Türkiye has became a prominent destination for investors owing its strategic location and favorable investment climate, a top official said Saturday, highlighting the country's steady rise in this regard in the post-COVID period.
Türkiye last year rose to fourth place in Europe in attracting the most international investment projects, according to the Turkish Presidency Investment Office.
"Türkiye has become a prominent destination for investors with its strategic location and strong investment environment. The $10.6 billion in international direct investment we attracted in 2023 is the most concrete sign of this success," said Ahmet Burak Dağlıoğlu, the office's head.
A report by audit and consulting firm EY found a significant fall from the previous year in foreign direct investment (FDI) projects in Europe for the first time since the pandemic, blamed on factors such as low economic growth, high inflation, rising energy prices and geopolitical risks, he said.
Evaluating the report for Anadolu Agency (AA), he said 5,694 investment projects were announced in Europe, down 4% from the previous year.
The number of projects in Europe was 11% below its level in 2019 and 14% below the 2017 peak, according to Dağlıoğlu.
"International direct investment projects in the service sectors dropped significantly, while the fall in the manufacturing sector was limited to 1%," he said.
Dağlıoğlu added that France led in attracting the most projects last year but saw a 5% decline from 2022. The U.K., in second place, saw a 6% annual rise in projects, while Germany, in third, suffered a steep 12% drop in project numbers.
Türkiye's 'steady rise'
In addition, Dağlıoğlu said Türkiye has maintained its steady rise in attracting the most international direct investment in Europe in the post-pandemic period.
"Türkiye ranked seventh in the European league in 2020 and fifth in 2022. The country rose to fourth among the top 10 countries, attracting 375 international direct investment projects in 2023," he noted.
"With a 17% rise from the previous year, Türkiye also ranked first among the top 10 countries in terms of growth in 2023," he added.
"While there was an overall drop in the number of manufacturing projects across the continent, the restructuring of supply chains and factors such as supply from nearby countries enabled a few continental countries, including Türkiye, to attract more manufacturing projects."
'High-level investment experience'
Dağlıoğlu underlined that Türkiye is an attractive investment destination at the global level, as it works to offer a high-level investment experience to international investors who come to the country.
"Despite the slowing investment trend across Europe, Türkiye has become an attractive center for international investors by strengthening its infrastructure and diversifying its economy. We find it extremely positive that we have overtaken Spain and settled in fourth place after France, Britain and Germany," he said.
The official also said Türkiye has consistently maintained its leading position in investments, particularly in the manufacturing sector, across Central and Eastern Europe, the Middle East and North Africa over the past decade.
"We're the country that attracts the most manufacturing investments, attracting 21.7% of manufacturing investments in these regions. Since 2013, we've also been the top country in attracting the most expansion investments, drawing 19.1% of expansion investments," he said.