Turkish energy sector emerges as largest FDI recipient

Photo: Turkish energy sector emerges as largest FDI recipient  / Turkey

Turkey has received foreign direct investment (FDI ), mostly from EU countries, worth $10.1 billion in 2013, a decrease of 5.3 percent, compared with $10.7 billion in 2012 Anadolu Agency reported.

According to data by Turkey´s Central Bank, the energy sector has emerged as the largest recipient of FDI with $2.5 billion, an increase of 60 percent compared to 2012.

24.7 percent of FDI in Turkey went to the energy sector in the last year with the sector receiving $924 million (8.4 percent) of $10.7 billion of investment in 2012.

The Turkish construction sector received $222 million of FDI in the last year, a decrease of 84.5 percent compared to 2012 with $1.4 billion.

The real estate sector in the country received only $130 million of FDI in the last year, a decrease of 24.9 percent compared with $173 million in 2012.

Direct investment by Turkish companies in foreign countries in 2013 decreased by 25.7 percent with $3.2 billion from $4.3 billion in 2012.

The mining and quarry sector emerged as the largest recipient of Turkish direct investment by 23.3 percent with $750 million - an increase of 59.2 percent compared to $471 million in 2012

According to 2012 figures, a global FDI inflow was $1.4 trillion.

Turkey´s Investment Support and Promotion Agency (ISPAT) says Turkey would keep attracting foreign direct investments (FDI) in 2014, specifically in the fields of energy, banking-insurance and finance and the automotive industry.

Turkey has also started to focus on investors from other countries. Some measures include a revamp of the tax regime - to make it more appealing to manage investment funds from Turkey - and encouragement for foreign companies to start greenfield projects in less developed areas such as the east and southeast of Turkey.

Analysts say sustainable growth, economic stability, and the improvement of laws and intellectual property rights have created an optimistic outlook for Turkey.

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