Turkey Strengthens Its Role as a Strategic Production Hub
In recent years, Turkey has emerged as an attractive destination for international investments due to its robust industrial, trade, and investment policies. Foreign capital inflows have significantly supported both the country’s production capacity and export performance.
According to calculations by the Ministry of Trade, foreign-invested companies accounted for approximately 30% of Turkey’s total exports in 2025. This highlights the substantial contribution that international investments make to the Turkish economy and its exports.
Resilient Performance Amid Global Uncertainty
Data from the United Nations Conference on Trade and Development (UNCTAD) confirms Turkey’s strong position in the global investment landscape. By 2025, global foreign direct investment (FDI) flows rose by 14% to $1.6 trillion. While investments in developed economies increased by 43%, reaching $728 billion, those in developing economies declined by 2% to $877 billion.
Turkey’s FDI Growth Outpaces Other Developing Economies
Despite the challenging environment for developing economies and rising global protectionism, Turkey achieved a notable 29% increase in FDI inflows, positioning itself among the most successful developing countries in attracting international capital.
Steady Growth in Direct Investments and Export Contribution
Central Bank data shows that Turkey’s FDI inflows surged from just $1.1 billion in 2002 to $13.1 billion in 2025, marking a 12.2% increase over the previous year. This reflects a stable average monthly investment inflow of $1.1 billion throughout 2025. New investments focused on digital transformation, climate-friendly initiatives, and global supply chain integration have further enhanced Turkey’s production and export capacity.
Foreign-Invested Firms and Export Performance
In 2025, foreign-invested companies were responsible for about 30% of total Turkish exports. The European Union was the main destination, receiving exports worth $46.4 billion. The leading export partners were Germany, the United Kingdom, the United States, Italy, and France. The highest export volumes were achieved by firms originating from the US, Germany, and the Netherlands.
EU-based investments accounted for 51.2% of all exports by foreign-invested firms in Turkey, representing 15.5% of the country’s total exports in 2025. The sectoral breakdown indicates a focus on industrial production, particularly in the fields of motor vehicles (Chapter 87), machinery and mechanical appliances (Chapter 84), and electrical machinery and equipment (Chapter 85).
Commitment to Sustainable Growth
This performance illustrates Turkey’s growing capacity for high value-added industrial production within global supply chains. The Ministry of Trade affirms its continued commitment to improving the investment climate, strengthening Turkey’s position in global value chains, and advancing sustainable development goals.
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