February 2025

Türkiye continues to adapt to economic dynamics, balancing inflation control, growth support, and the strengthening of its international attractiveness.

One of the key signals at the beginning of this year is the slowdown in inflation, which stood at 42.1% in January, marking its eighth consecutive month of decline. This downward trend has led the Central Bank of Türkiye to adjust its monetary policy by gradually lowering its main policy rate, which has decreased from 50% to 45% since December. However, Central Bank Governor Fatih Karahan remains cautious: while further rate cuts are possible, they will depend on core inflation trends, domestic demand, and market expectations.

While disinflation provides some relief, the Central Bank has nonetheless revised its inflation forecast for 2024 upward, raising it from 21% to 24%, while maintaining its target of 12% for 2026. This approach reflects a balance between the need to curb inflationary pressures and the goal of sustaining growth momentum, with GDP expected to rise by 2.9% in 2024 before a slight acceleration to 3.2% in 2025.

Amid this macroeconomic adjustment, Türkiye continues to attract international investors. In 2024, foreign direct investment (FDI) reached USD 11.3 billion, marking a 5.6% increase compared to the previous year, while global FDI flows declined by -8%. This performance confirms the country’s ability to maintain its attractiveness, particularly among the European Union, which remains the largest foreign investor, accounting for 55% of total FDI.

At the same time, the defense and aerospace sector is emerging as one of the pillars of Türkiye’s economy. With exports reaching a record high of USD 7.2 billion in 2024 (+29%), Türkiye is solidifying its position as a key player in the global defense industry.

Finally, consumer confidence has shown a significant improvement, reaching its highest level since June 2023 (82.1) in February 2025. This renewed optimism reflects the resilience of the Turkish economy, supported by cautious monetary adjustments and an increasingly competitive industry on the international stage.

Türkiye attracted USD 11.3 billion in FDI in 2024

Despite a global context marked by an 8% decline in foreign direct investment (FDI) flows, Türkiye managed to stand out, recording a 5.6% growth compared to 2023 and attracting USD 11.3 billion in FDI in 2024.

The Netherlands leads the way

The Netherlands topped the list, accounting for 23.6% of total investments, followed by Germany (11.5%) and the United States (10.3%). Other key contributors included Ireland, Azerbaijan, Switzerland, the United Kingdom, the United Arab Emirates, and Norway. France ranked ninth among investors in Türkiye, with a 4% share of total FDI. Europe remains the primary driver of investments, with the 27 EU countries representing 55% of the total in 2024.

Manufacturing sector leads investments

With USD 2.3 billion invested, the manufacturing sector remains the main driver of Türkiye’s attractiveness, accounting for 34.5% of total FDI. It experienced a remarkable 32.5% increase compared to 2023. It was followed by wholesale and retail trade (25.3%) and the transportation and logistics sector (7.2%).

Resilience amid global challenges

While Europe recorded a 45% drop in FDI—with significant declines in Germany (-60%), Poland (-60%), Italy (-35%), Spain (-13%), and France (-6%)—Türkiye stands out as a stable and competitive destination for international investors. Thanks to its strategic location, attractive economic environment, and structural reforms, Türkiye continues to strengthen its position as a key hub for global investments.

Source: Dünya, February 13, 2025

Norway injects over USD 1.5 billion into Türkiye

Norway’s sovereign wealth fund, Norges Bank Investment Management—one of the largest in the world with nearly USD 1.75 trillion in assets—made its largest-ever investment in Türkiye in 2024. A total of USD 1.573 billion was invested in 44 Turkish companies across key sectors such as energy, finance, retail, aviation, and technology.

Top beneficiaries of this investment:

Koç Holding: USD 115.6 million (0.90% stake)

Akbank: USD 113.5 million

BİM Birleşik Mağazalar A.Ş: USD 111.4 million

Turkish Airlines: USD 83 million

Turkcell: USD 77.4 million

The fund also holds shares in Tüpraş and Astor Enerji, with a combined investment of USD 90 million in these two energy sector companies.

Norway’s Sovereign Wealth Fund’s growing investment in Türkiye:

2021: USD 485 million

2022: USD 1.2 billion

2023: USD 1.3 billion

2024: USD 1.573 billion (record high!)

This investment flow highlights Türkiye’s increasing attractiveness to international investors, particularly in strategic sectors. It also reflects long-term confidence in the country’s economic potential.

