January 2025

As 2025 begins, Türkiye continues to stand out as a strategic destination for international investments. With its unique geographical position and a rapidly transforming economic environment, the country attracts numerous economic players eager to capitalize on its growing opportunities. The numerous investment decisions made at the start of the year reflect this dynamism; major international companies such as Socar, Quexco, and Freedom Holding have recently strengthened or established their presence in Türkiye.

The country is also showing positive results on several economic fronts, particularly with a 2.5% increase in exports in 2024, reaching a record level of $262 billion. On the monetary front, the Central Bank has announced a significant 250-basis-point reduction in its key interest rate, bringing it down to 45% during its first meeting of 2025. This decision follows the rate cut in late December 2024—the first since February 2023—lowering it to 47.5% (-2.5 percentage points). These moves come in response to slowing inflation, which dropped from 47.1% in November to 44.3% in December, although consumer prices slightly increased by 1% over the month, mainly due to inflationary pressures in the services sector.

Moreover, January 1, 2025, marks significant changes for Türkiye, particularly the 30% increase in the minimum wage, now set at 22,104 ₺ net (approximately €590) per month.

Finally, regulatory adjustments have been introduced regarding work permits for foreign nationals. Find a simplified summary of this new regulation by clicking here.

SOCAR announces a $7 billion project in Türkiye

The Turkish branch of the State Oil Company of the Republic of Azerbaijan (SOCAR Türkiye) is planning an ambitious investment of approximately $7 billion to develop new polyolefin production facilities. This strategic investment aims to increase the capacity of the Petkim unit and reduce Türkiye’s dependence on imports, which currently account for up to 90% of its polyolefin needs.

According to Kanan Mirzayev, head of SOCAR Türkiye’s refining and petrochemicals division, a Front-End Engineering Design (FEED) phase will begin between 2025 and 2026, with an initial investment of $50 million. The project, approved during a board meeting last December, will be implemented over a period of five to ten years, with a final investment decision expected by the end of 2026.

Acquired by SOCAR in 2008 for $2.04 billion, Petkim plays a key role in Türkiye’s petrochemical sector. With 16 production plants, Petkim produced 2 million metric tons of petrochemical products in 2024, meeting 11% of domestic demand.

With this investment, SOCAR Türkiye is not only strengthening its role as a major player in the petrochemical sector but also contributing to Türkiye’s industrial and energy independence.

Source: Hürriyet Daily News, January 8, 2025

U.S. company Quexco acquires Mutlu Akü

Turkish battery manufacturer Mutlu Akü, a market leader in battery production, has been acquired by Quexco Inc., a Dallas-based American company specializing in lead mining, smelting, and recycling. This acquisition marks a significant milestone for the Turkish industry, bringing a new strategic investor into the market.

South African company Metair, which had held a 75% stake in Mutlu Akü since 2013, sold its shares to Quexco Inc. for an estimated $200 million. This decision comes amid a complex global economic environment, characterized by high inflation, which led Metair to divest its stake to the American giant.

The sale process, managed by Garanti BBVA in collaboration with VakıfBank and Ziraat Bankası, was successfully completed. With this acquisition, Quexco Inc. is now a key player in Türkiye’s battery industry. This success highlights Türkiye’s potential to attract international investors and strengthen foreign direct investment (FDI) flows into the country.

Source: Patronlar Dünyası, January 3, 2025

Freedom Holding expands into Türkiye

Kazakh billionaire Timur Turlov, founder of Freedom Holding Corp., has recently launched Freedom Yatırım Menkul Değerler in Türkiye, marking the group's entry into this rapidly growing market. Following its notable success in the U.S., Ukraine, and Russia, this strategic move reflects the company's ambition to strengthen its global presence and leverage opportunities in the Turkish economy.

Türkiye stands out as an attractive destination for financial investments, thanks to its strategic location, dynamic economy, and young, tech-savvy population. Recognizing this potential, Turlov plans to allocate 20–30% of Freedom Holding’s annual revenue to expanding its operations in Türkiye and the United Arab Emirates. This initiative also aligns with a broader trend of Kazakh investments in Türkiye, as seen in Kaspi.kz’s recent $1 billion acquisition of Hepsiburada.

