Green technologies, renewable energy sources and artificial intelligence are expected to continue to attract investor interest and remain active in the coming period, the head of Turkey’s investment office said on February 23.

Ahmet Burak Daglioglu, head of the Presidential Investment Office, said they frequently communicate with foreign investors about renewable energy investments, adding that foreign investor interest remains strong in many sectors, including technology, service exports, green technology, and artificial intelligence.

Daglioglu assessed the latest developments in foreign investor interest in Turkey following the Bridge Summit in London.

Speaking to Anadolu Agency (AA), Daglioglu recalled that Turkey attracted $11.3 billion in foreign direct investment (FDI) last year, assessing the trends and sectors that dominated the sector.

“According to preliminary data announced, there is a forecast that direct investment in the world last year decreased by 8%. In such an environment, the fact that Turkey increased its investments by 5.6% actually shows that the interest of international investors continues to be positive,” he said.

Daglioglu noted that technology is a key area of focus for foreign direct investment and said that more than $1 billion was invested in early-stage technology companies in Turkey last year. He also noted that this is a trend that is expected to continue in the future.

He emphasized that there are successful technology initiatives in Turkey that are developing competitive global products and services, mentioning their efforts to raise more capital for these firms.

“As the President’s Investment Office, we are particularly focused on encouraging capital inflows to these companies and working hard to ensure that these young technology initiatives have access to capital. Many of the funds are based in Turkey, but we also try to attract investments from other technology funds around the world. This is one of our main goals in London,” he said.

Renewable energy, AI

Daglioglu noted that global sustainability issues and geopolitical developments have led to the restructuring of supply chains, and Turkey has become an important hub in its region over the past five years.

“We are talking about Turkey, which has emerged as a manufacturing center under the leadership of President Recep Tayyip Erdogan over the past 22 years. Recently, we have seen various players and entities, especially in the industrial sector, investing more in Turkey, including in current exports,” he emphasized.

Another important aspect he added is green technologies. He noted that the Ministry of Energy and Natural Resources has recently held some tenders in renewable energy, and with clear targets in the 2035 strategy, there is a constant agenda for renewable energy investments, with frequent communication with investors.

“We see these sectors continuing to attract investor interest and remaining active in the coming period,” he said.

Daglioglu also shared that artificial intelligence was one of the sectors that attracted the most investment in Turkey last year in terms of transaction volume. He noted that investments are being made in many areas covered by AI and that policies in this area are very important.

“We see more opportunities to attract investments in artificial intelligence. Investor interest in this area is positive. We expect investments to continue in artificial intelligence and other industries in Turkey,” he said.

Capacity expansion

Daglioglu also said that Turkey has increased its exports to different regions thanks to the Customs Union agreement and free trade agreements (FTAs).

“In this context, especially after the pandemic, Turkey has become a country that receives significant investment due to changes in the global supply chain shaped by many factors. Especially when we look at international databases, Turkey attracts the most investment projects in the industrial sector in our competitive region,” he explained.

“We are also the country where international companies are making the most investments to expand our competitive region. These companies are rapidly increasing their capacity,” he added.

Ultimately, Daglioglu explained that Turkey is strengthening its position as a supplier of supplies, and this is reflected in its export performance.

Speaking about the country’s exports, which he said are growing faster than global growth, Daglioglu also said that Turkey can remain flexible against possible protectionist trade policies and is expected to continue its long-term path with positive differentiation.