Türkiye received foreign direct investments (FDI) worth $4.8 billion (TL 125.9 billion) in the first half of 2023, said the head of Türkiye’s International Investors Association (YASED) on Thursday.

Some $2.5 billion of these investments were mergers, acquisitions or capital inflows, Engin Aksoy, the chairperson of the association told Anadolu Agency (AA).

"Based on the results of our PULSE survey conducted with YASED top executives for the June period, we estimate that macroeconomic stability and potential improvements in the regulatory framework could trigger an additional investment inflow of at least $7.1 billion in the next six months," he noted.

Recalling Türkiye's target to take a share of 1.5% from global direct investments, he said the current situation is now below its potential.

Aksoy highlighted that since 2002, European Union countries have taken the lead with a 59% share in all investments coming to Türkiye, and this trend has continued in the first six months of this year.

The EU countries' share in foreign direct investments during the first six-month period was at 56%, Aksoy said.

"Among countries, the Netherlands accounted for 23% of total investment capital inflows, followed by Russia with 15%, the United Arab Emirates (UAE) with 13%, Germany with 7% and Ireland with 7%. Sectors such as wholesale and retail trade and electricity production stood out in the investment capital inflows of the first six months of 2023. In addition to these sectors, investment inflows in the field of information and communication, which was prominent last year, also continued," Aksoy explained.

Comparing Türkiye to countries like Poland and Hungary, Aksoy noted that Türkiye is still attractive due to its tax incentives compared to other countries. Additionally, he mentioned that while Türkiye has not fully utilized its potential, it holds advantages in areas such as human resources and infrastructure.

Aksoy stated that as YASED, they consider the two main factors that play the most important role in increasing Türkiye's competitiveness in terms of international direct investments are the provision of a predictable regulatory framework based on the rule of law and macroeconomic stability with the vision of moving the country to the group of high-income countries.

In addition to these prerequisites, Aksoy mentioned other topics that are part of the current dynamics of the global competitive environment including integration into global supply chains, achieving digital transformation, adopting sustainable development and enhancing human capital.

"I would also like to express that the members of YASED, which represents Türkiye's companies, will continue to contribute to our country's sustainable development with high-value investments, and any improvement in the investment environment will result in a net increase in both existing and new investments."