ISTANBUL

Türkiye defied global economic slowdowns last year and received $13.1 billion in foreign direct investments (FDIs), a surge of 12.2% year-on-year, the country’s Investment and Finance Office said Friday.

The wholesale and retail trade sector attracted the most investments with a 32% share totaling $3.052 billion, driven primarily by the rise of e-commerce platforms in the country.

The manufacturing sector followed with a 31% share reaching $3.02 billion, while the information and communications sector got $1.308 billion or a 14% share.

The Netherlands was the largest foreign investor in Türkiye last year, accounting for $2.863 billion in contributions to the Turkish economy, followed by Luxembourg with $1.164 billion, just ahead of Kazakhstan’s $1.138 billion in FDIs into Türkiye.

Germany, the US, France, the United Arab Emirates, Switzerland, the UK, and Ireland rounded out the top investing countries in Türkiye.

FDI inflows into Türkiye last year were concentrated in production, trade, and tech-focused areas.

Some cautious recovery was seen in global direct investment flows last year, according to a report by the UN Conference on Trade and Development (UNCTAD), largely driven by developed countries and financial centers.

Investments in developing countries fell 2% but Türkiye saw a 12.2% rise at the same time last year.

Reforms to enhance the country’s investment environment, with the launch of projects under the HIT-30 program announced in 2024, regulations in the incentive system last year, the implementation of the climate law, and digitization efforts were major developments supporting foreign investor interest.

Ahmet Burak Daglioglu, the head of Türkiye’s Investment and Finance Office, said in a statement that global tech brands and tech startups were particularly prominent targets for foreign investments, and that these investments continue to further solidify Türkiye’s position not as a mere regional hub but a critical global hub.

*Writing by Emir Yildirim