(AGENPARL) – Tue 06 May 2025 TÜRKİYE
FDI PROJECTS
REPORT
CONTENT
TABLE OF
Introduction
Greenfield FDI Projects
• Outlook
• Sectoral Breakdown
• Activity-Based Breakdown
• Source Countries
• Destination Cities
• Quality FDI Outlook
Cross-border M&A Deals
• Outlook
• Quality FDI Outlook
Glossary
INTRODUCTION
APPROACHES IN COMPILING
FOREIGN DIRECT INVESTMENT
(FDI) DATA
Measuring foreign direct investment
(FDI) is a challenging task for
researchers, investors, and policy
makers. It requires a multi-faceted
approach to comprehensively assess
the FDI performance of a location and
the impacts of these investments on the
local economy. Therefore, it is crucial
to utilize FDI estimates generated by
existing approaches in such analyses.
There are mainly two existing
approaches to measuring FDI, each
generating distinct datasets: the
flow-based approach and the
project-based approach.
FLOW-BASED APPROACH
The underlying data for flow-based
approach are FDI flows, typically
compiled and generally published by
the countries’ central banks as part
of the balance of payments statistics.
These figures represent nominal values
denominated in specific currencies,
capturing cross-border transactions
intended for direct investment rather
than portfolio investment. FDI flows
consist of equity and intra-company
loan transfers, and real estate purchase
transactions. Flow data is generally
presented in aggregate form, with
separate breakdowns by country and
sector. However, since it captures only
transactions that have already
occurred, it inherently provides a
backward-looking perspective.
KEY LIMITATIONS OF
FLOW-BASED APPROACH
While providing useful insights, flowbased approach lacks some critical
inputs necessary for researchers,
investors, and policymakers. These data
only capture the source and destination
countries and the sectors receiving
the investment. Nonetheless, FDI
inflows do not provide data on subregional levels, job creation, total capital
expenditure, or information on identity of
investing companies. Owing to the strict
guidelines of FDI classification, crossborder and domestic loans channelled to
a specific FDI project are not included in
FDI flows but rather other investments
on the balance of payments. Therefore,
FDI flows may not reflect the overall
capital expenditure allocated for FDI
projects. Additionally, tracking the
original source countries of FDI is often
challenging in the case transactions are
made through intermediary countries
(conduit economies)1.
PROJECT-BASED APPROACH
Data from project-based approach
includes officially announced greenfield
FDI projects (new and expansion types)
which are committed to being realized
in the near future. Project-based data
provide crucial details about the FDI
project and investing company such
as company identity, project location,
sector, activity (e.g. manufacturing,
R&D etc.), total capital expenditure
and job creation. As this project-based
data reflect investment intentions of FDI
firms in the reporting year, this approach
signals directional FDI trends ahead and
offers a forward-looking perspective
on industry trends. In this regard, since
project-based approach provides
relevant stakeholders with essential
data for conducting in-depth research
and making well-informed investment
and policy decisions, it practically
complements flow-based approach.
CRITICAL ROLE OF
PROJECT-BASED APPROACH
Recognizing above-mentioned
advantages of the project-based
approach, the leading Investment
Promotion Agencies (IPAs) around the
world utilize project-based FDI data
to evaluate FDI performances of their
countries and agencies. Besides leading
IPAs, major international organizations
(e.g. UNCTAD, OECD etc.) incorporate
project-based FDI statistics into their
flagship reports in collaboration with
some well-known databases. The main
motivation behind this approach is that
project-based data provide necessary
inputs to track projects shaping
industrial trends and key themes
such as green and digital
transformation, reshaping of global
value chains (GVCs) as well as the
Sustainable Development Goals
(SDGs).
For example, once a Japanese investor invests in Türkiye through the Netherlands, which is a conduit economy, the origin of that flow is recorded as the Netherlands rather
than Japan. Therefore, it is often challenging to identify the original source country of FDI which makes country-specific analysis inaccurate in flow-based approach.
TÜRKİYE FDI PROJECTS REPORT
In line with the leading IPAs and
prominent international institutions
(e.g. UNCTAD, OECD etc.), the Investment
Office of the Presidency of the Republic
of Türkiye, as the country’s national IPA,
addresses a critical gap with this novel
report, based on its recently developed
proprietary database. By adopting a
project-based approach, the database
collects data from public and private
institutions, the press, and internal
sources.
Announced FDI projects are meticulously
monitored and filtered by a dedicated
internal team following strict guidelines
in line with international standards. In this
regard, the database only includes the
projects of multinational companies and
by default excludes the projects without a
foreign parent company.