Timur Turlov, a Kazakh entrepreneur born in Russia, founded Freedom Finance in 2008 in Moscow. The company quickly expanded internationally through strategic acquisitions. In 2019, he took his holding public by listing it on Nasdaq, making it the first Russian financial institution to be traded on the exchange. Following Russia’s invasion of Ukraine, Turlov relocated all of his operations to Kazakhstan. With an estimated net worth of $2.2 billion, he is now the 7th richest person in Kazakhstan.

With this new expansion, Freedom Holding reaffirms its ambition to become a major global player while positioning Türkiye as a key launchpad for future growth.

Source: Dünya, January 15, 2025

KT&G expands its Turkish factory

South Korean tobacco industry leader KT&G is strengthening its international presence by expanding its factory in Tire, in the Izmir province of Türkiye.

With this strategic investment, the total factory area now reaches 25,000 m²—an increase of 1.5 times. Two new production lines have been added, bringing the total to four and boosting annual production capacity to 12 billion units. This facility is now a major export hub, catering to the growing demand in North Africa, Central America, and South America.

Since establishing its first international production base in 2008, KT&G has continued to accelerate its global expansion. In parallel, the company is currently building a new factory in Indonesia and expects to complete another project in Kazakhstan by 2025.

This expansion reflects KT&G’s ambition to become a leading global player. As CEO Bang Kyung-Man stated, “The Turkish factory is at the heart of our strategic vision, serving both as a driver of international growth and a key export hub.”

With this latest milestone, KT&G reaffirms its commitment to Türkiye, positioning the country as a cornerstone of its global leadership strategy.

Source: 2 firsts, January 21, 2025

Turkish Mega Fortuna joins Aonic’s portfolio

Swedish gaming and technology group Aonic continues its quest to build a global gaming powerhouse with a $10 million minority investment in Mega Fortuna, an innovative mobile gaming discovery and loyalty platform based in Bursa, Türkiye.

Founded in 2023, Mega Fortuna has quickly made its mark with its flagship platform, Richie Games. This solution enables players to earn gift cards by discovering new games, seamlessly blending user experience with rewards. With a team of 34 experts, the company has developed a unique loyalty mechanism that is reshaping mobile gaming engagement.

This investment aligns with Aonic’s growth strategy, which now includes 12 companies operating in game development, publishing, and related services. In 2024, the group’s mobile operations drove a 73% increase in revenue.

The deal also includes an option for full acquisition, with a potential valuation reaching $70 million.

According to Aonic CEO Paul Schempp, "Mega Fortuna is transforming how players engage with mobile games by combining discovery and rewards. In just two years, this platform has captured the attention of millions of players worldwide."

Türkiye’s mobile gaming sector, fueled by a dynamic ecosystem, is increasingly attracting foreign investment, reinforcing the country’s strategic role in this booming industry.

Source: Tech EU, January 15, 2025

Istanbul & Antalya: global tourism success stories

With a combined total of over 40 million visitors in 2024, Istanbul and Antalya highlight Türkiye’s rise as a premier global tourism destination.

Antalya welcomed more than 19 million visitors in 2024, securing its position as the 6th most visited city worldwide. Notably, it is the only coastal destination in this prestigious ranking, reinforcing its reputation as a high-quality seaside tourism hotspot.

Meanwhile, Istanbul continues to captivate travelers with its rich historical and cultural heritage. In 2024, the metropolis recorded over 23 million visitors, reflecting a 14% increase compared to the previous year, further solidifying its status among the world’s most sought-after destinations.

Türkiye stands out as the only country with two cities in the global top-ranking destinations. According to Euromonitor projections, Türkiye—alongside the U.S. and China—is expected to see one of the highest surges in tourist arrivals by 2030. Meanwhile, China, the Netherlands, and Poland are set to lead in travel-related spending.

With a unique blend of tradition, modernity, and excellence, Türkiye is cementing its status as a must-visit destination for travelers worldwide.

Source: CNN Travel, December 4, 2024

$20 billion investment in energy efficiency

Türkiye is taking a major step toward becoming a global leader in energy efficiency. By 2030, the country will invest $20.2 billion under its second National Energy Efficiency Action Plan (2024–2030). This ambitious initiative aims to cover all economic sectors, generate substantial savings, and strengthen Türkiye’s sustainable energy infrastructure.

Between 2017 and 2023, Türkiye had already invested $8.5 billion in its first national plan, laying the groundwork for this energy transition. The momentum continues with key initiatives, including a mandate requiring all new public buildings to obtain green building certification starting in 2026. This measure is expected to yield annual savings of ₺1.5 billion while promoting the adoption of modern environmental standards.

