Türkiye on track to reclaim role as regional hub for FDI: Şimşek

ISTANBUL

Türkiye is regaining its position as a regional center for foreign direct investment (FDI), Treasury and Finance Minister Mehmet Şimşek has stated.

Speaking at the TRT World Forum 2025 in Istanbul, Şimşek highlighted the country’s economic transformation over the past two decades.

He noted that foreign direct investment has increased nearly twentyfold in the last 20–25 years.

“We aim to return to investment-grade levels with upcoming credit rating upgrades,” he added.

Şimşek emphasized the country’s strong performance compared to other emerging markets. “Over the past 20 years, Türkiye’s average real growth has been 5.4 percent… When excluding China and India, Türkiye’s growth performance stands out clearly,” he said.

Addressing the government’s current disinflation program, Şimşek explained, “Our goal is to ensure price stability, strengthen fiscal discipline, and reduce the current account deficit.”

“We’ve made serious progress in this area. Structural transformation is a key element for sustainability. We are in the second phase of the program, and the progress is notable. Our target is to bring inflation back to single digits,” he added.

Şimşek also commented on global economic trends, saying protectionism now appears to be a lasting tendency. “Türkiye is relatively less vulnerable in this environment,” he said.

He attributed this resilience to Türkiye’s trade structure: “Sixty-two percent of our exports go to countries with which we have free trade agreements. More than 80 percent are directed to our nearby regions — Central Asia, the Middle East, and North Africa — friendly and neighboring areas. This partially shields us.”

Another advantage, according to Şimşek, is Türkiye's strong service exports. “The share of our service exports is robust compared to international averages. Service trade has not yet been affected by protectionism. We can turn this picture into an opportunity.”