Source: Dünya, February 10, 2025

INEO expands into Türkiye with Bon Intelligence

INEO Tech Corp., a leader in loss prevention and retail media solutions, continues its international expansion by forging a strategic partnership with Bon Intelligence Inc., a key player in AI-driven retail analytics in Türkiye. This agreement marks a significant milestone for both companies and unlocks new opportunities in one of the world’s most dynamic retail markets.

Through this collaboration, Bon Intelligence will market and integrate INEO’s solutions for Turkish retailers. These advanced technologies will enhance in-store security, combat shrinkage, and monetize retail spaces through digital advertising at the point of sale. With the rise of digitalization and evolving consumer expectations, the combination of data analytics and loss prevention solutions is becoming a strategic driver for retailers aiming to optimize their performance.

Türkiye represents a key market for INEO, thanks to its rapidly growing retail sector and strong adoption of new technologies. By leveraging Bon Intelligence’s expertise and extensive network, INEO is accelerating its expansion in the EMEA region and strengthening its global presence.

Source: Dünya, January 15, 2025

Sustainable maritime transport: when French engineering meets Turkish naval expertise

On Friday, January 31, at the port of Tuzla in Türkiye, the Neoliner Origin, a 136-meter Ro-Ro cargo ship powered by wind propulsion, officially touched the water. Designed by the French company Neoline, based in Nantes, and built by the Turkish shipyard RMK Marine (Koç Group), this vessel represents a major step toward more sustainable maritime transport.

The Neoliner Origin will navigate the high seas at a reduced speed of 11 knots, powered by special retractable sails mounted on two carbon-fiber masts. The ship boasts a total sail surface of 3,000 m² and a freight capacity of 6,300 tons, capable of carrying up to 321 vehicles, 265 twenty-foot containers, or 125 forty-foot containers.

This innovative vessel will reduce greenhouse gas emissions by 80% compared to conventional ships—an essential solution for an industry that handles 90% of global trade and accounts for nearly 3% of global greenhouse gas emissions.

Starting in the summer of 2025, the Neoliner will leave Türkiye for Saint-Nazaire, before embarking on its first commercial route to Saint-Pierre-et-Miquelon, Baltimore, and Halifax on the North American coast.

Initiated in 2011, the project has benefited from numerous partnerships, including support from Bpifrance. CMA-CGM, which operates a fleet of over 500 vessels, has also joined the initiative.

This project, a technological milestone, stands as a testament to the exemplary collaboration between France and Türkiye in advancing sustainable maritime transport.

Source: Figaro Nautisme, February 3, 2025

Rooster Invests in Türkiye

British company Rooster, a leading manufacturer of technical apparel and equipment for water sports, has announced its partnership with Performans Yelken, now the official distributor of the brand in Türkiye.

This strategic collaboration marks a key milestone in Rooster’s international expansion, making its innovative, comfortable, and high-performance product range more accessible to sailors and water sports enthusiasts across Türkiye.

Based in Türkiye, Performans Yelken brings valuable expertise and an in-depth understanding of the local market. Its founders emphasize the significance of this alliance: “We position ourselves as a trusted supplier of top-tier water sports brands in Türkiye, and Rooster naturally fits into this dynamic. We look forward to introducing these innovative products to the Turkish sailing community.”

Luke Morrison, CEO of Rooster, is equally enthusiastic about the partnership: “Welcoming Performans Yelken into the Rooster family is a key step for our brand. Their commitment and expertise will help us better serve Turkish sailors and strengthen our presence in this rapidly growing market.”

Through this collaboration, Performans Yelken will now offer the full range of Rooster products, from technical sailing apparel to high-performance equipment, catering to sailors of all levels.

With this new market entry, Rooster and Performans Yelken are joining forces to develop the brand sustainably in Türkiye, investing in a dynamic and fast-growing market.

Source: Sail World, February 5, 2025

Yokohama Establishes Its Regional Hub in Türkiye

Japanese giant Yokohama TWS, one of the world’s leading tire manufacturers, has chosen Istanbul as the location for its new regional center: Yokohama TWS Türkiye Lastik Sanayi ve Ticaret. This new establishment aims to meet the growing demand of the Turkish market while strengthening regional connectivity. In particular, Yokohama highlights Türkiye’s key role in the agricultural and off-road tire market, a rapidly expanding sector. With a local presence, the company will benefit from shorter delivery times and a broader multi-brand offering, improving product accessibility for customers across the region. This move also strengthens Yokohama’s foothold in a strategic market while supporting the development of Türkiye’s agricultural sector, which is undergoing rapid modernization.

