Turkey became a net foreign investor excluding real estate in the first 10-month period of the year. Notably, the sectors where outbound investments outpaced inbound investments were textiles, hospitality, agriculture, and mining, sectors in which Turkey is relatively prominent.
In the January-October period of this year, foreign direct investment excluding real estate entering Turkey amounted to USD 4 billion 129 million, while outward investment from Turkey amounted to USD 4 billion 555 million.
Net USD 426 million investment abroad
Excluding nettings such as real estate and net asset acquisition-net asset formation and looking only at the amount of the investment made, both in total and on a sectoral basis, 2023 revealed an outlook in which Turkey invested more abroad. Outward investment from Turkey was USD 426 million more than inward investment. In the same period last year, investment coming to Turkey was USD 1.7 billion more.
An interesting picture emerged when looking at the sectors where outbound investment from Turkey is higher than inbound investment. The sectors with the highest outbound investments compared to inbound investments were agriculture, mining, textiles, financial services, accommodation and other sectors in which Turkey is relatively prominent. Especially in textiles, where orders have been lost recently and there are signs of moving abroad, the incoming investment in the January-October period was USD 34 million, while the outgoing investment was USD 74 million.
The picture was different in 2023 in the “investment” item of foreign capital in the industry and services sectors. While in the past the amounts were sometimes close, this time the amount of direct investment in Turkey remained below the amount of outgoing investment. Although Turkey is still in surplus in the net liability formation-asset acquisition items, including real estate, it has turned into a net investor when only the investment item is considered. In the January-October period, there was a net inflow of USD 2 billion 922 million including real estate. Excluding the real estate purchased by foreigners in Turkey, there was an outflow of USD 171 million.
Mining and textiles stand out
According to Central Bank data, only the incoming and outgoing amounts in the “investment” item revealed remarkable elements. In the industrial group consisting of mining, energy and manufacturing, while net investment was attracted, it was noteworthy that USD 1.4 billion was invested abroad. In mining, on the other hand, there was a net result of investment abroad, while the amount of the investment reached USD 754 million dollars. In the textile and ready-to-wear sector, which has recently lost orders from external markets, USD 74 million was invested abroad.
