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Why 86,000 Foreign Companies Invest in Turkey

Türkiye’s cumulative FDI reaches $285 billion as 86,400 international firms set up base. Explore the sectors and European partners driving this 2025 investment boom.

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Turkey’s Sourcing and Investment Opportunities | Turkish Sourcing
Turkey’s Sourcing and Investment Opportunities | Turkish Sourcing

Foreign Direct Investment inflows have increased 18-fold since 2003, with the manufacturing and services sectors leading the charge.

The volume of international business in Türkiye has undergone an "exceptional increase" over the last two decades, transforming the nation into a premier destination for global capital. From 1973 to 2002, Türkiye attracted a total of $15 billion in Foreign Direct Investment (FDI). However, between 2003 and late 2025, that figure has skyrocketed to a cumulative $285 billion.

This massive influx of capital mirrors the explosive growth in the number of international companies operating within the country. The count has jumped from just 5,600 in 2002 to over 86,400 as of 2025, representing a diversified ecosystem of multinational corporations, tech startups, and industrial giants.

The European Connection and Regional Shifts

Geographically, Europe remains the primary engine of investment, accounting for roughly 68.9% of historical FDI inflows. However, recent 2025 data shows a deepening of this bond, with European Union (EU-27) countries accounting for 64% of new investment capital in the first three quarters of 2025 alone.

While the Netherlands, Germany, and France continue to lead, there is a notable rise in interest from Asian and Gulf markets. This trend underscores Türkiye’s unique role as a "nearshoring" destination of choice for EU manufacturers looking to shorten supply chains while maintaining high-quality production standards.

Manufacturing: The FDI Magnet

Sectoral data reveals a shift toward high-value industrial production. In 2024 and 2025, manufacturing emerged as the top recipient of equity capital, attracting approximately 34.5% of total inflows.

Key high-growth sectors include:

  • Wholesale and Retail Trade: Attracted nearly 47% of equity inflows in the first half of 2025, driven by the expansion of global retail chains and e-commerce platforms.
  • Finance and Insurance: Continues to be a pillar of stability, representing nearly 30% of the historical FDI stock.
  • ICT & High-Tech: The presence of over 760 international companies in Turkish Technoparks proves that investments are shifting toward knowledge-intensive operations. Global tech leaders are increasingly choosing Türkiye for software development and engineering hubs.

Why the Surge in 2025?

Despite a global downturn where worldwide FDI flows declined by 8-11% in 2024, Türkiye defied the trend. In the first ten months of 2025, FDI inflows to Türkiye jumped by 35% year-over-year, reaching $11.6 billion.

This resilience is attributed to the country’s aggressive structural reforms, a strategic "Green Deal" alignment, and the HIT-30 high-tech investment program. For global firms, the message is clear: Türkiye offers not just a market of 86 million people, but a secure, law-protected base for reaching the wider EMEA region.

Citations & Sources