Foreign Direct Investment 2021
The Presidential Circular on Foreign Direct Investment Strategy of Turkey (2021 – 2023) numbered 2021/11 (“Circular”) was published in the Official Gazette dated 22 June 2021 and numbered 31519 (you can read the Circular here, available in Turkish only). Accordingly, the Foreign Direct Investment Strategy of Turkey (2021 – 2023) (“Strategy”) has been published on the Investment Office of the Presidency of the Republic of Turkey’s website (you can read the English version here and the Turkish version here).
With its strategic location, modern logistic infrastructure, broad production potential, etc., Turkey is a center of attraction for international investors looking to capitalize on the country’s access to a giant market of 1.3 billion people and US$26 trillion worth of trade volume within a four-hour flight radius.
The Strategy’s main target is to increase Turkey’s foreign direct investment (“FDI”) performance both in terms of quantity (targeting 1.5% of the global FDI market as of 2023) and quality, and in particular to increase knowledge-intensive, high-value-added investments that also create high-quality employment.
In order to achieve the main target, the Strategy introduces 11 strategies and a total of 72 actions under each strategy for which relevant institutions and organizations are liable and responsible. The Strategy states that it was developed based on three key principles, being investor oriented, specialized for quality FDI, and designed with the common mind that emerges with cooperation and coordination.
The 11 key strategies constructed in terms of the FDI services cycle, the investment climate and competitiveness, and cooperation and coordination among institutions are as follows:
A three-tier approach has been developed for monitoring and evaluating Turkey’s FDI performance:
According to the data announced by the United Nations Conference on Trade and Development, due to the devastating consequences of the Covid-19 outbreak, though developing economies experienced a relatively smaller shrinkage compared to developed economies, the global FDI market shrank by 35% in 2020 compared to the previous year and this value is almost 20% below the performance in 2009 after the global financial crisis of 2007-2008. In a period marked by the restructuring of the global economy, investment mobility and reduced predictability, Turkey aims to increase its FDI performance in order to maintain and enhance its competitiveness.
 United Nations Conference on Trade and Development, World Investment Report 2021 Investing in Sustainable Recovery, p. X; https://unctad.org/system/files/official-document/wir2021_en.pdf