Foreign Direct Investment inflows strengthen as EU investments rise to 91% share

The International Investors Association (YASED) has published
its Foreign Direct Investment (FDI) in Numbers Bulletin following
the release of the Turkish Central Bank’s Balance of Payments
statistics.
According to the bulletin, Türkiye attracted $1.8 …

The International Investors Association (YASED) has published
its Foreign Direct Investment (FDI) in Numbers Bulletin following
the release of the Turkish Central Bank’s Balance of Payments
statistics.

According to the bulletin, Türkiye attracted $1.8 billion in FDI
inflows in August, bringing the total for the first eight months of
the year to $10.6 billion. This represents a 58% increase compared
to the same period in 2024. Since 2003, the cumulative value of FDI
inflows into Türkiye has exceeded $284 billion.

Of the $1.8 billion in total FDI recorded in August, $1.5
billion came in the form of equity capital investments, while $137
million was attributed to debt instruments and $202 million to real
estate purchases by foreigners. After accounting for $90 million in
divestments, the net FDI inflow stood at $1.8 billion.

In August, the information and communication sector dominated
FDI inflows with $1 billion, accounting for 69% of total equity
capital investments. The wholesale and retail trade sector
followed, drawing 10% of total investments for the month.

During the first eight months of the year, the leading sectors
for foreign investment were:

Wholesale and retail trade: $2.5 billion

Information and communication: $1.2 billion

Food manufacturing: $1.2 billion

From 2003 to 2024, European Union (EU-27) countries accounted
for 58% of total FDI inflows to Türkiye. In the first eight months
of 2025, that share surged to 91%.

In August 2025, Luxembourg ranked as the largest investor
country with 71% of total inflows, followed by the Netherlands
(14%), Switzerland (2%), Azerbaijan (2%), and Ireland (2%).

Cumulatively for the first eight months of 2025, the top three
source countries were:

The Netherlands – $2.5 billion

Kazakhstan – $1.1 billion

Luxembourg – $1.1 billion

Meanwhile, early-stage FDI Markets data for the first half of
the year showed that global greenfield investment announcements
exceeded $700 billion. This marks only the third time since 2003
that the $700 billion threshold has been surpassed.

Among the 7,400 projects announced worldwide, 62 mega
projects—each valued at over $1 billion—accounted for one-third of
total capital commitments. Data centers and semiconductor
facilities led the way, with 24 mega deals worth around $300
billion in combined investment pledges.

Despite rising electricity demand driven by artificial
intelligence and cloud computing, renewable energy investments saw
a decline, falling from $147 billion in the first half of 2024 to
$83 billion in the same period of 2025.