In addition to traditional sector- and
activity-based breakdowns, this report
also classifies projects based on “Quality
this report provides the reader with
information not only on new and
expansion-type greenfield projects by
corporate entities but also covers crossborder mergers and acquisitions
(M&As) in Türkiye.
We are confident that this report will
become one of the main sources
and references for the foreign direct
investment landscape in Türkiye.
GREENFIELD FDI PROJECTS
OUTLOOK
Türkiye continues to reinforce its position as a
key regional hub for global investors. A total of 383
greenfield FDI projects, including 206 new and 177
expansion projects, were announced in Türkiye in
2024. These announced projects were estimated to
create 51,402 jobs and a Capex commitment
of $14.1 billion.
SECTORAL
BREAKDOWN OF
GREENFIELD FDI
PROJECTS
In 2024, the renewable energy
and automotive OEM projects
led high-value investments,
whereas agrofood, industrial
machinery & equipment and
automotive components attracted
a large number of projects. The
strong interest of international
investors in digital sectors
such as software & IT services,
consumer electronics, electronic
components and business
services sectors signalled a shift
toward digital transformation and
high-tech investments.
Renewable energy attracted the
highest Capex, reaching $1.85
billion (ranked 1st), reflecting
Türkiye’s increasing emphasis on
sustainable investment projects.
Automotive OEM ranked second
with $1.78 billion in Capex, while
automotive components ranked
third by number of projects
(26 projects). The automotive
sectors remain one of the
leading industries, reinforcing
the country’s position as a major
automotive production and export
hub in the world.
Other leading sectors with high
performance are as follows:
Metals attracted 23 projects
(ranked 5th) and committed
$1.52 billion in Capex (ranked 3rd).
Transportation & warehousing
received 22 projects (ranked 6th)
and secured $503 million in Capex
(ranked 10th). In industrial machinery
& equipment sectors, 28 projects
(ranked 2nd) were announced in 2024.
Additionally, technology-driven
sectors are increasingly attractive,
with software & IT services securing
25 projects (ranked 4th) in Capex
at $1.06 billion (ranked 7th), while
electronic components attracted 21
projects (ranked 7th) and $1.14 billion
in Capex (5th).
Meanwhile, the significant Capex
allocation toward real estate ($1.14
billion, ranked 4th) and hotels &
tourism ($930 million, ranked
8th) indicates continued investor
confidence in Türkiye’s hospitality
sector, logistics infrastructure and
commercial property market.
ACTIVITY-BASED
BREAKDOWN FOR
GREENFIELD FDI
PROJECTS
Türkiye’s activity-based
FDI breakdown for 2024
reflects a strong focus on
manufacturing, infrastructure
development, and renewable
energy investments. While
manufacturing dominates the
list both by number of projects
and Capex, other activities
such as ICT, R&D(research and
development), and business
services demonstrated strong
presence as well.
Manufacturing remained the
backbone of greenfield FDI
in Türkiye, attracting both the
highest number of projects (214
projects) and the largest Capex
($7.4 billion), reinforcing the
country’s role as an industrial
hub. Infrastructure and energy
investments also accounted
for a significant share of Capex,
with construction receiving
$2.07 billion (ranked 2nd)
and electricity investments
totalling $1.26 billion (ranked
3rd). This highlights continuous
development in housing,
transportation and energy
infrastructure.
Technology-driven activities
continue to gain momentum,
with ICT & Internet infrastructure
committing $941 million
(ranked 4th) and R&D
attracting $753 million
(ranked 5th), reflecting an
increased emphasis on digital
transformation and knowledgeintensive investments.
Meanwhile, strong performance
in logistics and distribution &
transportation sectors in number
of projects (18 projects, ranked
5th) and Capex ($289 million,
ranked 8th) emphasize Türkiye’s
strategic role as a regional trade
All in all, FDI projects
announced across
manufacturing, infrastructure,
energy, and technology
underscores Türkiye’s ability to
attract invaluable investments
in a wide range of sectors.
SOURCE COUNTRIES
In 2024, Türkiye attracted greenfield FDI projects from a wide
spectrum of countries, with notable variations in both the number
of projects and Capex committed. Germany emerged as the most
active investing country, leading in both number of projects (67
projects, ranked 1st) and Capex ($3.3 billion, ranked 1st). While China
ranked lower in number of projects (17 projects, 7th), it committed
DESTINATION CITIES
the second highest Capex ($2.9 billion, 2nd), indicating a focus on
large-scale, capital-intensive investments. France (40 projects, $2.1
billion) and the USA (35 projects, $1.6 billion) maintained a strong
presence, striking a balance between number of projects and Capex.
