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Foreign direct investment (FDI) in Turkey increases by 13%, reaching $3.3 billion

Investment inflow to Turkey from foreign entities reached a staggering $3.3 billion during the initial four months of 2025, as per statistics from the International Investors Association (YASED).

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Investments from foreign sources pouring into Turkey escalate by 13%, reaching a total of $3.3...
Investments from foreign sources pouring into Turkey escalate by 13%, reaching a total of $3.3 billion.
TURKEY'S FDI RISES: A CLOSER LOOK

Foreign direct investment (FDI) in Turkey increases by 13%, reaching $3.3 billion

Foreign direct investments (FDI) in Turkey soared to $3.3 billion in the first four months of 2025, marking a 13% surge compared to the same period last year, as per data from the International Investors Association (YASED).

Key investors in Turkey during this period were Kazakhstan, the Netherlands, and the United States, contributing $610 million, $311 million, and $201 million respectively. Since 2002, Turkey has accumulated a total FDI of $278 billion. April 2025 saw a FDI inflow of $408 million, representing 5% of the current account deficit for the same period, which stood at $7.87 billion.

In April, the Dutch dominated as the largest investor, followed by the United Arab Emirates, Britain, France, and the US. EU countries maintained a 48% share, while Middle Eastern countries held a 18% share of the investment pie.

Breaking down the sectorial investment breakdown, financial and insurance activities took the lead with a 21.4% share, amounting to an investment inflow of $93 million. Specifically, the banking sector garnered $65 million of this amount. Textile and apparel manufacturing, wholesale and retail trade, and professional, scientific, and technical activities rounded up the top sectors attracting FDI in April 2025.

It is also important to note that the construction sector is experiencing growth in 2025, bolstered by FDI funding for large-scale projects and luxury property demand.

Despite investment liquidations amounting to $494 million, the aforementioned sectors remained the primary recipients of foreign investment. The construction sector, while not directly quantified for April alone, continues to be a focal point in the broader 2025 investment landscape.

Sources:

  1. Anadolu Agency
  2. Investment Monitor
  3. TradeArabia
  4. Daily Sabah
  5. Zawya

Investors in the finance sector, particularly from the United States, have significantly contributed to the investing landscape in Turkey, as the banking sector received $65 million in foreign direct investments (FDI) in April 2025. This surge in FDI, coupled with investments in other sectors like textile, retail, and professional services, has collectively propelled the industry of Turkey, further boosting its economy.

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