Türkiye’s investment climate is gaining significant traction if a recent report that indicates that global investors are pouring billions into various sectors is anything to go by.

The report dubbed Türkiye’s
FDI Landscape at a Glance by the Investment Office of the Presidency of the Republic of Türkiye mentioned that the fintech industry in the region stands out,
attracting major international backers and setting the stage for future
unicorns.

Besides that, there is reportedly an influx of foreign
direct investment (FDI), credit rating improvements, and new infrastructure
projects in the region, which is expected to boost Türkiye’s economic resilience
and long-term growth potential.

Türkiye’s Fintech Sector on the Rise

Investment Office President A. Burak Dağlıoğlu
highlighted Türkiye’s strong fintech ecosystem during the annual Türkiye
Entrepreneurship Ecosystem event.

He emphasized the country’s potential to produce
fintech unicorns, citing the sector’s robust development alongside deep tech,
SaaS, and life sciences. Türkiye’s gaming industry also continues to thrive,
ranking among the top globally.

One major fintech success story is Dgpays, a Turkish
financial technology firm that doubled its valuation following significant
investment from the European Bank for Reconstruction and Development (EBRD) and
Truffle Capital. This marks one of the largest international
investments in Türkiye’s fintech sector, reinforcing its status as a key player
in global fintech innovation.

International credit rating agency Moody’s recently
upgraded Türkiye’s outlook from ‘stable’ to ‘positive,’ citing the country’s
return to orthodox monetary policies. Despite short-term inflation concerns,
Moody’s noted improvements in monetary policy effectiveness and economic
stability.

The agency pointed to tightening measures that could
help Türkiye reduce external imbalances and build stronger foreign currency reserves. The EBRD made a
record €2.5 billion investment in Türkiye in 2023, significantly increasing its
financial commitment from previous years.

Türkiye’s FDI Boom and Sectoral Growth

This surge in funding was driven by Türkiye’s
post-earthquake recovery efforts, with over €800 million already allocated to
affected businesses and individuals. A major portion of the investment also
focused on supporting small and medium-sized enterprises (SMEs) and advancing
the country’s green transition.

Türkiye attracted an impressive $11 billion in FDI in
2023 despite a global downturn in investments. According to the Central Bank
of the Republic of Türkiye, key contributors included major economies such as
the Netherlands, Germany, the UAE, and the United States.

Dağlıoğlu emphasized Türkiye’s resilience in
attracting investment, noting that while many emerging markets saw declines in
FDI, Türkiye’s ability to surpass $10 billion highlights its economic strength.

He expects further increases in investments in 2024,
driven by strong European and Gulf region collaborations. Türkiye is also making
significant strides in technological and entrepreneurial infrastructure.

This article was written by Jared Kirui at www.financemagnates.com.

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