Antalya Chamber of Trade Chairman Kemal Özgen said foreigners are familiar with Antalya and their interest is as expected. He noted that foreigners are more interested in tourism and real estate than agriculture and industry sectors.

He noted that large movement is recorded in the free zone and added that foreigners are interested in more than tourism. Özgen said that since 2001 they have recorded $75 million in foreign capital inflow.

The Turkish Treasury Foreign Capital General Directorate has released data on foreign direct investment for January and February. During this period, 47 percent of the realized cash capital inflow came from EU countries and 43 percent originated in the US.

During the same period, 38 companies with registered international capital topping $500,000 were established. Out of these companies, 12 are in the production industry, eight in construction and seven in wholesale and retail trade.

The Treasury has foreseen investments of $1.05 billion from 23 projects with investment incentive certificates issued during February 2007. The number of certified investment projects has climbed to 32, with resulting investments of $2.6 billion within the first two months of 2007.

Foreign based companies in Turkey

Cities No.of companies (Feb ’07)

——- —————

Istanbul 8618

Antalya 1833

Ankara 1065

Izmir 952

Mugla 888

Bursa 315

Mersin 291

Aydın 239

Kocaeli 188

Adana 125

Other cities 971

TOTAL 15485

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  3. There are 14,872 international capital-companies in Turkey
  4. Five companies to invest in Turkey’s Izmir, to create 3,000 new jobs
  5. Capital investment in foreign-based companies doubles