Foreign Investment for Turkey Hits an All Time High of $6 Billion in January
Turkey sees a major increase in Foreign Direct Investment with a strengthened by a focus on real estate investment
Turkey saw an FDI of $6 billion in January this year, indicating a record inflow of capital compared to an FDI of $452 million for the same month of 2006. An official from the Treasury reported to say that the record inflow was due to the payments remaining from mergers and acquisitions from foreign investors in 2006.
Examples of the large investments are the purchase of Dış bank by Fortis, Finansbank by the National Bank of Greece, Turkey Economy Bank (TEB) by BNP Paribas and Telsim by Vodafone.    Financial officials underlined that investments experienced a major boom, particularly in real estate, and estimate that if the inflow is maintained, by the end of 2007 will be set to see more foreign investment figures broken.    Financial emphasize that an increase in FDI means that unemployment figures will be reduced as well as better financing of the current account deficit.
In 2004 FDI inflow was only $2.88 billion but hiked in 2005 to $9.65 billion or an increase of 239%. However 2006, set an all-time record with foreigners investing some $19.8 billion in Turkey. Property Investment and banking are some of the main drivers in this huge increase and interest in Turkey. FDI inflows as a percentage of gross fixed capital formation were 13.6 percent in 2005, higher than world average of 9.4 percent. Moreover, FDI stock in Turkey, in 2006, more than doubled in comparison to 2000 and reached $60 billion. The share of FDI stock in GDP has reached 16 percent in 2006, which is still unsatisfactory when compared to world average of 22.7.
Turkey saw an FDI of $6 billion in January this year, indicating a record inflow of capital compared to an FDI of $452 million for the same month of 2006. An official from the Treasury reported to say that the record inflow was due to the payments remaining from mergers and acquisitions from foreign investors in 2006.
Examples of the large investments are the purchase of Dış bank by Fortis, Finansbank by the National Bank of Greece, Turkey Economy Bank (TEB) by BNP Paribas and Telsim by Vodafone.    Financial officials underlined that investments experienced a major boom, particularly in real estate, and estimate that if the inflow is maintained, by the end of 2007 will be set to see more foreign investment figures broken.    Financial emphasize that an increase in FDI means that unemployment figures will be reduced as well as better financing of the current account deficit.
In 2004 FDI inflow was only $2.88 billion but hiked in 2005 to $9.65 billion or an increase of 239%. However 2006, set an all-time record with foreigners investing some $19.8 billion in Turkey. Property Investment and banking are some of the main drivers in this huge increase and interest in Turkey. FDI inflows as a percentage of gross fixed capital formation were 13.6 percent in 2005, higher than world average of 9.4 percent. Moreover, FDI stock in Turkey, in 2006, more than doubled in comparison to 2000 and reached $60 billion. The share of FDI stock in GDP has reached 16 percent in 2006, which is still unsatisfactory when compared to world average of 22.7.
posted by Obelisk International at 11:24 am
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