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Friday November 14 2025

Foreign Direct Investment inflows strengthen as EU investments rise to 91% share

13 November 2025 22:50 (UTC+04:00)
Foreign Direct Investment inflows strengthen as EU investments rise to 91% share

The International Investors Association (YASED) has published its Foreign Direct Investment (FDI) in Numbers Bulletin following the release of the Turkish Central Bank’s Balance of Payments statistics.

According to the bulletin, Türkiye attracted $1.8 billion in FDI inflows in August, bringing the total for the first eight months of the year to $10.6 billion. This represents a 58% increase compared to the same period in 2024. Since 2003, the cumulative value of FDI inflows into Türkiye has exceeded $284 billion.

Of the $1.8 billion in total FDI recorded in August, $1.5 billion came in the form of equity capital investments, while $137 million was attributed to debt instruments and $202 million to real estate purchases by foreigners. After accounting for $90 million in divestments, the net FDI inflow stood at $1.8 billion.

In August, the information and communication sector dominated FDI inflows with $1 billion, accounting for 69% of total equity capital investments. The wholesale and retail trade sector followed, drawing 10% of total investments for the month.

During the first eight months of the year, the leading sectors for foreign investment were:

Wholesale and retail trade: $2.5 billion

Information and communication: $1.2 billion

Food manufacturing: $1.2 billion

From 2003 to 2024, European Union (EU-27) countries accounted for 58% of total FDI inflows to Türkiye. In the first eight months of 2025, that share surged to 91%.

In August 2025, Luxembourg ranked as the largest investor country with 71% of total inflows, followed by the Netherlands (14%), Switzerland (2%), Azerbaijan (2%), and Ireland (2%).

Cumulatively for the first eight months of 2025, the top three source countries were:

The Netherlands – $2.5 billion

Kazakhstan – $1.1 billion

Luxembourg – $1.1 billion

Meanwhile, early-stage FDI Markets data for the first half of the year showed that global greenfield investment announcements exceeded $700 billion. This marks only the third time since 2003 that the $700 billion threshold has been surpassed.

Among the 7,400 projects announced worldwide, 62 mega projects—each valued at over $1 billion—accounted for one-third of total capital commitments. Data centers and semiconductor facilities led the way, with 24 mega deals worth around $300 billion in combined investment pledges.

Despite rising electricity demand driven by artificial intelligence and cloud computing, renewable energy investments saw a decline, falling from $147 billion in the first half of 2024 to $83 billion in the same period of 2025.

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