Türkiye FDI inflows jump 12% to $13.1 billion in 2025, defying global trend

Türkiye registered a robust 12.2% increase in foreign direct investment inflows during 2025, reaching $13.1 billion and outperforming a global contraction in developing-economy FDI, official data released Friday showed. The performance stands in sharp contrast to UNCTAD figures indicating a 2% decline in investments across developing countries overall.

Sectoral Breakdown: Retail, Manufacturing Lead

The wholesale and retail trade sector captured the largest share of investment—32%, or $3.052 billion—driven primarily by the expansion of e-commerce platforms across the country. Manufacturing followed closely with 31% ($3.02 billion), while information and communications accounted for 14% ($1.308 billion). The concentration of inflows in production, trade, and technology reflects sustained international confidence in Türkiye's productive capacity and digital transformation.

Top Investor Nations

The Netherlands emerged as the largest source of FDI into Türkiye, contributing $2.863 billion. Luxembourg followed with $1.164 billion, narrowly ahead of Kazakhstan at $1.138 billion. Completing the top ten investor countries were Germany, the United States, France, the United Arab Emirates, Switzerland, the United Kingdom, and Ireland—demonstrating diversified geographic sources of capital.

Structural Reforms Underpin Performance

Ahmet Burak Dağlıoğlu, head of Türkiye's Investment and Finance Office, attributed the surge to sustained reform momentum, including the HIT-30 high-tech investment program launched in 2024, incentive system updates, climate law implementation, and ongoing digitization. "Global tech brands and tech startups were particularly prominent targets," Dağlıoğlu stated, adding that Türkiye is solidifying its position "not as a mere regional hub but a critical global hub."