Türkiye stands out as alternative production point for Asian countries: Head of Investment Office

By Anadolu staff

ANKARA (AA) - Türkiye has stood out as an alternative production point for Asian countries, the head of the country’s Investment Office said.

Türkiye has received foreign direct investments worth over $250 billion since 2003, Ahmet Burak Daglioglu told Anadolu’s Finance Desk, adding: "The targets set for the coming period and our structural reform agenda are attracting investors.”

Daglioglu said before 2003, Türkiye received an average of 0.2% of the world's investments but in the period after 2003, it attracted around 1% of the world's investments on average.

"2003 is a critical year for international investments and political stability provides a basis for this," he underlined.

Europe's share in total foreign direct investments was 68% while it was 8% from the US, 7% from Gulf countries and 14% from other Asian countries, he said.

He said that finance has a significant share when looking at the sectoral distribution of investments, and it is followed by manufacturing.

Daglioglu said that his office works to raise Türkiye's image to the level of investment grade, and provides free consultancy services to international companies in Türkiye.

Noting that direct investments are important for Türkiye to be among the world's top 10 economies, he said: "The important agenda of our country is to fight the current account deficit, to create employment and to ensure technological transformation.

"We are chasing investments that will take the economic activities of our country to a higher level," he added.

- Asia and Gulf's interest

Noting that Türkiye is a fast-growing country, he said that about one-third of the economic growth in the first half of this year came from investments.

"Türkiye is an export-intensive country, a slowdown in demand in target countries can directly affect investment programs of companies. In the long run, we can foresee that the share of investment in Turkey's growth will be high," he said.

He said that with the medium-term program unveiled last month, “we have made a projection that attracts the attention of investors.”

Investors are particularly interested in the targets set for the coming period and the country's structural reform agenda is also important for investors, he stressed.

“Türkiye stands out as the most important country in the search for alternative production points for Asian countries as the reshaping of the supply chain with the pandemic and the idea of a geography closer to Europe are critical for them," Daglioglu said.

Pointing out that many meetings were held with the business world during President Recep Tayyip Erdogan's visits to the US and the Gulf, he said: "We see that Gulf countries have a great interest in Türkiye, of course, their investment strategies may differ.

"We anticipate that European companies will continue to invest in the coming period," he added.

In the period after the election, mergers and acquisitions of very big brands in Türkiye were announced, he recalled, adding: "We see that this trend and momentum will continue to increase; some investment news will be shared in the near future."

- ‘Win with us’

About Türkiye's energy investments, Daglioglu said with the renewable energy policies implemented since 2006, the country’s installed capacity has increased considerably.

This is something that many competitors do not have, he said, adding: "We have a successfully functioning energy market and stock exchange."

The Zero Waste Project is also an area that attracts a lot of attention from investors.

“With these policies developed by Türkiye, the collection of waste and its introduction into the circular economy directly affects the investment market."

Addressing the international investors, he said, "This is our message, trust in Türkiye's future and its youth, increase your investments here and grow together with us and win together with us."

Türkiye is a country that uses technology, exports it, and transforms services and products in this context, which is a great advantage, he said.

Türkiye, Daglioglu said, is “positively differentiated in the geopolitical context with its strong political leadership, rapid reaction to developments in the world, policy development and implementation, and we see this clearly from investors.”

"Türkiye's balanced stance between Ukraine and Russia is important for many investors because their economic activities here do not deteriorate," he said.

Pointing out that sustainability, digitalization and geopolitical developments are reshaping the supply chain, he said: "The location of geography is important, but location alone is not enough. What is important here is what we have achieved in the strategic location.”

"In 20 years, the investments we have made in infrastructure and superstructure, including logistics, energy, health, education, digital and digital infrastructure, have enabled us to become a central place,” said the president of Türkiye’s Investment Office.

“Türkiye's policies have enabled the integration of sectors and companies into the global supply chain," he added.

- World to go greener from now on

Daglioglu said that with the right incentive policies, the country is encouraging companies that are producing more value-added and high-tech products.

"Türkiye has become a base for regional management and logistics centers not only in production but also in R&D, engineering and design centers," he added.

He stressed that Türkiye has a net zero carbon emission target for 2053. “Türkiye is making a strong contribution to the world's sustainability agenda here. The world will now go to a greener process and will be an important parameter that shapes investments."

Daglioglu stated that investors prefer Türkiye for sustainable green investments and that the country supports investors' agenda on sustainability.

"Türkiye is one of the most suitable and optimum countries for investments in this sense. We are ahead of all our competitors in terms of legislation and practices in our geography, and many investors are aware of this," he said.

- 100th year of Republic

He stressed that the Investment Office has been organizing receptions to come together with investors in the 100th anniversary of the Republic of Türkiye.

Starting from London, he said, the office has held these events in Paris, Milan, Vienna and some other European cities, and Beijing, Singapore, Kuala Lumpur, Seoul, and Tokyo, and the US.

The office will also organize new events in European and Gulf countries soon, he added.