The number of FDI projects destined for Turkey decreased by 4.45% in 2016 to 150 from 157 in 2015. However, now full-year figures from cross-border greenfield investment monitor fDi Markets have been released, they show a 55% increase in the estimated value of capital investment destined for the country. Turkey attracted a total of $8.8bn in 2016, which generated nearly 12,500 jobs.
Of the 150 projects attracted, only 24.7% were destined for Istanbul compared with 31% in 2015. Growing destination cities in 2016 were Izmir, Manisa and Adana, which achieved growth rates of 29%, 75% and 400% respectively. The top destinations for capital expenditure were Bursa, Istanbul and Eskisehir, which together attracted 15.7% of all capital destined for Turkey.
China overtook Germany in 2016 as the leading source nation for capital investment into Turkey with a total value of $3.4bn invested. Germany-based companies also increased investments in Turkey with 42.79% more capital invested there in 2016 to a value of $1.94bn.
The leading sectors for FDI in Turkey over 2016 were coal, oil and natural gas, alternative/renewable energy (specifically solar and geothermal power) and automotive. Almost a fifth of the capital investment in Turkey was into automotive projects, with sector giants such as Bosch and Continental reinvesting in 2016. High-growth sectors for Turkey were communications, industrial machinery and chemicals.
With January 2017 data available, while project numbers are dipping slightly, capital investment is up and suggests a cautiously optimistic picture of growth.
Editor's note: A previous story published on this site reported that greenfield capital expenditure in Turkey experienced a decline, from $6.15bn in 2015 to $3.74bn in 2016, and that only 8243 jobs has been created through these projects in 2016. Capex and jobs estimates have since been revised upwards as new data came in.