Although Luxembourg and Russia did not rank among the top ten
in number of projects, both committed significant amounts of
Capex, $708 million and $415 million respectively, suggesting
fewer but high-value investments. Meanwhile, the Netherlands
(31 projects, $600 million) and the UK (26 projects, $552 million)
ranked prominently in both number of projects and Capex,
consistently playing key roles in Türkiye’s investment landscape.
QUALITY FDI OUTLOOK
In Türkiye’s FDI Strategy (2024-2028), eight different Quality
FDI profiles were defined in detail and these profiles include
projects aligned with the twin (green and digital) transformation,
sustainable development, high-value creation, strong participation
into global value chains (GVCs), high quality job creation and
regional development. Out of 383 greenfield FDI projects,
274 (71.5% of the total) were classified at least one of the
eight Quality FDI profiles. In addition, the corresponding Capex
amounts to $10.01 billion, making up 70.9% of total Capex.
GVC related FDI topped the list both in number (153) and
Capex ($7.5 billion), underscoring Türkiye’s rising role in global
value chains. Türkiye is positioning itself as a regional leader
in green energy. Climate FDI was the second-largest profile in
Capex ($5.2 billion), reflecting strong presence in renewable
energy, energy efficiency, and green infrastructure projects.
High-Quality Job Generating FDI ($2.9 billion Capex, 92 projects)
and Knowledge-Intensive FDI ($2.6 billion Capex, 54 projects)
contributed significantly to high value-added job creation and
innovation, reinforcing Türkiye’s shift towards STEM-related
employment and digital transformation.
Overall, the figures indicate that Türkiye has been successful
in attracting FDI projects aligned with the country’s national
development goals. These projects cement Türkiye’s position
as a hub in global value chains, green energy, innovation,
and high-tech industries.
CROSS-BORDER M&A DEALS
OUTLOOK
This section provides an overview of cross-border M&A
deals, focusing on the number of transactions, disclosed
deal volume, distribution by stake type and top ten source
countries by number of projects and transaction value.
In 2024, a total of 95 cross-border M&A deals were
recorded, with a disclosed deal volume of $3.4 billion
across 45 deals. A total of 33 deals concluded with fullshare ownership, while 19 deals led to majority-share
ownership. A total of 8 deals resulted in minority-share
ownership and 2 deals were completed with equal-share
ownership. On the other hand, the ownership stake was
not declared in 33 deals.
The software & IT services dominated M&A transactions in Türkiye,
accounting for 32 deals (33.7%), indicating a strong focus on digital
transformation and robust interest in Türkiye’s technology startups
and IT firms. This was followed by industrial machinery & equipment
with 12 deals (12.6%), reflecting strong investor confidence in
Türkiye’s industrial and manufacturing capabilities. Financial services
ranked 3rd with 9 deals (9.5%), showing unwavering interest in the
sector. Other sectors such as agrofood (7 deals, 7.4%), transportation
& warehousing (4 deals, 4.2%), and healthcare (4 deals, 4.2%) marked
notable activity in terms of deal numbers. Additionally, sectors such
as pharmaceuticals, business services, electronic components, and
biotechnology each recorded 3 deals (3.2%), standing out as other
key verticals in M&A activity. All in all, the dominance of technology
and industrial sectors in M&A activities highlights Türkiye’s evolving
economic landscape. Emerging investments in healthcare, biotech,
and logistics suggest diversified interest across high-value industries.
The data highlight that most of the M&A deals were done by
European and North American investors. The USA ranked 1st with
13 projects, accounting for 13.7% of the total. France secured the 2nd
position with 12 projects (12.6%). The UK ranked 3rd with 9 projects
(9.5%). Germany (8 projects, 8.4%), the Netherlands (7 projects,
7.4%), and Sweden (4 projects, 4.2%) showed solid engagement.
Italy, Belgium, and Spain also featured in the list, reinforcing Europe’s
strong role in Türkiye’s M&A landscape. The UAE was the only Middle
Eastern country in the top 10, with 3 projects (3.2%).
QUALITY FDI OUTLOOK
Türkiye’s Quality FDI landscape in 2024
shows a clear divergence between
greenfield projects and M&A investments.
While greenfield FDI projects support more
industrial expansion, energy transformation,
and regional development, cross-border
M&A investments prioritize service-oriented
sectors, financial services, and digital
transformation. This distinction highlights
the complementary roles of both investment
types, with greenfield projects driving longterm capacity building and M&A investments
enhancing market integration and
operational efficiency.
