Why Belgian companies Invest in Turkey

In 2021, Turkey experienced a significant surge in Foreign Direct Investment (FDI) inflows, marking a remarkable 60.2% increase to reach USD 12.5 billion, according to data from the United Nations Conference on Trade and Development (UNCTAD).

The European continent played a pivotal role, contributing 60% to the total inflows, while Asia and the Americas followed with 23% and 16%, respectively. This surge in FDI represents a substantial boost to Turkey's economic landscape.

Which sectors attract investment?

The Turkish Investment Office's data shed light on the sectors that attracted the most foreign capital, revealing a strategic focus on finance (31.6%), manufacturing (24.2%), and energy (10.6%). The Information and Communication Technology (ICT) services sector also captured significant attention, securing 8.8% of foreign investments, alongside wholesale and retail trade (8.4%) and transport and storage (4.7%). This diversification across key sectors underscores the attractiveness of Turkey's business environment to global investors.

What countries are investing in Turkey?

Examining the distribution of foreign investment stocks, the Netherlands emerged as the leading contributor, holding 15.7% of the total. The United States followed closely with 8.1%, trailed by the United Kingdom at 7.5%. Gulf countries, primarily driven by Qatar, accounted for 7.1% of the total foreign investment stock. This international distribution reflects the global confidence in Turkey's economic potential.

EY's analysis positioned Turkey as the 5th most popular FDI destination in Europe for 2021, with a notable 264 projects, constituting 4.5% of the total projects. This ranking underscores Turkey's growing appeal as a strategic investment location within the European landscape.

Building on this momentum, recent data from the Organization for Economic Co-operation and Development (OECD) reveals that FDI inflows to Turkey continued to flourish in the first half of 2022, totalling USD 5.4 billion. This represents a substantial 24.4% increase compared to the corresponding period in the previous year, highlighting sustained investor confidence in Turkey's economic prospects.

As Turkey positions itself as a key player on the global investment stage, the robust growth in FDI reflects the nation's commitment to economic diversification and resilience. The strategic focus on key sectors, coupled with a favourable business environment, has solidified Turkey's standing as an attractive destination for foreign investors seeking long-term opportunities in a dynamic and evolving market.

Why Belgian companies invest in Turkey

As of 2023, Belgian companies have solidified their presence in Turkey, boasting an impressive investment stock that has surpassed the $13 billion mark. This substantial financial commitment underscores the longstanding and mutually beneficial relationship between Belgium and Turkey in the realm of business and investment.

Several prominent Belgian companies, including Ontex, Soudal, Leonidas, Barry, Colendi, and Belinyus, have been actively investing in Turkey for many years. These companies have strategically positioned themselves in the Turkish market, contributing significantly to the nation's economic landscape. Their sustained investments highlight the attractiveness of Turkey as a favourable destination for Belgian businesses seeking growth opportunities and market expansion.

Within the Turkish business ecosystem, which hosts over 80 thousand foreign companies, Belgian enterprises have carved out a distinctive place. The diversity of sectors in which Belgian companies have invested is noteworthy, with a particular emphasis on finance, services, and industry. This diversified investment portfolio aligns with Turkey's commitment to fostering a robust and inclusive economy.

Future Belgian investments in Turkey

Looking ahead, there is a positive outlook for the expansion of Belgian investments in Turkey. Companies operating in crucial sectors such as finance, services, and industry are anticipated to increase their stakes in the Turkish market in the coming years. This reflects a shared confidence in the dynamic and evolving business landscape of Turkey, presenting Belgian companies with ample opportunities for growth and success.

The success stories of Ontex, Soudal, Leonidas, Barry, Colendi, and Belinyus serve as testaments to the favourable business climate and strategic advantages that Turkey offers to foreign investors. As the economic ties between Belgium and Turkey continue to strengthen, these investments contribute not only to the growth of individual companies but also to the overall economic prosperity of both nations.

In conclusion, Belgium's substantial investment stock of over $13 billion in Turkey as of 2023 shows the enduring partnership between the two nations. With Belgian companies actively contributing to Turkey's economic fabric, the future holds promising prospects for further collaboration and expansion, reaffirming the significance of this bilateral relationship in the global business arena.