Türkiye's abundant renewable resources and its ongoing economic diversification have positioned the country as a promising destination for international investors, according to a United Nations official.
Amelia U. Santos-Paulino, who leads the Investment Research Section at the U.N. Trade and Development's (UNCTAD) Division on Investment and Enterprise, touted the country’s renewable energy sector, which has developed over the past years as one that offers infrastructure in place, services and a lucrative investment market that can support economic growth and further financial investment.
She said that because the nation's renewable energy market is already developed, significant investment can be drawn in this area in the future.
"It is very good to recognize that Türkiye has started to become an important investor as well as holding an important position in attracting investors that also shows the maturity that its economy has reached," she told Anadolu Agency (AA) on the sidelines of the Global Investment Days organized by the International Investors Association of Türkiye (YASED).
According to Santos-Paulino, even though the management of energy projects is far more difficult than managing a traditional production facility, given the significant upfront costs and pre-investment planning required, they yield better investment returns and sectoral job creation.
Positive signal to investors
During the downturn in the global investment climate, the implementation of the Central Bank of the Republic of Türkiye’s (CBRT) macroeconomic measures sent encouraging signals for the country’s economic diversification.
Given that countries ranked as developing or underdeveloped lag behind other developed countries, particularly in sustainable development, she advised that, despite the current global economic climate with multiple crises, conditions should be created where these countries can also take advantage of opportunities.
She recommended that underdeveloped countries make such sustainable investments to promote sustainability across various sectors of society, including environmental protection, social equity and economic development.
More investors
Santos-Paulino cited stability as a key fundamental economic indicator for boosting foreign direct investment (FDI).
Based on this premise, other critical considerations would be the degree to which the nation's policies align with internationally recognized objectives, like the Paris Climate Agreement, sectoral policies and sustained adherence to these policies.
Transparency is also crucial to attractive FDI, and to this end, she lauded the task of YASED, which plays a critical role in attracting investors to the sector.
"At the end of the day, investors look at three things. Returning to their investment, the institutional framework and the facility that will operate in the country. Türkiye has an advantage in these areas compared to other emerging markets. So, if the country continues like this, it can realize its potential to attract more investment in the country's sector," she said.