In public lighting, the government plans to install an additional 500,000 LED luminaires by 2025, bringing the total to 700,000. By 2028, this figure will rise to 3.75 million, generating estimated annual savings of ₺750 million.

Türkiye is also offering attractive financial incentives. Offices, shopping malls, hospitals, and large campuses can receive grants of up to ₺21.6 million ($610,000) per project, encouraging the private sector to adopt innovative energy solutions.

These efforts position Türkiye among the world’s energy efficiency leaders. Over the past two decades, the country has reduced its energy intensity by more than 30%—an exceptional achievement among OECD nations. In 2023, Türkiye’s energy savings rate reached 4.5%, significantly exceeding the global average of 1%.

With these advancements, Türkiye stands out as a model for emerging economies and an attractive destination for green technology investors.

Source: Ekonomi Gazetesi, November 12, 2024

Mergers & acquisitions: key trends of 2024

In 2024, Türkiye's mergers and acquisitions (M&A) market demonstrated resilience despite a decrease in the number of transactions. A total of 475 deals were recorded, with a reported volume of $5.3 billion. A notable increase in the total estimated volume to $10.1 billion (including undisclosed transactions) was observed.

Foreign investors led 95 transactions in 2024, totaling $3.2 billion, marking a significant rise from $1.2 billion in 2023.

Key transaction of the year:

Unlike 2023, when no mega-deals (over $1 billion) took place, 2024 saw Kaspi.kz acquire 65.4% of Hepsiburada for $1.1 billion.

Other significant foreign investments:

• DFDS (Denmark) acquired Ekol Transport for $253.6 million.
• Curium Pharma (France) purchased 50% of Eczacıbaşı Monrol for $121.8 million.
• Quexco (USA) took over Mutlu Akü for $110 million.
• With 22 transactions, 16 of which were led by financial investors, the video game sector reaffirmed its key role in Türkiye’s economic ecosystem, strengthening the country’s position as a global gaming hub.

2024 was marked by strategic deals that enhance Türkiye’s attractiveness to investors, particularly in the technology and industrial sectors. This signals a strong future for the Turkish M&A market.

Source: KPMG, January 2025

New export record for seafood products

Türkiye has reached a significant milestone in the seafood sector with exports totaling $2.019 billion in 2024, marking a 20% increase compared to the previous year. This is the first time that exports have surpassed the $2 billion mark, and Türkiye is now targeting $2.5 billion for 2025.

The standout product remains sea bass, with $570 million in exports, followed by sea bream, which saw a 22% increase, reaching $508 million. Turkish salmon also recorded strong growth of 31%, while tuna exports surged by 153%.

Sustained growth and market diversification

The sector has not only experienced a rise in export volumes but also geographic diversification, with 91 importing countries in 2024, up from just 10 in 2000. This success is the result of significant investments made since the 2000s, which have expanded Türkiye’s production capacity, particularly in aquaculture, which accounted for 553,000 tons, or 55% of the total production.

Exceptional growth potential

The Turkish seafood sector continues to show considerable potential. With a production of 1.8 million tons in 2024, Türkiye could follow the example of countries like Norway, which generates $13 billion in seafood exports.

Türkiye is positioning itself as a key player in the global seafood market, with ambitious growth prospects for the coming years.

Source: Dünya, January 14, 2025

Electric vehicle sales: Türkiye records spectacular growth in 2024

Türkiye reached a historic milestone with nearly 100,000 100% electric vehicles sold in 2024, marking an impressive 51.7% increase compared to the previous year. The market share of electric vehicles rose from 6.8% to 10.1%, reflecting a rapid shift toward sustainable mobility.

Key figures:

• Overall market: 1.24 million new vehicles sold (+0.5%), a historic record.
• Electric vehicle sales: 99,489 units, accounting for nearly 10.1% of total sales.
• Hybrid vehicle share: Also on the rise, reaching 18.8% of the market.
• Nearly 30% of total vehicle sales in Türkiye now include an electric motor (pure electric, extended range, or hybrid).

TOGG, Uncontested Market Leader!

With 30,093 units sold, TOGG emerged as the leader, significantly outpacing its competitors. In 2024, one in three electric cars sold in Türkiye bore the logo of this now-iconic national brand.

The rapid growth of the electric vehicle market in Türkiye marks a shift toward greener and more technological mobility, confirming Türkiye as a key player in the global energy transformation.

Source: Anadolu Agency, January 8, 2025