Current FDI landscape in the Turkey (as of 2025)

FDI flow in Türkiye has shown a significant growth in the last year. Net FDI inflows reached USD 11.4 billion in January–September 2025, representing a strong recovery compared with USD 7.8 billion in the same period of 2024 and corresponding to a year-on-year increase of approximately 45.5%. Within this total, equity investment inflows amounted to USD 8.0 billion. Equity investment inflows increased by approximately 85.8% year-on-year in 2025, while the 2022–2025 CAGR of around 4.8% indicates a moderate but positive medium-term growth trend, with 2025 standing out as a strong rebound year.

From a medium-term perspective, cumulative FDI inflows over 2022–September 2025 indicate a robust growth trajectory, underscoring a sustained post-pandemic recovery. Overall, the 2025 data point to a strengthened FDI performance, with rising investment flows complemented by broader capital movements captured in the net FDI position.

Top 5 Turkey FDI industries

Based on equity investment inflows totalling USD 8.0 billion in January–September 2025, the sectoral composition of FDI in Türkiye shows a highly concentrated structure.

Wholesale and retail trade emerged as the leading recipient, accounting for 34% of total equity inflows, followed by food, beverage and tobacco and telecommunications, each capturing 15%. Finance and insurance attracted 8% of equity-based FDI, while rubber and plastics accounted for 3%. The remaining 25% was distributed across a broad range of other sectors, indicating that although investment activity was diversified, FDI in 2025 was predominantly driven by a small number of high-impact sectors, with trade and consumer-oriented industries playing a central role.

Analysis of the Top 5 FDI Industries

The sectoral distribution of FDI equity inflows shows a pronounced shift toward services in 2025, with the services sector increasing its share from 53.9% to 66.6%. This gain is primarily driven by strong expansions in wholesale and retail trade (from 25.3% to 33.8%) and telecommunications (from 4.2% to 15.3%), which more than offset declines in other service sub-sectors such as transportation and storage, construction, and real estate activities. In contrast, manufacturing experienced a significant loss of share, falling from 38.8% to 30.4%, largely due to sharp contractions in key sub-sectors including chemicals, computer, electronic and optical products, and furniture, despite partial offsets from rising shares in food, beverage and tobacco, rubber and plastics, and textiles. Outside these two major sectors, energy recorded a modest share increase, while agriculture and mining continued to lose relative importance.

Tighter monetary policy, fiscal discipline, and stronger communication have helped reduce risk perception among investors. Completion of the 5G tender and emerging green frameworks (climate law, emissions trading system) have positively influenced investor expectations. These developments fuel FDI growth for sectors related to services, digital infrastructure, and green technologies more attractive to foreign investors.

Top 10 Turkey FDI countries

2025:

FDI inflows in 2025 were highly concentrated by source country, with the top 10 investors accounting for over 73% of total equity inflows, led by the Netherlands and Luxembourg, highlighting the continued importance of European financial hubs and holding structures in Türkiye’s FDI profile.

2024:

In 2024, the top 10 countries accounted for approximately 80.7% of total equity FDI inflows, led by the Netherlands, Germany, and the United States, alongside notable contributions from Ireland and Switzerland, highlighting the importance of European holding and financing structures. By January-September 2025, the top 10 share declined to around 73.1%, indicating a mild diversification of source countries, even as total inflows increased. The Netherlands remained the largest source, while Luxembourg rose sharply to become the second-largest contributor, reinforcing the continued prominence of financial and investment hubs in Türkiye’s FDI profile. Overall, the shift suggests that although concentration remains high, Türkiye’s FDI sources broadened slightly in 2025, supported by improving investment sentiment and expanding investor participation. European Union (EU-27) countries have historically dominated FDI into Türkiye, accounting for around 58% of cumulative FDI inflows over the 2003–2024 period. In 2025 (Jan–Oct), EU countries continued to play a leading role, representing about 64% of total FDI flows, with France, the Netherlands, Germany, Belgium and Switzerland among the key European investors for October’s flows.

The rising prominence of Luxembourg and the Netherlands as leading FDI source countries reflects Türkiye’s ability to attract large-scale, institutionally structured investments, as both countries function as major European financial and holding hubs for multinational corporations and investment funds. While these inflows often represent capital ultimately originating from multiple geographies, their presence is generally viewed as positive, signaling improved investor confidence, deal flow activity, and Türkiye’s integration into global investment and financing networks.

What is Turkey’s FDI performance?

Country-wise:

Türkiye’s FDI performance in January–September 2025 shows a strong rebound, with net FDI inflows reaching USD 11.4 billion, representing a year-on-year increase of approximately 45.5%. In terms of source countries, inflows were led by Netherlands and Luxembourg, followed by Germany and the United States, highlighting the continued role of European investment hubs.

Sector-wise:

In terms of sectors, services dominated FDI, driven primarily by wholesale and retail trade and telecommunications, while manufacturing’s share declined, indicating a shift in investment momentum toward service- and consumer-oriented activities in 2025.

Future Outlook of Turkey’s FDI

Türkiye’s FDI growth is conditional on sustained macro/financial stability and confidence effects. One central policy benchmark frames the medium-term ambition as lifting Türkiye’s global share of FDI and reaching around USD 15-20 billion annual inflows by 2028. A more optimistic “potential” scenario discussed by investor representatives places the ceiling higher, above USD 30bn per year, with the caveat that this depends on reform continuity and predictable policy implementation. Growth sectors are expected to be higher-value manufacturing and technology-linked services: the public investment agenda highlights electric vehicles/automotive greenfield projects and data centers/digital infrastructure as priority magnets, while the national FDI strategy emphasizes green and digital transformation and more knowledge-/technology-intensive investment profiles. On the country side, Europe remains structurally important in the investor mix (often referenced as the largest bloc of investors), while large “hub” jurisdictions, such as the Netherlands and Luxembourg, can rise sharply in flow statistics because they are frequently used as regional holding/financing platforms for multinational groups rather than reflecting only “new” real-economy entrants.