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International companies plan to invest US $7.1 billion in Türkiye in the next six months

On July 12, a senior manager of Türkiye International Investors Association (YASED) said that its members planned to make a direct investment of 7.1 billion US dollars (185.65 billion Turkish lira) in Türkiye in the next six months. According to the data of the Presidential Investment Office, Türkiye has attracted about 13 billion dollars of foreign direct investment (FDI) in 2022. Officials said that Türkiye aims to occupy 1.5% of global investment in the future.

The chairman of YASED, Engin Aksoy, said that there are other international companies that want to invest in Türkiye and need to ensure a predictable and stable environment to ensure that the investment is legally safe.

Since President Recep Tayyip Erdogan was re elected on May 28, Türkiye has changed its course and comprehensively adjusted its policies after two years of loose monetary policy to promote economic growth, production, export, investment and employment.

In the economic management restructuring conducted after the vote, respected senior decision maker Mehmet Ş im ş ek was appointed as the Minister of Finance, and former Wall Street banker Hafiz Gaye Erkan was appointed as the Governor of the Central Bank.

Together with a number of other measures, these are seen as the initial signs that Ankara will reform the policy centered on monetary stimulus and choose to raise interest rates to cope with stubborn inflation, stabilize the fluctuation of Türkiye's lira and rebuild foreign exchange reserves.

Since then, Türkiye's central bank has raised its policy interest rate from 8.5% to 15%, and promised to further tighten policies to combat inflation. In June, the inflation rate finally slowed to 38.2%. At the same time, the government has also increased taxes and fees to increase budget revenue.

Akzoi said: "The stability of the macro-economy and the predictability of the regulatory framework will increase Türkiye's investment enthusiasm. International direct investment has not stopped because of the electoral process, but if there is predictability, investment may be more."