The FINANCIAL — With Turkish firms becoming increasingly internationally oriented, their foreign direct investments (FDI) have exceeded $17 billion in the past 10 years, data from the Turkish Treasury have revealed, according to Today's Zaman.
Between 2000 and March of this year 3,271 Turkish companies invested a total of $17.31 billion abroad. Of this figure, $1.66 billion worth of FDI was made last year, 42.1 percent less than in the previous year, $2.86 billion, as the global financial crisis took its toll on the amount of money allocated for investment plans. In the past decade, the Netherlands drew the largest share of Turkish foreign investments, thanks partly to its large Turkish population and freer investment environment.
Investment in the Netherlands by Turkish firms had already exceeded $4.8 billion as of March, accounting for nearly 30 percent of Turkey’s total investment in foreign countries. Turkey’s eastern neighbor Azerbaijan followed with $3.82 billion in FDI by Turkish companies. During this period Malta also received $1.37 billion worth of investments from Turkey, while Germany, home to a large population of expatriate Turks, attracted $726 million in foreign investments by Turkish companies.
The Treasury data revealed 28 Turkish firms have transferred capital to Luxembourg, investing $714.5 million in the past 10 years. Turkey’s longtime ally the US drew $711.8 million in FDI by Turkish firms during the same period. Turkic country Kazakhstan was also among the countries receiving largest investments from Turkey, attracting $628.2 million in FDI by Turkish companies.
Turkish firms’ investments in the UK since 2000 exceeded $442.5 million as of March, while this figure was $401.1 million in Belarus, $324.3 million in Russia, $294.1 million in Belgium and $293.7 million in Romania.
The Turkish Republic of Northern Cyprus (KKTC) led the list of countries with the highest number Turkish companies investing in it. Between 2000 and March 2010, a total of 354 companies invested in the KKTC, transferring $162.1 million in capital. Germany followed with 243 Turkish firms, while this figure was 233 in Romania and 214 in Russia.
Firms also investing in underdeveloped countries
The data showed that Turkish firms did not only invest in countries like EU members, Russia, the US and China, but also in less-developed countries such as Afghanistan, Angola, Ethiopia, Ghana and Colombia. This situation was also an outcome of the government’s new foreign trade strategy, which aims to diversify the country’s trade partners.
Last year, two Turkish companies made $221,700 worth of investments in Afghanistan. Colombia also received $10,000 in FDI by a Turkish firm. Another company transferred $221,700 in capital to the West African country Mali during the same period. Vietnam, the Turks and Caicos Islands, Senegal, Panama and Niue each attracted investments from one Turkish firm, while Taiwan was home to FDI by four Turkish companies. Last year two Turkish-based businesses invested in Thailand, seven in Sudan, two in Ghana, five in Bangladesh and three in Brazil.
Three Turkish firms invested a total of $13.3 million in the Bahamas in the past 10 years. During this period, the Cayman Islands received $19.2 million in FDI by six Turkish companies.
Nearly one-third of Turkish FDI last year was made to Luxembourg, by only one firm. The monetary value of the FDI in Azerbaijan in 2009 amounted to $304.6 million, which was provided by five companies.
In the January-March period of the year, 19 Turkish firms invested a total of $93.64 million, with $14.8 million of this going to India.
Energy investments account for largest part of FDI
The sector receiving the greatest investments from Turkish firms was the energy industry, according to the Treasury data. In the past 10 years, $3.96 billion of Turkey’s total FDI was in the energy sector. This was followed by the financial sector, with $2.84 billion. The manufacturing and communications industries also received $2 billion and $1.55 billion in FDI by Turkish firms, respectively.
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