Foreign Direct Investment Increases Almost 70% in 2011
Turkey's onslaught of foreign direct investment (FDI) has increased almost 75% over 2010. With just over 13 billion (USD) poured into Turkey in 2011, it is expected that that number will very quickly reach 15 billion USD in 2012. This is according to a survey taken by the International Investors Association of Turkey. Chairman of the Association, Izzet Karaca attributes this year over year increase to two separate reasons. The first is that foreign confidence in Turkey continues to strengthen. Additionally, there have been announcements from several major foreign investors that they plan to increase their investments in the country.
One such example of a major player is French automaker Renault, with its partner Oyak Holdings. Oyak Renault plans to invest over 250 million USD via its Turkish manufacturing plant. This number is up over their 2011 investment of over 175 million USD. With production of the new Clio 4 Supermini, the Megane 3 hatchback and the possibility of a new light commercial vehicle, Oyak Renault's production lines will be booming.
Oyak Renault's production facility is located in Bursa, Turkey. This particular manufacturing plant is capable of producing 360,000 vehicles per year. It is Oyak Renault's second largest production plant.
Mr. Anil Sardana, Managing Director of TATA Power, has recently announced that Turkey is shortlisted as one of the company's areas of interest for investment. TATA Power plans to increase power production over the next two years. Currently production is at a little less than 4,000 MW's and plans an increase to 10,000 MW's. In his statement, Sardana made it clear that TATA Power is considering several power generation, transmission and distribution network investments, and they consider Turkey to have great potential in terms of profitability.
TATA Power is part of the global TATA Group with investments worldwide, including many respected brands such as Jaguar and Land Rover.
Of course, there are many profitable foreign investment opportunities in Turkey. International interest in real estate property continues to rise hand over fist. Housing is already outnumbered by demand, and as more investment dollars come in, the demand for real estate in Istanbul and other specific areas of Turkey increases. This is a cycle that does not show any signs of slowing down. In fact, with an overall growth rate of almost 9%, in 2010, Turkey has now surpassed Europe as of the fastest growing world economies. Turkey's Gross Domestic Product (GDP) has risen to well over 725 billion USD, and the GDP per capita has surpassed 10,000 USD.