In the period of 2003 to 2018, companies with European capital invested nearly $210 billion in the Turkish economy, Arda Ermut, the president of the Investment Office said on Saturday during a presentation in Austria. Daily Sabah reports in its article European companies invested $210 billion in Turkish economy from 2003 to 2018 that Austrian-capitalized companies also invested $10.5 billion in direct investments in the country in the same period. Ermut recalled that the number of Austrian companies operating in Turkey has neared 1,000. Ermut remarked that the world is experiencing a recession in terms of foreign direct investment (FDI), saying, "In 2018, when investments declined all over the world and developing countries like Turkey saw decline in direct investments, we attracted $13.2 billion in foreign direct investment, achieving a 14 percent rise compared to 2017, which was a very positive signal."
Highlighting that a large portion of direct investment in Turkey come from Europe, Ermut said that European countries had a share of nearly 65 percent in 2018. Explaining that European-capitalized companies invested nearly $210 billion in Turkey from 2003 to 2018, Ermut stated that Austrian-capitalized companies also invested $10.5 billion in direct investments in the country in the same period. Ermut recalled that the number of Austrian companies operating in Turkey has neared 1,000.
Underlining that Turkey's geographical position offers great advantages to Austrian companies wanting to operate in other countries in the region, Ermut said, "Turkey and Europe are two important and strategic partners. Its young and growing population has made Turkey an important market for European exporters. In addition, the Customs Union Agreement, which has been in force since 1996, enables Turkey to trade with European Union countries without customs duties. In terms of investments, Austria ranks fourth on the list of countries from which we attracted the most foreign direct investments in 2018. Therefore, Austria is an important partner for us. We would like to see more Austrian investors in Turkey in the upcoming period."
Indicating that talks in Austria have been held in a more positive atmosphere than last year, Ermut said that Austria is currently one of the largest sources of FDI. He emphasized that they want to further channel this situation to Turkey.
"As we have done so far, we will continue to follow the investment agendas of Austrian companies and to support them at every stage of their investments," he added. Ermut stated that the rising extreme right-wing discourses in the world have negative effects on the economy as well, leading to the introduction of more protectionist economic approaches and negatively affecting direct investments. Recalling that global investment reached an all-time high at $2 trillion in 2007, Ermut remarked that this declined to $1.2 trillion in 2008-2009 due to the global economic crisis.
According to Ermut, investments rose again, however, due to the political developments in 2018, they again dropped to the same level as in the crisis period.
Pointing out that the world has been going through a challenging process in terms of direct investments in the last three years, Ermut noted that Turkey has managed to overcome this proces
s thanks to its decisive characteristics and proper steps.
The president of the Investment Office also stressed that they have been determining Turkey's investment-related needs, adding that they also determine industries with strategic importance and develop promotion strategies accordingly.