The higher share of Quality FDI in M&A
investments compared to that in greenfield
projects (83.2% vs 71.5%) suggests that M&A
investments were more concentrated in highvalue sectors. There were 57 deals (60%) in
High-quality Job Generating profile and
54 deals (56.8%) in High-end Service profile.
This indicates that acquisitions primarily
targeted companies with skilled workforce,
high-value services, and established
business networks.
Knowledge Intensive FDI profile comprises
39 M&A deals (41.1%) followed by Digital
FDI profile with 35 M&A deals (36.8%). This
suggests that Türkiye’s vibrant technology
start up ecosystem provides fertile ground for
international investors. With 33 M&A deals
(34.7%), the financial sector predominantly
relied on acquisitions rather than greenfield
investments. This trend aligns with the nature
of financial services, where M&A investments
in existing institutions such as banks and
insurance companies are more common
than building new financial entities.
GLOSSARY
Foreign Direct
Investment (FDI)
A statistical statement that systematically records all
cross-border economic transactions between residents
of an economy (General Government, Central Bank,
banks, other sectors) and nonresidents for a specific time
period.
The investments that reflect a lasting interest and a degree
of control by a resident entity in one economy (the direct
investor) in an enterprise located in another economy (the
direct investment enterprise). A threshold of at least 10%
of voting power is used to distinguish FDI from portfolio
investment (IMF).
Investment Promotion
Agency (IPA)
Capex (Investment Amount)
The amount of investment which is either announced or
estimated if not disclosed.
A government agency which is responsible for attracting
foreign investments and assisting investors in navigating
the local business environment.
Greenfield Projetcs
Conduit Economy
(Intermediary Country)
A country or jurisdiction primarily serves as an
intermediary or pass-through entity for financial flows
and investments rather than being the final destination
for these activities.
Cross-border M&A Projects
A type of FDI where an international investor acquires
or merges with an existing company in a host country
(destination).
A type of FDI where an international investor establishes a
new business operation in a host country from the ground
up or expand its existing facility ending up with capex and
job creation. This involves building new facilities, such as
factories, offices, or research and development centers,
rather than acquiring or merging with an existing
local company.
Job Creation
Flow-based Approach
An approach generates data considering only FDI flows
which are typically compiled and published generally
by the countries’ central banks as part of the balance of
payments statistics.
The number of full-time employments, either announced
or estimated if not disclosed, to be generated under the
investment project.
Other Investment
Project-based Approach
An approach generates data considering only officially
announced greenfield FDI projects (new and expansion)
which are committed to be realized in the near future.
Other Investment includes financial transactions such
as currency and deposits, loans, insurance, pension,
and standardized guarantee schemes, trade credits and
advances (credits extended for exports or imports), other
accounts receivable/payable, special drawing rights.
Activity
Balance of Payment
The area of function of the investment project (i.e.
manufacturing, R&D, construction, sales & marketing
etc.).
Portfolio Investment
Quality FDI Profiles
Cross-border investments in securities,
including equities, bonds, and other financial
instruments, that do not provide the investor with a
controlling interest in the issuing entity. Portfolio
investments are distinct from direct investments, as
they are typically more liquid and short-term
in nature (IMF).
Investments that contribute to the strong growth
and sustainable development of Türkiye’s economy,
accelerate its technological transformation, increase
its global competitiveness, and support regional
development within the country. There are eight
qualified FDI profiles Türkiye aims to attract, as outlined
in the Türkiye Foreign Direct Investment Strategy
(2024-2028) published by the Invesment Office.
Climate FDI
Investments that support Türkiye’s climate change
adaptation and mitigation efforts.
Digital FDI
Investments that support the digital transformation of
the Turkish economy.
Global Value Chain (GVC)
related FDI
Investments which are in production, R&D,
and logistics that enhance Türkiye’s integration into
GVCs.
High-end Service FDI
Investments which are in the high-quality
service sectors.
High-Quality Financial FDI
Financial investments which are in sustainable and
knowledge intensive areas.
High-Quality Job Generating
Investments that create quality and
high-paid jobs.
Knowledge Intensive FDI
Investments in knowledge-intensive acivities that
enhance the value-addition in the country.
Regional Development
Oriented (RDO) FDI
Investments that activate the endogenous potential
of regions within the country, provide local supply
opportunities, create high employment, and thus
reduce migration
from the regions
Sector
The sector in which the investment is made,
determined according to the NAICS (North American
Industry Classification System) methodology.
Source Country
The source country of an FDI project is the country
where the foreign partner of the investing company
is headquartered.
Type of Investment
(New, Expansion)
An investment project made for the first time at
a new location is classified as a new investment.
An investment project expanding capacity through
employment and capex at an existing location is an
expansion investment.