2007 FDI hits record-high net $21.9 bln in Turkey
Posted by meb at February 22nd, 2008
Foreign direct investment (FDI) in Turkey rose 9.8 percent to hit $21.9 billion in 2007 and came mostly in the form of privatizations, mergers and acquisitions, and property sales, the Undersecretariat of the Treasury announced in its monthly “Foreign Direct Investment Data” bulletin published yesterday.
In 2007, capital inflow to Turkey was $19.2 billion through privatizations and mergers and acquisitions, while the outflow was $770 million. The net foreign capital flow was $18.4 billion into Turkey; property sales to foreigners reached $2.95 billion in the same period. With the $500 million in capital acquired by companies in Turkey from their foreign partners added to the calculations, total FDI in Turkey was $21.9 billion last year, up from the $19.9 billion in 2006. In December 2007 FDI was $3.22 billion. Of this, $2.98 billion was acquired from direct capital inflow and $234 million through real estate sales, with the remaining $28 million coming through companies’ foreign partners.
Last year the highest FDI was seen in the field of financial services — mainly banks — at $11.4 billion. The manufacturing sector followed with $4.2 billion in foreign capital. Foreign investment in the transportation and telecommunications sectors amounted to $1.12 billion, while property leasing took in $905 million and mining $341 million in foreign funds last year.
Of the total FDI in Turkey last year, $12.7 billion (66.2 percent) came from European Union countries — $5.7 billion from Holland, $1 billion from Germany, $688 million from England and the remaining from other member countries.
FDI from the US was $4.2 billion. The capital flow from Asian countries was $1.37 billion, and a total of $379 million entered the Turkish economy from European countries not in the EU.
In 2007, 3,051 new companies and company branches were established in Turkey with foreign capital, and 651 domestic companies took on foreign ownership partners. The number of foreign companies and branches established in Turkey last year that have more than $500,000 in paid-in capital was 325. Of these newly established large companies, 80 operate in the manufacturing industry, 62 in the wholesale and retail sectors and 59 in property leasing.
As of the end of 2007, there were 18,308 Turkish companies with foreign capital as a component of their financial structure — 14,943 foreign companies and branches and 3,365 firms and branches with foreign partners. Manufacturing companies accounted for most of the firms in this bracket, and among manufacturing companies textiles firms ranked first, followed by chemicals manufacturers. Of the foreign companies operating in Turkey, 3,125 are Germany-based, 1,831 are based in the UK and 1,419 are Netherlands-based. Regarding the location of foreign companies in Turkey, İstanbul came first with 10,053 firms, trailed by Antalya (2,283), Ankara (1,224) and Muğla (1,123).
source: Today’s Zaman
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