Türkiye ranks fourth in European investment in 2023

Türkiye has ascended to the fourth position in Europe for attracting a substantial influx of international investment projects, as reported by the Turkish Presidency Investment Office.

"Türkiye has become a prominent destination for investors with its strategic location and strong investment environment. The $10.6 billion in international direct investment we attracted in 2023 is the most concrete sign of this success," said Burak Daglioglu, the office’s head.

He stressed that Türkiye has maintained its steady rise in attracting the most international direct investment in Europe in the post-pandemic period.

According to Daglioglu, a report by audit and consulting firm EY found a significant fall from the previous year in foreign direct investment (FDI) projects in Europe for the first time since the pandemic.

2023 saw 5,694 investment projects announced in Europe, down four percent from the previous year, due to factors such as low economic growth, high inflation, rising energy prices, and geopolitical risks.

Daglioglu added that France led in attracting the most projects last year but saw a 5 percent decline from 2022. The UK, in second place, saw a six percent annual rise in projects. Germany, at third, suffered a steep 12 percent drop in project numbers.

Türkiye ranked seventh in the European league in 2020 and fifth in 2022. The country rose to fourth among the top 10 countries, attracting 375 international direct investment projects in 2023. With a 17 percent rise from the previous year, Türkiye also ranked first among the top 10 countries in terms of growth in 2023.

Highest manufacturing investments

Investment Office chief Daglioglu underlined that Türkiye is an attractive investment destination at the global level, as it works to offer a high-level investment experience to international investors who come to the country.

"Despite the slowing investment trend across Europe, Türkiye has become an attractive centre for international investors by strengthening its infrastructure and diversifying its economy. We find it extremely positive that we have overtaken Spain and settled in fourth place after France, Britain, and Germany," he said.

Daglioglu said Türkiye has consistently maintained its leading position in investments, particularly in the manufacturing sector, across Central and Eastern Europe, the Mideast, and North Africa over the past decade.

"While there was an overall drop in the number of manufacturing projects across the continent, the restructuring of supply chains and factors such as supply from nearby countries enabled a few continental countries, including Türkiye, to attract more manufacturing projects," he noted.

"We’re the country that attracts the most manufacturing investments, attracting 21.7 per cent of manufacturing investments in these regions. Since 2013, we’ve also been the top country in attracting the most expansion investments, drawing 19.1 per cent of expansion investments," he said.