Founded in 1917, the Japanese company now generates an annual revenue of $6 billion and employs over 27,000 people. Yokohama manufactures tires, rims, and golf equipment and has been listed on the Tokyo and Osaka stock exchanges since 1950. Its involvement in sports sponsorship, with major partnerships in the English Premier League, NBA, and Super Formula Championship, underscores its global reach.

Türkiye: A Growing Hub for Japanese Investments

Yokohama is not the only Japanese company investing in Türkiye. Yanmar, another leader in the agricultural equipment sector, has also expanded its presence in the country. With a 23,000 m² factory in Izmir, the company has tripled its tractor production capacity, reaching 7,000 units per year, destined for Europe and Central Asia.

Türkiye continues to attract high-profile investments, further solidifying its role as a strategic hub for Europe and beyond.

Source: Dünya, February 8, 2025

Swedish Giant HEXPOL Acquires Turkish Kabkom

HEXPOL Compounding has announced the acquisition of 80% of the shares of Kabkom Kimya A.Ş., a leading cable compound manufacturer in Türkiye.

Transaction value: €54 million.

Founded in 2011, Kabkom has established itself as a key player in the market thanks to its expertise in high-performance thermoplastic and thermoset compounds. Based near Izmir, the company operates a state-of-the-art production facility and collaborates with a broad range of domestic and international clients.

This acquisition is part of HEXPOL’s growth strategy, aimed at strengthening its position in the expanding wire and cable market. By leveraging their complementary expertise, this partnership will accelerate innovation and broaden the product portfolio, both in Türkiye and globally.

HEXPOL, a Swedish industrial giant, specializes in polymer compounding and rubber solutions, with a strong international footprint. In 2024, the company generated a revenue of 20.44 billion SEK (€1.82 billion).

With this integration, HEXPOL reinforces its presence in high-growth markets and reaffirms its commitment to expanding into strategic regions.

Source: News Cision, February 18, 2025

Cleversoft Announces Acquisition of Turkish Fineksus

German regtech leader Cleversoft Group has announced the acquisition of Fineksus, a Turkish leader in financial messaging and anti-money laundering (AML) solutions.

By combining Cleversoft’s expertise in regulatory technology with Fineksus’ solutions in transaction monitoring and fraud prevention, customers will benefit from a fully integrated AML suite. This suite will cover the entire compliance process, including client onboarding, sanctions screening, fraud detection, case management, and reporting to Financial Intelligence Units (FIUs).

Fineksus will continue operating under its brand with its current leadership team. Ahmet Vefik Dincer, Fineksus’ CEO and chairman of TÜBİSAD, will join Cleversoft’s executive board as a shareholder alongside Florian Clever, Cleversoft’s founder and CEO. This integration strengthens Cleversoft’s presence in Western Europe while ensuring business continuity and leadership stability at Fineksus.

This strategic alliance marks a major step forward for both companies, enabling them to offer even more advanced compliance solutions to banks and financial institutions. With full integration expected by late 2025, Cleversoft and Fineksus are now better positioned to tackle evolving financial regulations and fraud challenges.

Source: Cleversoft, February 7, 2025

IHG Expands Its Hotel Network in Türkiye

IHG Hotels & Resorts continues its expansion in Türkiye with the signing of Crowne Plaza Istanbul West, in partnership with Artaş Turizm. With this new addition, the group now has over 45 hotels in operation and development across the country.

Globally recognized as a leading premium hotel brand, Crowne Plaza caters to both business and leisure travelers, offering a seamless blend of work, meetings, and relaxation. The new Crowne Plaza Istanbul West will benefit from a strategic location near TÜYAP Exhibition Center, Ambarlı Port, and Beylikdüzü Industrial Zone, while also providing a balanced guest experience with its proximity to Büyükçekmece’s coastline.

IHG continues to diversify its portfolio in Türkiye, investing strategically across all segments. Following the recent launch of Garner Istanbul Arnavutköy (Essentials segment) and Vignette Collection Istanbul Karaköy (Luxury & Lifestyle segment), the group is accelerating its growth, supported by strong partnerships and Türkiye’s increasing market attractiveness.

Currently, IHG operates 33 hotels across five brands in Türkiye, including 13 Crowne Plaza hotels. Crowne Plaza Istanbul West will become the 9th active Crowne Plaza in the country and will be part of 17 new projects in Europe and 140 Crowne Plaza hotels in development worldwide.

According to Willemijn Geels, VP Development Europe at IHG, this momentum reinforces Türkiye’s strategic importance for the group. By collaborating closely with local partners, IHG aims to further expand its footprint and contribute to Türkiye’s transformation into a top-tier international hospitality destination.

Source: Ekonomim, February 20, 2025